HR Payroll Software Market Report, Global, 2024

The HR payroll software market size has grown rapidly in recent years. It will grow from $31.22 billion in 2023 to $35.27 billion in 2024 at a compound annual growth rate (CAGR) of 13%. The growth in the historic period can be attributed to increased demand for automation in payroll processing, growth in the adoption of cloud-based payroll solutions, increased focus on employee self-service, increased emphasis on data security, and growth in the adoption of biometric authentication.

The HR payroll software market size is expected to see rapid growth in the next few years. It will grow to $57.99 billion in 2028 at a compound annual growth rate (CAGR) of 13.2%. The growth is anticipated due to the expanding adoption of AI, growing utilization of blockchain technology, rising interest in real-time payroll reporting, increasing reliance on chatbots and virtual assistants for employee support, and heightened demand for customizable payroll solutions. Key trends expected in the forecast period encompass innovations, advancements in machine learning, the continued evolution of technology, widespread adoption of cloud-based solutions, and the integration of chatbots into payroll systems.

The increasing demand for cloud-based solutions is expected to propel the growth of the HR payroll software market going forward. Cloud-based solutions refer to software applications or services that are hosted, accessed, and managed remotely over the Internet. The cloud-based solutions adoption includes the demand for scalability, the assurance of data security, and compliance measures provided by cloud service providers. Cloud-based HR payroll software enables remote access, which is essential to handling payroll across numerous locations, while its seamless connection with various corporate platforms improves data transmission, eventually increasing productivity by reducing manual tasks. For instance, in April 2023, according to 750 IT respondents data collected from a survey by Flexera, a US-based computer software company, in 2022, 87% of organizations adopted a multi-cloud, of which 72% adopted a hybrid cloud, 13% adopted multiple public clouds, and 2% a multiple private cloud. Furthermore, the cloud spending by small and medium-sized businesses (SMBs) reflects a massive uptake with 52% of spending more than $1.2 million in 2022, up from 38% reported in 2021. Therefore, the increasing demand for cloud-based solutions is driving the growth of the HR payroll software market.

Leading companies in the HR payroll software market are emphasizing platform-based solutions that leverage advanced technologies such as artificial intelligence (AI) and machine learning (ML). These technologies automate and optimize payroll processing and management, offering businesses a competitive advantage. For instance, in February 2024, Ramco Systems Limited, an India-based technology company, launched Ramco Payce, a platform-based payroll system created to completely transform business payroll administration. It utilizes cutting-edge technology such as artificial intelligence, machine learning, data analytics, and serverless in-memory, for quick setup, expedited payroll processing, and improved accuracy. It has features such as AI-driven payroll compliance, on-demand reporting, easy interaction with top HCM systems, and no-code rule development. Businesses can operate effortlessly with this solution, adjust payroll procedures to the changing needs of their staff, and obtain unmatched control and oversight over payroll data, all of which support strategic growth objectives and decision-making.

In January 2021, Juniper Education Services Limited acquired Jane Systems, a UK-based provider of HR and payroll software. This acquisition aims to enhance Juniper's services for schools and multi-academy trusts in effectively managing their staff. Jane Systems offers modules for payroll, recruitment, talent management, and performance management, complementing Juniper's portfolio of education services.

Major companies operating in the HR payroll software market are Oracle Corporation, SAP SE, ADP LLC (Automatic Data Processing Inc.), Workday Inc., UKG Inc., Sage PLC, Kronos Incorporated, The Access Group Ltd., Paycom Software Inc., Ceridian HCM Holding Inc., Zoho Corporation Pvt. Ltd., Epicor Software Corporation, Paylocity Holding Corporation, Cornerstone OnDemand Inc., SuccessFactors Inc., SumTotal Systems LLC, Ascentis Corporation, Keka Inc., Greytip Software Pvt. Ltd., Vibe HCM Inc., HRMantra Software Pvt. Ltd., Patriot Software LLC, Kredily, Paybooks Inc., SumoPayroll.

North America was the largest region in the HR payroll software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the HR payroll software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the HR payroll software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Human resources (HR) payroll software encompasses digital platforms and tools that automate and streamline the management of payroll activities and HR functions within a company. It enables organizations to efficiently handle employee payroll tasks, including salary calculations, tax deductions, benefits administration, and compliance with labor regulations.

The components of HR payroll software consist of software and services. Software entails programs and applications tailored to digitally manage HR payroll functions, encompassing salary calculations, report generation, and attendance tracking. It can be deployed both on-premises and in the cloud, catering to organizations of various sizes, from large enterprises to small and medium-sized enterprises (SMEs). HR payroll software serves diverse applications, including payroll processing, benefits management, tax filings, and maintenance of employee records across multiple industry sectors, such as banking, financial services, insurance, retail, manufacturing, transportation and logistics, information technology, telecom, healthcare, and others.

The HR payroll software market research report is one of a series of new reports that provides HR payroll software market statistics, including the HR payroll software industry global market size, regional shares, competitors with HR payroll software market share, detailed HR payroll software market segments, market trends, and opportunities, and any further data you may need to thrive in the HR payroll software industry. These HR payroll software market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The HR payroll software market includes revenues earned by entities by providing payroll processing, tax management, employee onboarding, employee self-service portals, and compliance monitoring services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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