Henry Paul

Categories

Tags

Archives

Blogs » Other » HR Software Market 2030: Compliance Challenges and Solutions

HR Software Market 2030: Compliance Challenges and Solutions

  • Posted by Henry Paul February 4, 2025 Filed in Other #hr software  #HR Software Market  #HR Software Market Size  #HR Software Market Share  #HR Software Market Growth  #HR Software Market Trends  #HR Software Market Analysis  #HR Software Market Forecasts  17 views
    click to rate

    HR Software Market Size & Trends

    The global HR software market size was estimated at USD 16.43 billion in 2023 and is expected to grow at a CAGR of 12.2% from 2024 to 2030. The market growth is attributed to the widespread adoption of cloud-based solutions. Companies are increasingly moving away from on-premise systems to cloud-based platforms due to their scalability, flexibility, and cost-effectiveness. These platforms enable organizations to manage HR functions such as payroll, recruitment, and employee performance from any location, providing real-time data access and reducing the need for extensive IT infrastructure, thereby driving market growth.

    Artificial intelligence (AI) and machine learning (ML) are transforming HR software by enabling more sophisticated data analytics, automation of repetitive tasks, and predictive insights. AI-driven tools are being used for talent acquisition, where they can screen resumes, analyze job descriptions, and match candidates more effectively. ML algorithms help in identifying trends in employee performance and engagement, allowing HR professionals to make data-driven decisions and personalize the employee experience, thereby fueling market growth.

    Gather more insights about the market drivers, restrains and growth of the HR Software Market

    HR Software Market Sizeby Deployment, 2020 - 2030 (USD Billion)

    Furthermore, improving employee experience has become a central focus in HR, driving the demand for software that supports personalized engagement, wellness initiatives, and continuous feedback mechanisms. This trend reflects a broader shift towards recognizing the importance of employee satisfaction and retention, with HR software evolving to offer tools that foster a more engaged and motivated workforce.

    The increasing adoption of mobile HR solutions is another key trend, fueled by the rise of remote work and the need for on-the-go access to HR services. Mobile apps that allow employees to manage tasks like leave requests, payroll access, and training participation from their smartphones are becoming essential. This trend highlights the growing importance of mobility and convenience in the HR tech landscape.

    Moreover, the trend toward advanced analytics and reporting tools within HR software is gaining momentum. Organizations are leveraging these tools to gain deeper insights into workforce metrics, track performance indicators, and forecast hiring needs. This trend emphasizes the growing importance of strategic, data-driven HR planning, aligning HR functions more closely with broader business objectives.

    HR Software Market Report Highlights

    • The core HR segment dominated the market with revenue share of around 33% in 2023, due to its essential role in managing fundamental HR functions such as payroll, benefits administration, and employee records.
    • The IT & telecom segment accounted for the highest market share in 2023, due to the industry's rapid growth and high demand for efficient human resource management. 
    • The on-premise segment held the highest revenue share in 2023, due to the preference of many organizations for maintaining control over their HR data and systems within their IT infrastructure.
    • The large enterprises segment held the highest revenue share in 2023, owing to their extensive and complex human resource needs.
    • The HR software market in North America accounted for a significant revenue share of over 34% in 2023, driven by the high adoption of advanced HR technologies, a mature market with substantial investments in digital transformation, and the presence of numerous leading HR software providers.

    HR Software Market Segmentation

    Grand View Research has segmented the HR Software market based on type, organization size, deployment, end-use, and region:

    • Type Outlook (Revenue, USD Million, 2018 - 2030)
      • Core HR
      • Employee Collaboration & Engagement
      • Recruiting
      • Talent Management
      • Workforce Planning & Analytics
      • Others
    • Organization Size Outlook (Revenue, USD Million, 2018 - 2030)
      • Large Enterprises
      • Small and Medium Enterprises
    • Deployment Outlook (Revenue, USD Million, 2018 - 2030)
      • Hosted
      • On-premise
    • End-use Outlook (Revenue, USD Million, 2018 - 2030)
      • Academia
      • BFSI
      • Government
      • Healthcare
      • IT & Telecom
      • Manufacturing
      • Retail
      • Others
    • Regional Outlook (Revenue, USD Million, 2018 - 2030)
      • North America
        • U.S.
        • Canada
        • Mexico
      • Europe
        • Germany
        • UK
        • France
      • Asia Pacific
        • Japan
        • China
        • India
        • Australia
        • South Korea
      • Latin America
        • Brazil
      • Middle East and Africa (MEA)
        • UAE
        • Saudi Arabia
        • South Africa

    Order a free sample PDF of the HR Software Market Intelligence Study, published by Grand View Research.