HR Core Administration Software Market Size By 2022 -2029
The HR Core administration software market size is set to take off in the upcoming years, with an expected market value of $33 billion by 2030. The market is projected to grow with a CAGR of 12.2% from 2022 to 2029.
But what could be the reason behind this growth? Well, this is mainly because the US market has recovered post-pandemic very quickly. The total import and export of the country reached $274.5 billion and $200 billion in February 2021.
Although, with the pandemic still prevalent, the year-over-year exports for the country have declined by $7 billion from March 2020 to March 2021. In comparison, the imports have gone up by $20.7 billion during the same period.
It is a clear indication of market recovery, and it will have a direct impact on the chemical, healthcare, and IT industries, raising the demand for HR software market products.
The current global HR software market is currently valued at $15 billion. But with HR core administration software having undergone optimization in recent years, efficiency has seen a prolific rise with minimal errors.
These software are now tasked with providing digital solutions for managing human and material resources in mobility. They automate most mundane manual HR activities and further help HR departments analyze and determine the organization’s operational needs.
With further technological advancements and cloud integration, the HR software industry will gain serious traction.
Dominant HR Core Software Market Players
Some of the dominant players in the HR core administrative software market are as follows.
- SAP SE (Germany)
- Workday Inc. (US)
- Kronos Inc. (US)
- IBM Corporation (US)
- Ceridian HCM Inc. (US)
- Oracle Corporation (US)
- Mercer LLC (US)
- NetSuite Inc. (US)
- Accenture PLC (Ireland)
- PricewaterhouseCoopers (India)
- Cezanne HR Ltd. (UK)
- Talentsoft (France)
The current technological landscape is seeing rapid advancement of IoT in wired and wireless technology. That is another factor contributing to the growth of the HR software market size.
On top of that, the growth of HR software usage and the various benefits (e.g., high reliability, task automation, etc.) have contributed further. The increased industrialization and economic growth of countries worldwide have ushered in the uptake of HR software solutions, consequently increasing market size.
Although, the integration of cloud technology and IoT solutions with HR software has a flip side as well. It increases the chances of data security issues, causing impedance in market growth. Extra safety measures must be taken to uphold data security and access sensitive information.
Also, the initial cost of setting up an HR core administrative software is another major hurdle a plethora of companies faces. Although, this entire issue will subside since cloud adoption is happening at a rapid pace in this assessment period. It will consequently support market growth.
North America is currently dominating the HR core administrative software market. It is a direct result of the early adoption of advanced technologies such as automation, cloud-based services, etc. Hence, HR software solutions have also seen significant innovations and upgrades, driving the market value further.
All this, paired with high economic growth and innovations in cloud technology, will keep North America significantly ahead in the HR software market race for the rest of the forecast period.
On a separate note, the Asia Pacific HR software market size has also seen a surge in the past few years. The primary sources of market revenue boosts are the government initiatives taken by countries to support digitization and increased cloud adoption.
Upcoming countries like South Korea, China, and India make up a considerable chunk of the regional market size.
The presence of several notable key players in the industry is causing the market to be highly fragmented and competitive. These players are leveraging strategic initiatives like mergers, acquisitions, collaboration, expansion, etc., to gain a larger market share.
Substantial investments are being made to drive R&D and expansion activities to increase global reach.
For instance, Darwinbox, a Singapore-based AI-powered human resources software startup, announced closing a $72 million funding in Series D financing at a $1 billion valuation on January 25th, 2022. Their cloud-based HR management software leverages AI and ML to automate tasks like payroll distribution, recruitment, travel, expenses, etc.