Global Human Resource (HR) Software Market Report 2024

The human resource (HR) software market size has grown strongly in recent years. It will grow from $45.95 billion in 2023 to $50.0 billion in 2024 at a compound annual growth rate (CAGR) of 8.8%. The growth can be attributed to the rising demand for automation, the expansion in the adoption of cloud-based solutions, increased utilization of AI, the trend of globalization, and the growing requirement for mobile-friendly solutions.

The human resource (HR) software market size is expected to see strong growth in the next few years. It will grow to $70.62 billion in 2028 at a compound annual growth rate (CAGR) of 9%. The anticipated growth can be linked to the rising adoption of blockchain technology, the burgeoning trend of gamification, increased utilization of chatbots, the growing demand for HR software offering flexible scheduling options, and the surging interest in virtual reality. Key trends expected in the forecast period include the emergence of generative AI, seamless integration of technology, prioritization of mobile-first HR solutions, and continuous technological advancements.

The surge in demand for remote work is anticipated to drive growth in the human resource (HR) software market. Remote work involves employees operating outside traditional office settings, often from home or other distant locations. This trend's rise is attributed to various factors such as access to global talent, flexibility, and work-life balance. HR software facilitates virtual recruitment, onboarding, performance management, and communication among remote workers, ensuring smooth HR operations regardless of location. For instance, in May 2022, according to the Office for National Statistics, a UK-based non-ministerial department, the proportion of workers hybrid working has risen from 13% in early February 2022 to 24% in May 2022. the proportion of homeworkers planning to work mostly from home rose 12 percentage points between April 2021 and February 2022. Moreover, the proportion who planned to return to their place of work permanently fell from 11% in April 2021 to 8% in February 2022. Therefore, the increasing demand for remote work is driving the growth of the human resource (HR) software market.

Major players in the HR software market are concentrating on introducing advanced solutions, including AI-powered HR solutions, to enhance service delivery and gain a competitive edge. AI in HR solutions integrates automation, predictive analytics, and natural language processing to streamline HR processes, enhance employee experiences, and support data-driven decision-making. For instance, in January 2024, Pipefy Inc., a US-based technology company, launched Pipefy AI for HR, a complete solution with configurable chatbots and AI-driven automation to improve HR procedures. This software streamlines processes such as reading policies, making requests for vacation time or reimbursements, and looking for solutions to frequently asked HR problems by giving employees 24/7 access to HR-related information and services.

In March 2023, Moorepay Limited, a UK-based technology company, acquired Natural HR Limited for an undisclosed amount. The acquisition aims to strengthen Moorepay's position as a market player in payroll and HR software and services. Natural HR Limited is a UK-based software company that specializes in offering HR software solutions.

Major companies operating in the human resource (HR) software market are Oracle Corporation, SAP SE, Automatic Data Processing Inc., Workday Inc., UKG Inc., Paycom Software Inc., Ceridian HCM Holding Inc., Epicor Software Corporation, Paylocity Holding Corporation, Cornerstone OnDemand Inc., Paycor Inc., MoBerries GmbH, isolved HCM LLC, Rippling People Center Inc., Personio GmbH, BambooHR LLC, Hibob Inc., Automatic Payroll Systems Inc., Chronus Corp, Patriot Software LLC, EmployWise LLC, Cezanne HR Limited.

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

Human resource (HR) software is a digital solution that assists companies in streamlining and automating HR activities. By centralizing and simplifying HR processes, HR software aims to reduce manual administrative work, enhance accuracy and efficiency in HR operations, and support strategic workforce management initiatives.

The primary components of HR software include software and services. Software refers to digital tools and platforms tailored to streamline and automate human resource management tasks. It can be deployed on-premises or in the cloud, catering to various enterprise sizes, including small and medium-sized enterprises (SMEs) and large enterprises. HR software is utilized across a spectrum of industries, including government, manufacturing, consumer goods and retail, healthcare, telecommunications and information technology, banking, financial services, insurance, and others.

The human resource (HR) software market research report is one of a series of new reports that provides human resource (HR) software market statistics, including the human resource (HR) software industry global market size, regional shares, competitors with human resource (HR) software market share, detailed human resource (HR) software market segments, market trends, and opportunities, and any further data you may need to thrive in the human resource (HR) software industry. These human resource (HR) 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 human resource (HR) software market includes revenues earned by entities by providing a range of services, such as recruitment and applicant tracking, employee onboarding, and employee self-service portals. 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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