Global Human Resource Management Market Size, Share & Trends Analysis By Component, By Software, By Service, By Deployment, By Enterprise Size, By End-use, By Region,- Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

Human Resource Management Market Size and Research

The global human resource management (HRM) market size was exhibited at USD 25.55 billion in 2023 and is projected to hit around USD 80.78 billion by 2033, growing at a CAGR of 12.2% during the forecast period 2024 to 2033.

Human Resource Management Market Key Takeaways:

• The software segment accounted for a major revenue share in 2023.
• The core HR segment is anticipated to account for largest market share in 2023 with a revenue.
• The talent management segment is estimated to witness the fastest CAGR from 2024 to 2033.
• Based on service, integration and deployment segment accounted for notable revenue share in 2023.
• The support and maintenance segment is estimated to record the fastest CAGR from 2024 to 2033. 
• Based on deployment, on-premise segment dominated the market in 2023.
• Large enterprise segment dominated the global human resource management market in 2023.
• IT & telecom category, based on end-use segment, achieved the highest revenue share in 2023.
• North America dominated the market in 2023 with a revenue share of over 34.0%.
• Asia Pacific is anticipated to witness the fastest CAGR from 2024 to 2033.

Report Scope of Human Resource Management Market

The growing implementation of digitization and automation of human resource processes to develop effective and agile approaches is anticipated to add to the demand of the market over the estimated period. The development can also depend on the efforts enterprises are putting into enticing the right pool of applicants, managing resources efficiently and retaining human capital. Enterprises are integrating these developments as these human resource management solutions have potential to enhance and improve the HR operations, thereby driving the market.

Moreover, the improvements in modern technologies, such as predictive analytics, Machine Learning (ML), and Artificial Intelligence (AI) are simplifying the incorporation of HRM solutions with analytics. For instance, HRM software and services are deploying AI-powered chatbots to answer regular employee questions regarding pay structure, leave policy, and more. It is anticipated that these modern technologies will be able to complete routine tasks so that HR personnel can increase productivity. Simultaneously, startups are evolving collaboration software and mobile applications that can provide employees and employers with the ease of accessing essential information on the go. This, in turn, is expected to add to the market growth.

Furthermore, the demand for HRM software and services is expected to grow due to the application of predictive analytics as it is helpful in developing inferences regarding incessant employee progress through numerous charts and infographics. HRM solution providers are concentrating on developing and designing advance software solutions with the shifting requirements of clients. The development of such innovative solutions is expected to result in market growth.

In post-COVID-19 pandemic world, remote working and hybrid work is turning out to be the new norm. Thus, market players are focused on providing HRM solutions that are easy and efficient to install and can possibly support the remote working model by investing in R&D activities. Concurrently, due to the adoption of remote work, key market companies, such as SAP SE, Oracle, UKG Inc., and Workday Inc. are improving their HRM solutions in accordance with the upcoming trends and are also offering products over the cloud as part of the efforts to nullify the need for constant system upgrades. All these aspects are estimated to contribute to market growth.

Remote working practices encourage Small and Medium Enterprises (SMEs) to determine modern HRM solutions so that strategic decisions can be made efficiently. The acceptance of HRM solutions among these establishments is increasing in line with the strong emphasis they are putting on workforce planning and talent acquisition to address the challenges allied with retaining human capital and operational efficiency. Additionally, large companies are seeking a single solution to acknowledge all their HR requirements. Key market players, such as ADP, Inc., have now announced robust HRM solutions to satisfy the requirements of large establishments. Workday Inc. is offering combined real-time HR data with immunization statistics in their COVID-19 vaccine management solution, thus providing establishments with the insights and resources needed to assist in ensuring a safer workplace and a healthy workforce.

Human Resource Management Market By Component Insights

The software segment accounted for a major revenue share in 2023. This growth can be credited to the high demand for talent management and core HR software from companies of various industries for retaining workforces. Talent management and core HR software can also help in improving workflows and subsequently refining the overall organizational productivity. Core HR solutions primarily helps management in making strategic decisions by minimizing the load of performing traditional HR duties. For instance, in February 2023, The Amenity Collective, a lifestyle services and hospitality company, deployed Workday Human Capital Management (HCM), Workday Payroll, Workday Financial Management, and Workday Learning solutions developed by Workday, Inc. to break down data silos and drive efficiencies, revving its business transformation.

Commonly, companies have trusted on manual operations for HR compliance and employee engagement, thereby hampering efficient resource management. However, HRM software solutions can address these problems by digitalizing all the manual operations. Additionally, HRM software solutions are centrally manageable and can be supervised by managers to assess and reward employees, even in a remote working model. HRM software not only enhances productivity by automating manual tasks and diminishes the error rate but also helps in assessing the operational trends within the company.

Human Resource Management Market By Software Insights

The core HR segment is anticipated to account for largest market share in 2023 with a revenue. The increased need for automating various HR operations in the department is in control for the major revenue share. Payroll administration, attendance and time management, and HR compliance are the main features of core HR software. Some of the functions that are driving the acceptance of core HR software around the world are flexibility and simple access to data.

The talent management segment is estimated to witness the fastest CAGR from 2024 to 2033. Talent management software helps HR professionals in aligning the talent acquisition and planning activities and making calculated decisions with the company’s goals, thus improving the overall organizational performance. The software also has a number of features that can assist in inviting, hiring, and retaining people that are regarded as valuable additions to the company. The growing use of video platforms and social media platforms for recruiting is also providing growth to the segment.

Human Resource Management Market By Service Insights

Based on service, integration and deployment segment accounted for notable revenue share in 2023. The leading revenue share can be credited to the increased need to resolve he technical issues while implementing an HRM system, troubleshooting and updating software intermittently. The majority of businesses opt for deployment and integration services to install software and integrate it with existing systems across several departments. These services allow establishments to access and visualize data, and ultimately use it in the decision-making processes. The rising organizational demand to improve the competence of the existing systems, shifting towards automation and adoption of cloud computing are some of the important aspects that are driving the development of the market.

The support and maintenance segment is estimated to record the fastest CAGR from 2024 to 2033. The continuous advancements in technology are demanding continuous advancements to the HR system that uphold data. Thus, HRM solutions are also required to be updated regularly in line with the developments in technology and companies need strong vendor support for troubleshooting and technical problems. This, in turn, is driving the growth of the segment.

Human Resource Management Market By Deployment Insights

Based on deployment, on-premise segment dominated the market in 2023. During the early stages of implementing HR software to substitute manual activities, on-premise solutions were the most practical alternative. On-premise HR solutions were preferred by certain firms since they do not need internet connectivity but yet allow for extensive customization of the system. On-premise solutions also provide data security while helping establishments in fulfilling several regulations.

The demand for hosted deployment is expected to rise considerably over the estimated period. Cloud or hosted deployment allows users to access data from any location effortlessly. It also reduces the need for constant software upgrades. Hosted solutions also offer benefits and convenience, such as low operational manpower requirement, rapid integration, and reduced maintenance. Some HRM solution providers, such as Oracle, SAP SE, ADP, Inc., and IBM, have now started offering their services on the cloud.

Human Resource Management Market By Enterprise Size Insights

Large enterprise segment dominated the global human resource management market in 2023. The dominant revenue share can be credited to the aggressive implementation of HRM solutions by some large organizations to manage their enormous databases of employees efficiently. These solutions enable HR personnel to quickly access employee data, decreasing the time spent on manual duties such as performance goal tracking, feedback, and reviews. These technologies assist businesses to handle massive personnel databases and provide secure, real-time access to employee information throughout the globe.

The SME segment is estimated to register the highest CAGR over the forecast period. Several SMEs are adopting HR solutions to decrease the burdens of carrying out administrative tasks and instead focus on administrative growth. SMEs are particularly estimated to implement cloud-based Human Capital Management (HCM) solutions due to the cost benefits offered by cloud-based solutions.

Human Resource Management Market By End-use Insights

IT & telecom category, based on end-use segment, achieved the highest revenue share in 2023. End-users of HRM solutions comprise government agencies as well as several other institutions operating in various industries and industry verticals, including Banking, Financial Services, and Insurance (BFSI), education, healthcare, manufacturing, IT & telecom, retail, media & entertainment, and others. The large revenue share can be ascribed to the growing demand for system automation and the requirement to source candidates based on job profiles and organizational structure throughout the IT industry.

Talent recognition, learning, and employee engagement is one of the crucial part for growth of organization. Constant organizational growth is known to make workforce management more difficult. All of these factors point to an increase in demand for human resource management software solutions and services. This demand is expected to arise across a variety of businesses and verticals due to the ongoing trend of digitization.

HRM software and services are in high demand in the retail business due to the increasing need to match internal consumer expectations and overcome obstacles in employee retention processes. The rapid growth of the retail industry has encouraged large-scale recruiting at all levels, as well as the need to retain employees by providing better career routes, perks, and job roles. Many establishments functioning in the retail industry are adopting HRM solutions to modernize these functions.

Human Resource Management Market By Regional Insights

North America dominated the market in 2023 with a revenue share of over 34.0%. North America is home to numerous HRM solution providers. Establishments in the U.S. are particularly concentrating on increasing productivity and labor efficiency by deploying HRM solutions for payroll management, attendance & time tracking, and talent management, among other processes. North America has adopted cloud-native technologies excessively and has continuously been an early adopter of modern technologies.

Asia Pacific is anticipated to witness the fastest CAGR from 2024 to 2033 due to the investments being made by governments and the initiatives being pursued in the region in digitization. Furthermore, the regional market will be driven by the increasing number of automation initiatives being conducted to improve organizational productivity. The presence of a skilled and large work force is also estimated to drive the demand for recruitment and talent management software in the region as enterprises look to hire perfect people that fill empty roles. The unaggressive investments in the deployment of new technologies bode well for the regional market's growth.

Human Resource Management Market Recent Developments

• In October 2023, ADP, Inc. announced the launch of specialized ADP Workforce Now software designed for the construction sector. This software ensures precise payroll processing, efficient HR management, and improved recruitment and development of workers within the construction industry.
  
  
• In October 2023, EY collaborated with IBM to launch EY.ai Workforce, an advanced HR solution facilitating organizations in seamlessly incorporating AI into their key HR business processes. This development signifies a crucial progression in the ongoing partnership between the two companies, representing a significant achievement in leveraging AI to enhance productivity within the HR function.
  
  
• In October 2023, Oracle introduced generative AI-powered features to enhance Oracle Fusion Cloud Human Capital Management (HCM). Utilizing the Oracle Cloud Infrastructure (OCI) generative AI service, these new capabilities seamlessly integrate into existing HR processes to accelerate business value, boost productivity, elevate both candidate and employee experiences, and streamline overall HR operations.
  
  
• In September 2023, Accenture and Workday, Inc. announced the expansion of their partnership to empower organizations to transform their finance functions to be more data-driven, agile, and customer-centric.The collaboration aim to create a set of composable, data-centric finance solutions that can be configured and reconfigured to assist clients in the software and technology, retail, and media sectors to better adapt to evolving business needs and enhance their responsiveness in the dynamic market landscape.
  
  
• In September 2023, Workday, Inc. introduced a range of new features in its Workday Human Capital Management (HCM) software, designed to streamline and enhance the managerial experience. These additions assists managers by providing them with the necessary tools to lead with efficiency and effectiveness, aiming to simplify their responsibilities within the human resources realm.

Some of the prominent players in the global human resource management (HRM) market include:

• Accenture
• ADP, Inc.
• Cegid
• Ceridian HCM Holding, Inc.
• Cezanne HR
• IBM
• Mercer LLC
• Oracle
• PwC
• SAP SE
• UKG, Inc.
• Workday, Inc.

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global human resource management (HRM) market

Component

• Software
• Service

Software

• Core HR
• Employee Collaboration & Engagement
• Recruitment and Applicant Tracking
• Talent Management
• Learning Management
• Workforce Planning & Analytics
• Others

Service

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

Deployment

• Hosted
• On-premise

Enterprise Size

• Large Enterprise
• Small & Medium Enterprise (SME)

End-use

• Education
• Banking, Financial Services, and Insurance (BFSI)
• Government
• Healthcare
• IT & telecom
• Manufacturing
• Retail
• Others

Regional

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)