Global SAAS-based Human Resource Market Size, Forecast, and Trends Highlights Over 2022 - 2031
The global SAAS-based human resource market is estimated to garner a revenue of ~USD 445 billion by the end of 2031 by growing at a CAGR of ~13% over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of ~USD 272 billion in the year 2021. The market is estimated to grow on the back of 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 global SAAS-based human resource market is also estimated to witness growth on account of various features provided by HRM software that increase the overall productivity of employees and provide ease in operations. Some features incorporated in HRM software include application tracking, time & attendance, talent management, leave management, and payroll management. For instance, in 2019, approximately 25% of organizations globally implemented talent management within their HRM software and approximately 17% implemented payroll applications in the same domain. SAAS-based HRM software enables organizations to control and collect the data of their employees on a real-time basis. Moreover, the incorporation of other features in HRM software such as work force analytics and process design control is further estimated to propel the market growth in the coming years.
Global SAAS-based Human Resource Market: Growth Drivers and Challenges
Growth Drivers
- Rising Technological Innovation and Advancement – According to a recent survey, more than 80% of HR leader professionals are planning to adapt more artificial intelligence-based HR tools to their talent management process by the end of 2026. In addition, modern HRM software has a learning management system integrated that enables a culture of continuous learning in the workplace and consequently increases the productivity of the overall organization.
- Growth of SAAS-based Industry – According to estimates, the SaaS industry has grown in size by over 480% in the past seven years.
As per statistics, there are approximately 17,000 SaaS companies in the United States, which is significantly more than any other country.
- Expansion of IT Industry – According to the India Brand Equity Foundation data, the Indian IT industry accounts for 8% of GDP in 2020 and by the end of 2025, the Indian software products industry is projected to reach ~USD 100 billion.
- 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.
- Rising Trend of E-Recruiting – For instance, more than 50% of organizations use human resource management techniques to find, attract and retain new talent.
Challenges
- Continuous Internet Connectivity is required for the Operation of HRM Software
- Threat of Cyber Intrusion
- Lack of Awareness about the Benefits of SAAS-based Human Resource Management
The SAAS-based human resource market is segmented and analyzed for demand and supply by type into cloud based and on-premise. Out of these segments, cloud-based segment is anticipated to garner the largest market share over the forecast period, owing to the increasing adoption of cloud-based service 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. In addition, cloud-based services provide easy access to data and allow real time data sharing to multiple users with efficient management. Hence, such factors are expected to drive the segment growth in the coming years.
Major Macro-Economic Indicators Impacting the Market Growth
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The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Global SAAS-based Human Resource Market Regional Synopsis
Out of these, the market in North America is projected to hold the largest market share by the end of 2031. This can be accredited to 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.
Further, the market in Asia-Pacific is estimated to gain significant growth during the forecast period, owing to 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 the 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.
The global SAAS-based human resource market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
Market Segmentation
Our in-depth analysis of the global SAAS-based human resource market includes the following segments:
Top Featured Companies Dominating the Global SAAS-based Human Resource Market
- Unicommerce eSolutions Pvt.Ltd
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- Ceridian HCM, Inc
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