Human Resource Management Market Size, Share & Growth [2031]

Report Description

Human Resource Management Market Outlook

The global human resource management market size was valued at USD 22.04 Billion in 2022 and is likely to reach USD 61.71 Billion by 2031, expanding at a CAGR of 12.12%  during the forecast period, 2023–2031. The growth of the market is attributed to the ongoing automation and digitization in the industry to establish agile and effective reskilling initiatives.

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Human resource management (HRM) is a fundamental approach for managing people in a company or organization in a manner that they serve the company acquire a competitive edge into the market. The objective is to maximize staff performance in support of a company strategic goals.

Additionally, it is a practice of hiring, recruiting, deploying, and managing employees of the organizations. The managerial function of human resource is planning, organizing, directing and controlling, which helps to achieve organizational as well as individual objectives.

The COVID-19 pandemic outbreak has a positive impact on the HRM market owing to the work from home trend to meet the market demand, which helped major key players to invest in research for developing HRM solutions.

Market Trends, Drivers, Restraints, and Opportunities

• Factors such as growing expansion of various organizations, keeping human capital intact, and effectively managing resources are key factors driving the market expansion.
• With the help of numerous charts and info-graphics, predictive analytics assists in obtaining inferences about continuous employee improvement. This is expected to boost the market growth in the coming years.
• Potential startups that are still in the early stages of development are facing challenges with the trends and changes affected by the outbreak of pandemic. This is anticipated to hamper the market expansion during the projected timeline.
• Lack of investment and capital availability are preventing HRM solutions to implement across several verticals, which is likely to hinder the market growth during the forecast period.
• Small and medium enterprises are upgrading to the modern HRM solutions as a result of remote working practices. This which is projected to create a significant growth opportunity for the market in the near future.

Scope of Human Resource Management Market Report

The report on the global human resource management market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Human Resource Management Market Segment Insights

Core HR segment is expected to grow at a rapid pace

Based on software, the global human resource management market is divided into recruiting, workforce planning & analytics, talent management, employee collaboration & engagement, core HR, and others.

The core HR segment is expected to grow at a rapid pace during the forecast period owing to the rise in demand for automating various HR functions in the department. Furthermore, payroll administration, time & attendance management, and HR compliance are the main features of core HR software, which is projected to accelerate the segment growth.

However, the talent management segment is anticipated to hold a key share of the market in the coming years due to growing use of social media platforms and video platforms for recruiting.

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Demand for automation and digitalization to drive IT & Telecom segment

On the basis of end-users, the market is segregated into retail, BFSI, IT & Telecom, academia, government, healthcare, manufacturing, and others.

The IT & telecom segment is projected to expand at a considerable CAGR during the forecast period attributed to growing demand for automation and the requirement to source candidates based on job profiles and organizational structure in the IT sector.

On the other hand, the retail segment is anticipated to account for a major market share during the forecast period owing to large-scale hiring at all levels, as well as the need to retain employees through improving career trajectories, work responsibilities, and benefits.

Software segment is anticipated to hold significant market share

In terms of components, the global human resource management market is bifurcated into service and software. The software segment is anticipated to hold significant market share due to the rise in demand for core HR and talent management software from organizations across the board in order to retain talents.

However, the service segment is expected to register a considerable CAGR during the forecast period owing to professional assistance such as consulting, integration, support, implementation, and maintenance.

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Periodic software updates and troubleshooting to drive the segment growth

On the basis of services, the market is segmented into support & maintenance, integration & deployment, and training & consulting. The integration & deployment segment is expected to hold major market share in the projected timeline attributed to the necessity to resolve technological concerns for adopting an HRM system, updating software periodically, and troubleshooting.

On the other hand, the support & maintenance segment is expected to growth at a significant rate during the forecast period due to regular advancement in technology, which is necessary for continuous upgrades of the system and HRM solutions.

On-premise segment to constitute robust market share

In terms of deployments, the global human resource management market is bifurcated into on-premise and hosted. The on-premise segment is expected to constitute robust market share during the forecast period. On-premise solution offers data protection alongside assisting companies in achieving various regulatory requirements, which is expected to fuel the segment growth.

However, the hosted segment is expected to grow at a significant rate during the projected timeline as it enables end-users to access data from any location with ease and eliminates the requirement for software upgrades on a regular basis.

Large enterprise segment to account for a major market share

Based on enterprise sizes, the market is bifurcated into small & medium enterprise and large enterprise. The large enterprise segment is expected to account for major market share as several multinational corporations aggressively using HRM solutions to manage their large databases of employees.

On the other hand, the small & medium enterprise segment is likely to register considerable CAGR during the projected timeline owing to adopt cloud-based human capital management solutions that helps organizations in terms of cost efficiency.

Human Resource Management Market Regional Outlook

North America is anticipated to constitute a key market share

In terms of regions, the global human resource management market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected timeline attributed to vast adoption of HRM systems for attendance & time tracking and payroll management.

Moreover, the system is further applied for talent management, among other processes, to improve workforce efficiency and production of various business organizations in the region.

However, the Asia Pacific market is anticipated to expand at a rapid pace during the forecast period due to the initiatives implemented and investments made by governments in the region for digitization and upgrade in technology.

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