Published on: December 04, 2019
The HR software market has seen strong growth in recent years, and that growth is expected to continue as these products remain popular with large corporations and SMEs alike. Innovations in technology, such as AI and machine learning, are creating new opportunities within the market, allowing HR software companies to offer new features and improve efficiency.
Increased HR software budgets are one of the key drivers fueling the HR software market’s growth. Large companies are spending almost 10% of their HR budgets on advanced technologies such as human capital management (HCM) and human resource management system solutions. The adoption of cloud-based solutions has fueled huge growth in cloud-based HR technologies. The HR software market is radically changing, with more venture capitalists investing in new HR software sold by market vendors, including tools for payroll processing, tax management, customized dashboards, and analytics. Therefore, the market is expected to grow significantly during the forecast period as much of the old software will be replaced by agile, easy-to-use mobile applications.
The rising adoption of digital HR technology is one of the key HR software market trends propelling growth. Mobile phones have become a common channel for work among employees, and this has provided organizations with an opportunity to adopt mobile HR technologies. Organizations are increasingly focusing on improving the employee experience by digitalizing their HR processes and systems using new digital platforms. Advanced technologies that are playing a key role in this transformation are mobile applications, social media, analytics, and the cloud. Digital HR technology provides a single platform for improving employee and candidate experience by integrating analytics, social media websites, mobile platforms, and cloud technologies.
However, data privacy and security concerns are one of the factors limiting the HR software market's growth. The benefits of cloud-based solutions include the simplified management of software maintenance and upgrades, low upfront costs, and others to overcome any functional gaps in existing systems and processes. However, organizations will transfer their data or information to the cloud only if the services are reliable and secure. Organizations have less control over such data as they have become more dependent on cloud computing service providers. Many end-users are also concerned about data security policies governing cloud-based solutions because cloud storage acts as a gateway for security threats and privacy issues.
Technavio’s market research on this industry provides a detailed analysis of the market landscape, providing data on product types, regional markets, sales channels, and more.
Our HR software market segmentation covers topics such as:
Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is a leading region for the HR Software market, driven by the presence of many large enterprises and SMEs, as well as the presence of diverse worker protection regulations. Cloud-based HR software solutions are becoming increasingly popular among smaller businesses in the region due to their cost-effectiveness.
Technavio's HR software industry reports monitor the leading players in the global market along with their current and forecasted market share. Our analysis covers regional and global companies. Some of the top companies covered in our HR software market reports include:
In order to provide you with a comprehensive view of the HR software industry, our experts analyze the market from many different perspectives. Our reports help identify opportunities, risks, key competitors, and more, helping you make timely, informed decisions to optimize your position in the market.
Technavio reports insights include:
1.How do I identify key trends in the HR software market?
Technavio’s market research reports provide an analysis of current trends and how they are affecting the market. We also identify market drivers and challenges to help you discover opportunities and avoid pitfalls.
2.How do I decide which segments of the HR software market to focus on?
Every Technavio report includes detailed segmentation insights, breaking down the market in terms of product type, geography, sales channels, and more. And if you’re looking for something a little more specific, our Custom Research Solutions can tailor any report to meet your unique needs.
3.Who are the major players in the HR software market?
We provide detailed profiles on the biggest competitors in the market, including data such as business divisions, product offerings, and news. Our reports also include an overview of the competitive landscape as a whole, including the risks and opportunities that it presents.
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