Software as a Service (SAAS) Based Human Resource Market Size & Share, by Organization (SMEs, Large Enterprises); Type (Cloud Based, On-premise); Application (Time & Attendance Management, Absence Management, HR & Payroll, Integrated Solutions); End-user (IT & Telecom, Manufacturing, Healthcare, Banking, Financial Services & Insurance, Government, Logistics) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 234
  • Published Date: Mar 11, 2024
  • Report Format: PDF, PPT

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

SAAS-based Human Resource Market size is poised to reach USD 900 Billion by the end of 2036, growing at a CAGR of 13% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of SAAS-based human resources was USD 307 Billion. The reason behind the growth is impelled by the increasing adoption of SaaS-based Human Resource Management software, thereby increasing the efficiency of the HRM Division (Human Resource Management) and reducing the operational cost. According to estimates, more than 75% of organizations are using human resource management software to facilitate process efficiency and collect data.

  The rising technological innovation and advancement are believed to fuel the SAAS-based human resource market growth. AI-driven HR management software is revolutionizing HR work processes and personnel management and is helping HR professionals select the best resource by doing away with prejudice and guesswork. According to a recent survey, more than 80% of HR leader professionals are planning to adopt more artificial intelligence-based HR tools to their talent management process by the end of 2026.


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SAAS-based Human Resource Market: Growth Drivers and Challenges

Growth Drivers

  • Rising Investment by Organizations - SAAS-based HRM offers cost-effective solutions and savings, along with various other opportunities. According to the most recent data published in 2021, about 72% of organizations plan to increase their spending on HR technology. Particularly, in 2023, more than 55% of businesses planned to invest in a hybrid or subscription-based SaaS HR solution[SP1] .
  • Increasing Trend of E-Recruiting - E-recruitment is the automated process of finding, recruiting, screening, and employing individuals using internet stages and HR software, which is also a complete solution that handles every aspect of HR, from hiring to retirement. For instance, more than 50% of organizations use human resource management techniques to find, attract and retain new talent.
  • Growing Usage in Government Sector- Local government HR departments are switching from complex, paper-based procedures to online ones with GovOS Applications for payroll, HR solutions, and services, performance reviews, and labor management.
  • Expanding Healthcare Industry- Healthcare HR software is made to ensure effective management of people and resources, and firms to easily manage personnel information, keep track of certifications and credentials, and effectively manage employee schedules while adhering to labor laws.

Challenges

  • Threat of Cyber Intrusion- HR departments frequently deal with chatbots and vulnerabilities in HR software when it comes to data security which have emerged more lately, while others have long been persistent problems. Concerns concerning security increase with the number of SaaS accounts and seats, which is one of the main obstacles to the software as a service model's complete acceptance. Shadow IT, ineffective access control, misconfigurations, insider threats, and compliance issues are a few insider threats that might happen if staff members get access to private information kept in SaaS apps. SaaS security risks may arise from regulatory compliance, which may lead to monetary loss, legal repercussions, and reputational harm to the business.
  • Continuous Internet Connectivity is required for the operation of HRM Software 
  • Lack of awareness about the benefits of SAAS-based human resource management may limit its adoption

Software as a Service (SAAS) Based Human Resource Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~13%

Base Year Market Size (2023)

~ USD 307 Billion

Forecast Year Market Size (2036)

~ USD 900 Billion

Regional Scope

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

Type (Cloud Based, On-premise)

The cloud-based segment in the SAAS-based human resource market is estimated to gain a robust revenue share of 60% in the coming years owing to the increasing adoption of cloud-based services among organizations. For instance, about 43% of talent managers prefer cloud-based solutions to increase efficiency and productivity, and around 34% look for cloud-based systems to reduce operating costs. Cloud-based services provide easy access to data and allow real-time data sharing to multiple users with efficient management. Cloud-based SaaS HR software simplifies HR administration and offers a large number of HR management features such as including time and attendance, recruitment, performance management, training, document management, and payroll. The software is a sophisticated cloud-based HR system hosted by a separate outside vendor, which is easily customizable and scalable, making it possible to quickly adjust to changes in the organization, and provides organizations with sophisticated tools that let them keep employee data in a single, safe, and convenient location. These days, cloud-based solutions are growing in popularity as with a cloud-based HRM system, users can safely save employee records and documents in one place with restricted access, and also send out expiration date reminder messages. Moreover, cloud-based HR software increases business efficiency by providing easy scalability and customization. In addition, when compared to on-premises software applications, cloud HR SaaS is more affordable, and is a highly practical solution designed to manage all of the business's assets.

End-user (IT & Telecom, Manufacturing, Healthcare, Banking, Financial Services & Insurance, Government, Logistics)

The IT & Telecom segment in the SAAS-based human resource market is set to garner a notable share shortly. With thousands of workers, telecom is an important industry, therefore telecom firms integrate proprietary and open-source software into their technology stack to decrease human error in the process while also saving time, and also assists with employee training programs and performance management reviews, which boosts output.

Our in-depth analysis of the global SAAS-based human resource market  includes the following segments:

     Organization

  • SMEs
  • Large Enterprises

     Type

  • Cloud Based
  •  On-premise

     Application

  • Time & Attendance Management
  • Absence Management
  •  HR & Payroll
  •  Integrated Solutions

     End-User

  • IT & Telecom
  •  Manufacturing
  •  Healthcare
  •  Banking
  •  Financial Services & Insurance
  • Government
  •  Logistics

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SAAS-based Human Resource Industry - Regional Synopsis

North American Market Forecast

SAAS-based human resource market in North America is predicted to the largest share of 40% by 2036 impelled by the growing number of enterprises. This has led to an increase in the adoption of HR & Payroll Software in the region. For instance, more than 33 million small firms operated in the US in 2023, accounting for around 99% of all US businesses. According to research, it was revealed that more than 3 million utilize HR management software .

In addition, the increasing efforts to adopt automation and various strategies to implement cost reduction in human resource management activities by several organizations, along with the expansion of the HRM software industry. For instance, in the United States, the number of businesses in the HR and payroll software industry grew by about 10% each year on average during 2017–2022.

APAC Market Statistics

The Asia Pacific SAAS-based human resource market is estimated to the second largest, during the forecast period, led by the presence of a constantly developing IT industry and rising economies such as India, China, Japan, and Singapore. According to estimates, the Chinese software industry is estimated to have around 39,000 software companies in 2021. Moreover, various government initiatives and rising investments are also estimated to drive SAAS-based human resource market growth in the region. According to the India Brand Equity Foundation data, about USD 11.58 billion has been allocated to India's IT and telecom sector in the Union Budget 2022–23.

 

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Companies Dominating the Software as a Service (SAAS) Based Human Resource Market

top-features-companies
    • Unicommerce eSolutions Pvt.Ltd
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Ceridian HCM, Inc
    • IBM Kenexa
    • Atos SE
    • UKG, Inc.
    • CommercelQ
    • Oracle
    • CloudPay
    • Cegid
    • HALOGENS
    • Unicommerce eSolutions Pvt.Ltd
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Ceridian HCM, Inc
    • IBM Kenexa
    • Atos SE
    • UKG, Inc.
    • CommercelQ
    • Oracle
    • CloudPay
    • Cegid
    • HALOGENS

In-the-news

In The News

  • Ceridian HCM, Inc. has come up with a great initiative of "A Dayforce Payroll" extension that gives employees access to the wages they earn when they need them, using an intuitive mobile app and the included prepaid card.
  • UKG, Inc. a leading provider of HR, payroll, and workforce management solutions along with Google Cloud to integrate generative artificial intelligence (GenAI) from Google Cloud with the extensively used UKG human capital management (HCM) suites to enhance employee requests with more pertinent business insights, facilitate more conversational engagements with its HCM products, and assist managers and staff in improving decision-making.

 

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 234
  • Published Date: Mar 11, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The increasing adoption of SaaS-based Human Resource Management software and the rising technological innovation and advancement are the major factors driving the growth of the market.

The market size of SAAS-based Human Resources is anticipated to attain a CAGR of 13% over the forecast period, i.e., 2024-2036.

The major players in the market are Ceridian HCM, Inc., IBM Kenexa, Atos SE, UKG, Inc, CommercelQ, Oracle, CloudPay, Cegid, 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.
SAAS-based Human Resource Market Report Scope
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