Human Capital Management (HCM) Market Forecasts to 2030 – Global Analysis By Software (Core HR, Application Tracking System, HR Analytics, Talent Management, Recruitment Solutions, Payroll & Compensation, Workforce Management and Other Softwares), Service

Human Capital Management (HCM) Market Forecasts to 2030 – Global Analysis By Software (Core HR, Application Tracking System, HR Analytics, Talent Management, Recruitment Solutions, Payroll & Compensation, Workforce Management and Other Softwares), Service (Integration and Implementation, Training and Education, Support and Maintenance, Consulting and Other Services), Deployment Model (On-premises, Cloud and Other Deployment Models), Organization Size, End User and By GeographyAccording to Stratistics MRC, the Global Human Capital Management (HCM) Market is accounted for $26.73 billion in 2023 and is expected to reach $50.46 billion by 2030 growing at a CAGR of 9.5% during the forecast period. Human capital management (HCM) is a group of HR policies, procedures, and methods used to find, hire, retain, develop, and manage employees in order to meet organizational objectives. Moreover, it includes duties related to human resources, pay, and a company's primary goal. In order to run reports, process data, and provide a seamless end-user experience, these solutions are implemented using cloud-based and mobile technology.

According to the World Bank, human capital encompasses the knowledge, skills, and health individuals acquire over their lifetimes, empowering them to fulfil their potential as valuable contributors to society.

Market Dynamics:

Driver:

Advancements in technology and digital transformation

Rapid technological advancements in areas like cloud computing, AI, machine learning, and data analytics have had a big impact on the HCM landscape. Additionally, organizations are implementing HCM solutions to automate processes, gain insights from data, and make better decisions. HR is changing as a result of cloud computing, AI, and data analytics, which are improving productivity, automating tasks, and enabling data-driven decision-making in contemporary organizations.

Restraint:

Cloud-based deployment raises security concerns

The HR department is extremely concerned about data security. A significant amount of sensitive information, including employee personal information, compensation information, and other company details, is kept in the HR department. Moreover, businesses that use cloud-based human capital management software are subject to third-party regulation, which poses a security risk. The demand for cloud deployment models is being driven by rapid digitization. This makes a security framework even more essential when implementing cloud-based human capital management solutions.

Opportunity:

Optimizing remote work

HCM systems are essential to maximizing this paradigm as remote work continues to change how the modern workforce is organized. These systems actively encourage engagement through virtual team-building exercises, in addition to giving remote workers unrestricted access to crucial resources and seamless collaboration platforms. Moreover, HCM systems significantly aid in maintaining high levels of productivity while fostering a strong sense of connection among remote teams by providing these capabilities.

Threat:

Lack of customization

Off-the-shelf HCM solutions might not be able to meet an organization's complex requirements, despite how convenient they are. Special procedures may be challenging for these systems to support, which would compromise their functionality and user experience. As a result, it might be more challenging to manage workflows successfully, gather accurate data, and align with the particular HR procedures followed by the company. Moreover, the degree of customization offered by such solutions must be carefully weighed against the need for consistency and seamless integration across HR processes.

Covid-19 Impact:

Human capital management (HCM) has been significantly impacted by the COVID-19 pandemic, which has led to a widespread adoption of remote work, redefined workforce dynamics, and emphasized the significance of employee well-being. Moreover, to ensure business continuity, organizations quickly changed their HR strategies and implemented virtual collaboration tools. As businesses navigated the pandemic's uncertainties, HCM systems were crucial in enabling remote operations, tracking employee health, and supporting adjustments to workforce strategies.

The Talent Management segment is expected to be the largest during the forecast period

Due to the critical significance of attracting, developing, and maintaining top talent, the talent management segment will continue to dominate the Human Capital Management (HCM) market with the largest share during the forecast period. Moreover, as companies concentrate on building high-performing teams, effective hiring procedures, thorough performance reviews, ongoing learning programs, and strategic succession planning become crucial. Due to this segment's prominence, it is clear how important it is to determining organizational success, coordinating human resources with corporate goals, and ensuring a knowledgeable and flexible workforce in a dynamic work environment.

The telecom and IT segment is expected to have the highest CAGR during the forecast period

The human capital management (HCM) market is predicted to have the highest CAGR in the telecom and IT sectors. The industry's rapid technological advancements, the demand for highly skilled IT professionals, and the growing importance of remote work and digital collaboration are the driving forces behind this. Moreover, demand for effective talent management, workforce optimization, and cutting-edge HCM solutions is anticipated to increase as the telecom and IT sectors continue to develop and expand, leading to a significant increase in this segment.

Region with largest share:

The Middle East and Africa region is expected to have the largest market share during the forecast period. One aspect of the growth of the region is the increasing mobility of labor from various cultures and geographical areas. Additionally, as the industry undergoes digitization, which increases the demand for highly skilled workers, the IT sector in the Middle East and Africa remains competitive. Advanced skills and capabilities are in great demand due to evolving job demands and skill requirements.

Region with highest CAGR:

Due to its rapid industrialization, growing tech-savvy workforce, and increased efforts to digitalize various industries, Asia-Pacific emerges as the region with the highest CAGR in the Human Capital Management (HCM) market during the forecast period. Furthermore, Asia-Pacific is poised to experience significant growth and transformation in the HCM market over the coming years due to the region's dynamic economies and growing emphasis on talent management, workforce optimization, and HR automation.

Key players in the market

Some of the key players in Human Capital Management (HCM) market include IBM Corporation, Bamboo HR LLC, Ramco Systems Ltd., NetSuite Inc., Zoho Corporation, SAP SE, ADP, LLC, Kronos, Inc., Epicor Software Corporation, SumTotal Systems, LLC, Workday, Inc., Cornerstone OnDemand, Inc., Ultimate Software Group, Inc., Paycom Software, Inc., Microsoft Corporation, The Sage Group plc., Oracle Corporation, Benefitfocus Inc., Ceridian HCM, Inc. and Infor, Inc.

Key Developments:

In August 2023, Savex Technologies announced its partnership with Zoho Corporation, a leading global technology company. This alliance gives Savex Technologies’ extensive community of over 10,000 reseller partners access to Zoho’s industry-leading cloud solutions for business email, team collaboration, and customer engagement.

In June 2023, IBM announced that it has entered into a definitive agreement with Vista Equity Partners to acquire Apptio Inc., a leader in financial and operational IT management and optimization software, for $4.6 billion. The acquisition of Apptio will accelerate the advancement of IBM's IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments.

In September 2022, Workday announced a next generation of open and connected skill ecosystem to allow organizations to easily and securely move skill data within and outside the enterprise. With this functionality companies will gain deeper insights on people skills and deliver improved employee experiences.

Softwares Covered:
• Core HR
• Application Tracking System
• HR Analytics
• Talent Management
• Recruitment Solutions
• Payroll & Compensation
• Workforce Management
• Other Softwares

Services Covered:
• Integration and Implementation
• Training and Education
• Support and Maintenance
• Consulting
• Other Services

Deployment Models Covered:
• On-premises
• Cloud
• Other Deployment Models

Organization Sizes Covered:
• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises
• Other Organization Sizes

End Users Covered:
• Banking, Financial Services, and Insurance (BFSI)
• Government
• Manufacturing
• Telecom and IT
• Consumer Goods and Retail
• Healthcare and Life Sciences
• Energy and Utilities
• Transportation and Logistics
• Travel and Hospitality
• Education
• Media and Entertainment
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements