Global Human Resource Management Market Size Report, 2020-2027 (Includes Business Impact of COVID-19)

  • TBI316263
  • November 28, 2020
  • Global
  • 132 pages
  • Lucintel

Industry Insights, Market Size, CAGR, High-Level Analysis: Global Human Resource Management Market

The global human resource management market size was valued at USD 16.01 billion in 2019 and is expected to exhibit at a CAGR of 11.7% from 2020 to 2027. Advancements in IT coupled with the introduction of predictive analytics in HR processes is expected to boost the growth. The evolution of various human resource management (HRM) solutions has enabled professionals to perform traditional HR activities in a reduced time span and with subsequently increased focus on attracting the right pool of candidates. It is helping retain human capital, aligning organizational strategies with individual goals, and managing human resources in a manner that results in organizational growth. Organizations across the globe are focusing on creating a digital workplace that enables high productivity, offers flexibility and mobility, and uses modern communication tools. This shift of business processes from legacy systems to digital HR is playing a significant role in the centralization of HR data across all the branches of an organization, thereby allowing for easy data access. Numerous HR software providers offer their solutions on cloud, allowing easy access from virtually any system across the organization. Buyers widely prefer cloud-based systems owing to flexibility in terms of usage, reduced maintenance charges, and elimination of installation time and costs. Conventionally, organizations relied on manual work/functioning for HR compliance and employee engagement leading to hindrances in efficient management of resources. The HRM software solutions overcome these issues by transforming all the manual work to a digital format. Moreover, these solutions are a centrally accessible and a supervisor can monitor, evaluate, and reward employees, even remotely. The HRM software not only improves efficiency and reduces the rate of error by automating many manual activities but also helps evaluate the operational trends within the organization. The companies are focusing more on improving employee engagement and efficiency by developing better employee experience platforms. Companies find it challenging to recruit suitable employees owing to the large number of applicants in an industry. Furthermore, organizations are adopting human resource management solutions to strategize recruitment employee engagement and to ensure proper internal communications. HRM solutions help in employee onboarding, managing employee timesheets and leave requests, and performance management, among others. Growing adoption of data analytics, machine learning, Internet of Things (IoT), and Artificial Intelligence (AI), is expected to fuel the market growth. Numerous HRM providers are creating innovative solutions that incorporate latest technologies into HR systems for better organizational performance. The solution providers are developing software/solutions that can be simply integrated into mobile apps, thus allowing employers and employees to access information from their own devices. These features increase the transparency across different departments in organizations and offer flexibility to access data at any time and from anywhere across the globe. Software Insights Based on software, the human resource management market is segmented into core HR, employee collaboration and engagement, recruitment, talent management, workforce planning and analytics, and others. The core HR software accounted for a major market share in 2019 owing to the high demand for automation of different HR functions in the department. Primary functions provided by the software include payroll administration, time and attendance, and HR compliance tasks. Benefits such as flexibility and easy access to data are resulting in its increased adoption across the globe. The talent management software segment is expected to grow rapidly over the forecast period. The talent management software assists HR professionals in increased strategic decision making. It helps them align the organizational goals with talent acquisition and succession planning activities, thereby increasing the overall performance of the company. Furthermore, it also offers features, such as inviting, recruiting, and retaining the employees who are believed to be the assets of the organization. The emergence of social media platforms and video platforms for recruiting is the latest trend driving the segment growth.

Service Insights of Global Human Resource Management Market

On the basis of service, the market is segmented into integration and deployment, support and maintenance, and training and consulting. The integration and deployment function accounted for the largest market share in 2019. The large-scale demand for the implementation of new HRM systems and/or integration of new systems with the existing systems at workplace is expected to drive the growth. Integration and deployment allows organizations to visualize and access data for better decision making. Hence, increased organizational demand to enhance the services of their existing systems, growing preference of automation, and adoption of cloud computing are some of the important factors driving the market growth. The support and maintenance segment is expected to witness the fastest growth during the forecast period. In the present scenario, technology is changing at a considerable pace, resulting in continuous upgrades in the system. Human resource management solutions also need to be updated with the changing technologies and organizations need vendor support in case of troubleshooting and technical issues, thereby resulting in the faster growth of the segment. The emergence of HRM business models to find and fix issues related to software quality is expected to further drive the growth.

Deployment Insights of Global Human Resource Management Market

On the basis of deployment, the market is segmented into hosted and on-premises. The on-premise segment dominated the market in 2019. Initially, when the HR processes were undergoing a transition from paper to software, the most feasible option was to implement on-premise solutions. Several organizations have opted for on-premise HR solutions as they do not require an internet connection and offer feasible options for the radical customization of the software. The on-premise solutions offer more data security and help companies to comply with various regulations. The hosted solutions segment is expected to account for the highest CAGR over the forecast period, owing to the increasing use of mobile devices and advancements in information sharing technologies. The increased availability of internet connections at affordable rates is expected to increase the demand for hosted deployment of HR solutions in organizations. Hosted solutions function in the form of Software as a Service (SaaS) that can be used without the need of purchasing it and even allow remote access using a web browser. Furthermore, the hosted solutions also offer convenience to companies and benefits such as rapid integration, low operational manpower requirement, and reduced maintenance. Enterprise Insights On the basis of enterprise size, the market is segmented into large enterprises and Small and Medium Enterprises (SMEs). The SMEs segment is expected to expand at the highest CAGR over the forecast period. Numerous SMEs are implementing HR solutions as they reduce the burden of carrying out administrative tasks and allow employees to focus on the organizational development. The segment is expected to adopt cloud-based deployment for implementing Human Capital Management (HCM) solutions owing to the cost benefits. Moreover, increasing foreign investments in major emerging economies for the development of SME businesses are further propelling the market growth. The large enterprise segment is expected to continue holding the largest market share over the forecast period. Numerous multinational companies and large enterprises have also implemented HR solutions to reap the benefits from these HR solutions. These solutions allow companies to manage the huge and scattered database and to avail real-time and centralized access to employee data across the globe. Large enterprises are adopting HRM solutions as they offer cost effectiveness and easy implementation process. For large enterprises, it is important to have successful HRM solutions as they require more flexibility, ease of system integration, and data privacy to efficiently manage the large workforce. End-use Insights On the basis of end use, the market for human resource management is segmented into academia, BFSI, government, healthcare, IT and telecom, manufacturing, retail, and others. The increasing demand from IT and telecom, retail, and healthcare sectors is predicted to drive the growth of the overall market. The high demand for automation of systems and sourcing candidates as per job profiles and organization structure is estimated to boost the demand for HR solutions across various industry sectors. Growth of any organization in any industry significantly depends on employee engagement, talent recognition, and learning. Continuous organizational expansion has created complexities in managing workforce. These factors are propelling the demand of HRM software and services across different industries. HR solutions in performance management, employee engagement, and workforce planning and analytics functions have revolutionized IT and telecom. Organizations are focusing on bringing about substantial improvements in the productivity of organization post the implementation of HR solutions for various HR disciplines. The IT and telecom segment is expected to dominate the market during the forecast period, owing to the growing importance of deploying advanced technologies in business processes. Furthermore, the companies are emphasizing on expanding their global footprint, which has created difficulties in tracking and managing the globally spread workforce, thereby driving the demand for efficient HRM solutions.

Regional Insights of Global Human Resource Management Market

North America dominated the HRM market in 2019. The presence of numerous HRM solution providers is expected to significantly drive the regional market growth. The organizations in U.S. are focusing on increasing labor efficiency and productivity by using HRM solutions for time and attendance, payroll, and talent management activities, which is expected to further boost the growth. North America, being an early adopter of latest technologies, has exhibited rapid implementation of cloud-native technologies. Asia Pacific is expected to maintain a rapid CAGR in future owing to the presence emerging economies, such as China and India. The growth can also be attributed to the increasing government initiatives for supporting the digitalization of business processes and adoption of cloud-based systems. The regional population is witnessing a shift toward service sector from agricultural or manufacturing sector, owing to better pay, which is further driving the regional market growth. Moreover, the emergence and high investment by large corporations, deploying new technologies are the factors driving the regional market growth.

Human Resource Management Market Share Insights

The market is highly fragmented in nature and several players hold a significant market share. The key participants include Accenture PLC; Automatic Data Processing (ADP), Inc.; Cezanne HR Ltd.; Ceridian HCM, Inc.; IBM Corporation; Kronos Incorporated; Mercer LLC; NetSuite, Inc.; Oracle Corporation; SAP SE; Talentsoft; Ultimate Software; and Workday, Inc. Major players are adopting various strategic initiatives, such as mergers and acquisitions, partnerships, and collaborations for technologies and new product development. For instance, in October 2018, Accenture acquired DAZ Systems, Inc., a provider of Oracle ERP Cloud services with experience in helping organizations in the deployment and integration of enterprise performance management and human capital management applications. The acquisition aimed at strengthening Accenture's robust Oracle capabilities and delivers new value for clients on their journeys to the cloud.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Global Human Resource Management Market Research Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global human resource management market report based on software, service, deployment, enterprise size, end use, and region:

Software Outlook (Revenue, USD Million, 2019 - 2030)

  • Core HR
  • Employee Collaboration & Engagement
  • Recruiting
  • Talent Management
  • Workforce Planning & Analytics
  • Others

Service Outlook (Revenue, USD Million, 2019 - 2030)

  • Integration & Deployment
  • Support & Maintenance
  • Training & Consulting

Deployment Outlook (Revenue, USD Million, 2019 - 2030)

  • Hosted
  • On-premise

Enterprise Size Outlook (Revenue, USD Million, 2019 - 2030)

  • Large Enterprise
  • Small & Medium Enterprise

End-use Outlook (Revenue, USD Million, 2019 - 2030)

  • Academia
  • BFSI
  • Government
  • Healthcare
  • IT & Telecom
  • Manufacturing
  • Retail
  • Others

Table of Contents
Chapter 1 Methodology and Scope                    1.1 Research Methodology                    1.2 Research Scope and Assumptions                    1.3 List of Data SourcesChapter 2 Executive Summary                    2.1 Human Resource Management (HRM) Market - Industry Snapshot & Key Buying Criteria, 2016 - 2027                    2.2 Global Human Resource Management (HRM) Market, 2016 - 2027 (USD Million)                        2.2.1 Global Human Resource Management (HRM) market, by region, 2016 - 2027                        2.2.2 Global Human Resource Management (HRM) m
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