Global Human Capital Management Software Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Human Capital Management Software Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Human capital management focuses on adding value to an organization's people resources so they can deliver the best results. It covers human resources functions, compensation, performance and other key areas vital to the tactical and strategic vision and mission of a company.

Human capital management provides a process for optimizing the performance and efficiency of a company's staff. It provides an overall strategy to guide talent attraction, recruitment, onboarding, employee training and development, performance appraisal and feedback.

HCM software supports a range of HR functions, including recruiting and talent management, payroll, and benefits administration. These integrated modules include organization's capabilities to manage the complete employee experience.

Market Overview:

The latest research study on the global Human Capital Management Software market finds that the global Human Capital Management Software market reached a value of USD 19940.0 million in 2022. It’s expected that the market will achieve USD 30044.11 million by 2028, exhibiting a CAGR of 7.07% during the forecast period.

Impact on digital transformation of enterprises

In 2020, the COVID-19 epidemic made enterprises aware of the fragility of organizations and the urgency of digital transformation, and forced them to speed up the pace of digital transformation. More and more enterprises say that they are transforming to digital enterprises, which shows that enterprises embrace digital transformation with a positive attitude.

With the rapid development of digital economy, enterprises have accelerated the process of digital transformation. Especially under the influence of epidemic situation, enterprises will first consider cloud deployment mode in talent management. Affected by the epidemic in 2020, enterprises have accelerated the process of digital transformation. In the field of talent management, enterprises' demand for talents should also conform to the overall strategic goal of digital transformation. Therefore, the management of performance is not limited to post-evaluation but should pay more attention to the future growth of talents.

Impact on human capital

The COVID-19 epidemic has already caused the biggest impact on families and children around the world in memory. The progress made in the field of human capital (that is, the knowledge, skills and health that people need to reach their potential) is being reversed. Adults, women and children are facing unprecedented setbacks in health, education, livelihood and security, all of which will have a profound impact on their future prosperity.

Unless countries quickly formulate and implement policies that can stop the loss of human capital, get families back on track, and ensure that children are vaccinated and return to school, their economic growth will be seriously regressed, and the long-term potential of their children and young people will be restrained. Therefore, in this case, enterprises need to put investment in people at the center of enterprise crisis response.

The significance of Human Capital Management Software to enterprise management

HCM software is an enterprise information management software. Enterprise human resource management software can make enterprise leaders and ordinary employees form interactive links, and show all links in the enterprise to managers and managed people, so that managers can handle daily work in time and make decisions quickly.

HCM software is a new human resource management model based on advanced software system and high-speed, high-performance and large-capacity hardware. Through centralized personnel core information database, automatic information processing, employee self-service desktop service, internal and external business collaboration and service sharing, it can reduce enterprise management costs, improve management efficiency, improve employee service mode and enhance the strategic position of organizational talent management.

Human Capital Management Software is a forward-looking initiative

The idea of Human Capital Management, HCM) originated from America in the middle of 20th century. In the 1960s, American economists founded the theory of human capital, which opened up a brand-new way of thinking about human productivity. They believed that human capital was the capital embodied in human beings, that is, the sum of expenditures on education and vocational training for producers and the opportunity cost when they received education, which represented the sum of all kinds of production knowledge, labor and management skills and health quality contained in human beings. It was also from 1960s to 1970s that large American enterprises realized that it was necessary to centrally manage personnel data in order to follow up records and meet regulatory requirements, and began to write programs in mainframe computers as central data repositories. At that time, they mainly recorded salaries, and there were few core HR jobs.

Region Overview:

Geographically, North America held the largest market share – 40.34% in 2022.

Company Overview:

ADP is one of the major players operating in the Human Capital Management Software market, holding a share of 16.32% in 2023.

ADP

Automatic Data Processing, Inc. (ADP) is an American provider of human resources management software and services. ADP is a comprehensive global provider of cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax and benefits administration, and a leader in business outsourcing services, analytics and compliance expertise.

Oracle

Oracle Corporation supplies software for enterprise information management. The Company offers databases and relational servers, application development and decision support tools, and enterprise business applications. Oracle's software runs on network computers, personal digital assistants, set-top devices, PCs, workstations, minicomputers, mainframes, and massively parallel computers.

Segmentation Overview:

By type, On Cloud segment accounted for the largest share of market in 2022.

Application Overview:

The market's largest segment by application is the segment Banking, Financial Services, and Insurance (BFSI), with a market share of 27.73% in 2022.

Key Companies in the global Human Capital Management Software market covered in Chapter 3:

Oracle
Workforce Software
ADP
SAP
Microsoft
Bamboo HR
Namely
Infor
UKG
SumTotal
IBM
Cornerstone
Meta4
Ceridian
Workday

In Chapter 4 and Chapter 14.2, on the basis of types, the Human Capital Management Software market from 2018 to 2029 is primarily split into:

On Cloud
On-premise

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Human Capital Management Software market from 2018 to 2029 covers:

Banking, Financial Services, and Insurance (BFSI)
Government
Manufacturing
Telecom and IT
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)