The first quarter of 2024 showed continued strong market traction with 250+ transactions and $2.9bn+ invested equity in HR Tech. This high level of activity points to an expected global HR Tech market volume of $28.8bn in 2024 as well as +13.4% expected market growth CAGR until 2027, as the need for sophisticated HR Tech stacks and solutions drives investment spending. Download the full report below.
Recognizing the benefits of a well-integrated HR Tech stack, such as increased efficiency and improved employee work experience, 85% of organizations have at least two paid HR solutions, and 68% have between three and seven solutions integrated.
When looking at organizations’ spendings in HR Tech, numbers show that 78% increased their spending on HR technology in the last two years, 32% of which increased spending significantly; 82% plan to increase investment over the next two years.
In the last 12 months strategic buyers made up more than half of the M&A activity in HR Tech, driven by efforts to offer holistic platform HR solutions to provide end-to-end digitalization of the HR function. Around two thirds of invested capital was allocated to later stage venture funding rounds, as investors are increasingly looking for more mature assets with a clear path to profitability.
For an overview of the most active PE-backed and public consolidators in HR Tech as well as a comprehensive market map, capital market developments, M&A and private placement activity, notable recent HR Tech deals and many other insights, download the full report below: