HR Analytics Market Size to Surpass USD 9.89 Billion CAGR of 14.9% during 2025-2031

NEW YORK, June 26, 2025 /PRNewswire/ -- According to a new comprehensive report from The Insight Partners, the global HR analytics market is observing significant growth owing to the growing need for talent acquisition and retention, increasing remote and hybrid work models, and increased focus on employee experience and engagement.

The HR analytics market size was valued at US$ 3.73 billion in 2024 and is expected to reach US$ 9.89 billion by 2031; it is estimated to register a CAGR of 14.9% during 2025–2031.

The HR analytics market has experienced substantial growth in recent years, driven by the increasing emphasis on data-driven decision-making in human resources. Organizations across industries are leveraging HR analytics to optimize recruitment, enhance employee engagement, reduce turnover, and improve overall workforce productivity. The integration of advanced technologies such as artificial intelligence (AI), machine learning (ML), and big data analytics has significantly enhanced the capabilities of HR tools, allowing for more accurate predictive modeling and deeper insights into employee behavior and performance. Additionally, the rise of remote work and hybrid work models has further accelerated the demand for robust analytics solutions to manage dispersed teams effectively.

The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the HR analytics market comprises a vast array of component, organization size, deployment, and industry vertical, which are expected to register strength during the coming years.

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Overview of Report Findings

1. Increasing Remote and Hybrid Work Models: The rapid shift toward remote and hybrid work arrangements has significantly accelerated demand for HR analytics as organizations seek robust data insights to manage distributed teams effectively. A Gallup study found that employees working remotely experience approximately 41% lower absenteeism and a 17% increase in productivity. Meanwhile, nearly 77% of remote employees report increased productivity when equipped with the proper technology, and 81% of hybrid workers are highly engaged further underscoring the value of analytics to monitor performance, collaboration, and engagement in non-traditional settings. HR analytics platforms enable organizations to capture granular insights—such as planned-to-done task ratios, time-on-task data, and meeting efficiency.
2. Increased Focus on Employee Experience and Engagement: An intensified focus on employee experience and engagement is a major force propelling the HR analytics market's expansion as businesses seek to translate workforce sentiment into improved performance and retention. Gallup's meta-analysis highlights that highly engaged teams deliver 18% greater productivity, 23% higher profitability, and a staggering 81% lower absenteeism, which indicates HR analytics tools are essential for measuring and sustaining. As organizations prioritize wellbeing, recognition, and career development, the ability to quantify and optimize these drivers through advanced analytics becomes crucial—spurring robust demand for HR analytics solutions capable of delivering actionable insights that enhance the overall employee experience.
3. Geographical Insights: In 2024, North America led the market with a substantial revenue share, followed by Europe and Asia Pacific.

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Market Segmentation

• On the basis of components, the global HR analytics market is segmented into software and services. The software segment dominated the market in 2024.
• Based on organization size, the global HR analytics market is segmented into large enterprises and SMEs. The large enterprises segment dominated the market in 2024.
• Based on deployment, the global HR analytics market is segmented into cloud and on-premises. The cloud segment dominated the market in 2024.
• In terms of industry verticals, the global HR analytics market is segmented into consumer goods and retail, BFSI, IT and telecom, manufacturing, healthcare, education, and others. The IT and telecom segment dominated the market in 2024.

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Competitive Strategy and Development

• Key Players: Oracle; SAP SE; Infor; Workday; Sage Software; Kronos; MicroStrategy; IBM; Tableau; and Zoho are among the key players profiled in the HR analytics market report.
• Trending Topics: Workforce Management, Employee Engagement, Artificial Intelligence, among others

Global Headlines

• " Paychex, Inc., announced a new premium HR Analytics solution that couples real-time data with generative AI Insights capabilities, providing small- and medium-sized businesses with enterprise-level solutions to help drive more strategic and informed decisions."
• " HROne, one of India's fastest-growing HRMS platforms, announced the launch of the One AI Suite-a next-generation suite of AI-powered capabilities that allows users to complete HR tasks through simple voice or chat prompts, similar to the experience of using ChatGPT or other generative AI tools."
• "Infosys has signed a Memorandum of Understanding (MoU) with Saudi Arabian petroleum and energy company Aramco, to collaborate on human resource (HR) technology. The companies will create solutions related to HR data and analytics, scale the use of automation tools, and enhance employee experience through artificial intelligence (AI) technologies."

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Conclusion

As organizations face increasing pressure to attract, retain, and engage top talent in a competitive and often remote workforce environment, data-driven insights have become essential to effective human resource management. The emphasis on improving employee experience, fostering engagement, and ensuring productivity across distributed teams has positioned HR analytics as a strategic necessity rather than a supplementary tool. With continued investment in AI, machine learning, and cloud-based solutions, the market is expected to expand further, helping businesses align their people strategies with organizational goals. As a result, HR analytics is set to play a central role in shaping the future of work.

The report from The Insight Partners, therefore, provides several stakeholders—including software providers, service providers, system integrators, and end users —with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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