Human Resource Technology Market is Expected to Reach USD 237.42 billion by 2030
As per the report published by Kings Research, the global Human Resource Technology Market was valued at USD 156.98 billion in 2022 and is projected to reach USD 237.42 billion by 2030, growing at a CAGR of 5.4% from 2023 to 2030. The growing demand for Robot Process Automation (RPA) technology has emerged as a key driver in enabling Human Resource (HR) management solutions to deliver enhanced efficiency and innovation while empowering organizations to execute more effective talent strategies.
Optimization of operations while reducing the costs associated therein, companies are increasingly seeking out RPA technologies capable of embedding machine learning to automate their processes. Streamlining routine tasks and eliminating of additional IT support, these solutions empower enterprises to standardize their processes and reduce overhead costs. The development of new and innovative HR solutions is driven by such cost-effective yet efficient RPA and machine learning solutions.
- Based on the deployment, the cloud-based segment held the largest market share of 63.36% in 2022
- Based on application, the payroll management segment generated the highest revenue of USD 52.37 billion in 2022
- On the basis of region, North America accounted largest market share of USD 67.43 billion with a CAGR of 3.93% in 2022
Acquisition of Quorbit by UKG Inc., For Diversification of Services
- November 2022 - UKG Inc., a reputable provider of comprehensive HR, payroll, and workforce management solutions to a diverse range of customers, has recently announced its acquisition of Quorbit, a prominent U.K.-based startup that specializes in innovative long-term workforce planning solutions aimed at employees in frontline and hourly roles. By uniting strategic planning with the development of employees, this acquisition represents a powerful opportunity for organizations to elevate their operational excellence and achieve new levels of success.
Acquisition deal of Bugle by HiBob For Expanding Business Reach
- September 2022 - HiBob, a well-known HR management platform has acquired Portuguese-based company Bugle. With around 20 employees and specialized expertise, Bugle's team will combine forces with HiBob and become the cornerstone of its engineering-focused operation based in Lisbon. This strategic investment is expected to create a significant number of employment opportunities for approximately 70 experienced technology professionals in the region over time.
Strategic Acquisition of Integrated Design Inc., by ADP Inc.,
- November 2021 – Integrated Design Inc., was acquired by ADP Inc., with the ultimate strategic motive of strengthening and expanding its capacities across Workforce Management and HCM solutions. The value of the acquisition is undisclosed.
Emerging Trends in Cloud-Based HR Solutions Integrated with AI to Create Lucrative Opportunities for the Market Growth.
Advancing and developing technology have evolved the nature and dynamics of software, solutions, and platform-based services. Increasing work trends such as remote working, hybrid working, and other working models have grown the demand for efficient and cloud-based solutions for end-user verticals. The development and integration of AI in software tools are drastically changing the nature of human resource management solutions. Key market players are observed offering new and updated cloud-based tools that are integrated with AI analysis and problem-solving solutions.
Trends of Optimizing Employee Experience Through Holistic HR Technology Solutions to Aid Market Growth
The growing emphasis on prioritizing employee experience and engagement has emerged as a key driver behind the development of HR technology solutions that seek to bolster communication, streamline workflows, and enhance the overall employee experience. To this end, HR tech providers are increasingly investing in advancing technologies and best practices that aim to optimize the employee experience throughout the entire employee lifecycle, from recruitment to retention. Taking a more holistic approach to HR, these technologies seek to create a more connected workforce that is engaged, productive, and empowered to drive business success.
Integration of Technology and Global HCM Solutions Providers Drive Growth in Europe's Human Resource Technology Market
In 2022, Europe was the second largest region in terms of revenue, accounting for 31% of global market revenue. The presence of countries such as Germany, the U.K., and other European countries that are well adapted to the integration of technology in human capital management is a key factor driving the growth of the region. The U.K. is estimated to progress with the highest growth rate amongst other European countries while Germany was the prominent country accounting maximum revenue. The presence of top global HCM solutions provider in the country is the major factor resulting in market expansion and growth.
Rapid Urbanization to Support Asia Pacific with Fastest CAGR
Asia Pacific is estimated to observe an exponential CAGR of more than 8% during 2023-2030 owing to growing business sectors. Rapid urbanizing countries such as India, China, and Japan are estimated to attribute the prominent expansion of the HR Tech market and revenue therein. Urbanization has paved the path for technology in the region. Widespread adoption of technology in the majority of industries or business sectors and the presence of a large workforce are observed to be the prominent factors.
Collaborative Deals Struck Among Major Industry Players
The market is consolidated/fragmented with significant players in the market, such as ADP, Inc., Cegid, Cornerstone, Hi Bob, Inc., IBM Corporation, Infor, Oracle, SAP SE, UKG Inc., Workday, Inc., and others, are concentrated on expanding their business through collaboration and partnership strategies.