Industry: Healthcare
Published Date: March-2022
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 341
Report ID: PMRREP33024
The HR analytics market is likely to strengthen its hold on the global market at a promising CAGR of 12.4% between 2022 and 2032.
The market is valued at US$ 2.8 bn in 2022 and is likely to reach US$ 9 Bn by 2032. Previously, the market was booming at a higher CAGR of 13.7% (2016-2021), resulting in market size of US$ 2.5 Bn in 2021.
“Integration of HR processes with the cutting-edge technology and the rising sectors involving new employees all around the world are leading the demand for HR analytics solutions and pushing organizations to adopt latest HR practices, solutions and tools.”
HR analytics market’s latest upward trend explains the increasing number of sectors involved in processes like talent acquisition, retention, recruitment and employee engagement. HR analytics systems help in smoothening these complex processes, from storing the data to segmenting it with the help of multiple HR analytics tools.
| Attributes | Details |
|---|---|
|
HR Analytics Market CAGR (2022-2032) |
12.4% |
|
HR Analytics Market Value (2022) |
US$ 2.8 Bn |
|
HR Analytics Market Value (2032) |
US$ 9 Bn |
Covid-19 has impacted multiple global markets by rearranging the supply chains due to the market restrictions and logistics bans introduced by governments around the world. Yet there were some markets that had only a slight impact from the pandemic.
Covid-19 has changed the way organizations look at their HR practices. It has indeed slowed down the recruitment and talent acquisition processes, but it has still fueled the HR analytics market by introducing new tools and solutions.
As most of the recruitment and work was done in work from home basis, the need for better HR management and analytics tools was generated. This didn’t let the spread of novel coronavirus impact global HR analytics adversely.
As HR analytics tools made the processes easy and smooth for the recruiters, it also gave utmost opportunities to the employees to be connected with Human resources more frequently.
The advent of coronavirus and work from home practices have made it challenging for companies to come up with new tools and solutions that help the sectors like IT, E-commerce Industries and Software management companies by easing the process that provides a better structure and work-life balance to employees.
“The paradigm shift from HR analytics being a partner in operations to it becoming a valuable strategic, operational thread has helped the HR analytics market is spreading its roots in new corporate spaces around the world. ”
The major drivers that give a push to the HR analytics market are rising demand for skilled employees, skill-based training and enhanced employee retention.
The latest advanced technology like Machine Learning, Big Data and the Internet of Things (IoT) is expected to help in upgrading the already existing HR practices. For instance, the concept of machine learning makes it easy for employers to predict which candidate can perform better, helping HR management in recruitment and retention processes.
Other factors that fuel the global HR analytics market are increasing ROI, Research and Development programs, Frequent downsizing due to the pandemic.
Constantly changing the dynamic of human resource practices and R&D programs enables companies to provide better business solutions.
In the last decade, businesses have been upgrading and digitalizing their space with technological advancements. Therefore, the workforce data available within the organizations can be used to conclude the company’s decision in the best way possible. This happens through introducing the HR analytics tools and solutions to deliver optimum results while taking efficiency into account.
As organizations grow, they provide training to the new employees that take a huge chunk of capital, and if the employees don’t last in the company for long, the employers take the loss.
Here HR analytics solutions come into play as it renovates the idea of recruiting and training and cuts the maximum cost possible from the training and development program.
The new trends show that employers now focus on minimizing the per employee HR cost and maximizing efficiency. The trend involves better hiring practices, enhancing employee experience and increasing the average productivity of the workspace. For example, American Progress states that it takes around 200% of an employee’s annual salary in the case of them leaving the job or replacement.
The restraining factors for the HR analytics market are the high cost spent on HR analytics solutions and the lack of budget for employer benefits. Corporate spaces also lack the number of skilled employees to manage the HR analytics solution systems.
A global study on the HR analytics market at persistence market research explains that the spread of covid-19 has also slowed down the recruitment process that has led institutions to not spend more on HR solutions as most IT companies already are at a loss.
| Attributes | HR analytics Market |
|---|---|
|
CAGR (2022-2032) |
12.4% |
|
Market Value (2026) |
US$ 4.47 Bn |
|
Growth Factor |
Advancements and frequent upgrades in HR practices, adoption of new cutting-edge metric-based solutions. |
|
Opportunity |
Enabling opportunities for a new type of industry that work on endorsing problem-solving skills and providing solution-based tools to the corporates |
|
Key Trends |
Introduction of IOT, Big Data, Cloud and on-premise storage deployments are supposed to gain more traction in the forecast period. |
| Attributes | HR Management Market |
|---|---|
|
CAGR (2022-2032) |
12% |
|
Market Value (2026) |
US$ 34.54 Bn |
|
Growth Factor |
Introduction of new-gen technologies such as predictive analysis, machine learning and artificial intelligence is hyping up the HR management market. |
|
Opportunity |
HRM solutions are largely benefitting the small-scale start-ups making it easier for them to navigate from one funnel to another, generating new solutions. |
|
Key Trends |
Multiple companies like Oracle and SAP SE are upgrading their old HRM solutions with new, pushing the HRM market upwards. |
| Attributes | Human Resource technology market |
|---|---|
|
CAGR (2022-2032) |
5.5% |
|
Market Value (2026) |
US$ 31.52 Bn |
|
Growth Factor |
Integration of AI and analytics along with technologically advanced recruitment tools are shaping new HR practices and fuelling the HR technology market. |
|
Opportunity |
As companies upgrade their workspaces, the HR technology industry’s future shines. The companies have utmost opportunities regarding new idea generation, problem solving tools and better interface. |
|
Key Trends |
HR technology vendors are focusing more on enhancing the employee experience as that is the top priority for end users. |
Concepts like Machine learning, Artificial Intelligence, Predictive solutions and IOT are helping the vendors integrate the corporate circuits with each other in a way that it gets easier for employees to navigate from one end to another.
The study by persistence market research explains that small and mid-scale companies are getting the most benefit from these concepts. The key trend that shapes the technologically advanced HR analytics systems is the problem-solving approach followed by vendors that provide solutions for small problems, easing the complexities around data and segmentation.
HR analytics report further explains the focus is on integrating AI with analytics in order to make employee’s experience better at the workplace.
The science behind that is how analytic algorithms make applicant tracking easier once integrated with artificial intelligence. This helps employers in making better decisions around the metrics provided by HR analytics solutions.
The HR analytics market is categorized into components, application area, deployment type, organization size and vertical.
The components category is segmented into solutions and services, while the application area is segmented into payroll, retention, recruitment, workforce management, employee engagement and employee development. HR analytic verticals are divided into consumer goods & retail, BFSI, IT & telecom, healthcare and manufacturing. These segments hold prominence in different market spaces all around the world.
By components, the solution segment is the biggest and is likely to hold the largest market space in the global market, thriving at a promising CAGR of 11.8%. The factors behind the excessive growth of this segment are benefits provided by the solution components to the enterprise.
The solution component makes the best out of HR processes like employee engagement, retention and recruitment, helping the HR managers form better decisions based on the metrics provided by HR analytics solutions. At the same time, the Service component is also used in large companies.
By deployment, cloud deployment type is expected to hold the prominence in the forecast period with a CAGR of 11%. The factor helping in the growth of this segment is the company's preferences of cloud as a reliable deployment for enhanced storage space, scalability, and increased efficiency.
Another important factor behind the growth is its implementation on a small and large-scale that allows these companies to focus more on strengths and less on IT processes.
By vertical, the most lucrative segment is the banking, financial services and insurance (BFSI). This segment is likely to hold the prominence in the forecast period with a strong growth rate.
The reason behind the excessive growth of this segment is the frequently changing dynamics of banking services, including technological upgrades in the sector. BFSI vertical now look for solutions that can decrease the workforce costs and boost the streamlining operations with maximum productivity.
The HR analytics market is divided into regions; North America, Latin America, Asia Pacific, Middle East and Africa (MEA) and Europe. The biggest market is the United States, which is thriving at a CAGR of 12.2% between 2022-2032.
The region is expected to hold a market revenue of US$ 3.2 Bn by the end of 2032. E-commerce, IT, and Financial services opening up their spaces after the spread of covid-19 are generating the demand for upgrades in their corporate norms, including their HR practices.
Another reason behind the highest growth of HR analytics solutions and services market in this region is high capital investment from the government as well as private players in the sector. Apart from this, China is the second highest growing market for HR analytics market. Chinese region is likely to hold US$ 616.6 Mn by the end of 2032 as it thrives on a strong CAGR of 11.7% between 2022-2032. United Kingdom (UK) also grows along with China with a forecasted value of US$ 376.5 Mn (2032) at a CAGR of 11.4% between 2022-2032.
| Regions | CAGR (2022-2032) |
|---|---|
|
United States |
12.2% |
|
United Kingdom |
11.4% |
|
China |
11.7% |
|
Japa |
10.7% |
|
South Korea |
9.5% |
The competitive landscape of HR analytics is dynamic but has only limited scope for competitors. The competitors are involved in mergers and collaborations. Through these mergers, companies expand their distribution channels and increase their market spaces in new regions. Competitors focus on adopting new generation technologies like AI and machine learning that are going to help the HR analytics solutions at large.
| Attributes | Details |
|---|---|
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Forecast period |
2022-2032 |
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Historical data available for |
2015-2021 |
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Market analysis |
USD Mn for Value |
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Key Countries Covered |
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By Market Segments |
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Key Companies Profiled |
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Pricing |
Available Upon Request |
By Components
By Application Area
By Deployment
By Region
To know more about delivery timeline for this report Contact Sales
HR analytics market is set to grow at a CAGR of 12.4% during the forecast period.
United States is the biggest region in HR analytics market with a CAGR of 12.2% during the forecast period.
Solutions is the leading segment in the HR analytics market by component.
The HR analytics market is set to reach US$ 9 Bn by 2032.
North America has the highest growth potential in the HR analytics market, where US has the highest growth rate 12.2% during the forecast period.
