What Has Been The Evolution of the HR Payroll Software Market in Recent Years?
The hr payroll software market has seen considerable growth due to a variety of factors.
• The HR payroll software market has grown rapidly in recent years. It will increase from $35.27 billion in 2024 to $40.03 billion in 2025, reflecting a compound annual growth rate (CAGR) of 13.5%.
This growth is driven by the increasing need for payroll automation, the growing adoption of cloud-based payroll solutions, a focus on employee self-service, enhanced data security measures, and the rise in biometric authentication.
What Is the Forecasted Market Size and Growth Rate for The HR Payroll Software Market Size In The Coming Years?
The hr payroll software market is expected to maintain its strong growth trajectory in upcoming years.
• The HR payroll software market is projected to grow to $65.66 billion by 2029, at a CAGR of 13.2%.
Growth is driven by the increasing adoption of AI, blockchain technology, real-time payroll reporting, interest in chatbots and virtual assistants, and rising demand for customizable payroll solutions. Key trends include innovations in machine learning, technological advancements, cloud-based solutions, and the use of chatbots.
What Factors Are Driving Growth In The HR Payroll Software Market?
The growing demand for cloud-based solutions is expected to boost the HR payroll software market. Cloud-based HR software offers features like remote access and seamless integration with various corporate platforms, improving productivity by automating payroll processes. A Flexera survey in 2022 found that 87% of organizations used multi-cloud setups, with 72% adopting hybrid clouds.
What Are The Main Segments Of The Global HR Payroll Software Market?
The hr payroll software market covered in this report is segmented –
1) By Component: Software, Services
2) By Deployment Mode: On-Premises, Cloud
3) By Organization size: Large Enterprises, Small And Medium-Sized Enterprises
4) By Application: Payroll, Benefits, Tax Filings, Employees Records
5) By Industry Vertical: Banking, Financial Services, And Insurance, Retail, Manufacturing, Transportation And Logistics, Information Technology And Telecom, Healthcare, Other Industry Verticals
Subsegments:
1) By Software: Payroll Processing Software, Employee Self-Service Portals, Tax Calculation And Compliance Software, Payroll Reporting And Analytics Tools, Time And Attendance Management Software, Direct Deposit And Payment Management Software, Integration With Hrms (Human Resource Management Systems), Cloud-Based Payroll Software, Mobile Payroll Applications
2) By Services: Payroll Outsourcing Services, Implementation And Setup Services, Customization And Configuration Services, Support And Maintenance Services, Consulting Services, Compliance And Regulatory Advisory Services, Training And User Education Services, Managed Payroll Services, Tax Filing And Reporting Services
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What Emerging Trends Are Influencing The Growth Of The HR Payroll Software Market?
Leading organizations in the HR payroll software market are emphasizing on offering platform-based solutions that leverage cutting-edge technologies like artificial intelligence and machine learning. These technologies enable businesses to manage payroll effectively and gain a competitive advantage in the market. They involve the use of smart algorithms and data-centric models for automating and optimizing various payroll processing and management functions. For example, in February 2024, Ramco Systems Limited, an Indian tech firm, introduced Ramco Payce. This platform-based payroll system is designed to revolutionize business payroll management. It employs advanced technologies like artificial intelligence, machine learning, data analytics, and serverless in-memory, allowing for fast setup, expedited payroll processing, and enhanced accuracy. Key features include AI-powered payroll compliance, on-demand reporting, seamless interaction with top HCM systems, and no-code rule creation capability. With this solution, businesses can adapt their payroll processes according to their staff's changing needs and obtain unparalleled supervision and control over payroll data, supporting their strategic growth goals and decision making process.
Who Are the Key Players In The HR Payroll Software Market?
Major companies operating in the HR payroll software market are:
• Oracle Corporation
• SAP SE
• ADP LLC (Automatic Data Processing Inc.)
• Workday Inc.
• UKG Inc.
• Sage PLC
• Kronos Incorporated
• The Access Group Ltd.
• Paycom Software Inc.
• Ceridian HCM Holding Inc.
• Zoho Corporation Pvt. Ltd.
• Epicor Software Corporation
• Paylocity Holding Corporation
• Cornerstone OnDemand Inc.
• SuccessFactors Inc.
• SumTotal Systems LLC
• Ascentis Corporation
• Keka Inc.
• Greytip Software Pvt. Ltd.
• Vibe HCM Inc.
• HRMantra Software Pvt. Ltd.
• Patriot Software LLC
• Kredily
• Paybooks Inc.
• SumoPayroll
What Is The Most Dominant Region In The HR Payroll Software Market?
North America was the largest region in the HR payroll software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the HR payroll software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
