Payroll and HR Solutions & Services Market Size & Share, by Deployment (Cloud-based, On-premises, Hybrid); Enterprises (SMEs, Large Enterprises); Solutions (Software, Services); Industry (BFSI, IT & Telecom, Energy & Utilities, Manufacturing, Healthcare, Retail) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 4342
  • Published Date: Apr 03, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Payroll and HR Solutions & Services Market size is poised to reach USD 110 Billion by the end of 2036, growing at a CAGR of 9% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of the payroll and HR solutions & services was USD 39 Billion, and the growth is propelled by the increasing adaptation of digitization technology by several businesses to streamline their operations and improve their efficiency, as about 89% of the companies have already adopted the digital-first in their business strategy or are either planning to do so. This acts as a surge in the growing demand for cloud-based HR solutions that offer automation, and improved accessibility for employees as well as the HR personnel.

For instance, according to a report, 91% of businesses are mainly engaged in a form of digital initiative, and about 87% of senior business leaders say digitalization is a priority for their business.

Furthermore, the modern workforce is highly diverse and has an extremely shifting expectation. HR solutions that cater to these needs, such as mobile access, and talent management tools, are in high demand. Furthermore, the rise of SMEs has created a large market segment, seeking a cost-effective and scalable HR solution.

Payroll, HR Solutions & Services Market
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Payroll and HR Solutions & Services Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing adoption of Artificial Intelligence & Machine learning: the usage of Artificial Intelligence (AI) and Machine learning, and several other options such as IoT, computer vision, blockchain, and analytics are increasing. About 97% of the executives are using AI specifically to revolutionize at least one aspect of their supply chain operations, which ranges from solving inventory management issues to reducing trade expenses.
  • Increasing demand for payroll and HR solutions and services: This helps to manage the workforce along with automated management processes, automatic updates, reduction of errors while resolving various issues, and several other time-saving features. It was observed that, worldwide, there were more than 3 billion employed people in 2022.
  • Increase in the number of SMEs: Escalating the implementation of IT by SMEs and automation of HR processes through various software, solutions, and services. In 2021, there were approximately 332 million SMEs worldwide.


  • Limited user acceptance and uptake: Payroll and HR solutions require the users to adopt their new systems and processes. This can be counted as a restraining factor for some businesses, as it can take time and effort to get users to adopt the new systems and processes. It is also important to provide proper training and support to ensure that the systems are used effectively and are accepted.
  • Lack of awareness about payroll and HR solutions and services
  • High cost involved in the adoption of automation technologies

Payroll and HR Solutions & Services Market: Key Insights

Base Year


Forecast Year



~ 9%

Base Year Market Size (2023)

~ USD 39 Billion

Forecast Year Market Size (2036)

~ USD 110 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Payroll and HR Solutions & Services Segmentation

Deployment (Cloud-based, On-premises, Hybrid)

Cloud-based segment in the payroll and HR solutions & services market is estimated to gain a robust revenue share of 46% in the coming years owing to the improved data protection and security for user data which is managed and stored by the software. The data is stored on secured and remote servers and can ensure greater privacy and security from data breaches and losses. According to a survey in March 2022, more than 720 IT professionals were surveyed all over the globe using online questionnaires, and about 80% of the organization's data is stored in cloud-based storage.

Enterprises (SMEs, Large Enterprises)

The small and medium enterprises segment in payroll and HR solutions & services market is set to garner a notable share shortly and is likely to remain the second largest segment in the enterprises of market as these are handled by staff with limited know-how of technical systems and processes. Cloud-based payroll and HR systems can provide solutions that are easier to use and navigate, taking away the need to invest in specialized staff with specific abilities and knowledge. This can be a significant growth driver for the market, as it provides a solution for many businesses facing the challenges of lack of expertise and resources.

Solutions (Software, Services)

The Software segment is estimated to hold a noteworthy share as it provides enhanced connectivity along with the integration of several other systems and platforms, such as accounting and financial systems. This can enable businesses to benefit from a streamlined workflow and improved data sharing. These capabilities can also reduce costs and complexity associated with data integration and exchange. Furthermore, Software-based solutions also provide a user-friendly and streamlined experience, with clear navigation and interactive features. This can lead to increased user satisfaction and adoption.

Our in-depth analysis of the global market includes the following segments:


  • Cloud-based
  • On-premises
  • Hybrid


  • SMEs
  • Large Enterprises


  • Software
  • Services


  • BFSI
  • IT & Telecom
  • Energy & Utilities
  • Manufacturing
  • Healthcare
  • Retail

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Payroll and HR Solutions & Services Industry- Regional Synopsis

North American Market Forecast

The payroll and HR solutions & services market in North America is estimated to have the largest share of 41% in 2023, propelled by the increasing adoption of advanced technologies in workplace management. In the forecasted period, businesses are planning to integrate several advanced automation for about 28%, 3D printing at 26%, augmented or virtual reality at 27%, and blockchain technology at 25% to enhance efficiency, traceability, security, and data protection.

APAC Market Statistics

The Asia Pacific payroll and HR solutions & services market is estimated to be the second largest, during the forecast period led by the increase in the demand for remote work along with hybrid work cultures, in which more employees are opting for these remote jobs, and this is fueling the demand for HR solutions and services. According to a report, the global volume of job searches that use the “remote” filter on one of the leading business and employment-focused social media platforms has increased by about 60% from the start of March. Moreover, in Asia-Pacific, the applications for remote jobs are growing as well, showing the increasing demand for remote work among job seekers.

Research Nester
Payroll, HR Solutions & Services Market size
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Companies Dominating the Payroll and HR Solutions & Services Landscape

    • Intuit, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Automatic Data Processing, Inc. (ADP)
    • Jobvite, Inc.
    • Sage Group plc
    • Kronos, Inc.
    • SAP SE
    • Oracle Corporation
    • TriNet Group, Inc.
    • Paychex, Inc.
    • Paycom
    • Paycor, Inc.
    • Paylocity
    • TMF Group B.V.
    • Ultimate Software Group, Inc.
    • Ramco Systems Ltd.

In the News

  •, in April 2022, launched a talent solution platform for their higher-level hiring. This platform scans millions of public profiles that are available on the internet and layers them along with the analysis from, Coffee Mug’s data pool mainly to drive senior-level hiring for their clientele.
  • Oracle Corp., launched SaaS (Software as a Service) payroll solutions, which will enable the organization to easily configure the payroll for meeting both international and local pay rules in a single system.

Author Credits:  Abhishek Verma, Hetal Singh

  • Report ID: 4342
  • Published Date: Apr 03, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing adoption of Artificial Intelligence & Machine learning along with the rising Use of Artificial Intelligence (AI) powered HR Solutions are the major factors driving the growth of the market.

The market size of payroll and HR solutions & services is anticipated to attain a CAGR of 9% over the forecast period, i.e., 2024-2036.

The major players in the market are Automatic Data Processing, Inc. (ADP), Jobvite, Inc., Sage Group plc, Kronos, Inc., SAP SE, Oracle Corporation, TriNet Group, Inc., Paychex, Inc., Paycom, Paycor, Inc., Paylocity, TMF Group B.V., Ultimate Software Group, Inc., Ramco Systems Ltd., Mannet, BambooHR, Intuit, Orange HRM and others.

The cloud-based segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Payroll, HR Solutions, and Services Market Report Scope

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