The Human Resource Management (HRM) market is growing rapidly due to the increasing adoption of technologies such as Artificial Intelligence (AI) and predictive tools to help manage workforces more efficiently. Unlock the Secrets of the Booming HRM Industry and learn: "What You Need to Know to Stay Ahead"
From software designers to end-users, the industry value chain is expanding rapidly. With the increasing demand for HRM systems due to the automation of HR processes and the shift to remote work during the COVID-19 pandemic, it's important to understand the major players in the market, such as ADP LLC, IBM Corporation, Oracle Corporation, SAP SE, UKG, and Workday, Inc.
These companies are investing heavily in research and development to provide cutting-edge, easy-to-deploy HRM solutions that can significantly increase efficiency. However, organizations must also comply with regulations related to employee data security, such as HIPAA and GDPR.
The IT & telecom segment currently dominates the global HRM market, and startups looking to establish themselves in this industry can get help from the U.S. Small Business Administration. But navigating the highly fragmented HRM market and effectively managing change can be major challenges for organizations adopting the latest HRM systems.
The shift of HR processes from back-office management functions to key strategic decision-making has changed the skillsets required by HR professionals. Don't miss out on this rapidly expanding industry - read on to learn more about what you need to know to stay ahead of the curve.
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Below you can find key takeaways:
- Grand View Research provides strategic objective insights into many business environments. Our analysts and consultants have a strong base of expertise and can help you secure a competitive advantage.
- HR software adoption has tremendously grown, and enterprises are integrating goal-oriented models and company cultures into their workforce operations. These technologies include predictive tools and Artificial Intelligence (AI) that help both employees and employers mitigate challenges in managing work.
- As the global COVID-19 pandemic intensifies, remote working from home is the new normal across various industry verticals. This has forced organizations to adopt Unified Communications (UC) solutions.
Market Size and Growth Prospects
- The human resource management function has been evolving rapidly over the last decade. HRM solutions help HR professionals efficiently perform all these tasks and obtain meaningful insights into the available data.
- As a result of continued globalization, HR professionals are facing additional burdens to manage the entire database and perform all tasks within a stipulated time.
- The global human resource management market size is expected to reach USD 56.15 billion by 2030, registering a CAGR of 12.8% from 2022 to 2030.
Industry Value Chain Analysis
- The human resource management market value chain comprises three main entities, namely HRM software designers & developers, HRM solution providers, and end users. Major players in the HRM market include ADP LLC, IBM Corporation, Oracle Corporation, SAP SE, UKG, and Workday, Inc.
- Several companies are investing in R&D activities to provide HRM solutions that are easy to deploy and understand and can increase the efficiency at work.
- HRM solution providers must abide by regulations related to the security of employee information across the organization, including HIPAA and the General Data Protection Regulation.
Trends Buyer/ End-use Industry Trends:
- Market dynamics section evaluates market drivers, restraints, and other industry level challenges anticipated to impact growth over forecast period (202 2 - 2030).
- The automation of HR processes across all sorts of organizations is emerging as one of the crucial drivers driving the demand for HRM systems. However, effective change management remains a major concern for organizations opting for the latest HRM systems.
- The transition of HR processes from back-office management functions to key strategic decision making has changed the skillsets required by an HR professional.
Penetration & Growth Prospect Mapping
- The IT & telecom segment dominated the global HRM market in 2021 owing to the ease of managing various business processes.
Industry Analysis – Porter’s
- Porter's Five Forces model helps identify the key competitive forces in a market, which determine the structure of the market and the competition level.
- The HRM market is highly fragmented with a large number of vendors catering to a plethora of HR functions. This is resulting in price wars and a transfer of power from suppliers to buyers.
- The U.S. Small Business Administration helps startups to establish their business by providing funding and investment capital.
COVID-19 Impact on Human Resource Management (HRM) Market
- The outbreak of COVID-19 is expected to positively impact the Human Resource Management (HRM) market as companies aggressively opt for remote working, and HR professionals improvise continuously to adapt themselves to this new style of working.
Company Market Share Analysis, 2021
- The key players' market share is determined based on the various key strategies they adopt to maintain a competitive edge in the market.
HRM Market – Evolution Analysis
- During the 1990s, HR professionals focused on conventional HR activities and administrative work, and these activities were time-consuming.
- Core HR software helps organizations in implementing various back-end administrative HR activities, such as employee musters, payrolls & benefits, time & attendance, and employee self-service, among others. Employee collaboration & engagement, recruiting, talent management, and workforce planning & analytics software are also used by organizations.
- This section provides an overview of market estimates and trends by component offered by HRM provider across key countries.
- HRM solution providers offer integration, deployment, and support services to facilitate the transition from the existing system to the new system. They also provide training and consulting services to help the employees accept the change and use the new system effectively.
- The HRM software market has been split into hosted and on-premise segments. Hosted deployment allows companies to access data from anywhere and at any time, and allows them to maintain a centralized database and obtain up-to-date information from any part of the world in real time.
- This section provides an overview of the market for HRM solutions in key countries. It uses variable impact analysis method to arrive at base estimations.
Enterprise Estimates and Trend Analysis
- Large enterprises implement HRM solutions to reduce time invested in conventional activities and invest the saved time in strategic decision making. Small & medium enterprises implement HRM solutions to attract good talent and improve organizational productivity.
- This section provides an overview of market estimates and trends by enterprise, based on human resource management advancement rate and its future trends.
End-Use Estimates and Trend Analysis
- The Human Resource Management (HRM) Market has been split into academia, BFSI, government, healthcare, IT & telecom, manufacturing, retail, and others. Academic institutions use HRM solutions to streamline student admissions, inventory management, hostel admissions, library management, professor lecture scheduling, allotment of rooms, and several other activities. HRM systems are used by healthcare establishments, IT & Telecom establishments, and manufacturing establishments to streamline labor-management activities, payroll & benefits management, and time & attendance functions.
- This section intends to provide an overview of market estimates & trends by end-use industry, based on human resource management usage.
Regional Estimates and Trend Analysis
- North America will gain a larger share in the Human Resource Management (HRM) market due to the rise of IoT.
- This section provides an overview of the market by key countries, with sales volumes and per user pricing.
- In 2022, Accenture will invest in Talespin, a company that develops workforce talent and skills mobility solutions, and in 2021, Organon will transform its ERP system.
- We compile metadata on historical datasets, prices, company revenues, and other industry statistics from company databases and other paid databases, as well as information on unmet needs and regional expenditure pattern.
- Secondary sources used to gather market insights include HR Technologist, International Journal of Human Resources Studies, Society for Human Resource Management, Workforce Magazine, and others.
Data Analysis Model
- Identifying variables and establishing market impact, establishing market trends, analyzing future opportunities and market penetration rates, analyzing sustainability strategies adhered by market participants, determining year-on-year trend, and keeping a track of technological advancements in individual segments.
Data Validation And Publishing
- This report uses secondary sources such as HR Technologist, International Journal of Human Resource Studies, Society for Human Resource Management, People Matters, Workforce Magazines, and Forbes.