Market Overview:
The global professional employment organization (PEO) market is expected to grow at a CAGR of 10.8% from 2018 to 2030. The growth in the PEO market can be attributed to the increasing demand for PEO services from SMEs and large enterprises across the globe. Additionally, the growing trend of outsourcing HR functions to third-party service providers is also contributing to the growth of the PEO market. The global professional employment organization (PEO) market can be segmented on the basis of type into aggregator model and wholly owned infrastructure model. The aggregator model is expected to account for a larger share of the PEO market than the wholly owned infrastructure model duringthe forecast period.
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Product Definition:
A Professional Employment Organization (PEO) is a company that provides outsourced HR services to small and medium-sized businesses. PEOs offer a range of services, including payroll processing, benefits administration, workers' compensation coverage, and HR consulting. By using a PEO, businesses can access these services without having to hire an in-house HR staff.
The importance of Professional Employment Organizations (PEO) lies in their ability to provide small and medium sized businesses with the same level of human resources support as larger companies. This includes payroll processing, benefits administration, workers' compensation coverage, and HR consulting. By using a PEO service, business owners can focus on running their business while leaving the administrative tasks related to human resources to the experts.
Aggregator Model:
An aggregator model is a type of staffing and talent management solution that helps organizations achieve higher productivity, efficiency, and effectiveness in their recruiting. It also improves the candidate experience by providing more relevant job opportunities based on skills. The aggregator model provides an all-inclusive view of the talent pool with real-time insights to enable better decision making.
The global PEO market size was valued at USD 3 billion in 2016.
Wholly Owned Infrastructure Model:
Wholly owned infrastructure model is a business structure wherein the company or LLC owns all the assets and provides various services. The organization can be formed with an unlimited number of service locations. It offers several benefits such as limited liability, tax-loss harvesting, and low organizational overhead costs among others. In addition to these benefits, it also helps in improving operational efficiency by streamlining processes across varied locations while reducing operating expenses significantly.
Application Insights:
The Small and Medium-sized Enterprises (SMEs) application segment accounted for the largest revenue share of over 60% in 2017. The PEO model is widely adopted by SMEs as it offers cost-effective employment solutions with professional services across all major functions: human resources, payroll, benefits administration, tax & accounting and insurance management. Professional service providers to SMEs are expected to offer enhanced flexibility in comparison to other models such as the contract or direct hire arrangement.
PEOs have been witnessing a surge in demand from large enterprises as well owing to their ability to scale up quickly while offering enhanced operational efficiency and better financial control of employee benefit programs. Large enterprises usually have multiple locations globally; therefore need a local presence at a specific location for conducting business operations efficiently. A POEA license enables PEOs operating within Philippines that are owned by large multinational companies or locally incorporated businesses registered with the Securities and Exchange Commission (SEC) Division of Corporations Records (DCR).
Regional Analysis:
North America dominated the global market in 2017. The region is expected to continue its dominance over the forecast period as well, owing to factors such as favorable government policies and increasing demand for flexibility in working hours among employees. Asia Pacific is projected to be the fastest-growing regional market from 2018 to 2030 due to rising number of small & medium enterprises (SMEs) and large enterprises entering into PEO agreements with each other and with third parties. Moreover, growing awareness regarding benefits associated with professional employer organizations in emerging economies will drive growth further.
The European market also contributed significantly towards revenue generation in 2017 owing high adoption of PEO models by SMEs across various industries including IT & telecom, BFSI, automotive etc., especially within Germany and U.K.
Growth Factors:
- Increasing demand for PEO services from small and medium-sized businesses (SMBs) due to the growing awareness of the benefits of using a PEO.
- The increasing number of states that are legalizing cannabis, which is expected to lead to an increase in demand for PEO services from marijuana businesses.
- The growth of the freelance economy, which is driving more companies to outsource HR functions to PEOs in order to reduce costs and improve efficiency.
- The increasing number of lawsuits being filed against companies, which is leading more businesses to turn to PEOs for risk management and insurance services.
- The rise in popularity of workplace wellness programs, which is prompting more businesses to partner with PEOs in order not only improve employee health but also lower healthcare costs
Scope Of The Report
Report Attributes
Report Details
Report Title
Professional Employment Organization (PEO) Market Research Report
By Type
Aggregator Model, Wholly Owned Infrastructure Model
By Application
SMEs, Large Enterprises
By Companies
Paychex, Justworks, TriNet, FoxHire, Infotree Global, Safeguard Global, Velocity Global, Globalization Partners, Shield GEO, ADP, Elements Global Services, Papaya Global, Universal Hires, Links International, New Horizons Global Partners, Sky Executive
Regions Covered
North America, Europe, APAC, Latin America, MEA
Base Year
2021
Historical Year
2019 to 2020 (Data from 2010 can be provided as per availability)
Forecast Year
2030
Number of Pages
159
Number of Tables & Figures
112
Customization Available
Yes, the report can be customized as per your need.
Global Professional Employment Organization (PEO) Market Report Segments:
The global Professional Employment Organization (PEO) market is segmented on the basis of:
Types
Aggregator Model, Wholly Owned Infrastructure Model
The product segment provides information about the market share of each product and the respective CAGR during the forecast period. It lays out information about the product pricing parameters, trends, and profits that provides in-depth insights of the market. Furthermore, it discusses latest product developments & innovation in the market.
Applications
SMEs, Large Enterprises
The application segment fragments various applications of the product and provides information on the market share and growth rate of each application segment. It discusses the potential future applications of the products and driving and restraining factors of each application segment.
Some of the companies that are profiled in this report are:
- Paychex
- Justworks
- TriNet
- FoxHire
- Infotree Global
- Safeguard Global
- Velocity Global
- Globalization Partners
- Shield GEO
- ADP
- Elements Global Services
- Papaya Global
- Universal Hires
- Links International
- New Horizons Global Partners
- Sky Executive
 Market Overview.svg)
Highlights of The Professional Employment Organization (PEO) Market Report:
- The market structure and projections for the coming years.
- Drivers, restraints, opportunities, and current trends of market.
- Historical data and forecast.
- Estimations for the forecast period 2030.
- Developments and trends in the market.
- By Type:
- Aggregator Model
- Wholly Owned Infrastructure Model
- By Application:
- SMEs
- Large Enterprises
- Market scenario by region, sub-region, and country.
- Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
- Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
- Government Policies, Macro & Micro economic factors are also included in the report.
We have studied the Professional Employment Organization (PEO) Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2030.
Regional Analysis
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
Note: A country of choice can be added in the report at no extra cost. If more than one country needs to be added, the research quote will vary accordingly.
The geographical analysis part of the report provides information about the product sales in terms of volume and revenue in regions. It lays out potential opportunities for the new entrants, emerging players, and major players in the region. The regional analysis is done after considering the socio-economic factors and government regulations of the countries in the regions.
How you may use our products:
- Correctly Positioning New Products
- Market Entry Strategies
- Business Expansion Strategies
- Consumer Insights
- Understanding Competition Scenario
- Product & Brand Management
- Channel & Customer Management
- Identifying Appropriate Advertising Appeals
 Market Statistics.svg)
8 Reasons to Buy This Report
- Includes a Chapter on the Impact of COVID-19 Pandemic On the Market
- Report Prepared After Conducting Interviews with Industry Experts & Top Designates of the Companies in the Market
- Implemented Robust Methodology to Prepare the Report
- Includes Graphs, Statistics, Flowcharts, and Infographics to Save Time
- Industry Growth Insights Provides 24/5 Assistance Regarding the Doubts in the Report
- Provides Information About the Top-winning Strategies Implemented by Industry Players.
- In-depth Insights On the Market Drivers, Restraints, Opportunities, and Threats
- Customization of the Report Available
Frequently Asked Questions?
A Professional Employment Organization (PEO) is a type of business entity that provides temporary staffing services to businesses. PEOs typically contract with a network of independent contractors who provide professional services such as accounting, marketing, and administrative support.
Some of the key players operating in the professional employment organization (peo) market are Paychex, Justworks, TriNet, FoxHire, Infotree Global, Safeguard Global, Velocity Global, Globalization Partners, Shield GEO, ADP, Elements Global Services, Papaya Global, Universal Hires, Links International, New Horizons Global Partners, Sky Executive.
The professional employment organization (peo) market is expected to register a CAGR of 10.8%.
Chapter 1 Executive Summary
Chapter 2 Assumptions and Acronyms Used
Chapter 3 Research Methodology
Chapter 4 Professional Employment Organization (PEO) Market Overview
4.1 Introduction
4.1.1 Market Taxonomy
4.1.2 Market Definition
4.1.3 Macro-Economic Factors Impacting the Market Growth
4.2 Professional Employment Organization (PEO) Market Dynamics
4.2.1 Market Drivers
4.2.2 Market Restraints
4.2.3 Market Opportunity
4.3 Professional Employment Organization (PEO) Market - Supply Chain Analysis
4.3.1 List of Key Suppliers
4.3.2 List of Key Distributors
4.3.3 List of Key Consumers
4.4 Key Forces Shaping the Professional Employment Organization (PEO) Market
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of Substitution
4.4.4 Threat of New Entrants
4.4.5 Competitive Rivalry
4.5 Global Professional Employment Organization (PEO) Market Size & Forecast, 2020-2028
4.5.1 Professional Employment Organization (PEO) Market Size and Y-o-Y Growth
4.5.2 Professional Employment Organization (PEO) Market Absolute $ Opportunity
Chapter 5 Global Market Analysis and Forecast by Type
5.1 Introduction
5.1.1 Key Market Trends & Growth Opportunities by Type
5.1.2 Basis Point Share (BPS) Analysis by Type
5.1.3 Absolute $ Opportunity Assessment by Type
5.2 Market Size Forecast by Type
5.2.1 Aggregator Model
5.2.2 Wholly Owned Infrastructure Model
5.3 Market Attractiveness Analysis by Type
Chapter 6 Global Market Analysis and Forecast by Applications
6.1 Introduction
6.1.1 Key Market Trends & Growth Opportunities by Applications
6.1.2 Basis Point Share (BPS) Analysis by Applications
6.1.3 Absolute $ Opportunity Assessment by Applications
6.2 Market Size Forecast by Applications
6.2.1 SMEs
6.2.2 Large Enterprises
6.3 Market Attractiveness Analysis by Applications
Chapter 7 Global Professional Employment Organization (PEO) Market Analysis and Forecast by Region
7.1 Introduction
7.1.1 Key Market Trends & Growth Opportunities by Region
7.1.2 Basis Point Share (BPS) Analysis by Region
7.1.3 Absolute $ Opportunity Assessment by Region
7.2 Professional Employment Organization (PEO) Market Size Forecast by Region
7.2.1 North America
7.2.2 Europe
7.2.3 Asia Pacific
7.2.4 Latin America
7.2.5 Middle East & Africa (MEA)
7.3 Market Attractiveness Analysis by Region
Chapter 8 Coronavirus Disease (COVID-19) Impact
8.1 Introduction
8.2 Current & Future Impact Analysis
8.3 Economic Impact Analysis
8.4 Government Policies
8.5 Investment Scenario
Chapter 9 North America Analysis and Forecast
9.1 Introduction
9.2 North America Market Size Forecast by Country
9.2.1 U.S.
9.2.2 Canada
9.3 Basis Point Share (BPS) Analysis by Country
9.4 Absolute $ Opportunity Assessment by Country
9.5 Market Attractiveness Analysis by Country
9.6 North America Market Size Forecast by Type
9.6.1 Aggregator Model
9.6.2 Wholly Owned Infrastructure Model
9.7 Basis Point Share (BPS) Analysis by Type
9.8 Absolute $ Opportunity Assessment by Type
9.9 Market Attractiveness Analysis by Type
9.10 North America Market Size Forecast by Applications
9.10.1 SMEs
9.10.2 Large Enterprises
9.11 Basis Point Share (BPS) Analysis by Applications
9.12 Absolute $ Opportunity Assessment by Applications
9.13 Market Attractiveness Analysis by Applications
Chapter 10 Europe Analysis and Forecast
10.1 Introduction
10.2 Europe Market Size Forecast by Country
10.2.1 Germany
10.2.2 France
10.2.3 Italy
10.2.4 U.K.
10.2.5 Spain
10.2.6 Russia
10.2.7 Rest of Europe
10.3 Basis Point Share (BPS) Analysis by Country
10.4 Absolute $ Opportunity Assessment by Country
10.5 Market Attractiveness Analysis by Country
10.6 Europe Market Size Forecast by Type
10.6.1 Aggregator Model
10.6.2 Wholly Owned Infrastructure Model
10.7 Basis Point Share (BPS) Analysis by Type
10.8 Absolute $ Opportunity Assessment by Type
10.9 Market Attractiveness Analysis by Type
10.10 Europe Market Size Forecast by Applications
10.10.1 SMEs
10.10.2 Large Enterprises
10.11 Basis Point Share (BPS) Analysis by Applications
10.12 Absolute $ Opportunity Assessment by Applications
10.13 Market Attractiveness Analysis by Applications
Chapter 11 Asia Pacific Analysis and Forecast
11.1 Introduction
11.2 Asia Pacific Market Size Forecast by Country
11.2.1 China
11.2.2 Japan
11.2.3 South Korea
11.2.4 India
11.2.5 Australia
11.2.6 South East Asia (SEA)
11.2.7 Rest of Asia Pacific (APAC)
11.3 Basis Point Share (BPS) Analysis by Country
11.4 Absolute $ Opportunity Assessment by Country
11.5 Market Attractiveness Analysis by Country
11.6 Asia Pacific Market Size Forecast by Type
11.6.1 Aggregator Model
11.6.2 Wholly Owned Infrastructure Model
11.7 Basis Point Share (BPS) Analysis by Type
11.8 Absolute $ Opportunity Assessment by Type
11.9 Market Attractiveness Analysis by Type
11.10 Asia Pacific Market Size Forecast by Applications
11.10.1 SMEs
11.10.2 Large Enterprises
11.11 Basis Point Share (BPS) Analysis by Applications
11.12 Absolute $ Opportunity Assessment by Applications
11.13 Market Attractiveness Analysis by Applications
Chapter 12 Latin America Analysis and Forecast
12.1 Introduction
12.2 Latin America Market Size Forecast by Country
12.2.1 Brazil
12.2.2 Mexico
12.2.3 Rest of Latin America (LATAM)
12.3 Basis Point Share (BPS) Analysis by Country
12.4 Absolute $ Opportunity Assessment by Country
12.5 Market Attractiveness Analysis by Country
12.6 Latin America Market Size Forecast by Type
12.6.1 Aggregator Model
12.6.2 Wholly Owned Infrastructure Model
12.7 Basis Point Share (BPS) Analysis by Type
12.8 Absolute $ Opportunity Assessment by Type
12.9 Market Attractiveness Analysis by Type
12.10 Latin America Market Size Forecast by Applications
12.10.1 SMEs
12.10.2 Large Enterprises
12.11 Basis Point Share (BPS) Analysis by Applications
12.12 Absolute $ Opportunity Assessment by Applications
12.13 Market Attractiveness Analysis by Applications
Chapter 13 Middle East & Africa (MEA) Analysis and Forecast
13.1 Introduction
13.2 Middle East & Africa (MEA) Market Size Forecast by Country
13.2.1 Saudi Arabia
13.2.2 South Africa
13.2.3 UAE
13.2.4 Rest of Middle East & Africa (MEA)
13.3 Basis Point Share (BPS) Analysis by Country
13.4 Absolute $ Opportunity Assessment by Country
13.5 Market Attractiveness Analysis by Country
13.6 Middle East & Africa (MEA) Market Size Forecast by Type
13.6.1 Aggregator Model
13.6.2 Wholly Owned Infrastructure Model
13.7 Basis Point Share (BPS) Analysis by Type
13.8 Absolute $ Opportunity Assessment by Type
13.9 Market Attractiveness Analysis by Type
13.10 Middle East & Africa (MEA) Market Size Forecast by Applications
13.10.1 SMEs
13.10.2 Large Enterprises
13.11 Basis Point Share (BPS) Analysis by Applications
13.12 Absolute $ Opportunity Assessment by Applications
13.13 Market Attractiveness Analysis by Applications
Chapter 14 Competition Landscape
14.1 Professional Employment Organization (PEO) Market: Competitive Dashboard
14.2 Global Professional Employment Organization (PEO) Market: Market Share Analysis, 2019
14.3 Company Profiles (Details – Overview, Financials, Developments, Strategy)
14.3.1 Paychex
14.3.2 Justworks
14.3.3 TriNet
14.3.4 FoxHire
14.3.5 Infotree Global
14.3.6 Safeguard Global
14.3.7 Velocity Global
14.3.8 Globalization Partners
14.3.9 Shield GEO
14.3.10 ADP
14.3.11 Elements Global Services
14.3.12 Papaya Global
14.3.13 Universal Hires
14.3.14 Links International
14.3.15 New Horizons Global Partners
14.3.16 Sky Executive
