European HCM and Payroll Applications Vendor Shares, 2023

This IDC Market Share study presents the 2023 market size and vendor shares for the human capital management and payroll management applications market in Western Europe and Central and Eastern Europe (CEE). It breaks down the market by deployment model (public cloud services and on-premises) and includes data from 22 European countries and subregions. The report identifies the top 10 vendors in each functional market and the top 5 in each major country and subregion, providing growth figures and market share data. It also offers practical advice for vendors in the European HCM and payroll management applications market."The HR and payroll software market has been experiencing impressive growth, increasing at a combined year-on-year rate of almost 15% in 2023, higher than the broader ERM software market. This surge is being driven by increasing demand for innovative HR tools and technologies. One standout development is the impact of GenAI, which holds significant potential due to the extensive written communication involved in HR tasks. This technology is transforming HR operations by automating administrative burdens and enabling HR leaders to focus on strategic initiatives.Simultaneously, the role of HR within organizations has been evolving. Modern HR departments are no longer confined to handling routine tasks; they are now central to strategic planning and organizational growth. The need for more mature and strategically engaged HR functions has become apparent, emphasizing the importance of enhanced HR automation.This dual trend has led to substantial investment in HR tools, driven by both leading vendors and a vibrant array of specialized providers. The market remains healthy and balanced, with growth not concentrated solely among the top vendors. Instead, a diverse range of local specialists and niche innovators are contributing to the dynamic landscape, ensuring a robust and varied market." - Senior Research Analyst Ivan Oz, IDC European Enterprise Applications