Overview:
The global HR analytics market garnered a value of US$ 2.92 Bn in 2020 and is likely to witness noteworthy growth, with a CAGR of 12.8% during the forecast period from 2023 to 2030. Analytics have changed and has been continuously changing how every department in an organization is doing business. It has helped in discovering, interpreting and communicating meaningful patterns in data. HR analytics works by collecting employees’ data, from the work history to their employee satisfaction scores, and instilling this information into advanced computer models. Using the requisite algorithms, these models churn out insights that HR leaders can use to make critical decisions.
Over the recent years, the adoption of analytical technology has moved static HR management solutions to more real-time, dynamic cloud and mobile-based tools and platforms. These solutions are being integrated in various areas such as collaboration, recruitment, performance management, learning, productivity, wellness, etc. As a result, growing need amongst organizations to augment the profitability by reducing the associated operational costs with HR processes is likely to drive the growth of the market for HR analytics in the foreseeable future.
HR Analytics Solution Garnered the Largest Market Share in 2021
In 2021, based on component, the solution segment led the market and is expected to retain its dominance in the years to come. The use of HR analytics is significantly transforming human resource strategy. With time, HR analytics solutions are seen as one of the critical tools that are shaping future business strategy. The globalization of businesses, changing demographics, and patterns of mobility alter continuously, changing the nature of work and the worker. Due to this change, the HR is required to become the provider of human capital analytics, which helps them in planning, developing, hiring, retaining, and engaging key talents and also make strategic business decision-making. As a result, various organizations across the globe are implementing HR analytics solutions which help their HR department in improving the employee’s overall experience and involves them in various activities that help them grow in a better manner. Consequently, a significant increase in the adoption of HR analytics solutions is expected to lift the overall growth of the market during the forecast period.
Adoption rate of HR analytics in North America has been strong
In 2021, North America garnered the largest market share in the HR analytics market and will continue with its supremacy during the forecast period from 2023 to 2030. In the recent years, the adoption HR analytics in North America has become stronger and higher in comparison to other regions. In the overall regional market, 22% of companies have espoused HR analytics and 11% have adopted the role itself. The industries with the most prevalent adoption of HR analytics are tech-software and finance. Also, as the region is an early adopter of new technologies and a major hub for technological innovations, various organizations in the region are incessantly focusing on improving their workforce efficiency and are employing the best practices for HR set-ups. Moreover, the presence of some leading players in the region including Oracle Corporation, International Business Machines Corporation, Workday, Inc., etc. is altogether supporting the adoption of HR analytics.
Competitive Insights
The major players identified in the HR analytics market include Oracle Corporation, SAP SE, Workday, Inc., The Sage Group plc, Kronos Incorporated, MicroStrategy Incorporated, International Business Machines Corporation, Tableau Software, Zoho, Crunchr, Visier Inc., GainInsights, Sisense Inc., and Talensoft among others. The players in the HR analytics market are continually focusing on expanding their reach and strengthening their product portfolio to cater the needs of the clienteles and also to sustain their foremost place in the market. New product development, product innovation and partnerships are some of the key strategies implemented by the players in the HR analytics market.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of HR Analytics market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Key questions answered in this report
