Payroll and HR Solutions & Services Market Growth Drivers and Challenges:
Growth Drivers
- Growing adoption of Artificial Intelligence & Machine learning: the usage of Artificial Intelligence (AI) and Machine learning, and several other options such as IoT, computer vision, blockchain, and analytics are increasing. About 97% of the executives are using AI specifically to revolutionize at least one aspect of their supply chain operations, which ranges from solving inventory management issues to reducing trade expenses.
- Increasing demand for payroll and HR solutions and services: This helps to manage the workforce along with automated management processes, automatic updates, reduction of errors while resolving various issues, and several other time-saving features. It was observed that, worldwide, there were more than 3 billion employed people in 2022.
- Increase in the number of SMEs: Escalating the implementation of IT by SMEs and automation of HR processes through various software, solutions, and services. In 2021, there were approximately 332 million SMEs worldwide.
Challenges
- Limited user acceptance and uptake: Payroll and HR solutions require the users to adopt their new systems and processes. This can be counted as a restraining factor for some businesses, as it can take time and effort to get users to adopt the new systems and processes. It is also important to provide proper training and support to ensure that the systems are used effectively and are accepted.
- Lack of awareness about payroll and HR solutions and services
- High cost involved in the adoption of automation technologies
Payroll and HR Solutions & Services Market Size and Forecast:
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
8.5% |
|
Base Year Market Size (2025) |
USD 30.97 Billion |
|
Forecast Year Market Size (2035) |
USD 70.02 Billion |
|
Regional Scope |
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Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2026, the industry size of payroll and HR solutions & services is evaluated at USD 33.34 Billion.
The global payroll and HR solutions & services market size was worth around USD 30.97 Billion in 2025 and is set to register a CAGR of more than 8.5%, exceeding USD 70.02 Billion revenue by 2035.
North America’s payroll and HR solutions & services market will dominate over 41% share by 2035, driven by workplace digitalization and automation adoption.
Key players in the market include Automatic Data Processing, Inc. (ADP), Jobvite, Inc., Sage Group plc, Kronos, Inc., SAP SE, Oracle Corporation, TriNet Group, Inc., Paychex, Inc., Paycom, Paycor, Inc., Paylocity, TMF Group B.V., Ultimate Software Group, Inc., Ramco Systems Ltd., Mannet, BambooHR, Intuit, Orange HRM.
