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    Hr Analytics Market

    ID: MRFR/ICT/22559-HCR
    100 Pages
    Aarti Dhapte
    October 2025

    Hr Analytics Market Research Report: By Deployment Model (Cloud-based, On-premises, Hybrid), By Organization Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises), By Industry Vertical (IT and Telecom, Manufacturing, Healthcare, Education, Financial Services, Retail, Government), By Application (Talent Acquisition, Talent Management, Performance Management, Compensation and Benefits, HR Compliance), By Service Type (Consulting, Implementation, Support and Maintenance) and By Regional - Forecast to 2035

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    Summary Table of Contents Segmentation Download PDF

    Hr Analytics Market Summary

    The Global HR Analytics Market is projected to grow from 5.13 USD Billion in 2024 to 22.61 USD Billion by 2035.

    Key Market Trends & Highlights

    Hr Analytics Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 14.45 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 22.6 USD Billion, indicating robust growth.
    • in 2024, the market is valued at 5.13 USD Billion, reflecting the increasing importance of data-driven decision making in HR.
    • Growing adoption of analytics tools due to the need for enhanced workforce management is a major market driver.

    Market Size & Forecast

    2024 Market Size 5.13 (USD Billion)
    2035 Market Size 22.61 (USD Billion)
    CAGR (2025-2035) 14.44%

    Major Players

    IBM, Oracle, SAP, Microsoft, ADP, Workday, Cornerstone Ondemand, Zenefits, Justworks, SAS Institute, BambooHR, Rippling, Namely, Gusto, Ultimate Software

    Hr Analytics Market Trends

    Key market drivers for HR analytics include the need for organizations to improve decision-making, optimize workforce performance, and enhance employee experience. The increasing adoption of cloud-based HR systems and the availability of data from various sources have made it easier for organizations to implement HR analytics solutions.Opportunities in the HR analytics market lie in the expansion of predictive analytics and artificial intelligence (AI). These technologies enable organizations to forecast future trends and make data-driven decisions.

    Additionally, the growing emphasis on employee well-being and engagement creates opportunities for HR analytics solutions that can track and analyze employee sentiment and satisfaction.Recent trends in the HR analytics market include the use of natural language processing (NLP) to analyze unstructured data such as employee feedback and emails. This allows organizations to gain insights into employee sentiment and behavior. Moreover, the integration of HR analytics with other business systems, such as finance and operations, enables organizations to make more informed decisions and align HR strategies with overall business goals.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    The Global HR Analytics Market is poised for transformative growth as organizations increasingly leverage data-driven insights to enhance workforce management and drive strategic decision-making.

    U.S. Bureau of Labor Statistics

    Hr Analytics Market Drivers

    Increased Demand for Data-Driven Decision Making

    The Global Hr Analytics Market Industry experiences a surge in demand for data-driven decision-making processes. Organizations increasingly recognize the value of leveraging data to enhance workforce productivity and optimize talent management strategies. This trend is evidenced by the projected market size of 5.12 USD Billion in 2024, indicating a growing investment in analytics tools and technologies. Companies are utilizing predictive analytics to identify employee performance patterns and improve retention rates. As businesses strive for competitive advantage, the integration of analytics into HR practices becomes essential, driving the growth of the Global Hr Analytics Market Industry.

    Market Segment Insights

    Hr Analytics Market Deployment Model Insights

    The Hr Analytics Market is segmented deploying model into three categories – cloud-based, on-premises, and hybrid. The cloud-based segment dominates the market and is expected to dominate in the forthcoming years as well. The rising deployment of cloud-based HR solutions can be attributed to the cost-effectiveness, scalability, and flexibility of the solutions.

    Cloud-based solutions do not require organizations to invest in expensive hardware and software infrastructure as opposed to on-premises deployment, which makes them a perfect option for both small startups and developed enterprises.Another segment on-premises a big share of the market as some organizations tend to have as much control over their data and security as possible.

    In the present period, cloud-based solutions gradually shrink the on-premises ones. The third hybrid segment is growing as the happiest spot for all business needs as it combines the advantages of both cloud and on-premises solutions. The on-premises segment is expected to be worth 1.57 billion USD by 2023, increasing at a CAGR of 8.5%.

    The hybrid cloud deployment model is expected to grow the fastest among all three segments, reaching a value of 0.93 billion USD by 2023 with a CAGR of 17.2%.Overall, the increasing deployment of cloud-based and hybrid HR solutions is expected to be the major driver for the Hr Analytics Market in the upcoming years. Organizations deploy them due to the cost-effectiveness, flexibility, and scalability of the solution.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Hr Analytics Market Organization Size Insights

    The Hr Analytics Market is segmented as a function of the size of the organization. The two segments are Small and Medium-sized Enterprises and Large Enterprises. SMEs are expected to be a significant share of the market in 2023. The primary reason is that there is accelerating adoption of cloud-based HR analytics among small and medium-sized. SMEs may be driven by the desire to use in their HR departments what large enterprises have, as adoption is spread to all types of organizations.

    Large enterprises are also expected to see a substantial part of the market while they have a greater need to have sophisticated HR tools and analytics to track their large workforces and manage many processes that are necessary for their work.Thus, the Hr Analytics Market revenue is estimated to be at the level of $USD 2.45 Billion by 2024 and a CAGR of 15.2% for the SMEs. The market for large enterprises, in turn, is expected to be at the level of $USD 3.27 Billion by 2024 and CAGR of 16.5%.

    The major drivers of the Hr Analytics Market are the need to make data-driven decisions, the increasing adoption of cloud-based solutions for HR, and the need to introduce predictive analytics to drive better results in HR.

    Hr Analytics Market Industry Vertical Insights

    The Hr Analytics Market is segmented into various industry verticals, including IT and Telecom, Manufacturing, Healthcare, Education, Financial Services, Retail, and Government. Among these, the IT and Telecom segment is expected to hold a significant market share in 2023, owing to the increasing adoption of HR analytics solutions to improve employee productivity, optimize workforce planning, and enhance customer service.

    The Manufacturing segment is also expected to witness substantial growth, driven by the need to improve operational efficiency, reduce costs, and enhance product quality.The Healthcare segment is another key vertical, with HR analytics being used to optimize staffing levels, improve patient care, and reduce healthcare costs.

    The Education segment is also expected to grow as educational institutions increasingly adopt HR analytics to improve student engagement, optimize resource allocation, and enhance overall educational outcomes. The Financial Services segment is expected to witness significant growth as financial institutions leverage HR analytics to manage risk, improve customer service, and optimize workforce planning.The Retail segment is also expected to grow as retailers use HR analytics to improve customer experience, optimize workforce scheduling, and enhance supply chain management.

    The Government segment is expected to grow as government agencies increasingly adopt HR analytics to improve service delivery, optimize resource allocation, and enhance transparency.

    Hr Analytics Market Application Insights

    The Hr Analytics Market is segmented by Application into Talent Acquisition, Talent Management, Performance Management, Compensation and Benefits, and HR Compliance. The Talent Acquisition segment is expected to dominate the market in 2023, with a market share of around 30%. This is due to the increasing demand for HR analytics solutions to improve the efficiency and effectiveness of talent acquisition processes. The Talent Management segment is expected to grow at the highest CAGR of 15% during the forecast period.

    This growth is attributed to the increasing adoption of HR analytics solutions to improve employee performance and retention.The Performance Management segment is expected to account for a significant share of the market in 2023, with a market size of around USD 1.2 billion. The Compensation and Benefits segment is expected to grow at a steady pace during the forecast period, with a CAGR of around 12%. The HR Compliance segment is expected to account for a small share of the market in 2023, with a market size of around USD 0.5 billion.

    Hr Analytics Market Service Type Insights

    The Hr Analytics Market is segmented by Service Type into Consulting, Implementation, and Support and Maintenance. Consulting services are expected to account for the largest share of the market in 2023, with a valuation of USD 1.18 billion. This is due to the growing demand for consulting services from organizations seeking to improve their HR analytics capabilities. Implementation services are expected to grow at a CAGR of 14.5% over the forecast period, driven by the increasing adoption of HR analytics solutions.

    Support and Maintenance services are expected to account for a smaller share of the market, with a valuation of USD 0.33 billion in 2023, but are expected to grow at a CAGR of 13.1% over the forecast period.

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    Regional Insights

    The Hr Analytics Market is segmented into North America, Europe, APAC, South America, and MEA. North America is expected to dominate the regional market in 2023, accounting for a share of 35.2%. Europe is expected to follow North America, with a share of 28.9%. The APAC region is expected to witness the highest growth rate during the forecast period, owing to the increasing adoption of cloud-based HR solutions and the growing demand for HR analytics in the region. South America and MEA are expected to account for a smaller share of the global market.

    Hr Analytics Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    Major players in the Hr Analytics Market industry are constantly striving to gain a competitive edge by developing innovative solutions and expanding their market reach. Leading Hr Analytics Market players are investing heavily in research and development to introduce advanced technologies and features into their products. Partnerships and collaborations between key players are also prevalent as companies seek to combine their expertise and resources to drive Hr Analytics Market development.

    The competitive landscape is characterized by a mix of established players with a strong market presence and emerging startups bringing fresh perspectives and disruptive technologies.A leading company in the Hr Analytics Market is IBM. With its comprehensive suite of Hr Analytics solutions, IBM caters to the needs of organizations of all sizes across various industries. IBM's strength lies in its deep understanding of HR processes, combined with its expertise in data analytics and artificial intelligence.

    The company's focus on innovation has resulted in the development of cutting-edge solutions that help organizations optimize their HR functions, improve employee engagement, and make data-driven decisions. IBM's global presence and strong partnerships with industry leaders further contribute to its competitive advantage.

    A competitor company in the Hr Analytics Market is Oracle. Oracle's Hr Analytics solutions are part of its broader Human Capital Management (HCM) suite, providing a comprehensive platform for managing HR processes. The company's focus on cloud-based solutions and its commitment to delivering real-time insights have made it a popular choice among organizations looking to leverage Hr Analytics for strategic decision-making. Oracle's strong customer base, extensive partner ecosystem, and continuous investment in research and development position it as a formidable competitor in the Hr Analytics Market.

    Key Companies in the Hr Analytics Market market include

    Industry Developments

    • Q2 2024: Visier Announces Acquisition of Yva.ai to Expand AI-Powered People Analytics Capabilities Visier, a leading HR analytics platform, announced the acquisition of Yva.ai, an AI-driven employee experience and collaboration analytics company, to enhance its AI-powered people analytics offerings and provide deeper workforce insights.
    • Q2 2024: Gloat raises $90M Series D to expand its AI-powered talent marketplace Gloat, a company specializing in AI-driven talent marketplace and HR analytics, secured $90 million in Series D funding to accelerate product development and global expansion of its workforce analytics solutions.
    • Q2 2024: Workday Announces New AI-Driven Analytics Features for Human Capital Management Suite Workday launched new AI-powered analytics features within its Human Capital Management suite, aiming to provide organizations with advanced predictive insights into workforce trends and employee engagement.
    • Q3 2024: SAP launches SuccessFactors Workforce Planning with advanced analytics SAP introduced a new version of its SuccessFactors Workforce Planning solution, integrating advanced analytics capabilities to help organizations optimize talent strategies and workforce planning.
    • Q3 2024: Eightfold AI Partners with Deloitte to Deliver Advanced Talent Intelligence Solutions Eightfold AI announced a strategic partnership with Deloitte to deliver advanced talent intelligence and HR analytics solutions, combining Eightfold’s AI platform with Deloitte’s consulting expertise.
    • Q3 2024: UKG Acquires Great Place to Work to Enhance Employee Experience Analytics UKG, a global provider of HR, payroll, and workforce management solutions, acquired Great Place to Work, a leader in workplace culture analytics, to strengthen its employee experience analytics capabilities.
    • Q4 2024: ADP Launches Next-Gen HR Analytics Platform for Mid-Sized Businesses ADP unveiled a next-generation HR analytics platform designed for mid-sized businesses, offering real-time workforce insights and predictive analytics to improve talent management.
    • Q4 2024: Peakon, a Workday company, expands into Asia-Pacific with new analytics hub in Singapore Peakon, a Workday company specializing in employee engagement analytics, opened a new analytics hub in Singapore to support its expansion in the Asia-Pacific region.
    • Q1 2025: HiBob raises $150 million in Series D funding to scale HR analytics platform HiBob, a cloud-based HR platform with advanced analytics capabilities, raised $150 million in Series D funding to accelerate product innovation and global market expansion.
    • Q1 2025: Oracle Enhances Fusion HCM Analytics with New AI-Powered Predictive Tools Oracle announced enhancements to its Fusion HCM Analytics platform, introducing new AI-powered predictive tools to help organizations forecast workforce trends and improve decision-making.
    • Q2 2025: Ceridian Appoints New Chief Analytics Officer to Drive HR Data Strategy Ceridian appointed a new Chief Analytics Officer to lead the company’s HR data strategy and accelerate the development of advanced analytics solutions for workforce management.
    • Q2 2025: ChartHop secures $60M Series C to expand people analytics platform ChartHop, a people analytics platform, raised $60 million in Series C funding to expand its product offerings and accelerate growth in the HR analytics market.

    Future Outlook

    Hr Analytics Market Future Outlook

    The Global HR Analytics Market is projected to grow at a 14.44% CAGR from 2025 to 2035, driven by advancements in AI, data integration, and workforce optimization.

    New opportunities lie in:

    • Develop AI-driven predictive analytics tools for talent acquisition.
    • Create customizable HR analytics platforms for SMEs.
    • Implement data privacy solutions to enhance employee trust in analytics.

    By 2035, the HR Analytics Market is expected to be a pivotal component of strategic workforce management.

    Market Segmentation

    Hr Analytics Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Hr Analytics Market Application Outlook

    • Talent Acquisition
    • Talent Management
    • Performance Management
    • Compensation and Benefits
    • HR Compliance 

    Hr Analytics Market Service Type Outlook

    • Consulting
    • Implementation
    • Support and Maintenance

    Hr Analytics Market Deployment Model Outlook

    • Cloud-based
    • On-premises
    • Hybrid 

    Hr Analytics Market Industry Vertical Outlook

    • IT and Telecom
    • Manufacturing
    • Healthcare
    • Education
    • Financial Services
    • Retail
    • Government 

    Hr Analytics Market Organization Size Outlook

    • Small and Medium-sized Enterprises (SMEs)
    • Large Enterprises 

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 5.12 (USD Billion)
    Market Size 2025 5.86 (USD Billion)
    Market Size 2035 22.61 (USD Billion)
    Compound Annual Growth Rate (CAGR) 14.44% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Key Companies Profiled Cornerstone Ondemand, SAP, Zenefits, ADP, Justworks, Microsoft, SAS Institute, IBM, Oracle, BambooHR, Rippling, Namely, Gusto, Workday, Ultimate Software
    Segments Covered Deployment Model, Organization Size, Industry Vertical, Application, Service Type, Regional
    Key Market Opportunities Talent Acquisition Optimization Workforce Planning and Analytics Employee Performance Management Compensation and Benefits Analysis Employee Engagement and Retention
    Key Market Dynamics 1 Growing Adoption of Cloud-based HR Analytics Solutions2 Data Privacy and Security Concerns3 Integration with Employee Experience Platforms4 Use of Artificial Intelligence and Machine Learning5 Increasing Demand for Realtime Insights
    Countries Covered North America, Europe, APAC, South America, MEA

    FAQs

    What is the market size of the Hr Analytics Market?

    The Hr Analytics Market size is valued at USD 3.91 billion in 2023 and is expected to reach USD 19.75 billion by 2034, exhibiting a CAGR of 14.44% during the forecast period.

    Which region is expected to dominate the Hr Analytics Market?

    North America is expected to dominate the Hr Analytics Market throughout the forecast period. The region's dominance can be attributed to the presence of a large number of multinational corporations, government initiatives to promote data-driven decision-making, and the increasing adoption of cloud-based HR analytics solutions.

    What are the key factors driving the growth of the Hr Analytics Market?

    The growth of the Hr Analytics Market is primarily driven by the increasing adoption of data-driven decision-making in HR departments, the need to improve employee engagement and productivity, and the growing complexity of HR processes. Additionally, the advancements in cloud computing and artificial intelligence (AI) are further fueling the market growth.

    What are the major applications of HR Analytics?

    The major applications of HR Analytics include talent acquisition, workforce planning, performance management, compensation and benefits analysis, and employee engagement analysis.

    Who are the key competitors in the Hr Analytics Market?

    The key competitors in the Hr Analytics Market include IBM, SAP, Oracle, Microsoft, SAS Institute, Cornerstone OnDemand, ADP, Workday, and Ultimate Software.

    What are the challenges faced by the Hr Analytics Market?

    The challenges faced by the Hr Analytics Market include data privacy and security concerns, the lack of skilled professionals, and the integration of HR analytics solutions with existing HR systems.

    What are the opportunities for growth in the Hr Analytics Market?

    The opportunities for growth in the Hr Analytics Market include the increasing adoption of cloud-based HR analytics solutions, the growing demand for predictive analytics, and the integration of HR analytics with AI and machine learning.

    What are the key trends in the Hr Analytics Market?

    The key trends in the Hr Analytics Market include the increasing use of AI and machine learning, the adoption of cloud-based HR analytics solutions, and the growing focus on employee engagement and productivity.

    What is the forecast for the Hr Analytics Market?

    The Hr Analytics Market is expected to grow at a CAGR of 14.44% from 2025 to 2034.

    What are the major factors that will influence the growth of the Hr Analytics Market?

    The major factors that will influence the growth of the Hr Analytics Market include the increasing adoption of data-driven decision-making in HR departments, the need to improve employee engagement and productivity, and the growing complexity of HR processes.

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