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Increasing Demand For Remote Work Driving HR Software Adoption: A Key Factor Shaping the Future of the Human Resource (HR) Software Market in 2025
Human Resource (HR) Software
The growing demand for remote work is expected to boost the human resource (HR) software market. Remote work is becoming more prevalent, offering flexibility and better work-life balance. HR software streamlines virtual recruitment, onboarding, and performance management, ensuring smooth HR operations. For instance, between September 2022 and January 2023, 16% of people in Great Britain worked exclusively from home, according to the Office for National Statistics. Therefore, the rising demand for remote work is propelling the HR software market.
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What Is the projected market size and growth rate for the human resource (hr) software market?
The HR software market is set to rise from $50 billion in 2024 to $54.64 billion in 2025 at a CAGR of 9.3%, due to automation demand, cloud adoption, AI integration, globalization, and mobile-friendly solutions.
The HR Software Market is set to reach $76.94 billion by 2029, growing at a CAGR of 8.9%. Growth factors include blockchain adoption, gamification trends, chatbot integration, flexible scheduling needs, and interest in virtual reality. Trends include generative AI, mobile-first HR solutions, and continuous technological advancements.
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What new trends are reshaping the human resource (hr) software market and its opportunities?
Companies in the human resource (HR) software market are introducing AI-powered solutions to enhance HR service delivery and improve operational efficiency. In January 2024, Pipefy Inc., a US-based company, launched Pipefy AI for HR, a complete solution that uses AI-driven automation and configurable chatbots to streamline HR tasks. This software helps employees with tasks like vacation requests, policy readings, and common HR queries, providing 24/7 access to HR information and improving service delivery.
What major market segments define the scope and growth of the human resource (hr) software market?
The human resource (HR) software market covered in this report is segmented -
1) By Component: Software, Services
2) By Deployment Type: On-Premises, Cloud
3) By Enterprise Size: Small And Medium-Sized Enterprises, Large Enterprises
4) By End User: Government, Manufacturing, Consumer Goods And Retail, Healthcare, Telecom And Information Technology, Banking, Financial Services, And Insurance, Other End Users
Subsegments:
1) By Software: Core Hr Software ( Hrms, Hris), Recruitment And Applicant Tracking Systems (Ats), Employee Onboarding Software, Performance Management Software, Payroll And Compensation Management Software, Learning And Development (L And d) Software, Time And Attendance Management Software, Employee Self-Service And Portal Software, Employee Benefits Management Software, Other Types
2) By Service: Consulting Services, Implementation And Integration Services, Customization And Configuration Services, Training And Support Services, Managed Hr Services, Cloud Hr Software Deployment Services, Hr Analytics And Strategy Advisory Services, Outsourcing Services ( Payroll Outsourcing, Recruitment Outsourcing), Hr Process Automation Services, Compliance And Regulatory Advisory Services
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Which region dominates the human resource (hr) software market?
North America was the largest region in the human resource (HR) software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the human resource (HR) software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Which key market leaders are driving the human resource (hr) software industry growth?
Major companies operating in the human resource (HR) software market are Oracle Corporation, SAP SE, Automatic Data Processing Inc., Workday Inc., UKG Inc., Paycom Software Inc., Ceridian HCM Holding Inc., Epicor Software Corporation, Paylocity Holding Corporation, Cornerstone OnDemand Inc., Paycor Inc., MoBerries GmbH, isolved HCM LLC, Rippling People Center Inc., Personio GmbH, BambooHR LLC, Hibob Inc., Automatic Payroll Systems Inc., Chronus Corp, Patriot Software LLC, EmployWise LLC, Cezanne HR Limited
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What Is Covered In The Human Resource (HR) Software Global Market Report?
•Market Size Forecast: Examine the human resource (hr) software market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the human resource (hr) software market for a structured understanding.
•Key Players Overview: Analyze major players in the human resource (hr) software market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the human resource (hr) software market.
•Segment Contributions: Evaluate how different segments drive overall growth in the human resource (hr) software market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the human resource (hr) software market.
•Industry Challenges: Identify potential risks and obstacles affecting the human resource (hr) software market.
•Competitive Landscape: Review strategic developments in the human resource (hr) software market, including expansions, agreements, and new product launches.
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