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The HR software market share is expected to increase by USD 11.17 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 10.68%.
This HR software market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the HR software market segmentation by deployment (cloud and on-premise) and geography (North America, Europe, APAC, the Middle East and Africa, and South America). The human resource (HR) software market report also offers information on several market vendors, including Accenture Plc, Automatic Data Processing Inc., Automatic Payroll Systems Inc., Bamboo HR LLC, Ceridian HCM Holding Inc., Cornerstone OnDemand Inc., EmployWise, Epicor Software Corp., HR Bakery Ltd, International Business Machines Corp., isolved HCM LLC, Oracle Corp., PATRIOT SOFTWARE LLC, Paycom Software Inc., Paycor Inc., Paylocity Holding Corp., Rippling People Center Inc., SAP SE, UKG Inc, and Workday Inc. among others.
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Increased HR software budgets are notably driving the HR software market growth, although factors such as data privacy and security concerns may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic's impact on the HR software industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key HR Software Market Driver
Increased HR software budgets are one of the key drivers fueling the human resource (HR) software market growth. Large companies are spending almost 10% of their HR budgets on advanced technologies, such as human capital management (HCM) and human resource management system solutions. The adoption of cloud-based solutions has fueled huge growth in cloud-based HR technologies. The HR software market is radically changing, with more venture capitalists investing in new HR software sold by market vendors, including tools for payroll processing, tax management, customized dashboards, and analytics. Therefore, the market is expected to grow significantly during the forecast period as much of the old software will be replaced by agile, easy-to-use mobile applications.
Key HR Software Market Trend
The rising adoption of digital HR technology is one of the key human resource (HR) software market trends propelling market growth. Mobile phones have become the most preferred channel for work among employees, and this has provided organizations with an opportunity to adopt mobile HR technologies. Organizations are increasingly focusing on improving the employee experience by digitalizing their HR processes and systems using new digital platforms. Advanced technologies that are playing a key role in this transformation are mobile applications, social media, analytics, and the cloud. Digital HR technology provides a single platform for improving employee and candidate experience by integrating analytics, social media websites, mobile platforms, and cloud technologies. Such factors will drive market growth during the forecast period.
Key HR Software Market Challenge
Data privacy and security concerns are one of the factors limiting the human resource (HR) software market's growth. The benefits of cloud-based solutions include the simplified management of software maintenance and upgrades, low upfront costs, and others to overcome any functional gaps in existing systems and processes. However, organizations will transfer their data or information to the cloud only if the services are reliable and secure. Organizations have less control over such data as they have become more dependent on cloud computing service providers. Many end-users are also concerned about data security policies governing cloud-based solutions because cloud storage acts as a gateway for security threats and privacy issues. Such factors are anticipated to hinder the growth of the market during the forecast period.
This HR software market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global HR software market in the banking, financial services, and insurance (BFSI) sector as a part of the global application software market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the human resource software market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the human resource software market encompasses successful business strategies deployed by the key vendors. The human resource software market is fragmented, and the vendors are deploying growth strategies such as price, quality, innovation, reputation, brand identity, and distribution to compete in the market.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.
The human resource software market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our In-house experts produce extensive information on the value chain and parent market of the HR software market, which vendors can leverage to gain a competitive advantage during the forecast period. The Value Chain information provides an end-to-end understanding of product insight and profit and also optimization and evaluation of business strategies The players across the value chain includes selective data and analysis from entire research findings as per the scope of the report.
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33% of the market’s growth will originate from North America during the forecast period. The US is the key market for the HR software market in North America. Market growth in this region will be faster than the growth of the market in APAC.
The increasing penetration of social media will facilitate the HR software market's growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID-19 Impact and Recovery Analysis
The regional market witnessed a slowdown in growth owing to the COVID-19 outbreak in early 2020. However, with the lifting of lockdown restrictions in the second half of 2020 owing to large-scale vaccination drives, the demand for on-premises HR software solutions also increased. These factors are expected to propel the growth of the market during the forecast period.
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The HR software market share growth in the cloud segment will be significant during the forecast period. Cloud-based HR software solutions are becoming more popular, especially among small businesses, due to their cost-effectiveness. This, in turn, will drive the growth of the market in the cloud-based deployment segment during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the human resource software market size and actionable market insights on the post-COVID-19 impact on each segment.
HR Payroll Software market - The market share is expected to increase by USD 2.09 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 8.57%.
HR Software Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.68% |
Market growth 2022-2026 |
$11.17 billion |
Market structure |
Fragmented |
YoY growth (%) |
9.84 |
Regional analysis |
North America, Europe, APAC, the Middle East and Africa, and South America |
Performing market contribution |
North America at 33% |
Key consumer countries |
US, Japan, India, Germany, and UK |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
Accenture Plc, Automatic Data Processing Inc., Automatic Payroll Systems Inc., Bamboo HR LLC, Ceridian HCM Holding Inc., Cornerstone OnDemand Inc., EmployWise, Epicor Software Corp., HR Bakery Ltd, International Business Machines Corp., isolved HCM LLC, Oracle Corp., PATRIOT SOFTWARE LLC, Paycom Software Inc., Paycor Inc., Paylocity Holding Corp., Rippling People Center Inc., SAP SE, UKG Inc, and Workday Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Deployment
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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