Global Human Resource Technology Market Insights Forecasts to 2033

• The Global Human Resource Technology Market Size was Valued at USD 37.43 Billion in 2023
• The Market Size is Growing at a CAGR of 8.97% from 2023 to 2033
• The Worldwide Human Resource Technology Market Size is Expected to Reach USD 88.38 Billion by 2033
• North America is Expected to Grow the fastest during the forecast period.

The Global Human Resource Technology Market Size is Anticipated to Exceed USD 88.38 Billion by 2033, Growing at a CAGR of 8.97% from 2023 to 2033.

Market Overview

Human Resource Technology (HR Tech) is the use of technology to manage human resource tasks and processes. It includes a variety of software and hardware solutions for human capital management (HCM), payroll, employee self-service, benefits administration, application tracking, performance monitoring, and learning and development management. The primary reasons propelling the global market for human resource technology are the aging of traditional HR solutions and the increasing acceptance of the HR software ecosystem by enterprises. The human resource software solutions provide time and cost-effective ways to manage numerous human resources. Furthermore, HR IT solutions help businesses handle the changes with management support as the company landscape shifts toward digital transformation.  They assist managers, enhance hiring procedures, and increase productivity, engagement, and retention. In addition, in an effort to reduce expenses and streamline operations, companies are expected to concentrate spending on smart technologies like robotics, artificial intelligence, cloud computing, and machine learning. Vendors in the human resource technology sector should see considerable economic prospects as a result.

Report Coverage

This research report categorizes the market for the global human resource technology market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global human resource technology market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global human resource technology market.

Driving Factors

The aging of traditional HR tools and the growing use of the HR software ecosystem by businesses are the main factors propelling the global human resource technology market. Human resource software solutions make it easier and less expensive to manage a large number of employees. Furthermore, the human resource technology market is expanding due to several significant aspects, including the growing trend of automation in HR operations and the increasing incidence of remote work. These trends have resulted in the creation of HR technology solutions that enable remote work management and employee engagement, as well as an increased demand for smarter and more efficient HR process management systems. Furthermore, as businesses focus more on improving employee experience and engagement, there is expected to be an increase in demand for HR technology solutions that improve communication and streamline procedures. This trend is expected to promote the growth of the human resource technology market by increasing the usage of similar solutions. The integration of AI into Human Resource Technology solutions is expected to increase dynamic potential.

Restraining Factors

The human resource technology market is constrained by the fact that small and medium-sized businesses might not be able to purchase HR tech. These expenses might cover things like software licensing purchases, technological upgrades, and staff training. Costs are also increased by the need for continuous maintenance and support for some technological solutions. The digital administration of employee data is provided by human resource technology. Companies have many obstacles when implementing remote working, particularly with regard to data security threats. The cost of implementing and maintaining human resource (HR) technology makes it imperative to show a return on investment (ROI) through increased productivity and enhanced talent management. Furthermore, the development of the human resource (HR) technology sector might be hampered by a lack of data protection and privacy.

Market Segmentation

The global human resource technology market share is classified into type, deployment, and end-user.

• The talent management segment is expected to hold the largest share of the global Human Resource Technology market during the forecast period.   

Based on the type, the global human resource technology market is divided into talent management, workforce management, recruitment, payroll management, performance management, and others. Among these, the talent management segment is expected to hold the largest share of the global human resource technology market during the forecast period. Talent management is being used by HR teams to manage talent comprehensively, give candidates a smooth and interesting recruitment process, and provide HR teams with insights through automation and data analytics. For instance, in September 2023, JazzHR and Cornerstone OnDemand teamed to integrate talent management technologies, enabling teams to increase employee engagement and productivity. Under the agreement, Cornerstone's talent management tools and JazzHR's applicant tracking system would interface to help small and mid-sized organizations recruit, hire, onboard, and develop their workforce.

• The cloud segment is expected to grow at the fastest CAGR in the global human resource technology market during the forecast period.   

Based on the deployment, the global human resource technology market is divided into cloud, and on-premise. Among these, the cloud segment is expected to grow at the fastest CAGR in the global human resource technology market during the forecast period. The cost-effectiveness of cloud-based solutions in comparison to on-premise services is one of the main factors driving their supremacy. Cloud-based solutions minimize space and other related operational maintenance costs while providing end users with flexibility and dynamic structures.

• The IT and telecommunication segment is expected to grow at the fastest CAGR in the global human resource technology market during the forecast period.   

Based on the end-user, the global human resource technology market is divided into BFSI, IT and telecommunication, government, manufacturing, retail, healthcare, and others. Among these, the IT and telecommunication segment is expected to grow at the fastest CAGR in the global human resource technology market during the forecast period. This can be attributed to the use of human resource technology in the IT and telecommunications sectors, which can handle a wide variety of duties such as employee recruiting, performance evaluation, training, and remuneration. It also entails utilizing the company's extensive diversity benefits to manage people and maintain critical data.

Regional Segment Analysis of the Global Human Resource Technology Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the global human resource technology market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the global human resource technology market over the predicted timeframe. The growing demand for cutting-edge HR technologies to aid in the better management of various firms throughout the corporate segment is a prominent market driver in the Asia Pacific. HR technology enables organizations to efficiently execute a wide range of complex tasks in a short period, which has a positive impact on the market. Furthermore, governments in some Asia Pacific countries are taking initiatives to encourage the digitalization of critical procedures, which will fuel market growth. Among the other factors propelling market expansion are substantial expenditures in research and development (R&D) operations and a growing integration of HR technology with SaaS and AI.

North America is expected to grow at the fastest pace in the global human resource technology market during the forecast period. The human resource technology industry is growing rapidly in North America due to the region's mature market circumstances and advanced technology infrastructure. This unique combination of characteristics has created a fertile atmosphere for the development and spread of cutting-edge HR solutions, resulting in higher adoption rates and more market penetration. The United States is the main country in the region, accounting for the anticipated growth rate. For instance, in December 2023, Texas-based HR IT startup Pingboard was acquired by Workleap, formerly GSoft. Through the integration of Workleap's software solutions with Pingboard's organizational chart and personnel directory features, the acquisition seeks to broaden and consolidate its services.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global human resource technology market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• IBM Corporation
• Cornerstone OnDemand, Inc.
• Oracle Corporation
• SAP SE
• ADP, LLC
• Workday, Inc.
• Ceridian HCM, Inc.
• Hi Bob Inc.
• Ultimate Software Group, Inc.
• Paylocity Holding Corporation
• Paycom Software, Inc.
• Kronos Incorporated
• BambooHR LLC
• Namely, Inc.
• Talentsoft S.A.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In September 2023, Workday and ADP extended their relationship to offer joint customers worldwide payroll, compliance, and HR services. The goal of the alliance was to give the customer access to examine data from all of their HCM environments, including payroll, compliance, and tax.

• In September 2023, HiBob worked with payroll platform supplier Papaya Global to assist global companies in meeting their demand for payroll solutions that are consistent with HR regulations. As a result of the partnership, HiBob's HR data was incorporated into Papaya's platform, enabling companies to optimize payroll procedures and combine PTO, HR, and compensation data with real-time data synchronization.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global Human Resource Technology market based on the below-mentioned segments: 

Global Human Resource Technology Market, By Type

• Talent Management
• Workforce Management
• Recruitment
• Payroll Management
• Performance Management
• Others

Global Human Resource Technology Market, By Deployment

• Cloud
• On-premise

Global Human Resource Technology Market, By End-User

• BFSI
• IT and Telecommunication
• Government
• Manufacturing
• Retail
• Healthcare
• Others

Global Human Resource Technology Market, Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa