HR Payroll Software Market

HR Payroll Software Market Research, 2031

The global HR Payroll Software Market Size was valued at $23.55 billion in 2021, and is projected to reach $55.69 billion by 2031, growing at a CAGR of 9.2% from 2022 to 2031.

The increased use of social media and the rise in need for cost-effective HR Payroll System are expected to propel the HR payroll software market growth. Moreover, businesses have shifted toward digitalization and increased implementation of Industry 4.0 to cope with ongoing tough business competition, which creates the need for seamless solution and platform to meet the businesses requirements, which eventually boost the adoption of HR payroll software in various sectors rapidly.

Post COVID-19 situation, companies are focusing on emerging technology such as AI-powered solutions, automation, cloud-based technologies, and app-based HR payroll software across industries such as BFSI, healthcare, IT & telecom and others to perform contactless operation. Furthermore, the industries move toward the digitalization it creates the demand for the HR payroll software, as it provides agile efficiency by eliminating manual tasks that slow down business operations as well as it provides real-time reporting features. In addition, it reduces errors and business risks that come with manual data-entry. Owing to such benefits, it provides lucrative growth opportunities for the market growth during the forecast period.

On the basis of component, the software segment dominated the HR payroll software market in 2021, and is expected to continue this trend during the forecast period. The adoption of HR payroll software provides numerous benefits to the industry such as, streamline the business process, eliminate the manual process, and reduce the time & costs, which further fuel the growth of the market. However, services segment is expected to have the highest market growth in the upcoming years. The adoption of HR payroll services provides numerous benefits to the industry including easy cash flow analysis, managing employee's salaries, deductions, other conveyance, net pay, bonuses, generation of pay-slips, income tax calculation, and payroll. In addition, it enhances software implementation, maximizes the value of existing installation by optimizing it, and minimizes the deployment cost & risks, and others, which further fuel the growth of the HR payroll software market.

On the basis of deployment mode, the on-premises segment captured the largest HR Payroll Software Market Share in 2021 and is expected to continue this trend throughout the forecast period. This is attributed due to the numerous advantages offered by the on-premise deployment such as a high level of data security and safety. Industries prefer on-premise model owing to high data security and less data breach as compared to cloud based deployment models, which further drive the demand for on-premise deployment model within the public and private sectors. However, cloud segment is expected to witnesses the highest share in the upcoming years. Owing to low cost and easier maintenance, rise in the adoption of cloud-based HR payroll software has been witnessed. In addition, it provides flexibility and scalability in order to boost business process, thus propel the growth of the HR payroll software market.

Depending on the region, the North America is dominated the HR Payroll Software Market Share in 2021 for the HR payroll software market. The increasing usage of HR payroll software in banking & finance, manufacturing, healthcare and other sectors to improve businesses and the customer experience, will provide the lucrative growth opportunities for the HR payroll software market in the North America region. However, the Asia-Pacific is expected to exhibit highest growth during the forecast period. This is attributed to increase in penetration of app-based HR payroll software and higher adoption of cloud-based technologies, which propel the growth of the market in this region.

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

The hr payroll software market is segmented into Component, Deployment Mode, Organization size and Industry Vertical. By component, it is bifurcated into software and services. On the basis of deployment mode, it is segregated into cloud and on-premises. Depending on industry vertical, it is segregated into BFSI, retail, manufacturing, transportation & logistics, healthcare, IT & telecom, and others. By organization size, it is categorized into small to medium enterprise (SMEs) and large-scale enterprise. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

COVID-19 Impact Analysis

The HR payroll software market was valued at $25.30 billion in 2022, and is projected to reach $55.69 billion by 2031, registering a CAGR of 9.2%. 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 world. It has positively impacted the adoption of HR payroll software due to lockdown imposed by governments of different countries. Post COVID-19 situation, companies are focusing on emerging technology such as AI-powered solutions, automation, cloud-based technologies, and app-based HR Payroll System across industries such as BFSI, healthcare, IT & telecom and others to perform contactless operation. Furthermore, the industries move toward the digitalization it creates the demand for the HR payroll software, as it provides agile efficiency by eliminating manual tasks that slow down business operations as well as it provides real-time reporting features. In addition, it reduces errors and business risks that come with manual data-entry. Owing to such benefits, it provides lucrative growth opportunities for the market growth during the forecast period. Moreover, the pandemic has introduced considerable challenges for companies which are trying to execute key processes, report accurately with data spread over multiple locations, operate complex systems, and efficiently communicate with teammates; particularly where there is no the infrastructure for such processes. Hence, more companies invest in HR payroll software. As HR payroll software provides limitless scalability and continual enhancement of functionality, which are critical in accomplishing digital transformation that boost the growth of the market post pandemic.

Top Impacting Factors   

Factors such as increase in automation of HR processes to enhance efficacy & eliminate manual task and enhancement of mobile employee engagement drive the market growth. Furthermore, the increasing use of cloud-based technologies and embracing artificial intelligence provide lucrative growth opportunities for HR payroll software market. In addition, surge in adoption of app-based HR payroll software among enterprises and individuals is expected to provide lucrative growth opportunities for the market in the upcoming years. However, data security & privacy concerns and lack of payroll professional hamper the growth of HR Payroll Software Industry.

Increase in automation of HR processes

The future of HR payroll software depends on powerful and robust integration. HR payroll software 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 further drive the HR Payroll Software Industry growth.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the hr payroll software market analysis from 2021 to 2031 to identify the prevailing hr payroll software market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the hr payroll software market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global hr payroll software market trends, key players, market segments, application areas, and market growth strategies.

 HR Payroll Software Market Report Highlights