III. Industry Analysis
3.1 Market Size
The market for HR software was estimated to be worth $15.59 billion in 2020 and is anticipated to reach $33.57 billion by 2028, expanding at a CAGR of 10.10 percent from 2021 to 2028. The advent of mobile and cloud deployments, more automation of HR processes, and higher acceptance of cloud technologies like Software as a Service have contributed to the growth of the global HR software market (SaaS). The same functionality as traditional HRM operations is included in SaaS (Service-as-a-Service)-based HRM, along with web-based services. These web-based services let businesses maximize their resources and easily diversify into different industries. The marketplace is changing quickly due to start-ups and acquisitions, which have an impact on adoption rates. The market landscape is always shifting due to the introduction of new apps and to keep up with evolving technologies.
3.2 Industry Profile
A shift in how organizations view HR technology is being driven by the emergence of cloud computing and software-as-a-service (SaaS) deployments. The worldwide HR software market is developing due to rising interest in tracking employee performance, increasing focus on integrating data analytic capabilities, and growing preference for interactive reporting with easy-to-read dashboards.
The global software as a service market size is projected to grow from $158.2 billion in 2020 to $307.3 billion by 2026, at a CAGR of 11.7% during 2020-2026. The revenue of the US SaaS market is expected to experience the largest increase, from $103.90 billion to $215 billion in 2025.
