Human Capital Management Market

Global Human Capital Management Market Size & Growth Analysis (2021 – 2026)

The global human capital management (HCM) market will expand from $ 17.6 billion in 2019 to $ 24.3 billion by 2025, at an expansion rate (CAGR) of 6.7% in during the conjecture period of 2020 to 2025.

Human capital management software (HCM), an enterprise application solution, has been a necessity in every business as it automates the heavy administrative tasks related to employee data, payroll and benefits management. Also, the expansion of the HCM software market is credited to the opportunities developed from the demand in SMEs across the globe.

Employee-driven internet usage patterns persuade companies to implement mobile apps that extend employee management functions to improve culture, that is, people management, offering growth prospects to HCM suppliers. Since several companies had the same human resource software for more than seven years, which must be updated to keep up with the market, these factors should influence the growth of the human capital management software market.

Data security is a major concern after the implementation of HCM software. The software must prevent unauthorized access to confidential and confidential data. Several levels of security must be established, which hampers market growth.

Recent Developments:

• June 2019: WorkForce Software announced a significant capital investment in the subsidiaries of Evergreen Coast Capital Corp., the technology-driven private equity arm of Elliott Management Corporation. Evergreen will hold equal shares in Insight Partners that has been the significant funder in WorkForce Software.
• February 2019: SAP AG acquired a stake in Newgen Software Technologies Limited, which provides business solutions in the banking, financial services, insurance, telecommunications and public administration sectors. He also manages business process management and business content management.

Impact of Covid-19 on the Human Capital Management Market:

As public authorities take decisive action to respond to the new health threat from COVID-19 pandemic, business leaders are challenged to navigate their human capital through unfamiliar territory. This highlights the need to be a resilient leader in a context of rapid adaptation. It is believed that there are fundamental qualities of resilient leadership that distinguish successful CXOs when guiding their organizations through this crisis. Resilient leaders can enhance these qualities during the current crisis, broadening their impact and helping their organizations to recover.

Market growth and trends:

• The wealth of functionality, ease of use and data capacity features of cloud-based applications lead to the adoption of the cloud in all enterprise application solutions of which CRM and HCM were the first to be introduced to the cloud.
• Cloud-based HCM solutions enable companies to create effective employee engagement tools that leverage the integration of social media and other APIs to learn, train and recruit tools that disrupt the market.
• In 2018, Oracle made a prediction that almost half of production workloads would migrate to the cloud by the end of 2020.
• Anticipating the growth of cloud adoption in enterprises, HCM providers also offer cloud-based solutions while continuing their on-premise offerings, but with less emphasis on innovation than based solutions on the cloud.

Market Drivers and Restraints:

The increasing adoption of software to manage the entire employee lifecycle, as well as the growing need to comply with government regulations, are some of the critical factors responsible for the development of this market during the prognosis period. Factors such as the growing need to manage a diverse workforce, increase employee productivity, and comply with regulations are some of the factors responsible for this strong growth.

GLOBAL HUMAN CAPITAL MANAGEMENT MARKET REPORT COVERAGE:

Market segmentation:

The global human capital management market is divided based on components, deployment mode, vertical, and geography.

Global Human Capital Management Market - By Components:

the market is divided into software and services. It is estimated that the software component will have a larger market size during the forecast period.

Global Human Capital Management Market - By Deployment Mode:

the market is classified in the cloud and on-site. Cloud segment is foreseen to dominate the worldwide market in the coming years.

Global Human Capital Management Market - By Vertical:

 the market is divided into banking, insurance and financial services (BFSI), retail, IT and telecommunications, healthcare, hospitality, government, manufacturing, and others.

Regional Analysis:
Based on geography, the HCM market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America generated the highest revenue in the world market in 2016, due to the growing need to automate human resource processes such as talent management, performance management and compensation management, high ICT spending and others. Additionally, Asia Pacific is expected to grow at the highest CAGR due to the increased adoption of mobility and cloud computing trends in countries such as China, Australia, Singapore, and Japan. According to the Asia-Pacific Economic Cooperation, small and medium-sized enterprises (SMEs) represent more than 90% of all companies in the APEC region and employ between 60 and 80% of the workforce. Therefore, the trend should continue in the future with the increase in population.

APAC is expected to grow at the fastest rate due to the increase in adoption of this technology. According to the International Labor Organization, unemployment was low by international standards, around 4.2% in 2018, while the number of people employed in the region increased by around 23 million (or 1.2%) between 2017 and 2019. Workers in China are moving from agriculture and manufacturing to services due to an aging population.

Key players in the market:

The main players in the global HCM market are ADP LLC, Cornerstone, Epicor Software Corporation, IBM Corporation, Infor, Kronos, Inc., Oracle Corporation, SAP SE, SumTotal Systems, LLC and Ultimate Software Group, Inc. These players have expanded their presence in the market by adopting various business strategies, such as acquisition, geographic expansion, product development, strategic alliance, and collaboration.