Global Human Capital Management Market Size By Component (Software, Service), By Deployment Mode (On-premise, Cloud), By Industry Verticals (Retail, BFSI), By Geographic Scope And Forecast

Human Capital Management Market Size And Forecast

Human Capital Management Market size was valued at USD 21.63 Billion in 2021 and is projected to reach USD 41.43 Billion by 2030, growing at a CAGR of 7.49% from 2022 to 2030.

Increase in the adoption of Cloud-based HCM software driving the growth of the market. Growing Demand for HCM Unified Solution fueling market expansion. The Global Human Capital Management Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Human Capital Management Market Definition

HCM can refer to both a business strategy and a set of modern IT technologies and other implementation-related technology. Additionally, it incorporates workforce rewards & talent, workforce management, as well as the same hiring, job & position administration, HR compliance, and reporting activities. Furthermore, the use of cloud-based HCM is growing as a result of features such as remote data access, limitless storage capacity, reduced costs and maintenance costs, and access through the web and mobile from any place and at any time. Owing to this, there is a sharp increase in demand for HCM.

Additionally, as employees were forced to work remotely owing to lockdown regulations, the COVID-19 pandemic had a favorable effect on the market. HCM helped in monitoring employees’ job status and helping the HR department with remote recruiting. Based on deployment, the Global HCM Market is divided into cloud and on-premise. The market also examines a number of industry sectors, including BFSI, retail, IT & communications, healthcare, hotel, government, manufacturing, and others (education, transportation, energy & utilities, and media & entertainment). Additionally, the development of cloud-based HRM software-enabled human resource departments to move employees’ work schedules to the cloud because they performed remote work.

Global Human Capital Management Market Overview

Increase in the adoption of Cloud-based HCM software driving the growth of the market. The adoption of cloud-based HCM solutions is accelerating across a number of business verticals, including BFSI, retail, healthcare, manufacturing, IT & telecommunication, and media & entertainment. Through an HR employee access portal, these systems offer secure access to numerous administrative activities. Employees can practically access their data from anywhere using a desktop or mobile device owing to this. Growing Demand for HCM Unified Solution fueling market expansion. Companies all across the world focus on improving productivity and resource efficiency.

Businesses may bring business strategy alignment, team execution, and maximum employee performance to the organization by implementing unified HCM solutions and simplifying HR and people processes. Onboarding, social business & collaboration, performance management, and learning management are just a few of the modules included in the HCM suite. Security concerns over cloud-based deployment may act as a restraining factor for the market. Owing to the majority of HCM software being located in cloud infrastructure that is controlled by a third party, companies are concerned about security. To take advantage of cloud technology benefits such as security, scalability, and reduced costs for IT infrastructure, the majority of vendors are now selling HCM software in the cloud.

Software that runs in the cloud commonly involves enhanced security features. The choice to move HR systems and files to the cloud, which typically contain sensitive employee data, is frequently opposed by many businesses. Therefore, businesses are not yet prepared to move their administrative, payroll, and employee data to the cloud. The market has lucrative growth opportunities owing to the rising popularity of workforce analytics solutions. Workforce analytics helps businesses create and enhance recruiting strategies, optimize organizational design, and assess future technological requirements. As a result, as firms rely heavily on workforce analytics to gain insights from employees, there will be several chances for market growth in the future.

Global Human Capital Management MarketSegmentation Analysis

The Global Human Capital Management Market is segmented on the basis of Component, Deployment Mode, Industry Verticals, And Geography.

Human Capital Management Market, By Component

• Software
  1. Core HR
  2. Applicant Tracking System
  3. HR Analytics
  4. Workforce Management
• Service
  1. Integration and Implementation
  2. Training and Education
  3. Support and Maintenance
  4. Consulting

Based on Component, The market is segmented into Software and Service. During the forecasted period, the Software segment will hold a larger market share. One of the key reasons the Software segment is expected to have the highest market share during the forecast period is the growing usage of Software to manage the complete lifecycle of employees in conjunction with the growing necessity to comply with government regulations.

Human Capital Management Market, By Deployment Mode

• On-premise
• Cloud

Based on Deployment Mode, The market is segmented into On-premise and Cloud. The Cloud segment is expected to hold a larger market size during the forecast period in the Human Capital Management Market. Cloud adoption of HCM software is currently in high demand and the same trend is expected to continue, where the majority of the end-users will have their software on-premises, which offers greater data protection to the data, and also helps enterprises comply with various regulations.

Human Capital Management Market, By Industry Verticals

• IT & Telecommunication
• Retail
• BFSI
• Healthcare
• Government
• Manufacturing
• Others

Based on Industry Verticals, The market is segmented into IT & Telecommunication, Retail, BFSI, Healthcare, Government, Manufacturing, and Others. The BFSI segment is expected to hold a significant share of the market. The Healthcare industry is expected to adopt smart HR tools during the forecasted years. This is owing to the covid-19 outbreak, and the demand for Healthcare professionals has increased largely. For recruiting high-performing clinical staff and workers. Managing cost and compliance smart HR tools are significantly adopted in the Healthcare industry.

Human Capital Management Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

On the basis of Regional Analysis, The Global Human Capital Management Market is divided into North America, Europe, Asia Pacific, and the Rest of the World. Asia Pacific segment is expected to account for the largest market size during the forecast period owing to the presence of a large number of HCM vendors and the increasing adoption of cloud-native technologies. Huge investments in industries like BFSI, retail, healthcare, manufacturing, telecommunications, and IT are being made by major countries such as China and Japan, and this has fuelled the development and economic expansion in the Asia Pacific region.

Key Players

The “Global Human Capital Management Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Workday, Oracle, ADP, SAP, Microsoft, IBM, Ultimate Software, Ceridian, SumTotal, Kronos, Infor, Cegid, EmployWise, PeopleStrategy, Cornerstone, Meta4, Ramco Systems. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In September 2021Google LLC has subscribed to new Workday products, including Workday Adaptive Planning, Workday Extend, Workday Prism Analytics, and Workday Strategic Sourcing, according to a release from Workday. Google will also increase its current use of Workday HCM, introducing additional applications to enable improved employee experiences and recruiting to serve its global workforce, as part of its ongoing investment in talent management strategy.
• In May 2020Workday said a partnership with Microsoft. This partnership aims to enhance cloud-based enterprise planning software by operating workday adaptive planning on the Microsoft Azure cloud.
• In July 2019; Ultimate Software launched Employee File Management, which would help HR professionals easily share documents with third parties irrespective of their location.

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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