Global Core HR Software Market Segmentation, By Component (Software, Services), Deployment Type (On-Premises, Cloud), Organization Size (Small and Middle Enterprises, Large Enterprises), Verticals (Government, Manufacturing, Energy and Utilities, Consumer Goods and Retail, Healthcare, Transportation and Logistics, Telecom and Information Technology (IT), Banking, Financial Services, and Insurance (BFSI)) – Industry Trends and Forecast to 2031.
Core HR Software Market Analysis
The core HR software industry supports an HR database that includes employee data, tax withholdings, and the ability to enroll in benefits. Employees can access and change their personal information on the employee self-portal with the aid of the software, which in turn increases demand for HR software and boosts the growth of the core HR software market. The HR software is useful for tracking down staff absences as well. The core HR software market share is expected to increase due to all of these advantageous qualities.
Core HR Software Market Size
Global core HR software market size was valued at USD 20.87 billion in 2023 and is projected to reach USD 45.42 billion by 2031, with a CAGR of 10.21% during the forecast period of 2024 to 2031.
Report Scope and Market Segmentation
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Attributes
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Core HR Software Key Market Insights
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Segmentation
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Countries Covered
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U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E, Saudi Arabia, Egypt, South Africa, Israel, Rest of Middle East and Africa
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Key Market Players
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ADP, Inc. (U.S.), Ceridian HCM, Inc. (U.S.), The Access Group (U.K.), EmployWise (India), IBM (U.S.), Oracle (U.S.), Paychex Inc. (U.S.), Paycom. (U.S.), SAP SE (Germany), SumTotal Systems, LLC. (U.S.), UKG Inc. (U.S.), Workday, Inc. (U.S.), Peopleworks (U.S.). Ramco Systems. (India), Emportant. (India), TrustRadius. (U.S.), Cezanne HR Limited. (U.K.), Vibe HCM, Inc. (U.S.), TriNet Group, Inc. (U.S.) among many others.
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Market Opportunities
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Core HR Software Market Definition
The management, simplification, and automation of departmental tasks are accomplished using human resource software, also referred to as human resource information system software or human capital management software. There are numerous HR solutions on the market, including HCM, HRMS, HRIS, talent management systems, and more. This software's functions include managing payroll and benefits administration, storing employee data, and monitoring the business's legal and regulatory employment requirements. HR software is basically software that stores employee data and allows easy access through a centralized database.
Core HR Software Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:
Drivers
- The Trend of Automation
Growing awareness about the benefits of core HR software coupled with the increase in automation of HR processes is positively influencing the market growth rate. Further, rise in demand for data storage facilities and growing adoption of workforce management systems is also working in the favor of the market. This indicates that there is a growing need to automate HR department for efficient human resource management.
- Growth and Expansion
Growth and expansion of various end user verticals such as banking, financial services, and insurance, retail and ecommerce, healthcare and life sciences, travel and hospitality, telecom, media and entertainment and others is fostering the market growth rate. Increased focus of these industries towards improving the HR services will carve down greater opportunities.
Furthermore, factors such as rising urbanization, industrialization, mounting cloud, and mobile deployment during the forecast period are other important market drivers. Additionally, rising investment by the enterprises on integrated technologies combined with increasing usage of advanced data management systems are anticipated to drive the market's growth rate.
Opportunities
- Rising adoption of advanced technologies
Organization's inclination toward HR analytics is a positive sign for the market. Further growing adoption of core HR by small and medium-scale enterprises in the developing economies is bolstering the market growth rate.
- Increasing trend of digitalization
Additionally, the increasing trend of digitalization further offers numerous growth opportunities within the market. Rising number of BPOs, increased penetration rate of smartphones and other consumer electronics and complete digitization of operations will also work in favor of the market.
Restraints/Challenges
- Reluctance and hesitation
The reluctance to shift from conventional HR practices to digital operations will prove to be the biggest challenge for the market. Further, the high initial investment cost and time-consuming deployment process will take some time to attain the desired adoption rate.
- Lack of awareness and technical expertise
The dearth of expert knowledge and technical expertise and lack of awareness of new technologies and capabilities in core HR software especially in underdeveloped economies will create hurdles for the market in regards to the smooth growth in the market value. Regional difference in labor laws will further impede the market growth rate.
This core HR software market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the core HR software market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
COVID-19 Impact on Core HR Software Market
Globally, the core HR software market is developing more quickly, and in the coming years, market expansion will reach its maximum peaks. The market size for core HR software is growing along with the development of cloud computing and other contemporary technologies. One major driver of the core HR software market growth is the quick rise in mobile deployment. The enormous demand for HR software to facilitate the upkeep of employee information is expanding the market for core HR software. According to the core HR software market study, a global market is starting to develop due to the expanding demand for automation in the HR industry.
Core HR Software Market Scope
The core HR software market is segmented on the basis of component, deployment type, organization size and verticals. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Component
- Software
- Benefits and Claims Management
- Payroll and Compensation Management
- Personnel Management
- Learning Management
- Pension Management
- Compliance Management
- Succession Planning
- Services
- Support and Consulting
- Maintenance
- Integration Services
Deployment Type
- On-Premises
- Cloud
Organization Size
- Large Enterprises
- Small and Medium-Sized Enterprises
Verticals
- Government
- Manufacturing
- Energy and Utilities
- Consumer Goods and Retail
- Healthcare
- Transportation and Logistics
- Telecom and Information Technology (IT)
- Banking, Financial Services, and Insurance (BFSI)
Core HR Software Market Regional Analysis
The core HR software market is analyzed and market size insights and trends are provided by country, component, deployment type, organization size and verticals as referenced above.
The countries covered in the core HR software market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America dominates the core HR software market due to the presence of major players in this region and growing focus on optimizing human resource operations. Prevalence of advanced infrastructure in combination with surging adoption rates by small scale enterprises are some other important factors determining the dominance of this region.
Asia-Pacific is expected to witness significant growth during the forecast period of 2024 to 2031 due to the rising awareness about the importance of a good HR personnel in the developing economies such as China and India. Moreover, escalating IT infrastructure in the region coupled with rapidly growing demand for analytical solutions will bolster the market's growth in this region.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Core HR Software Market Share
The core HR software market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to core HR software market.
Core HR Software Market Leaders Operating in the Market Are:
- ADP, Inc. (U.S.)
- Ceridian HCM, Inc. (U.S.)
- The Access Group (U.K.)
- EmployWise (India)
- IBM (U.S.)
- Oracle (U.S.)
- Paychex Inc. (U.S.)
- Paycom. (U.S.)
- SAP SE (Germany)
- SumTotal Systems, LLC. (U.S.)
- UKG Inc. (U.S.)
- Workday, Inc. (U.S.)
- Peopleworks (U.S.)
- Ramco Systems. (India)
- Emportant. (India)
- TrustRadius. (U.S.)
- Cezanne HR Limited. (U.K.)
- Vibe HCM, Inc. (U.S.)
- TriNet Group, Inc. (U.S.)
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