Global Payroll & HR Solutions & Services Market is Booming: Projected to Reach USD 37.2 Billion by 2027
Published | June 2021
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global payroll & HR solutions & services market was worth USD 20.4 billion in the year 2020. The study further reveals that the market it is estimated to grow at the CAGR of 9.1%, earning revenue of around USD 37.2 billion by the end of 2027. The increasing adoption of cloud-based technologies in enterprises is driving the global payroll & HR solutions & services market.
The growing need to manage an extended workforce, as well as the increasing need for replacing older systems with superior global payroll & HR solutions & services platforms, are expected to drive market growth over the forecast period. Moreover, over the last few years, a rising number of multinational corporations have chosen to adopt integrated global HR & payroll solutions that provide HR & payroll integration across nations, thereby propelling the market growth.
Increasing adoption of cloud-based technologies in enterprises will be boosting the market during the forecast period
Cloud-based HR payroll service and solution provides better access to data such as employee information, home address, social security number, financial information and so on. It enables businesses to outsource payroll systems in order to scale up as employees join and leave. Furthermore, the need for an efficient management system is driving up demand for payroll & HR solutions & services. One of the most rapidly changing trends in the global payroll & HR solutions & services market is talent management technology. Simply by streamlining and automating daily HR operations, talent management tools can save you a substantial amount of time and money.
Changing Government Policies Regarding Payroll System
The payroll process differs from country to country and is also subjected to change over time and as the ruling party changes. Between developed and developing countries, there is a significant disparity in payroll policies. It may become difficult or burdensome for firms, particularly those with international operations, to keep track of all the changes to the government's payroll policies. As a result, the need for payroll & HR solutions & services is increasing dramatically in order to manage and comply with the rules and laws governing payroll.
Global Payroll & HR Solutions & Services Market - By Solution
Based on solutions, the payroll & HR solutions & services market is divided into software and services. The services segment accounted for the largest market share in 2020. This is because the service-providing companies offer a wide variety of services that organizations can opt for based on their needs and budgets. The services segment proves to be cost-effective option for companies, especially in smaller and medium-sized enterprises. The growth for the service segment is very prominent in the Asia-pacific region with the rising number of startups in these countries.
Global Payroll & HR Solutions & Services Market - Regional Insights
Geographically, the global payroll & HR solutions & services market is segmented into North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa. North America has been the largest market for payroll & HR solutions & services, whereas Asia-Pacific is expected to witness the fastest growth among all regions during the forecast period. The anticipated growth in the market can be attributed to factors such as advancement in new technologies, growing digitization, growth in the software industry, and increasing adoption of business process solutions by small and medium scale enterprises in the region.
Impact of Covid-19 on the Global Payroll & HR Solutions & Services Market
The COVID-19 pandemic has had a positive influence on the global payroll & HR solutions & services market. Since the government of many countries had to enforce a lockdown to stop the virus from spreading, work from home has become more common, prompting the necessity for competent employee management. As a result, a growing number of organizations, particularly small and medium-sized businesses, are turning to remote management. Furthermore, such services also proved to be beneficial in maintaining efficiency and engagement of the employees working remotely, due to which the market for payroll & HR solutions & services flourished in the covid-19 period.
The leading market players in the global payroll & HR solutions & services market are: Automatic Data Processing, Inc., SAP SE, Sage Group plc., Paycheck, Inc., Aramco Systems Limited, TMF Group Holding B.V., Kronor Incorporated, Copay, Inc., Company Software, Inc., Velocity Corporation, Ultimate Software Group, Oracle Corporation, Obviate, Inc., Intuit Inc., Intranet Group, Inc., Workday, Inc., Meridian Day force Corporation, Dimmed, SD Word NV, and other prominent players. The major industry players in the payroll & HR solutions & services market are adopting different strategic initiatives such as mergers and acquisitions, partnerships, and collaborations for new product development.
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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global payroll & HR solutions & services market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global payroll & HR solutions & services market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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