This report describes and explains the HR payroll software market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global HR payroll software market reached a value of nearly $35.26 billion in 2024, having grown at a compound annual growth rate (CAGR) of 11.23% since 2019. The market is expected to grow from $35.26 billion in 2024 to $57.79 billion in 2029 at a rate of 10.38%. The market is then expected to grow at a CAGR of 9.67% from 2029 and reach $91.69 billion in 2034.
Growth in the historic period resulted from the growing adoption of cloud-based solutions, rising demand for automation in HR processes, growth in small and medium enterprises and increasing emphasis on data security. Factors that negatively affected growth in the historic period were ethical AI challenges and client budget constraints.
Going forward, the rising workforce, shift towards digital transformation, surge in remote and hybrid work models and government initiative for effective employee records management will drive the growth. Factor that could hinder the growth of the HR payroll software market in the future include cybersecurity threats and limited availability of skilled HR professionals.
North America was the largest region in the HR payroll software market, accounting for 36.28% or $12.79 billion of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the HR payroll software market will be Asia-Pacific and North America where growth will be at CAGRs of 12.15% and 10.53% respectively. These will be followed by Eastern Europe and South America where the markets are expected to grow at CAGRs of 9.76% and 9.38% respectively.
The global HR payroll software market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 10.03% of the total market in 2023. Oracle HCM Cloud was the largest competitor with a 1.75% share of the market, followed by SAP SE with 1.38%, Automatic Data Processing Inc. (ADP) with 1.23%, Sage plc with 1.21%, Paychex Inc with 1.16%, UKG (Ultimate Kronos Group) with 1.15%, Paycom Software Inc with 0.79%, Deel Inc with 0.49%, Epicor Software Corporation with 0.47% and Ceridian HCM Holding Inc with 0.41%.
The HR payroll software market is segmented by component into software and services. The software market was the largest segment of the HR payroll software market segmented by component, accounting for 60.88% or $21.47 billion of the total in 2024. Going forward, the services segment is expected to be the fastest growing segment in the HR payroll software market segmented by component, at a CAGR of 11.71% during 2024-2029.
The HR payroll software market is segmented by deployment mode into cloud and on-premises. The on-premises market was the largest segment of the HR payroll software market segmented by deployment mode, accounting for 54.84% or $19.33 billion of the total in 2024. Going forward, the cloud segment is expected to be the fastest growing segment in the HR payroll software market segmented by deployment mode, at a CAGR of 12.91% during 2024-2029.
The HR payroll software market is segmented by application into payroll, benefits, tax filings and employee records. The payroll market was the largest segment of the HR payroll software market segmented by application, accounting for 42.35% or $14.93 billion of the total in 2024. Going forward, the payroll segment is expected to be the fastest growing segment in the HR payroll software market segmented by application, at a CAGR of 10.64% during 2024-2029.
The HR payroll software market is segmented by organization size into large enterprises and small and medium-sized enterprises. The large enterprises market was the largest segment of the HR payroll software market segmented by organization size, accounting for 61.48% or $21.68 billion of the total in 2024. Going forward, the small and medium-sized enterprises segment is expected to be the fastest growing segment in the HR payroll software market segmented by organization size, at a CAGR of 13.18% during 2024-2029.
The HR payroll software market is segmented by industry vertical into banking, financial services and insurance (BFSI), retail, manufacturing, transportation and logistics, information technology (IT) And telecom, healthcare and other industry verticals. The banking, financial services and insurance (BFSI) market was the largest segment of the HR payroll software market segmented by industry vertical, accounting for 21.53% or $7.59 billion of the total in 2024. Going forward, the healthcare segment is expected to be the fastest growing segment in the HR payroll software market segmented by industry vertical, at a CAGR of 14.23% during 2024-2029.
The top opportunities in the HR payroll software market segmented by component will arise in the software segment, which will gain $12.33 billion of global annual sales by 2029. The top opportunities in the HR payroll software market segmented by deployment mode will arise in the cloud segment, which will gain $13.3 billion of global annual sales by 2029. The top opportunities in the HR payroll software market segmented by organization size will arise in the small and medium-sized enterprises segment, which will gain $11.64 billion of global annual sales by 2029. The top opportunities in the HR payroll software market segmented by application will arise in the payroll segment, which will gain $9.82 billion of global annual sales by 2029. The top opportunities in the HR payroll software market segmented by industry vertical will arise in the information technology and telecom segment, which will gain $4.95 billion of global annual sales by 2029. The HR payroll software market size will gain the most in the USA at $7.32 billion.
Market-trend-based strategies for the HR payroll software market include focus on real-time HR and payroll data sharing platform for better coordination, focus on transforming payroll management with integrated technology, focus on revolutionizing payroll and HR with AI-powered innovation, focus on empowering remote access and strategic insights in payroll operations with AI and data analytics, focus on transforming payroll with automated data flows and e-verification and focus on next-generation human resources platform for the modern workforce.
Player-adopted strategies in the HR payroll software market include focus on expanding business capabilities through innovative product launch.
To take advantage of the opportunities, the analyst recommends the HR payroll software focus on real-time data integration for seamless payroll processing, focus on leveraging integrated technology for operational efficiency, focus on ai-powered innovation for enhanced payroll and hr solutions, focus on ai and data analytics for remote access and strategic insights, focus on automating data flows and e-verification for enhanced payroll efficiency, focus on developing next-generation hr platforms for enhanced employee experience, focus on services market for hr payroll system growth, focus on cloud market for hr payroll system growth, focus on the small and medium-sized enterprises (smes) market, expand in emerging markets, focus on expanding distribution channels for hr payroll systems, focus on developing flexible pricing strategies for hr payroll systems, prioritize digital marketing channels for broader reach, leverage strategic partnerships for local market penetration, focus on payroll segment for hr payroll system growth, focus on the healthcare market.
The global HR payroll software market reached a value of nearly $35.26 billion in 2024, having grown at a compound annual growth rate (CAGR) of 11.23% since 2019. The market is expected to grow from $35.26 billion in 2024 to $57.79 billion in 2029 at a rate of 10.38%. The market is then expected to grow at a CAGR of 9.67% from 2029 and reach $91.69 billion in 2034.
Growth in the historic period resulted from the growing adoption of cloud-based solutions, rising demand for automation in HR processes, growth in small and medium enterprises and increasing emphasis on data security. Factors that negatively affected growth in the historic period were ethical AI challenges and client budget constraints.
Going forward, the rising workforce, shift towards digital transformation, surge in remote and hybrid work models and government initiative for effective employee records management will drive the growth. Factor that could hinder the growth of the HR payroll software market in the future include cybersecurity threats and limited availability of skilled HR professionals.
North America was the largest region in the HR payroll software market, accounting for 36.28% or $12.79 billion of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the HR payroll software market will be Asia-Pacific and North America where growth will be at CAGRs of 12.15% and 10.53% respectively. These will be followed by Eastern Europe and South America where the markets are expected to grow at CAGRs of 9.76% and 9.38% respectively.
The global HR payroll software market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 10.03% of the total market in 2023. Oracle HCM Cloud was the largest competitor with a 1.75% share of the market, followed by SAP SE with 1.38%, Automatic Data Processing Inc. (ADP) with 1.23%, Sage plc with 1.21%, Paychex Inc with 1.16%, UKG (Ultimate Kronos Group) with 1.15%, Paycom Software Inc with 0.79%, Deel Inc with 0.49%, Epicor Software Corporation with 0.47% and Ceridian HCM Holding Inc with 0.41%.
The HR payroll software market is segmented by component into software and services. The software market was the largest segment of the HR payroll software market segmented by component, accounting for 60.88% or $21.47 billion of the total in 2024. Going forward, the services segment is expected to be the fastest growing segment in the HR payroll software market segmented by component, at a CAGR of 11.71% during 2024-2029.
The HR payroll software market is segmented by deployment mode into cloud and on-premises. The on-premises market was the largest segment of the HR payroll software market segmented by deployment mode, accounting for 54.84% or $19.33 billion of the total in 2024. Going forward, the cloud segment is expected to be the fastest growing segment in the HR payroll software market segmented by deployment mode, at a CAGR of 12.91% during 2024-2029.
The HR payroll software market is segmented by application into payroll, benefits, tax filings and employee records. The payroll market was the largest segment of the HR payroll software market segmented by application, accounting for 42.35% or $14.93 billion of the total in 2024. Going forward, the payroll segment is expected to be the fastest growing segment in the HR payroll software market segmented by application, at a CAGR of 10.64% during 2024-2029.
The HR payroll software market is segmented by organization size into large enterprises and small and medium-sized enterprises. The large enterprises market was the largest segment of the HR payroll software market segmented by organization size, accounting for 61.48% or $21.68 billion of the total in 2024. Going forward, the small and medium-sized enterprises segment is expected to be the fastest growing segment in the HR payroll software market segmented by organization size, at a CAGR of 13.18% during 2024-2029.
The HR payroll software market is segmented by industry vertical into banking, financial services and insurance (BFSI), retail, manufacturing, transportation and logistics, information technology (IT) And telecom, healthcare and other industry verticals. The banking, financial services and insurance (BFSI) market was the largest segment of the HR payroll software market segmented by industry vertical, accounting for 21.53% or $7.59 billion of the total in 2024. Going forward, the healthcare segment is expected to be the fastest growing segment in the HR payroll software market segmented by industry vertical, at a CAGR of 14.23% during 2024-2029.
The top opportunities in the HR payroll software market segmented by component will arise in the software segment, which will gain $12.33 billion of global annual sales by 2029. The top opportunities in the HR payroll software market segmented by deployment mode will arise in the cloud segment, which will gain $13.3 billion of global annual sales by 2029. The top opportunities in the HR payroll software market segmented by organization size will arise in the small and medium-sized enterprises segment, which will gain $11.64 billion of global annual sales by 2029. The top opportunities in the HR payroll software market segmented by application will arise in the payroll segment, which will gain $9.82 billion of global annual sales by 2029. The top opportunities in the HR payroll software market segmented by industry vertical will arise in the information technology and telecom segment, which will gain $4.95 billion of global annual sales by 2029. The HR payroll software market size will gain the most in the USA at $7.32 billion.
Market-trend-based strategies for the HR payroll software market include focus on real-time HR and payroll data sharing platform for better coordination, focus on transforming payroll management with integrated technology, focus on revolutionizing payroll and HR with AI-powered innovation, focus on empowering remote access and strategic insights in payroll operations with AI and data analytics, focus on transforming payroll with automated data flows and e-verification and focus on next-generation human resources platform for the modern workforce.
Player-adopted strategies in the HR payroll software market include focus on expanding business capabilities through innovative product launch.
To take advantage of the opportunities, the analyst recommends the HR payroll software focus on real-time data integration for seamless payroll processing, focus on leveraging integrated technology for operational efficiency, focus on ai-powered innovation for enhanced payroll and hr solutions, focus on ai and data analytics for remote access and strategic insights, focus on automating data flows and e-verification for enhanced payroll efficiency, focus on developing next-generation hr platforms for enhanced employee experience, focus on services market for hr payroll system growth, focus on cloud market for hr payroll system growth, focus on the small and medium-sized enterprises (smes) market, expand in emerging markets, focus on expanding distribution channels for hr payroll systems, focus on developing flexible pricing strategies for hr payroll systems, prioritize digital marketing channels for broader reach, leverage strategic partnerships for local market penetration, focus on payroll segment for hr payroll system growth, focus on the healthcare market.
Major Market Trends
- Real-Time HR and Payroll Data Sharing Platform for Better Coordination
- Transforming Payroll Management with Integrated Technology
- Revolutionizing Payroll and HR with AI-Powered Innovation
- Empowering Remote Access and Strategic Insights in Payroll Operations with AI and Data Analytics
- Transforming Payroll with Automated Data Flows and E-Verification
- Next-Generation Human Resources Platform for the Modern Workforce
Table of Contents
1 Executive Summary
6 Market Characteristics
7 Major Market Trends
8 Global HR Payroll Software Growth Analysis and Strategic Analysis Framework
9 Global HR Payroll Software Market Segmentation
10 HR Payroll Software Market, Regional and Country Analysis
11 Asia-Pacific Market
12 Western Europe Market
13 Eastern Europe Market
14 North America Market
15 South America Market
16 Middle East Market
17 Africa Market
18 Competitive Landscape and Company Profiles
19 Other Major and Innovative Companies
22 Key Mergers and Acquisitions
23 Recent Developments in HR Payroll Software
24 Opportunities and Strategies
25 HR Payroll System Market, Conclusions and Recommendations
26 Appendix
Executive Summary
HR Payroll Software Global Market Opportunities and Strategies to 2034 provides the strategists; marketers and senior management with the critical information they need to assess the global HR payroll software market as it emerges from the COVID-19 shut down.Reasons to Purchase
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
- Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abates.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market research findings.
- Benchmark performance against key competitors.
- Utilize the relationships between key data sets for superior strategizing.
- Suitable for supporting your internal and external presentations with reliable high-quality data and analysis.
Description
Where is the largest and fastest-growing market for HR payroll software? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The HR payroll software market global report answers all these questions and many more.The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market’s history and forecasts market growth by geography. It places the market within the context of the wider HR payroll software market; and compares it with other markets.
The report covers the following chapters:
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by component, by deployment mode, by organization size, by application and by industry vertical.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis and Strategic Analysis Framework- Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Global Market Size and Growth- Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional and Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by component, by deployment mode, by organization size, by application and by industry vertical in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major and Innovative Companies- Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years..
- Recent Developments- Information on recent developments in the market covered in the report.
- Market Opportunities and Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions and Recommendations- This section includes recommendations for HR payroll software providers in terms of product/service offerings geographic expansion, marketing strategies and target groups
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
1) by Component: Software; Services
2) by Deployment Mode: Cloud; on-Premises
3) by Organization Size: Large Enterprises; Small and Medium-Sized Enterprises
4) by Application: Payroll; Benefits; Tax Filings; Employee Records
5) by Industry Vertical: Banking Financial Services and Insurance; Retail; Manufacturing; Transportation and Logistics; Information Technology and Telecom; Healthcare; Other Industry Verticals
Key Companies Profiled: Oracle HCM Cloud; SAP SE; Automatic Data Processing Inc. (ADP); Sage plc; Paychex Inc.
Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; HR payroll software indicators comparison.
Data Segmentation: Country and regional historic and forecast data; market share of competitors; market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Companies Mentioned
The companies featured in this HR Payroll Software market report include:- Oracle HCM Cloud
- SAP SE
- Automatic Data Processing Inc. (ADP)
- Sage plc
- Paychex Inc.
- UKG (Ultimate Kronos Group)
- Paycom Software Inc
- Deel Inc.
- Epicor Software Corporation
- Ceridian HCM Holding Inc
- Rippling
- Darwinbox Digital Solutions Pvt. Ltd
- Ramco Systems Limited
- Pocket HRMS
- Kereta Cepat Indonesia China
- Path SAS
- Payboy
- Zoho Corporation Pvt Ltd
- Keka Inc
- Greytip Software Pvt Ltd
- HRMantra Software Pvt Ltd
- Kredily
- Paybooks Inc
- SumoPayroll
- China Banking Corporation
- People Technology (International) Limited
- BridgeBuilder HRMS FlexSystem
- Take5 People
- Sapience Pro
- Ataway Inc
- Workday
- Zebec Protocol
- Works Human Intelligence Co Ltd
- Kizuna Japan
- ProWorks Group
- NSR GROUP
- TMON Inc
- HR Solutions & Partners (HRSNP)
- HRnetOne
- SD Worx NV
- VEDA GmbH
- F2A S.r.l
- Ciphr Ltd
- Zellis Group
- Hi Bob, Limited
- Cezanne HR
- Immedis Limited
- The Access Group Ltd
- Alfa Software s.r.o
- Worklio Inc
- TribePerk sp. z o. o
- Romanian Software SRL
- OKsystem
- Comarch
- Asseco
- Master HR
- Edison Partners
- Fingercheck
- Apploi
- Empeon
- IN-RGY
- Worky
- Payworks
- Humi
- ADP
- Rippling Canada
- PayEvo
- Somapay
- Bridge Social
- Neeyamo
- Skuad
- Black Mountain HR
- Infor
- peopleHum
- Mercans
- KCP Dynamics
- Cercli
- Zoho
- DelicateSoft
- HiBob
- Bayzat
- gulfHR
- greytHR
- EasyHR
- Yomly
- Zimyo
- DOTS HR
- Jisr HR
- PaySpace
- SeamlessHR
- PayDay
- SimplePay
- Sage
- WebHR
- XIPHIAS
- Lenvica HRMS
- NotchHR
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 336 |
| Published | April 2025 |
| Forecast Period | 2024 - 2034 |
| Estimated Market Value ( USD | $ 35.26 Billion |
| Forecasted Market Value ( USD | $ 91.69 Billion |
| Compound Annual Growth Rate | 10.0% |
| Regions Covered | Global |
| No. of Companies Mentioned | 98 |
