PUBLISHER: The Business Research Company | PRODUCT CODE: 1760129
PUBLISHER: The Business Research Company | PRODUCT CODE: 1760129
Human resource (HR) analytics software is a digital tool that organizations use to collect, analyze, and interpret employee-related data, aiding decision-making in areas such as recruitment, performance management, employee retention, compensation, and workforce planning. This software enables HR professionals to make data-driven decisions that align HR strategies with organizational goals, improve employee outcomes, and enhance operational efficiency.
The main components of HR analytics software are software and services. Software refers to a collection of data, programs, or instructions that allow a computer to perform specific tasks or operations. It includes various deployment models, such as on-premises, cloud-based, and hybrid options, and supports several applications such as workforce planning, performance management, compensation analysis, training and development, and diversity and inclusion analytics. Industry verticals that utilize this software include information technology, healthcare, retail, manufacturing, finance, and telecommunications.
The human resource (HR) analytics software market research report is one of a series of new reports from The Business Research Company that provides human resource (HR) analytics software market statistics, including the human resource (HR) analytics software industry's global market size, regional shares, competitors with the human resource (HR) analytics software market share, detailed human resource (HR) analytics software market segments, market trends and opportunities, and any further data you may need to thrive in the human resource (HR) analytics software market. This human resource (HR) analytics software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The human resource (HR) analytics software market size has grown rapidly in recent years. It will grow from $3.34 billion in 2024 to $3.72 billion in 2025 at a compound annual growth rate (CAGR) of 11.4%. The growth during the historic period can be attributed to the growing use of automation in HR processes, a rising demand for real-time data analytics, a greater focus on employee well-being, the increasing importance of data security in HR software, and rising investments in HR technology solutions.
The human resource (HR) analytics software market size is expected to see rapid growth in the next few years. It will grow to $5.64 billion in 2029 at a compound annual growth rate (CAGR) of 11.0%. The growth during the forecast period can be attributed to the rising demand for personalized employee experiences, the increasing use of data visualization tools in HR analytics, a growing demand for predictive analytics in talent management, a heightened need for real-time decision-making, and the increasing adoption of cloud-based HR solutions. Key trends in the forecast period include advanced predictive analytics for talent acquisition, innovation in real-time HR reporting tools, the integration of HR analytics with employee wellness programs, advancements in data security measures for HR systems, and the integration of machine learning in employee performance tracking.
The growing number of people entering the workforce is expected to drive the expansion of the human resource (HR) analytics software market. The workforce refers to individuals who are engaged in or available for work, particularly within specific industries or organizations. The rise in workforce participation is primarily due to greater access to education and skill development programs, enabling more individuals to acquire the qualifications needed for employment. HR analytics software aids individuals entering the workforce by providing data-driven insights that streamline recruitment processes, help match candidates with suitable roles, and facilitate smoother transitions into new job environments. For instance, in April 2025, the Office for National Statistics (UK) reported that the UK employment rate for individuals aged 16 to 64 reached 75.1% during the period from December 2024 to February 2025, reflecting a 10% increase compared to the same period the previous year. Therefore, the rising number of people entering the workforce is fueling the growth of the HR analytics software market.
Key players in the HR analytics software market are focusing on incorporating cutting-edge technologies such as generative AI-powered HR analytics solutions to enhance decision-making, automate routine HR tasks, and provide predictive insights into workforce behavior. A generative AI-powered HR analytics solution refers to a system that uses advanced AI models to analyze workforce data and generate actionable insights, content, or predictions, thereby improving HR decision-making and strategy. For example, in November 2024, Paychex, Inc., a US-based payroll services company, launched HR Analytics Premium Plus, an advanced tool integrated into its Paychex Flex platform. This solution combines real-time workforce data with generative AI (GenAI) capabilities, offering enhanced HR analytics such as employee job matching, compensation benchmarking based on extensive U.S. workforce data, and AI-powered insights delivered via a conversational digital assistant. The platform helps businesses make more informed decisions, attract top talent, and democratize enterprise-level HR analytics with an intuitive interface.
In August 2022, Hire Road, Inc., a US-based HR technology company, acquired PeopleInsight for an undisclosed sum. This acquisition aims to strengthen Hire Road's talent management platform by integrating advanced workforce analytics, unifying human resource data, and enabling faster, more strategic decision-making. PeopleInsight is a Canada-based company that specializes in providing HR analytics software.
Major players in the human resource (hr) analytics software market are Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, Automatic Data Processing Inc., Workday Inc., TriNet Group Inc., Ultimate Kronos Group Inc., Infor Inc., Visma AS, Zoho Corporation Pvt. Ltd., Paycom Software Inc., Tableau Software LLC, Ceridian Dayforce, Paylocity Holding Corporation, Deel Inc., Gusto Inc., Qlik Technologies Inc., BambooHR LLC, Rippling Inc., Visier Inc., Namely Inc., Keka Technologies Pvt. Ltd., Synergita Solutions Pvt. Ltd., One Model Inc.
North America was the largest region in the human resource (HR) analytics software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in human resource (HR) analytics software report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the human resource (HR) analytics software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The human resource (HR) analytics software market consists of revenues earned by entities by providing services such as employee performance analysis, talent acquisition analytics, attrition and retention analysis, and predictive analytics for HR decision-making. The market value includes the value of related goods sold by the service provider or included within the service offering. The human resource (HR) analytics software market includes sales of employee survey and feedback tools, attendance and leave tracking tools, hiring and recruitment tracking software, and employee turnover tracking tools. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Human Resource (HR) Analytics Software Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on human resource (hr) analytics software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for human resource (hr) analytics software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The human resource (hr) analytics software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.