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Report Overview: Global HR Analytics MarketThe global HR analytics market size was valued at USD 1.14 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 13.1% from 2021 to 2027. The growing need for improving the efficiency and reduce the operational cost in an organization is likely to generate the demand for HR analytics across various industries. It allows the organization to promote workforce optimization and create metrics for full workforce performance improvement. It can analyze and access huge unstructured data in real-time to implement business decisions related to human resource utilization, which is crucial for business development. Growing need to employ skilled talent and enhance employee retention with the help of innovative technologies such as Internet of Things (IoT) and analytics is projected to push the market growth. With the help of these solutions, the companies can focus more on improving employee engagement, easy employee on-boarding, and increasing workforce efficiency. These analytical solutions allow HR professionals to manage, attract, and retain employees, which can subsequently lead to an increased Return on Investment (ROI) for the organization, help in improving productivity, and provide a better work environment. Human resource management solution providers are focusing more on current technological trends in the fields of Internet of Things (IoT) and Artificial Intelligence (AI) to improve their software designs as per the customer requirements. Many companies are investing in R&D activities to provide solutions that are easy to understand, deploy, and offer increased efficiency for the clients. For instance, major solutions providers, such as Oracle; SAP SE; and Workday Inc. offer their products on cloud in order to reduce the need for upgrading systems frequently. Furthermore, Government initiatives to support the adoption of digital technologies, mobile applications, and internet connectivity to reduce manual efforts in a bid to enhance the productivity of organizations, are expected to fuel the market growth. Over the last decade, there is a vast amount of workforce data available with the organizations, which, if used well, can lead to significant conclusions pertaining to an organization’s decisions. Rapid technological advancements in the fields of analytics and availability of workforce data have resulted in many organizations applying these technologies in their business processes. Recruiting and training employees is an expensive process and if the employee leaves the organization without serving for a significant period it becomes a loss for the organization. Hence, employee retention, talent management, and succession planning, among others have become critical factors for improving the overall organizational performance. The use of HR analytics helps organizations in better decision-making and maximizing their capital, which is subsequently accelerating the growth of the HR analytics market. Although the HR analytics offers several benefits such as cost-effectiveness and ease of deployment, among others, security concerns pose a threat to the market growth. Small and Medium Enterprises (SMEs) are increasingly adopting public cloud services due to its low cost, thus increasing the possibility for data breaches, cyber-attacks, and so on. Hence, the security issues related to using cloud service is the major challenging factor hindering the adoption of HR analytics. However, if efforts are made between HR management teams and IT teams to agree upon a set of technical controls then this could result in the prevention of cyber-attacks and data loss.
Solution Insights: Global HR Analytics MarketThe workforce planning solution accounted for a major share in 2019 owing to the demand to put the right people at the right job for achieving business objectives. A workforce planning solution allows organizations to forecast an accurate number of employees needed to finish a job. Organizations employ the workplace planning solution for standardizing processes across various departments. The adoption of this solution allows organizations to increase employee performance, productivity, and satisfaction, and hence, companies are increasingly adopting workforce planning HR analytics solutions. The quality of the people working in the organization forms the backbone of any business success. The organizations need to understand the performance, trends, and profiles that enable them to attract talent across distinct geographic locations in order to hire the right talent. The talent analytics solution enables organizations to align their goals with talent acquisition activities, thus increasing the performance of the company. The integration of talent analytics solutions enables companies to make improved decisions and hence the segment is expected to witness significant growth over the next eight years.
The IT and Telecom segment is expected to dominate the market in 2019 as this industry caters to the large workforce and it has the technical infrastructure needed to deploy analytics solutions. Additionally, the companies in this industry are expanding their global footprint, which has created difficulties in managing the globally scattered workforce, thus driving the demand for efficient HR analytics solutions. The globalization of the IT and Telecom industry has resulted in a surge of investments in HR analytics startups for the deployment of solutions in this industry owing to which it is witnessing remarkable growth. The BFSI segment is experiencing massive disruption, owing to competitive pressures and regulatory changes. It is facing distinctive challenges, such as information security threats, compliance requirements, and low-profit margins. The challenges are encouraging the BFSI industry to adopt HR analytics for associating workforce to reorganize operations and minimize workforce costs. Enterprises in this end use segment are emphasizing on embracing the HR analytics to improve the performance of their marketing representatives and sales employees.
End-use Insights: Global HR Analytics Market
Service Insights: Global HR Analytics MarketThe implementation and integration segment accounted for the largest market share in 2019. These services enable easy deployment of HR analytics in organizations. These services ensure that solutions would be integrated easily with their external and internal systems and get the most out of its investments done on the IT infrastructure. The system integrators help organizations to understand the operational functionalities of their present systems and create reliable connectivity among solutions for revenue growth. Hence, enhanced organizational demand to improve services of their existing systems, increasing automation, and adoption of cloud computing are the important factors driving the growth. The support and maintenance segment is expected to emerge as the fastest growing segment over the forecast period 2021-2027. Technology is changing rapidly, resulting in constant upgrades in the system. HR analytics solutions should be updated with the changing technologies and organizations need vendor support in case of technical issues. The analytics follow several factors that need to be considered, such as understanding the software technicalities, seamlessly importing/exporting data, and regularly updating the software. As a result, the support and maintenance services are anticipated to gain traction over the forecast period.
Deployment Insights: Global HR Analytics MarketOn-premise solutions are simply replaceable and offer the tractability to customize operations and enhance plug-ins when required. This is expected to stimulate the on-premise deployment demand during the forecast period. However, on-premise deployment involves dedicated IT staff for support and maintenance. Moreover, the deployment of HR analytics is expensive due to which the segment is expected to witness slower growth in comparison to cloud deployment. The hosted segment is expected to expand at the highest CAGR owing to the increasing use of mobile devices and advancements in information sharing technologies. Today, organizations are emphasizing on deploying their solutions on the cloud, as it offers several advantages, including flexibility in capacity, scalability, remote accessibility, cost efficiency, and enhanced collaboration. The execution of cloud HR analytics enables large enterprises and SMEs to focus on core competencies, instead of IT processes. With cloud-based HR analytics, costs related to storage, software, and technical staff can be avoided.
Enterprise Insights: Global HR Analytics MarketThe SME segment is expected to expand at the highest CAGR over the forecast period. Compared to larger enterprises, the SMEs face more resource crunch and need better methods to solve the difficulties for cost optimization on their requirements and assets. Hence, the SMEs are majorly concentrating on utilizing the HR analytics solutions to control their functions across multiple geographies and operate multiple workers. Additionally, the SME segment is projected to implement cloud-based deployment solutions owing to its cost benefits. Furthermore, growing foreign investments in emerging economies for the promotion of SME businesses is anticipated to keep the segment growth prospects upbeat. The large enterprise segment is expected to dominate over the forecast period. Large enterprises employ a large workforce and hence have huge data that needs to be effectively managed in local as well as overseas offices. To manage this data, the large enterprises implement HR analytics solutions, allowing HR professionals to focus on talent acquisition and succession planning functions instead of performing traditional activities. For large enterprises, it is important to have successful HRM solutions as it requires more flexibility, ease of system integration, and data privacy to efficiently manage the large workforce. Hence, the large enterprises are adopting HR analytics solutions and are contributing the market growth.
Regional Insights: Global HR Analytics MarketNorth America dominated the market in 2019. The presence of many HR analytics solution providers in the region is expected to significantly drive market growth. The well-established economy of this region is also contributing to the increased developments for the cloud-based HR analytics model deployment. The region includes developed countries, such as the Canada and U.S., and these are considered as the most developed in terms of adopting digital technologies. Furthermore, their robust financial position allows these countries to heavily invest and adopt leading technologies and solutions for effective business operations. The Asia Pacific is expected to maintain rapid growth in the near future owing to the presence of emerging economies such as China, India, and Philippines. Additionally, the increasing government programs towards the adoption of cloud technologies and digitalization are further promoting the growth. The growing start-up culture coupled with the need to increase productivity and performance of the employee and the company is also expected to propel the regional market growth. Furthermore, the Association of Southeast Asian Nation (ASEAN) is taking several initiatives to promote the automation of HR activities and their integration with financial and organizational business processes. For instance, in May 2017, SAP and ASEAN Foundation announced a partnership to create data science education and competitions to propose solutions for different business functions including HR across different industries.
Key Companies & Market Share Insights: Global HR Analytics MarketThe market is highly fragmented and several players hold a significant share. Major industry players are adopting various strategic initiatives such as mergers and acquisitions, partnerships, and collaborations for increasing their customer base. For instance, in February 2020, Ultimate Software and Kronos Incorporated announced their merger agreement. The merger will create the world’s most innovative workforce management and Human Capital Management (HCM) company to support organizations across all industries that operate their people more efficiently with an innovative combination of cloud solutions. Some of the prominent players in the HR analytics market include:
Key companies Profiled: Global HR Analytics Market 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 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global HR analytics market report based on solution, service, deployment, enterprise size, end use, and region:
- IBM Corporation
- MicroStrategy Incorporated
- SAP SE
- Kronos Incorporated
- TABLEAU SOFTWARE
- Sage Software Solutions Pvt Ltd
- Zoho Corporation Pvt. Ltd.
- Workday, Inc.
Solution Outlook (Revenue, USD Million, 2016 - 2027)
- Employee Engagement & Development
- Payroll & Compensation
- Talent Analytics
- Workforce Planning
Service Outlook (Revenue, USD Million, 2016 - 2027)
- Implementation & Integration
- Support & Maintenance
- Training & Consulting
Deployment Outlook (Revenue, USD Million, 2016 - 2027)
Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)
- Large Enterprise
- Small & Medium Enterprise
End-use Outlook (Revenue, USD Million, 2016 - 2027)
- IT & Telecom
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 HR Analytics Market - Industry Snapshot & Key Buying Criteria, 2016 - 2027 2.2 Global HR Analytics Market, 2016 - 2027 (USD Million) 2.2.1 Global HR analytics market, by region, 2016 - 2027 2.2.2 Global HR analytics market, by solution, 2016 - 2027 | read more...