HR Payroll Software Market to Reach Valuation of USD 46.6 Billion by 2028 – Increased Demand for Automated Software to Enhance HR Process Drives the Market

Vantage Market Research

Jul 14, 2022

In terms of revenue, the Global HR Payroll Software Market is expected to reach USD 46.6 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 10.9% from 2022 to 2028.

Increasing software adoption is one of the important factors which plays a vital role in boosting the market growth. In addition, a rise in Cloud & Mobile Deployment, an increase in automation of HR processes, and the availability of comprehensive & flexible solutions are some other factors that are expected to drive the HR Payroll Software Market growth.

Key Highlights from Report:

  • In the Deployment Mode segment, the market saw maximum adoption of Cloud-based HR Payroll Software among end-users. This happened because Cloud-based HR Payroll Software solutions help companies to gather, store, and provide information like payroll processing and maintain salary details from a unified access point, etc. They also ensure reliability and visibility and can accommodate unique HR business requirements. Such benefits increase the adoption of Cloud-based HR payroll software solutions, driving the segment’s growth.

  • By Component segment, the Software sub-segment accounted for substantial growth of the HR Payroll Software Market in 2021. The HR Payroll Software provides numerous benefits to the industry, such as reducing the time & costs, eliminating the manual process, and streamlining the business process, which further propels the segmental growth of the market.

  • Asia Pacific held the fastest growing market share in 2021. This is attributed to increasing implementation in banking & finance, manufacturing, healthcare, and other sectors to improve business operations and customer experience. In addition, a rise in penetration of app-based HR Payroll Software and high adoption of cloud-based technologies in the region is anticipated to bolster the growth of the HR Payroll Software Market in this region during the forecast period.

Market Dynamics:

HR Payroll Software is majorly deployed to allow businesses to pay their employees’ salaries when the task or work is done. Payroll software helps organizations manage their data effectively. This software manages HR functions like wage calculation, bonus payments, recruiting, vacation leaves, benefit deductions, and firing workers, as well as maintaining track of information related to employees such as home addresses, financial data, employee data, and social security numbers. It can also track an employee’s working hours; payroll software manages all these functions or activities, which can print pay slips with a single click. They have cloud-based storage and security. This software delivers checklist-driven payroll processing in under a minute and precise reconciliation capabilities that help firms distribute wages quickly and precisely. Due to these advantages, organizations are adopting this software.

The use of payroll and HR software helps extensively in decision-making and provides precise data on the overall resources of an organization. This is proposed to encourage the growth of the global payroll and HR software in the coming years. In addition, the various modules in the software, which can customize based on an organization’s requirement, helps minimize the amount of time spent on administration and are anticipated to accelerate the market’s growth soon. With the help of the payroll system, tax filling, leave management, learning management, and others provided a sustainable way to ensure the HR policies with a dignified source.

North America held the largest market share in 2021. This is attributed to the surge in implementation in banking & finance, manufacturing, healthcare, and other sectors to improve business operations and the customer experience in this region. Furthermore, the increasing use of HR payroll software apps and high adoption of cloud-based technologies are expected to witness the high growth of the HR Payroll Software market over the projected timeframe in this region.