Statista overview report on the global market for digitalized human resources solutions
Human resources (HR) is becoming more important and more complex, as it focuses on many diverse aspects of employer-employee relationships. As with most industries, technology is reshaping the way in which firms approach HR in the fast-growing field known as HR tech. In fact, the annual revenue of HR tech is estimated in 62.6 billion U.S. dollars in 2022. Statista predicts that this revenue will increase to 91.8 billion U.S. dollars by 2026.
Most of the market is concentrated in incumbent firms such as ADP, a personnel management and payroll firm, or Linkedin, a recruitment platform owned by Microsoft. However, startups are gaining larger revenues, such as the learning and development company Udemy. Regionally, North America dominated the market in 2022.
This report provides an overview of the HR tech sector globally, as well as the major drivers of growth up to 2026. The impact of incumbent firms and startups is examined, as well as the division of the market into different sectors and regions. It also considers the impacts of the COVID-19 pandemic on the industry.
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HR tech has been deeply influenced by the COVID-19 pandemic, mostly in two ways. First, employment in general has declined, with a large number of workers losing their jobs as firms being forced to furlough or downsize many workers. Second, the sharp rise of remote working generated a high demand of software for remote connectivity and collaboration of employees. Moreover, the more recent macroeconomic uncertainty following the events in Easter Europe caused a new shock in most countries’ labor markets, very likely to impact the HR tech market too.
In response to such macroeconomic scenario, incumbent firms are expanding their existing business models and startups are making inroads into the market, often with more narrowly directed products. This report explores how this shifting landscape will affect the HR tech market.
Most HR tech firms are headquartered in North America. This report gives an explanation why, while projecting the chances of a shift towards other markets. It also explores what sectors of the HR tech market will experience the largest growth, as well as where startups are likely to make inroads.
Introduction to HR
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