Growing preference of practicing evidence-based HR, improving recruitment and talent acquisition, managing employee performance and productivity is driving the global HR analytics market.
The size of the global market for HR Analytics is expected to reach US$ 9 Bn by 2032, expanding at a compound annual growth rate (CAGR) of 12.4 %.
Covid-19 Impact & Market Status
Covid-19 has impacted several global markets by restructuring supply chains due to market restrictions and bans on logistics implemented by governments around the world. Still, some markets were only slightly affected by the pandemic. Covid-19 has changed the way companies look at HR practices. Admittedly, the hiring and talent acquisition process has slowed down, but the introduction of new tools and solutions is still fueling the global HR analytics market. As most are hiring and working from home, the need for better people management and analytics tools has arisen. As a result, the spread of COVID-19 did not adversely affect global HR analysis. The HR analytics tool made the recruiter process simple and smooth, and also provided the best opportunity for employees to engage with HR more often.
Solutions Component to Emerge as the Most Lucrative Segment
The global HR analytics market is classified into solutions, services, and advisory. Among these, the solutions component is the largest and likely to capture the largest market share in the global market, growing at a promising CAGR of 12.9%. The factor behind the excessive growth of this segment is the advantages that the solution components offer the company. The solution component maximizes HR processes such as employee engagement, retention, and recruitment, helping HR managers make better decisions based on metrics provided by HR analytics solutions.
Cloud Deployment Model to Ensure the Revenue Maximization
The global HR analytics market is classified into cloud and on-premise based on the deployment model. Among these, cloud deployment kind is expected to grow in importance at a CAGR of 10% for the duration of the forecast period. An aspect contributing to the growth of this section is the desire for the cloud as a reliable delivery medium for extra storage space, scalability, and extra efficiency. The key driver of growth is the capability to execute, each big and small. This allows those corporations to awareness of their strengths rather than their IT procedures.
Banking, Financial Services, and Insurance (BFSI) Segment to Account for Largest Market Size During Forecast Period
The global HR analytics market is classified into education, healthcare, IT, telecom, banking, financial services, and insurance (BFSI) based on end-use. Among these, the most beneficial phase is banking, financial services, and insurance (BFSI). This phase is probably to maintain prominence inside the forecast duration with a sturdy growth rate. The purpose behind the excessive growth of this phase is the regularly converting dynamics of banking services, which includes technological upgrades within the zone. BFSI vertical now search for answers which could decrease the team of workers’ expenses and enhance the streamlining operations with the most productiveness.
North American Region to Render Ample Investment Avenues
The largest market is the United States, growing at a CAGR of 13.2% from 2019 to 2029. The region is expected to generate $4.2 billion in market revenue by the end of 2029. Another reason for the strongest growth in the global HR analytics market in this region is the high level of capital investment by government and private industry players. Apart from that, China is the second fastest-growing market for HR analytics. The China region is expected to hold $716.6 million by the end of 2029, benefiting from a strong CAGR of 10.7% from 2019 to 2029. The United Kingdom (UK) is also growing along with China, with a CAGR of 12.4% from 2019 to 2029, with a forecast value of USD 456.5 million (2029).
Globalization and digitalization of industries worldwide are driving demand for HR analytics and pushing organizations to adopt the present-day HR practices, solutions, and equipment.
Owing to benefits such as fair compensation, effective workforce planning facilitating skills gap analyses, support learning and development, upskilling and reskilling, improved candidate and employee experience, better identification of inefficiencies, time and cost saving, increased internal productivity, the HR analytics is experiencing rapid adoption.
Also, other advantages of HR analytics are prevention of workplace misconduct, improved workplace safety, proactive organisations, and value to the business. These advantages collectively influence thumping growth of global HR analytics market.
The global HR analytics market is expected to develop from USD 7.94 billion by 2029, at a compound annual increase in price (CAGR) of 13.9% throughout the forecast period.
HR Analytics is a systematic technique used to identify and quantify business outcomes through the implementation of facts, modeling, and evaluation of accurate employee statistics. It allows HR professionals to evaluate and make record-based decisions about retention, control, and attraction of employees, which complements the productivity of the HR workforce. It provides integrated functions, solution units, forecasting, and visualization to help streamline business intelligence functions.
The growing requirement to efficiently make use of human sources, lessen operating prices in an agency and gain proper perception of employee behavior is the key thing riding the market. The growing wants to rent skilled skills and enhance employee retention thru innovative technologies together with the internet of things (IoT) and analytics is anticipated to force the market. Demand for effective staff management and recruitment drives the marketplace forward. Numerous companies use third-party skills acquisition systems. As an end result, vendors are increasingly adopting new technology.
Emerging trends show that employers are now focused on minimizing labor costs per employee and maximizing efficiency. This trend includes improved hiring practices, improved employee experience, and increased productivity in the average workplace.
Businesses are turning to generation-based totally solutions and services to satisfy expertise acquisition desires. Lots of these solutions are cognitive in nature and based on cellular and cloud technology. Cognitive technology along with synthetic intelligence (AI), robotic method automation, natural language processing, and predictive algorithms gather information from social networks after which provide actionable insights. Leveraging those technology allows organizations to make higher decisions and maximize their capital, which hastens market increase.
The limiting factors for the global HR analytics market are the high cost of HR analytics solutions and the lack of budget for employee benefits. The business unit also lacks qualified employees to manage the global HR analytics solution system.
Technological advancements in machine learning (ML), large data analytics, synthetic intelligence (AI), and the internet of things (IoT) are anticipated to gas marketplace increase. Those technologies correlate and integrate information to offer applicable, actionable, and well-timed statistics to improve overall performance, ultimately leading to higher decisions and moves.
Modern-day technological advances including predictive analytics, massive information, and AI make it simpler to combine human resource control (HRM) solutions with analytics. At the identical time, startups are growing collaboration software programs and cell apps that would permit personnel and employers to get the right of entry to essential facts at the move.
The major players in the global HR analytics market are SIsense, GainInsights, TALENTSOFT, Visier, Crunchr, Zoho, Tableau, IBM, MicroStrategy, Kronos, Sage Software, Workday, Infor, SAP, and Oracle.
SAP is one of the eminent market players within the global HR analytics market. The company became based in 1972 and is situated in Walldorf, Germany. It offers wealthy product and offerings portfolios for HR control, enabling its commercial customers to manage all the components of HR methods. With SAP’s success factors, the business enterprise has become a worldwide issuer of HCM software services. Its Human Capital Management (HCM)- product’ consists of core human sources and payroll, gaining knowledge of and development, overall performance, and compensation, recruiting and onboarding, time and attendance control, and body of workers making plans and analytics. SAP caters to diverse commercial enterprise strains, which include asset management, trade, HR, manufacturing, advertising, sourcing and procurement, network and support management, digital delivery chain, income, and R&D engineering.
Latest Innovations in the Global HR Analytics Market: a Snapshot
- In March 2019, Oracle launched an upgraded model of Oracle HCM Cloud that will help you work easier, smarter, and extra agile. The updated version affords a progressed enjoy for customers consisting of applicants, recruiters, recruiters, managers, and personnel.
- In February 2019, Infor partnered with its HR analytics answers issuer, Montage, to goal, interview, and hire pinnacle candidates. In the terms of the partnership, both businesses will leverage the capabilities of their respective platforms to deliver next-generation predictive talent analytics and interview era for the hiring method.
HR Analytics Market Scope
|Revenue forecast in 2032
|US$ 9 Bn
|CAGR of 12.4 % during 2022-2032
|By Solution, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Oracle Corporation, SAP, Infor, Workday, Inc., Sage Software, Kronos Incorporated, MicroStrategy, IBM Corporation, Tableau Software, ZOHO.
Key Segments of the HR Analytics Market
By Components (USD Billion)
• Implementation and Integration Services
• Advisory Services
• Support and Maintenance Service
By Application Area, (USD Billion)
• Workforce Management
• Employee Engagement
• Employee Development
By Deployment, (USD Billion)
Regional Overview, (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and South Africa