The human resource management (HRM) industry has forecasted a vivid jump, expanding between 2023 to 2030 at a CAGR of 12 percent. The global HRM market size is expected to reach a pinnacle – $56.15 billion by 2030. The growth in the human resource management market is driven by the trend of digitization which has implored increased efficiencies and integration with the HR technology market.
An accelerating trend of full-fledged remote work post-pandemic has propelled the demand in the global HRM market and as organizations expand, HRM is expected to be utilized in monitoring and efficient tracking of resources to digress the loss of time on wasted productivity and idleness.
Global HRM Market: HR Technology Forecast
The technology for mobile applications, analytics, and cloud-based deployment are the major driving factors of the success of the HR technology market.
An HRM industry analysis concludes that based on component, the largest market share of about 70 percent in 2022 is attributed to the core HR software market owing to the widespread adoption of digitization and HRM software based on analytics.
Additionally, most of the organizations opting to purchase HRM solutions are small and medium enterprises swiveling the paradigm from traditional HR activities to strategically make decisions aided by software. These segments are expected to expand at the highest CAGR over the human resource management forecast period in the global HRM market for deliberating on increased workforce efficiency and retention. Larger enterprises seek a distinct solution that brings centralized control and monitoring functionality across all HR needs.
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The HR software industry is duly benefited from the swift popularity of HRM solutions, which surges more and more as organizations emphasize retaining human resources and human capital and even focus on talent acquisition through workforce planning.
The 2030 HRM market size is ballooning to $56.15 billion extensively by the consolidation of predictive analytics and the advances in the field of AI and ML. Most startups in recent times are etching out mobile applications and collaboration software that is equipped to provide flexibility for accessing information to employers and employees.
The game changer predictive analytics is anticipated to boost demand for HRM software by deriving continuous employee progress inferences through infographics. With greater control over the privacy of organizational data, the on-premise segment flaunted the largest market share of 55 percent in 2022, based on deployment.
The HR software market analysis reveals the key areas where HRM was employed including Employee collaboration & engagement, Workforce planning, Core HR, Recruiting, and Talent management. The HR technology market dwelled deep into support, maintenance, training, consulting, deployment, and integration. Manufacturing, retail, IT, telecom, healthcare, academia, and government were the prominent sectors at the core HR software market.
The demand for HRM solutions for queries including payroll, talent management, and attendance treading deep in cloud-based technology surmounted North America as the winner. The country proclaimed the highest market share of 35 percent in 2022.
Based on geography, the other countries to follow in the race of adapting to the global HRM market are France, the UK, Germany, Australia, Japan, China, Singapore, India, Brazil, Mexico, South Africa, and Saudi Arabia.
Some of the key players in the human resources management market include Accenture, Cedig, Ceridian HCM, PwC, Kronos International, IBM, UKG, Workday, Oracle, and Mercer LLC.
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