The global Human Resource Management (HRM) Market size is projected to touch $38.17 billion (USD) by the end of 2027, as per a report released by Million Insights. It is estimated to grow with a compound annual growth rate (CAGR) of 11.7% over the estimated duration.
What’s Driving the Growth?
Factors such as the rising requirement for managing the diverse workforce, need for replacing old HRM systems, and incorporating new HRM solutions are predicted to bode well for the market growth. HRM service providers emphasize the development of software that can be used in smartphones, thereby, allowing employers and employees to access data easily, monitor attendance, leaves, and evaluate performance from their smartphones.
Technological advancements in artificial intelligence (AI), big data analytics, Internet of Things (IoT), and machine learning are predicted to fuel the HRM market growth from 2020 to 2027. Several service providers are focusing on the development of advanced solutions that combine upcoming technologies into HRM systems for improved organizational performance. The technological advancement and latest features enhances the transparency and accountability across the organization and offer mobility and flexibility to access information anytime.
The growing penetration of cloud-based technologies across various industries is projected to boost the demand for HRM solutions in the upcoming years. The application of cloud technology allows various small- to mid-size enterprises to adapt to the latest HRM solutions at affordable prices without continuous replacement or upgrades of the systems. In today’s workforce, organizations are incorporating advance technologies that can help in enhancement, recruitment, and management of human resources.
According to the Human Resource Management Market report, North America led the market in 2019, owing to the operation of several service providers in the region. Organizations in the U.S. are emphasizing on boosting the labor competency and productivity by implementing latest HRM solutions.
On the other hand, Asia Pacific is projected to grow with a steady CAGR from 2020 to 2027, owing to increasing government undertakings for promoting the digitalization of HR functions across various industries.
Further key findings from the report suggest:
- The talent acquisition software is projected to ascend with a steady CAGR from 2020 to 2027, due to innovative features such as retaining, attracting, and recruiting workforce.
- After incorporating HRM software, organizations need maintenance, and support services from the vendors. This is predicted to augment the demand for support services over the forecast duration.
- The hosted deployment division is anticipated to grow substantially over the estimated duration, due to ease of system integration, less cost, and easy to use.
- The large enterprise category led the HRM market in 2019 and is further projected to maintain its lead from 2020 to 2027, owing to increasing automation for HR functions.
- The retail division is projected to exhibit healthy CAGR over the forecast period owing to the rapid growth of retail and ensuring enhanced career paths, clarified job roles, and other benefits.
- Asia Pacific is predicted to ascend with the fastest CAGR from 2020 to 2027, owing to increasing digitalization and industrialization undertakings by the government.
- Leading players of the market are:
- IBM Corporation;
- Accenture PLC;
- Cezanne HR Ltd.;
- Workday, Inc.;
- Oracle Corporation;
- Ceridian HCM, Inc.;
- Ultimate Software;
- Mercer LLC;
- Automatic Data Processing (ADP), Inc.;
- NetSuite, Inc.; SAP SE; and
- Kronos Incorporated.
Million Insights has also segmented the HRM market based on software, service, deployment, enterprise size, end use, and region. To view the full findings, click here.