HR Analytics Market Outlook 2031
The global HR analytics market size was valued USD 2.96 Billion in 2022 and is anticipated to reach USD 10.25 Billion by 2031, expanding at CAGR of 14.8% during the forecast period, 2023-2031. The growth of the market is attributed to the growing need of organization to reduce operational cost and improving efficiency.
HR analytics, also known as people analytics, deals with talent analysis or workforce analysis of the overall employees of an organization. It is the process of collecting and analyzing specific talent data, to improve organization performance and business outcomes.
HR analytics helps HR leaders to develop beneficial insights from collected data, improve workforce processes, and promote overall positive employee experience. HR analytics software offers a various benefits to the organization such as helps in minimizing risks, executing stratergic plans, reducing expenses, and generating revenue.
The COVID-19 pandemic outbreak have forced the governments around the globe to impose lockdown and temperory clouser of offices. This has resulted in implementation of work from home policy by many organizarions. Additionally, increasing use of internet and mobile telecommunication platforms for daily business operations and many more stay-at-home activities increased the demand of HR analytics.
HR Analytics Market Drivers, Restraints and Opportunities
- Cost-effectiveness nature of HR operations is expected to be one of the key factors driving the market growth.
- Increasing efficiency of HR analytics with the help of Internet of Thing and Artficial Intelligence technology is another major driving factor that helps to boost the market.
- Lack of experienced HRs who know-how workforce to use the HR analytics software is a major challenge that can restrict the market growth in the coming years.
- Rising compatibility issues with many existing operations in businesses is another challenge that can hamper the market growth during the projected timeline.
- Increasing demand for online, fast, and efficient HR services among organizations is expected to create lucrative growth opportunities of the market during the forecast period.
Scope of HR Analytics Market Report
The report on the global HR analytics market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
HR Analytics Market – Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Enterprise Sizes (Large Enterprise and Small & Medium Enterprise), Solutions (Payroll & Compensation, Retention, Workforce Planning, Employee Engagement & Development, Recruitment, Talent Analytics, and Others), Deployment (On-premise and Hosted), End-Users (Energy & Utility, Healthcare, Manufacturing, BFSI, Government, IT & Telecom, and Others), and Services (Support & Maintenance, Implementation & Integration, and Training & Consulting)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
MicroStrategy Inc.; SAP SE; Talentsoft SA; Sage Software Solutions Pvt. Ltd.; Workday, Inc.; IBM Corp.; Oracle Corp.; Kronos Inc.; Tableau Software; and Zoho Corporation Pvt. Ltd.
HR Analytics Market Segment Insights
Enterprise Size Segment Analysis
Based on enterprise sizes, the market is bifurcated into large enterprise and small & medium enterprise. The small & medium enterprise segment is expected to account for a major market share during the projected timeline owing to increasing adoption of HR analytics solution among small business organizations.
These organizations need to control their functions across multiple geographies and operate multiple workers using the tool. On the other hand, the large enterprise segment is projected to expand a considerable CAGR during the forecast period due to need of managing the data generated through larger workforce.
Solutions Segment Analysis
On the basis of solutions, the global HR analytics market is segmented into payroll & compensation, retention, workforce planning, employee engagement & development, recruitment, talent analytics, and others. The workforce planning segment is expected to grow at a rapid pace during the forecast period attributed to the need of organization to to put the right people at the right job for achieving business objectives.
Furthermore, the implementation of this solution permits organizations to extend worker performance, productivity, and satisfaction. However, the talent analytics segment is anticipated to expand at a substantial CAGR in the coming years due to improved decision making and its ability to align organization goals with talent acquisition activities.
Deployment Segment Analysis
In terms of deployment, the market is bifurcated into on-premise and hosted. The on-premise segment is estimated to account for a major market share during the forecast period owing to solutions are simply irreplacable and offer the benefit to customise operations. On the other hand, the hosted segment is expected to expand at a robust CAGR in the coming years due to the increasing use of mobile devices and advancements in data sharing technologies.
Morever, cloud deployment offer many advantages to the organizations including flexibility in capability, quantifiability, remote accessibility, value potency, and increased collaboration, which is driving the segment growth further.
End-Users Segment Analysis
On the basis of end-users, the global HR analytics market is fragmented into energy & utility, healthcare, manufacturing, BFSI, government, IT & telecom, and others. The IT & telecom segment is projected to expand at high growth rate during the projected timeline attributed to wide implemtentation of the tool in this IT and telecom industry and increasing their international footprint.
However, the BFSI segment is anticipated to register a substantial CAGR during the forecast period due to the increased adoption of HR analytics soloution to address the challenges such as data security threats, compliance necessities, and low-profit margins.
Verticals Segment Analysis
Based on verticals, the market is divided into support & maintenance, implementation & integration, and training & consulting. The implementation & integration segment is anticipated to register at robust growth rate during the forecast period as these services enable easy deployment of HR analytics in organizations.
On the other hand, the support & maintenance segment is anticipated to expand at a substantial CAGR in the coming years due to technological advancemenst in the software, leading to constant upgrades within the system and organizations need vendor support in case of technical issues.
In terms of region, the global HR analytics market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to the existence of several HR analytics solutions suppliers and the well-established economy of this region.
However, the market of Asia Pacific is anticipated to grow at a rapid pace during the forecast period due to the increasing government programs towards the adoption of cloud technologies and growing start-up culture in the region.
The global HR Analytics market has been segmented on the basis of
- Large Enterprise
- Small & Medium Enterprise
- Payroll & Compensation
- Workforce Planning
- Employee Engagement & Development
- Talent Analytics
- Energy & Utility
- IT & Telecom
- Support & Maintenance
- Implementation & Integration
- Training & Consulting
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- MicroStrategy Inc.
- SAP SE
- Talentsoft SA
- Sage Software Solutions Pvt. Ltd.
- Workday, Inc.
- IBM Corp.
- Oracle Corp.
- Kronos Inc.
- Tableau Software
- Zoho Corporation Pvt. Ltd.
Key players competing in the global HR analytics market are MicroStrategy Inc.; SAP SE; Talentsoft SA; Sage Software Solutions Pvt. Ltd.; Workday, Inc.; IBM Corp.; Oracle Corp.; Kronos Inc.; Tableau Software; and Zoho Corporation Pvt. Ltd.
Companies have been widely engaged in strategic partnership, merger & acquisition, new product launch, and collaborations to boost their market share and acquiring new buyers.
- In February 2020, Ultimate Software, a U.S. based technology company announced its merger with Kronos Incorporated. The merger was aimed to create the world’s most innovative human capital management and workforce management company to support organizations across all industries that operate their people more efficiently with an innovative combination of cloud solutions.