KBS - Human Resource Management and Human Capital Management - Market Insight

MARKET INSIGHT

The global HR software market size was estimated at $16.43bn in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 12.2% from 2024 to 2030.

Meanwhile, the UK HR analytics market size was evaluated at $200.8m in 2022 and is ex-pected to grow at a CAGR of 15.0% from 2023 to 2030. This growth can be attributed to advancements in technologies, clients’ needs for a ‘one-stop shop’ service and a neces-sity to improve talent retention through utilising data. HR solutions have aided firms in efficiently managing employees. The impact of the Covid-19 pandemic positively influenced the UK HR management sector. Many companies have opted for remote working, leading HR management firms to continuously improve and adapt to this new working style, supporting the growth of the market. Fundamental HR services such as payroll, benefits administration and employee records had a revenue share of around 33% in 2023 due to their critical functions. Organisations increasingly demand more streamlined, integrated systems to handle these primary tasks efficiently and core HR solutions have become fundamental to operational success, thereby driving segment growth.

Meanwhile, the UK HR analytics market size was evaluated at $200.8m in 2022 and is ex-pected to grow at a CAGR of 15.0% from 2023 to 2030.