Core HR software market analysis based on software: With the growing data volumes, demand for
benefits and claim management systems are high, and make up for the highest share of the market
when categorized based on software type. As small and medium-sized enterprises (SMEs) grow, so
will their need to synchronize payroll management systems, which will in turn drive this segment.
Since organizations look to maintain cohesive relationships with employees, personnel management
will be their go-to solution, aiding it in holding a sizeable market share in the HR software domain.
With a surge seen in eLearning due to an increase in online courses and training modules, learning
management is predicted to grow the most during the forecasted period. Pension management
constitutes only a niche segment of the HR software market, as the software is deemed to decline in
appeal because this functionality may merge with other modules like benefits and compensation
management and compliance management systems, which are quite popular in the current HR
software market scenario. However, with compliance management now being transferred to the
specific modules, this particular software will eventually see a fall in market share. Succession
planning can be viewed as a segmented HR module, with functionalities which are subset of
resource planning, and positions under personnel management.
Core HR software market analysis, based on deployment type: Multi-utility of cloud-based HR
systems is the main reason for its increasing popularity and market size. It generates real
productivity benefits as the adoption of innovative tools leads to workforce optimization, customer
satisfaction, self-service, and competitive advantage. On-premises HR software allows to establish a
higher degree of control on the system, ensuring effective consistency checks. Hybrid HR software
deployments provide both cloud and on-premises solutions, which provide customers the flexibility
of SaaS. It also helps in controlling the traditional HR enterprise resource planning (ERP) system.
Core HR software market analysis, based on organization size: The SME segment comprises more
than 50% of the market share in the global domain. Trend shows that these companies are showing
increasing interest in HR management systems for a better user experience in line with the business
tools deployed, whereas, on the other side, large companies are advanced adopter of HR software.
With the growing complexity, there is a higher need for flexibility by the large enterprises to
converge their varying HR management requirements.
Core HR software market analysis, based on vertical: Government surveys indicate that workforce
planning will be the primary focus area for the local government sector in the coming years. There is
also an increasing strategic importance of HR activities in the era of artificial intelligence (AI),
automation, and human machine interaction. Retail business is growing dynamically, where HR
software plays a vital role in accurately forecasting the labor requirements during seasonal demands,
and seamless onboarding of employees. With the continuous funding received from governments all
over the world to improve public health services, healthcare will be the most essential area for
application of HR software, in the coming five years. HR software also finds importance in
transportation and logistics as it can be accessed remotely from any mobile device. Currently, the
information technology (IT) and telecom vertical is leading the market in this segment. A diverse
range of usage patterns and applications are found across retail banking, business to business (B2B)
banking, insurance, and consumer financial services providing lucrative opportunity for the growth
of the HR software market. Further, HR software in the other verticals like education, tourism, and
real estate is predicted to experience the highest growth in the future.