Human Resource Management Market, By Component (Software and Services), By Organization Size (MSMEs and Large Enterprises), By Deployment Type (On-premise and On-cloud), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Trends, Analysis and Forecast till 2034

Human Resource Management Market was valued at US$ 27.0 billion in 2024 and is projected to grow at a CAGR of 13.5% to reach US$ 85.4 billion by 2034.

Human resource management (HRM) entails organizing, managing, and assigning personnel—or human capital—in a way that advances the objectives of an organization. The main goals of HRM are to invest in workers, guarantee their safety, and oversee every facet of personnel, including hiring, remuneration, and training.

Over the projected future, it is expected that the market will become more demanding due to the increasing adoption of digitization and automation of human resource operations to provide efficient and flexible ways. The progress may also be contingent upon the endeavors made by businesses to attract the most qualified candidates, effectively manage their resources, and hold onto their workforce. Because these advancements in human resource management have the potential to improve and enhance HR operations, businesses are incorporating them and driving the market.

The market expansion is attributable to the cost-benefit analysis of human resources management and the extra advantages of cloud-based services, which allow for shared infrastructure for applicant detail categorization. Growing technological improvements are likely to give the business significant momentum in the upcoming years. The main limitations facing the target market are related to privacy and safety issues. 

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Human Resource Management Market Drivers:

Rapid developments in technology  

• The quick technological advancement of IoT in wired and wireless systems increases market value. Furthermore, growing businesses and advantages like the high reliability that HRMS systems provide are propelling the market shares. The market grew as a result of the acceleration of economic growth caused by global industrialization and the growing adoption of HRMS solutions. The market is expected to grow even larger due to the increasing use of cloud computing and IoT (internet of things) devices.

  Increased application of prediction analysis

• Predictive analytics is being used to assist conclude continuous employee advancement through a multitude of charts and infographics, which is predicted to increase demand for HRM software and services. As client needs change, HRM solution providers are focusing on creating and constructing cutting-edge software solutions. Growth in the market is anticipated as a result of the creation of such novel solutions.

Human Resource Management Market Restrains:

Safety concerns and personal information norms

• The target market is primarily restrained by the safety and privacy concerns that surround it.  The storage of private employee information gives rise to worries about security lapses. Tight data privacy laws, such as the CCPA and GDPR, can limit the usage and gathering of data, which makes it more difficult for suppliers of HR technology to deliver specific features.

Human Resource Management Market is segmented based on component, organization size, deployment type, and region.

Component Insights

• Software: Software as a component is a dominating segment of this sector for the target market. This expansion can be attributed to the increased need for talent management and core HR software among businesses across a range of sectors to retain employees. Additionally helpful in streamlining workflows and enhancing overall organizational productivity are talent management and core HR tools.
• Services: The services division provides HR software maintenance, help during deployment, and consultation. Even though services may expand more slowly than software, they are nevertheless very important for businesses without in-house IT staff.

Organization Size Insights

• MSMEs: MSMEs are progressively embracing cloud-based solutions to optimize HR procedures as HR software becomes more accessible and easy to use.
• Large Enterprises: Large enterprises are a dominating segment of this sector for the target market. A few large organizations' aggressive HRM solution installation to effectively handle their massive employee datasets is responsible for their dominant revenue share. The time spent on manual tasks like tracking performance goals, providing feedback, and conducting reviews is reduced because HR staff can now access employee data more rapidly thanks to these technologies.

Deployment Type Insights

• On-premise: On-premise is a dominating segment of this sector for the target market. Certain organizations appreciate on-premise HR solutions since they don't require Internet access and still provide high levels of system customization. On-premise solutions assist businesses in adhering to various standards while also offering data protection.
• On-cloud: Cloud or hosted deployment makes it simple for users to access data from any place. Moreover, it lessens the requirement for frequent software updates.

Human Resource Management Market Regional Insights

• North America market is estimated to witness a significantly high revenue share over the forecast period, as the region has many providers of HRM solutions. Through the implementation of HRM solutions for payroll management, attendance & time monitoring, talent management, and other operations, establishments in the United States are focusing especially on boosting productivity and labor efficiency.
• Asia Pacific market is estimated to witness the fastest revenue share due to increasing efforts and funds being allocated by governments to the region's digitization projects. Additionally, as more automation projects are carried out to boost organizational productivity, the regional market will be driven by them.
• Europe market is expanding steadily and is going to grow as a result of rising cloud use, employee experience awareness, and increased understanding of the advantages of HR technology.
• Latin America market is an emerging region with a lot of room for growth if efforts are directed towards enhancing talent management procedures, boosting the competitiveness for highly qualified personnel, and supporting government programs that encourage the use of technology.
• Middle East & Africa market is in its developmental stages and is expanding quickly, drawing in foreign capital and encouraging the creation of new companies.

Human Resource Management Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the Human Resource Management Market report based on component, organization size, deployment type, and region:

Human Resource Management Market, By Component:

• Software
• Services

Human Resource Management Market, By Organization Size:

• MSMEs
• Large Enterprises

Human Resource Management Market, By Deployment Type:

• On-premise
• On-cloud

Human Resource Management Market, By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Human Resource Management Market includes Accenture PLC, Automatic Data Processing (ADP), Inc., Cezanne HR Ltd., Ceridian HCM, Inc., IBM Corporation, Kronos Incorporated, Mercer LLC, NetSuite, Inc., Oracle Corporation, PricewaterhouseCoopers (PwC).

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

• In September 2023, Workday, Inc. launched several new features in its Workday Human Capital Management (HCM) program, to improve and streamline the management experience. To streamline their duties in the field of human resources, these additions help managers by giving them the resources they need to lead effectively and efficiently.
• In October 2023, ADP, Inc. declared the release of ADP Workforce Now, a customized program created specifically for the construction industry. With the use of this software, the construction sector can be guaranteed accurate payroll processing, effective HR administration, and better worker recruiting and development.

• Accenture PLC *
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Automatic Data Processing (ADP), Inc.
• Cezanne HR Ltd.
• Ceridian HCM, Inc.
• IBM Corporation
• Kronos Incorporated
• Mercer LLC
• NetSuite, Inc.
• Oracle Corporation
• PricewaterhouseCoopers (PwC)

“*” marked represents similar segmentation in other categories in the respective section.