Core HR Software Market Size
Imagine you had a magic wand that would make your HR job a piece of cake? Well, Core HR software is that magic wand! In 2022, it was valued at a whopping $9.6 billion, and surprise, surprise! It's projected to become even larger, like a helium-filled balloon! Why the affection for Core HR software? Because it's like having a superhero in your HR team. It does all the mundane tasks such as paying your staff and processing their benefits for you, relegating those awful spreadsheets to the bin. Not only does this save your HR superheroes hours of time, but also makes everything spot on. So if you want your HR department to tick like clockwork, while cutting costs, Core HR software is the secret weapon you need!
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The increasing trend of digital transformation is a key driver of core HR software market growth. As companies initiate digitalization initiatives, they realize the need to update HR processes. Legacy, paper-based processes are being substituted by digital core HR software solutions to keep pace with this transformation. These digital solutions not only automate HR functions but also help drive larger organizational objectives of agility and competitiveness, making them an essential part of contemporary business strategies.
| Report Attribute | Details |
|---|---|
| Base Year | 2022 |
| Core HR Software Market Size in 2022 | USD 9.6 Billion |
| Forecast Period | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR | 6.5% |
| 2032 Value Projection | USD 18.6 Billion |
| Historical Data for | 2018 to 2022 |
| No. of Pages | 278 |
| Tables, Charts & Figures | 336 |
| Segments covered | Component, Deployment Model, Organization Size, End-use, and Region |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
High up-front investment in core HR software can slow market growth by preventing smaller organizations with tight budgets from embracing sophisticated solutions. The high costs of licensing, customization, and training may prevent some organizations from embracing this solution. This barrier of cost can restrict core HR software market growth and keep organizations away from the efficiency & automation value that core HR software can provide, particularly if they find the return on investment too vague or far-reaching.
COVID-19 Impact
The impact of the COVID-19 pandemic on the core HR software market was positive. It expedited the growth of the adoption of core HR software as businesses quickly transitioned to remote working arrangements. core HR software assisted in the management of remote workforces, tracking employee well-being, and virtual collaboration. It also assisted in compliance with health and safety legislation. Consequently, the pandemic emphasized the importance of core HR software in supporting flexible working environments, which resulted in growth and investment in the market.
Core HR Software Market Trends
Generative AI capabilities in foundational HR software are fueling profitable expansion by transforming HR procedures. AI-infused applications screen resumes, streamlining talent recruitment. Chatbots give employees immediate assistance, boosting participation. For example, in June 2023, Oracle announced its plan to expand its business-focused human resources software through the addition of generative Artificial Intelligence (AI) features.
These new features are aimed at supporting a variety of functions like the development of job descriptions and the setting of employee performance goals. These innovations increase productivity, lower costs, and improve the employee experience, making core HR software more and more critical. The need for such sophisticated features is driving market growth as organizations look to effective, data-based HR solutions to get a competitive advantage.
Core HR Software Market Analysis
Discover more about the major segments defining this market
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The solution segment core HR software market is expected to grow at a CAGR of 5.5% through the forecast period. The increased use of cloud technology in core HR software product development is driving tremendous growth in the software segment. HR solutions based on the cloud provide scalability, flexibility, and cost-effectiveness and are drawing in organizations of every size.
For example, in August 2023, Belsons Technologies launched Belsio HRMS, a cutting-edge cloud-based Customer Relationship Management (CRM) solution specifically designed for HR operations. Belsio HRMS provides a comprehensive platform that includes all aspects of HRMS, such as recruitment, onboarding, training, visa & payroll management, and performance review as well as leave & attendance management.
Find out more about the dominant segments influencing this market
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Large enterprises segment held more than USD 6 billion revenue in 2022, owing to their large workforce and diverse operations. Advanced core HR software is required to manage employee data, payroll, benefits, and compliance for multiple locations & countries. This software simplifies processes, lowers administrative expenses, and improves data accuracy, allowing large enterprises to manage their large number of employees efficiently.
In addition, core HR software is important by providing capabilities for performance management, talent development, and succession planning. This assists large organizations in identifying high-potential employees, linking talent to organizational objectives, and maintaining a steady pipeline of competent professionals, all of which are critical to long-term growth & competitiveness.
Searching for region specific data?
North America core HR software market held 35% revenue share in 2022 due to growing investments in core HR software companies. These investments enable innovation and the creation of sophisticated HR solutions that address the changing needs of companies in the region.
For example, in March 2023, Rippling, an HR & payment software startup, raised USD 500 million in a new funding round. Initially, this funding was to help customers meet their near-term payroll needs, after the Silicon Valley Bank collapse. All these are influencing the market growth as companies aim to transform their HR operations and talent management.
Core HR Software Market Share
Major companies operating in the core HR software market are
- ADP
- Ceridian
- Cornerstone ondemand
- HIBOB
- IBM
- Oracle
- Paycom
- Paylocity
- Personio
- SAP
- Sprout
- UK
- Visma
- Workday
- Zoho
Core HR Software Industry News
- In July 2023, Info-Tech Systems Integrators, a prominent Singaporean provider of cloud-based HR and accounting software, signed a Memorandum of Understanding (MOU) with Republic Polytechnic. This strategic collaboration represents a noteworthy achievement for Info-Tech and is geared toward promoting cooperation & generating valuable prospects.
This core HR software market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments
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Market, By Component
- Software
- Employee information management
- Payroll management
- Attendance and leave management
- Employee Self-Service (ESS)
- Others
- Service
Market, By Deployment Model
- Cloud
- On-premises
Market, By Organization Size
- SME
- Large enterprises
Market, By End Use
- BFSI
- Healthcare & life sciences
- Retail & e-commerce
- Manufacturing
- Telecom & IT
- Government & public sector
- Media & entertainment
- Others
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Nordics
- Asia Pacific
- China
- Japan
- India
- Australia
- Singapore
- Indonesia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- South Africa
- UAE
- Saudi Arabia
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