Human Resource Management Software Market is forecast to reach $31.4 billion by 2025, after growing at a CAGR of 13.07% during 2020-2025. Owing to the advantages of using the human resource management software in the organization including automation of manual HR activities, and analyzing the operational trends in the organization is accelerating the Human Resource Management Software market during the forecast period 2020-2025.
• Large Enterprises hold the major market share as of 2018 and are analyzed to grow at a significant rate during the forecast period 2020-2025, attributed to the increased focus on efficiency and productivity through the solutions.
• Increased demand for automation of systems in sourcing candidates as per job profile from IT & Telecom, retail and healthcare industries is analyzed to boost the market during the forecast period 2020-2025.
Deployment Model- Segment Analysis
The on-premise deployment model is analyzed to hold a major share in 2018. The major market share is majorly attributed to the advantages of on-premise deployment model including security, high customization and so on. In the high regulatory industries on premise deployment is employed as it provides more security when compared to cloud model as it does not necessarily use internet. However the shift of organizations to cloud model large data management is contributing to the significant growth rate of the on-cloud deployment model.
End-User- Segment Analysis
IT and Telecom industry held major market share in 2018 and is further estimated to grow at a CAGR of 14.06%. HR solutions have revolutionized the IT and telecom industry by providing the organization with human resources information system, automating payroll, employee management, performance management, workforce planning and analytics thereby helping in the improvement of productivity of organization. Further the use of software as a service is analyzed to elevate the market growth rate. Therefore the increasing developments such as investments, startups and so on for the deployment of human resource management software in the organizations owing to the advantages including productivity, efficiency are boosting the adoption rate of human resource management across various industries such as healthcare, retail and so on.
Geography- Segment Analysis
North America dominated the Human Resource Management Software market with a market share of 36.4%, followed by APAC and Europe. The major market share is majorly due to the increased adoption of cloud technologies, automation and so on. Moreover, the well-established economies of this region is also contributing to the major market share owing to the increased developments for the cloud model deployment. APAC is analyzed to grow at highest CAGR during the forecast period 2020-2025. The major factor contributing to the highest growth rate are the emerging economies such as China, India, South Korea and so on. Moreover, the increasing government initiatives towards digitalization and adoption of cloud technologies are further elevating the growth of the Human Resource Management Software Market.
Drivers –Human Resource Management Software Market
• Growing demand for cloud-based solutions
Cloud-based solutions in human resource management software helps the organization in remotely monitoring, analyzing the workforce thereby contributing to the growth of the organization. It furthers provides data-driven strategic recruiting, big-picture focus, embracing contract workers, remote connectivity, and many other benefits are acting as driving factors for organizations to adopt the cloud-based technologies and boosting the Human Resource Management Software Market.
Challenges – Human Resource Management Software Market
• Security Issues
Security is the major factor hampering the growth of the human resource management software market. Although the human resource management software has benefits such as easy deployment, cost-effectiveness and so on, security concerns arise when cloud-based deployment models are used. Small and Medium-scale enterprises widely use public cloud services owing to low cost, thereby increasing the scope for cyber-attacks, data breaches and so on. Therefore the security issues of employing a cloud service is the major factor hampering the adoption of cloud technologies during the forecast period.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Human Resource Management Software market. In 2018, the market of Human Resource Management Software has been consolidated by the top ten players including Accenture PLC, Automatic Data Processing (ADP)Inc., Cezanne HR Ltd., Ceridian HCM Inc., IBM Corporation, Kronos Inc., SAP SE, Talentsoft, Ultimate Software Group, Workday Inc.among others.
- In June 2019, Workforce software has announced strategic growth investment from Evergreen Coast Capital corp. to accelerate WorkForce Software’s global expansion and commitment to customer-first innovation.
- In Feb 2019, SAP AG has acquired a stake in Newgen Software Technologies Limited., which is a software company that provides solutions for Business Process Management and Enterprise Content Management.
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