The Core HR software market could increase in value at a rate of 11.1% between 2022 and 2030, according to researcher Market Research Future. The firm estimates the market’s size will reach around $35 billion by the end of the period.
Driving the increase is the growing adoption of cloud-based solutions for HR management, Market Research Future said. Such products allow employers to streamline their HR processes, automate administrative work and improve collaboration across teams. Cloud-based Core HR software also offers increased flexibility and customization options.
The rising demand for automated HR processes is another driver of the market, the company said. Automation of processes such as onboarding, performance management and payroll can reduce the burden on HR teams and improve the accuracy and speed of HR operations.
Finally, the market is being driven by the increasing need for insights and analytics necessary for efficient workforce management.
One significant restraint for the Core HR market is the availability of alternative solutions such as HR information systems and HR management systems. They offer similar functionalities at lower cost. In addition, data security concerns and compliance issues on data protection can hamper market growth.
Another challenge is the high level of competition, with a number of vendors offering similar solutions. That makes it more difficult for smaller vendors to get a foothold in the market. Also, customization requirements for specific customer needs can add to the complexity and cost of implementing the software.
Covid-19 has also impacted the Core HR software market. With remote work becoming something like a new normal, more employers are looking for cloud-based HR management solutions that can provide remote access to employee data. The pandemic also highlighted the need for employee engagement and well-being solutions.
The post-Covid scenario is expected to see a surge in adoption of Core HR software as companies look to streamline HR processes, reduce operating costs and improve employee engagement. Market Research Future said the integration of advanced technologies – such as AI and machine learning – is expected to revolutionize the market, enabling predictive analytics and providing more data-driven insights for workforce management.
In terms of region, North America dominates the market, followed by Europe and Asia-Pacific, the report said. The presence of major players in the region, the high adoption of technology and favorable government initiatives that support digitalization are pushing the market growth in North America and Europe. Meanwhile, Asia-Pacific will see significant growth because of the growing awareness of HR automation and the increasing adoption of cloud-based HR solutions.
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