USD 26.70 Billion
Human Capital Management Market Size, Share, Growth Analysis, By Offering(Software, Services), By Deployment Mode(On-premises, Cloud), By Organization Size(Small & medium-sized enterprises, Large enterprises), By Vertical(BFSI, Government, Manufacturing, IT & Telecom), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45A2098 |
Region:
Global |
Published Date: October, 2024
Pages:
197
|Tables:
61
|Figures:
75
Human Capital Management Market Insights
Global Human Capital Management Market size was valued at USD 23.36 billion in 2022 and is poised to grow from USD 25.35 billion in 2023 to USD 48.68 billion by 2031, growing at a CAGR of 8.5% in the forecast period (2024-2031).
One of the most promising factors boosting growth is the increasing demand for analytics and insights that can help organizations better understand their workforce and make data-driven decisions. the growing interest in employee experience and well-being. As companies seek to attract and retain top talent, they are investing in solutions that enhance the employee experience and support their well-being. The global human capital management market is a rapidly growing industry that offers a wide range of solutions to help organizations manage their human resources effectively. While there are challenges and constraints that could limit market growth, the increasing demand for automation, analytics, and employee engagement presents significant opportunities for companies that are able to adapt and innovate.
This market refers to the market for software and services that enable organizations to manage their human resources effectively. The purpose of the human capital management market is to help organizations optimize their workforce management by providing them with software and services that improve the efficiency and effectiveness of their HR processes. The market includes a wide range of solutions, including payroll and benefits administration, workforce management, talent management, learning and development, and analytics. The biggest challenges facing the human capital management market is the rapidly changing nature of the workforce. The rise of remote work, gig work, and the increasing use of artificial intelligence and automation are all transforming the way companies manage their employees. HCM solutions will need to adapt to these changes to remain relevant and effective. the challenges facing the human capital management market, there are also significant opportunities for growth.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Cloud
Fastest Growth
Cloud
Growth Rate
9.2% CAGR
Global Human Capital Management Market ($ Bn)
Country Share for North America Region (%)
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Human Capital Management Market Segmental Analysis
Global Human Capital Management Market is segmented on the offering, deployment mode, organization size, vertical, and region. By offering, market is segmented into software, and services. By deployment mode, market is segmented into on-premises, and cloud. By organization size, market is segmented into small and medium-sized enterprises, and large enterprises. By vertical, market is segmented into BFSI, government, manufacturing, IT & telecom, consumer goods & retail, healthcare & life sciences, energy & utilities, transportation & logistics, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Human Capital Management Market Analysis by Deployment
The cloud segment is anticipated to experience significant growth during the forecast period, driven by organizations' desire to improve user experience, access consistent updates, and benefit from enhanced analytics and reporting. The adoption of cloud-based business models integrated with human resource management services is expected to see strong demand from end-users. For example, in October 2022, Topia launched a remote work software solution that helped enterprises manage and support a dispersed workforce. The solution also improved tax automation, approvals, risk assessments, and social security. The company supported HR teams in facilitating talent mobility and flexibility, and promoting remote working among employees. This innovation demonstrates the market's potential for growth and the significant role played by cloud-based solutions in driving the human capital management market's expansion.
Human Capital Management Market Analysis by Enterprise Type
The large enterprises segment is expected to hold a significant market share, with these organizations projected to increase their spending on core HR functions. Large enterprises typically have more extensive HR/IT functions and operate HR functions such as payroll, recruiting, and benefits on a larger scale than small enterprises, thereby driving market growth. The small and medium-sized enterprises segment is expected to be the fastest-growing segment due to the rising demand for affordable options with high-value outcomes. Market players are striving to provide affordable solutions that offer positive outcomes for these enterprises. this segment is expected to witness significant growth during the forecast period.
Global Human Capital Management Market Size By Deployment
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Human Capital Management Market Regional Insights
North America is expected to dominate the human capital management market throughout the forecast period, primarily due to the presence of major vendors such as Ceridian HCM Holding Inc., Oracle Corporation, and IBM Corporation, and their substantial investments in cloud-based applications. Small firms are increasingly adopting cloud-based solutions, creating lucrative business opportunities for cloud-based technologies.
Europe is projected to witness significant market growth during the forecast period, driven by the rising demand for workforce automation solutions to improve compliance. For example, industries in the UK have adopted workforce management solutions to manage their employees, while the European Union has implemented a talent management strategy to reduce staff overload for professional growth. These developments are expected to create new market opportunities in the region.
Global Human Capital Management Market Size By Region
- Largest
- Fastest
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Human Capital Management Market Dynamics
Human Capital Management Market Drivers
Leveraging Cloud Computing for HR and Talent Management across Organizations to Boost Business Growth
- Cloud computing has steadily evolved from a revolutionary IT approach to a major corporate technology. Cloud computing solutions in HR tools encourage organizations to accelerate employee engagement and experience by offering wider features that enhance performance and talent management functionalities. With robust cloud-based solutions, the HR and management teams can easily access and provide business and personal data about employees. Cloud-based solutions offer new opportunities for companies by automating heavy and complicated tasks, such as performance review, timesheet submission, and payroll management.
Increasing Demand for Analytics and Reporting Tools
- The demand for human capital management solutions with analytics and reporting capabilities is on the rise. Companies are looking for solutions that can provide insights into their workforce, which can help them make informed decisions.
Human Capital Management Market Restraints
Data Security Concerns
- The increasing use of technology in HR processes, data security concerns have become a significant restraint for the human capital management market. The possibility of data breaches can lead to a loss of sensitive information, resulting in financial and reputational damage to organizations.
Lack of Skilled Professionals
- The lack of skilled professionals to manage human capital management solutions is a significant restraint for the market. The implementation and management of such solutions require specialized skills and expertise, which are in short supply.
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Human Capital Management Market Competitive Landscape
The global human capital management market is highly competitive and fragmented in nature with the presence of several key players. These players are constantly innovating and upgrading their products to meet the evolving needs of customers. These companies are adopting various strategies such as mergers and acquisitions, partnerships, and collaborations to expand their market presence. These players are constantly innovating and upgrading their products to meet the evolving needs of customers. The market is expected to witness intense competition as new players enter the market, and existing players expand their product portfolios through partnerships and collaborations.
Human Capital Management Market Top Player’s Company Profiles
- Workday (US)
- UKG (US)
- Oracle (US)
- SAP (Germany)
- Dayforce (US)
- ADP (US)
- Paylocity (US)
- Paycom (US)
- Cornerstone (US)
- Microsoft (US)
- IBM (US)
- Cegid (France)
- PeopleStrategy (US)
- Infor (US)
- Ramco Systems (India)
- BambooHR (US)
- Namely (US)
- Workforce Software (US)
- Zoho People (India)
- Sage Group (UK)
- Epicor Software (US)
- Bitrix24 (Russia)
- Gusto (US)
- Benefitfocus (US)
- WebHR (Pakistan)
- EmployWise (India)
- Sympa (Finland)
- ClayHR (US)
- HCM Deck (Hungary)
- Akrivia HCM (India)
- Kenz Innovation (Turkey)
Human Capital Management Market Recent Developments
- In March 2024, Alight, Inc., a leading cloud-based human capital and technology services provider, announced an evolution to their longstanding partnership with SAP. The Alight Worklife platform will leverage SAP S/4HANA Cloud to provide organizations with a transformative, cloud-based payroll system.
- In February 2024, Dayforce, Inc., a global human capital management (HCM) leader that makes work life better, announced that it has completed the acquisition of eloomi A/S, a leading learning experience platform software provider based in Copenhagen, Denmark, and Orlando, Florida.
- In December 2023, Workday announced an expanded collaboration with Kainos, a digital technology company, to empower businesses to go live with Workday technology in less than four weeks. Kainos will deploy Workday Human Capital Management (HCM) and Workday Financial Management in a streamlined process, within four weeks, while offering guidance and support from experts, all throughout the deployment journey.
Human Capital Management Key Market Trends
- Increasing Adoption of Artificial Intelligence (AI): The integration of AI technology with human capital management solutions is a growing trend. AI-powered solutions can automate repetitive HR tasks, reduce errors, and provide insights into workforce trends, leading to improved decision-making.
- Rise of Employee Self-Service (ESS): Employee self-service is becoming increasingly popular as it enables employees to manage their HR-related tasks independently. ESS solutions can reduce the workload of HR teams, improve employee satisfaction, and reduce costs. For example, Kronos Workforce Ready offers an ESS module that allows employees to manage their time off requests, view their pay stubs, and update their personal information.
Human Capital Management Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global human capital management market, the market is expected to grow significantly during the forecast period due to the rising adoption of cloud-based solutions, the increasing demand for workforce analytics, and the growing need for workforce automation solutions. The cloud segment is expected to witness significant growth due to the benefits of cloud-based solutions, such as enhanced user experience, consistent updates, and enhanced analytics and reporting. Many organizations are shifting their existing solutions to the cloud to take advantage of these benefits. large enterprises are expected to capture the largest market share due to their greater spending on core HR and larger HR functions, such as payroll, recruiting, and benefits. The small and medium-sized enterprises segment is expected to grow the fastest due to the increasing demand for affordable options with high-value outcomes. The global human capital management market is poised for significant growth in the coming years as organizations continue to seek ways to optimize their HR functions and improve their workforce management.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 23.36 billion |
| Market size value in 2031 | USD 48.68 billion |
| Growth Rate | 8.5% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Human Capital Management Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Human Capital Management Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Human Capital Management Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Human Capital Management Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Human Capital Management Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Human Capital Management Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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