HR Analytics Market

HR Analytics Market Research, 2031

The global hr analytics market size was valued at $2.4 billion in 2021, and is projected to reach $11 billion by 2031, growing at a CAGR of 16.6% from 2022 to 2031.

The HR analytics market was positively affected by the COVID-19 pandemic and showcased a positive growth rate during the period, due to accelerating demand for the HR analytics to support several crucial HR operations in verticals such as BFSI and manufacturing and also helped HR team to manage workforce during COVID-19.

HR analytics involves gathering together, analyzing, and reporting HR data. It enables organization to measure the impact of a range of HR metrics on overall business performance and make decisions based on data. In other words, HR analytics is a data-driven approach toward human resources management.

HR analytics requires business analytics and data mining solutions that analyze data generated by various HR activities such as employee recruitment, training, attendance, engagement performance management, and compensation. Analyzing HR analytics helps to make HR activities more efficient by using collected data to predict key attributes, such as performance, retention, and recruitment. These factors are expected to drive the global HR analytics market growth during the forecast. However, the lack of skilled workforce will hamper the HR analytics industry during the forecast period.

The hr analytics market is segmented into Industry Vertical, Offering, Deployment Model, Enterprise Size and Application.

Segment review

The HR analytics market is segmented on the basis of offering, enterprise size, deployment mode, application, industry vertical and region. On the basis of offering, the market is bifurcated into solution and services. Depending on services, the market is divided into professional services and managed services. Depending on professional services, the market is further classified into training & education, integration & deployment, and support & maintenance. By organization size, it is categorized into large enterprises and SMEs. On the basis of deployment, the market is divided into cloud and on-premise. Depending on application, the market is segregated into candidate recruitment, employee retention, employee learning and development, employee engagement, and workforce management. By industry vertical, the market is fragmented into BFSI, healthcare, retail & E-commerce, manufacturing, IT & telecom, transportation &logistics, media & entertainment, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Some of the major players in the market are Crunchr, Gaininsights, IBM Corporation, Infor, Kronos Incorporated, Microstrategy Incorporated, Oracle Corporation, Sage group PLC, SAP SE, Sisense Inc, Tableau Software Inc, Talentsoft, Visier Inc, Workday Inc, Zoho Corporation, Zoios, and Legartise. These players have adopted various strategies to increase their market penetration and strengthen their position in the HR analytics industry.

By offering, the solutions segment dominated growth of the HR analytics market in 2021, and is expected to maintain its dominance in the upcoming years. The adoption of AI technology and the use of cloud-based HR analytics solutions drive the growth of the solutions segment. However, the services segment is expected to witness highest growth rate during the forecast period. Rise has been witnessed in adoption of HR analytics services among end users as they ensure effective functioning of solutions and platforms throughout the HR process.

North America dominates the HR analytics market. Growth of the market in this region is attributed to several factors, such as increase in digitalization and adoption of HR analytics solutions by the various sectors, such as manufacturing, BFSI, and governments. Moreover, presence of key players provides ample growth opportunities for the market growth. However, Asia-Pacific is expected to witness highest growth rate during the forecast period due to rise in SMEs and digital infrastructure in the region.

The report focuses on growth prospects, restraints, and analysis of the global HR analytics market trends. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global HR analytics market share.

COVID-19 Impact Analysis

The current estimation of 2031 is projected to be higher than pre-COVID-19 estimates. The global COVID-19 pandemic has drastically affected businesses across the globe. It has positively impacted the adoption of HR analytics solution due to lockdown imposed by governments of different countries. During COVID-19, companies are focusing on emerging technology such as AI-powered solutions, automation, cloud-based technologies and app-based HR analytics solution across industries such as BFSI, healthcare, IT and telecom and others to perform contactless operation. Furthermore, as industries move toward digitalization, the HR analytics solution is a great option, as it provides agile efficiency by eliminating manual tasks that slow down the HR process, as well as it provides real-time reporting features, which drives the market growth. In addition, it also reduces errors and business risks that come with manual data-entry. Due to such benefits, it provides lucrative growth opportunities for the market growth during the forecast period.

Top Impacting Factors

Increase in automation of HR operations

The future of HR analytics solution depends on powerful and robust integration. HR analytics solution that can effortlessly integrate with other software or tools is essential in today's evolving business environment. Furthermore, the HR payroll industry is focused on advanced technologies, such as artificial intelligence (AI) and blockchain to streamline the business process, which drive the market growth. For instance, in October 2020, TCS launched the TCS Workforce Analytics, an AI-based unified system of engagement, insights, and foresight for employees, managers, and CXOs, designed to enhance productivity and workforce experience. The new solution is designed to help enterprise deal with the talent management challenges of the digital era. Such advance development are expected to drive the growth of the HR analytics market during the forecast period.

Increasing use of cloud-based technology

The demand for cloud-based technology is rising for better security and real-updates. The adoption of cloud by HR administration enables secure, seamless integration between the company’s core HR system. It is more efficient, data-enriched, accessible, and makes the businesses obtain greater visibility globally.

Cloud-based technology empowers all human resource (HR) functions and offers a propelling thrust that boost business performance. Moreover, accountability and transparency in HR services are now much easier to establish due to cloud technology. In addition, it makes easier to collaborate and access all information from anywhere. Furthermore, HR analytics solution provides flexibility and scalability to boost business operations.

KEY BENEFITS FOR STAKEHOLDERS

• The study provides an in-depth analysis of the global HR analytics market forecast along with current & future trends to explain the imminent investment pockets.

• Information about key drivers, restraints, & opportunities and their impact analysis on global HR analytics market trend is provided in the report.

• The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.

• The HR analytics market analysis from 2022 to 2031 is provided to determine the market potential

 HR Analytics Market Report Highlights