Research Nester has published a report titled “Global People Analytics Market: Supply & Demand Analysis, Market Forecasts & Trends Report 2025-2037,” which explores the evolving dynamics of HR analytics adoption across global enterprises. The report segments the market, highlighting how digital transformation, employee engagement needs, and performance visibility are reshaping the future of workforce management. The study further evaluates the role of automation, AI, and ethical analytics in supporting a data-driven HR ecosystem.
Digital HR Transformation and Predictive Insights to Propel Global People Analytics Market Growth
The people analytics market is growing rapidly as organizations seek to enhance workforce planning, recruitment, and employee engagement through data analytics. Increasing pressure to demonstrate the effectiveness of HR outcomes is making organizations turn to analytics for measuring turnover, staffing, and productivity. The new working model, including hybrid and remote work, is also driving the demand for tracking workforce productivity and their behaviors. In addition, there is regulatory pressure and diversity mandates that compel HR executives to use analytics for tracking inclusiveness and compliance scores. Using AI, NLP, and predictive modeling, integration with the latest technologies helps to analyze the health of an organization. These are the trends that are making people analytics the key to creating future-ready organizations.
The software segment is predicted to remain the largest with 65.9% of the market share through 2037, mainly due to the growing demand for a large-scale platform to monitor the workforce and obtain useful data. Software tools provide the features of the real-time dashboard, trend analysis, and integration to enable the HR team to make decisions across the function. Today, people analytics software is being used by enterprises to measure the attrition risk, performance, training effectiveness, and DEI status. These platforms are still relatively new, with integrated AI that provides predictive analysis as well as automates several processes in human resources. As companies continue to embrace digitalization as a strategic tool, flexible and scalable applications continue to be the primary means of addressing big and diverse employee datasets.
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The on-premises segment is expected to continue to dominate the market with 57.4% through to 2037, due to increased concerns of data ownership, security, and compliance. Business sectors that are highly regulated, including healthcare, defense, and finance, remain more inclined towards on-premises deployment to maintain closer control over employee data. These deployments offer more freedom in terms of the configuration of the data architecture and compliance with internal security measures. Entities that deal with outdated infrastructure or those that hold large volumes of employee data are resistant to cloud adoption, especially in jurisdictions that frown upon data sovereignty. On-premises solutions also find some relevance with firms that have specific HR analytics requirements that have to be monitored closely by the IT department. Over time, the strict data privacy laws will persist in being an essential factor for businesses to adopt the models that will continue to demand the on-prem infrastructure.
The Asia Pacific people analytics market is expected to rise at a CAGR of 13.5% between 2025 and 2037, owing to the swift rise in HR transformation and the need for talent management solutions in rapidly developing countries. In China, many large organizations are integrating people analytics into performance management systems and leadership to ensure organizational alignment. The government’s push for enterprise digitalization is prodding the use of analytics in both private and state-owned businesses. India has recently emerged as the world’s fastest-growing large economy, and the rapidly growing service industry and technology start-ups are driving investment in HR technologies for effective recruitment, workforce engagement, and training effectiveness measurement. As the competition in labour markets intensifies, people analytics has now become one of the most valuable competencies for APAC businesses to achieve operational excellence and build effective talent management strategies.
The people analytics market is gradually gaining a competitive edge as vendors continue to develop and introduce solutions with advanced artificial intelligence capabilities, user-focused interfaces, and built-in compliance features. The need for a full lifecycle solution from hiring, training, performance management, and development, to retaining and reskilling talent, is increasing the pressure on providers to deliver solutions that are integrated with the HRIS, LMS, and Payroll. Companies are also integrating new features such as the option for creating customized dashboards and including machine learning into the actual data analysis. Some of the major players are Workday Inc, Visier Inc, Qualtrics, ADP Inc, ChartHop Inc, Crunchr, Culture Amp Pty Ltd, Humanforce Holdings Pty Ltd, Links International, One Model Inc., Splash Business Intelligence Inc., Willis Towers Watson (WTW), Darwinbox, Ernst & Young Global Limited, and PeopleStrong. To address the increasing global demand, these firms are pursuing ecosystem partnerships and a continuous innovation approach.
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