In the forecast period from 2019 to 2027, the global HR analytics market is expected to witness a growth of 12.8 % CAGR. In 2018, the global market for HR analytics accounted for US$ 2.33 billion and is likely to witness notable growth, growing at a CAGR of 12.8 % over the 2019 to 2027 forecast period. HR departments in various organizations are enhancing their skills from outdated reporting to using analytics to provide real-time information on employment opportunities, issues, and enhanced solutions.
The human resource role has evolved over time from an administrative function to a more planned partnership. Continuous technological advancement has been a major driving force behind this evolution. Increasing demand to increase HR personnel’s efforts coupled with the growing demand to automating HR processes and facilitate workforce engagement is boosting the HR analytics market worldwide.
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The market for HR analytics is segmented by component, mode of deployment, application, vertical end-use and geography. The solution segment led the market in 2018 based on the component and is likely to dominate the market during the 2019-2027 forecast period. Growing adoption of HR analytics solutions across multiple end-use verticals is boosting worldwide growth in the segment. Different organizations around the globe are implementing HR analytics solutions to refine and enhance the employee’s overall experience and performance. These solutions also involve employees in different activities, helping them to provide better and healthier manner.
The HR analytics market was divided into professional and managed based on the type of services, where the category of professional services held the larger market share in 2018. This is attributed to the growing demand for the integration and implementation of analytics software and consulting services in enterprises for regulatory compliance, operational efficiency, and knowledge gaining about technological advances in HR analytics.
Based on the size of the enterprise, the HR analytics market was divided into large enterprises and small and medium-sized enterprises (SMEs), with large enterprises, held the larger market share in 2018. This is attributed to the capacity of large companies to make significant IT investments in the deployment of HR analytics solutions. Moreover, as big enterprises usually have dispersed operations around the globe, they are forced to deploy HR analytics solutions for suitable recruitment and retention and to measure employee performance.
North America held the major share in the HR analytics market in 2018 based on the area, largely due to the presence of numerous large-scale companies with a highly skilled workforce. Furthermore, increasing IT spending and advances in technology are some of the other factors that support market growth in the region.