$20.6bn
$X.Xbn
39,105
665
$X.Xbn
In recent years, HR and payroll software in the United States has witnessed a transformation spurred by technological advances and reshaped workplace norms, leading industry revenue to skyrocket at a CAGR of 9.1% over the past five years to $20.6 billion, including notable growth of 4.2% in 2024 alone. HR software is unique, bridging the gap between evolving workforce expectations and businesses' need to maintain regulatory compliance. The past few years demonstrate the sector's strategic pivot toward becoming a comprehensive solution for diverse HR functions - from employee engagement to complex benefits administration.
Industry revenue has grown at a CAGR of 9.1 % over the past five years, to reach an estimated $20.6bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Workday, Inc. | 2,408.0 | -195.6 | -8.1 | |
Ultimate Software Group Inc. | 1,419.9 | 56.0 | 3.9 | |
Automatic Data Processing, Inc. | 1,335.6 | 285.1 | 21.3 |
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Industry revenue is measured across several distinct product and services lines, including HR management software, Workforce management software and Recruiting software. HR management software is the largest segment of the HR & Payroll Software in the US.
HR management software dominates with single, unified solutions to many business needs
The industry mainly develops HR and payroll management software for businesses and consumers, which helps streamline various tasks, from employee record-keeping to payroll processing.
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NAICS 51121 - HR & Payroll Software in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
The hybrid work revolution has significantly reshaped HR software, attracting customers to platforms that manage diverse work arrangements efficiently. Innovations tailored t...
Learn about an industry's products and services, markets and trends in international trade.
HR management software has emerged as a linchpin for clients, offering a unified solution for many business HR needs. Conversely, workforce management software is becoming in...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
California and Washington are home to some of the world's largest software publishers, including Google, Apple and Amazon. This proximity brings HR software companies with te...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Customer loyalty and forming beneficial partnerships have become strategic advantages, allowing companies to capture and expand their market share. Since HR software switchin...
Learn about the performance of the top companies in the industry.
Workday's investments in client acquisition and retention underscore the critical nature of customer satisfaction on profitability. Its substantial influence commands attenti...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
HR software navigates a labyrinth of employment and wage laws that affect their clients, though they deal with few regulations directly. HR software must bolster client compl...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
The popularity of doing business online and virtual-based solutions propels growth. Yet, the battle for top talent escalates wages as companies vie for the minds capable of s...
Including values and annual change:
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Key data sources in the US include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
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The market size of the HR & Payroll Software in the US industry in United States is $20.6bn in 2024.
There are 665 businesses in the HR & Payroll Software in the US industry in United States, which has grown at a CAGR of 11.4 % between 2019 and 2024.
The market size of the HR & Payroll Software in the US industry in United States has been growing at a CAGR of 9.1 % between 2019 and 2024.
Over the next five years, the HR & Payroll Software in the US industry in United States is expected to grow.
The biggest companies operating in the HR & Payroll Software market in United States are Workday, Inc., Ultimate Software Group Inc. and Automatic Data Processing, Inc.
HR management software publishing and Payroll software publishing are part of the HR & Payroll Software in the US industry.
The company holding the most market share in United States is Workday, Inc..
The level of competition is high and increasing in the HR & Payroll Software in the US industry in United States.