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.

The COVID-19 pandemic, with all its lockdown regulations forcing everyone to work from home, actually gave the Human Capital Management (HCM) market a bit of a boost! HCM became super handy for keeping tabs on how employees were doing and helping HR departments with remote recruiting. Now, when it comes to how HCM is set up, it's generally split into two typescloud-based and on-premise. And you'll find it used in all sorts of industries, like BFSI, retail, IT & communications, healthcare, even hotels and government, manufacturing, and, well, pretty much everything else (think education, transportation, energy, utilities, and media & entertainment). Plus, the rise of cloud-based HRM software meant HR could easily move employee schedules to the cloud since everyone was working remotely anyway.

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.

Imagine boosting your business strategy, getting your team to really click, and unlocking everyone's full potential – that's what unified HCM solutions can do! They streamline HR and people processes, making life easier. Think things like smooth onboarding, social business & collaboration, top-notch performance management, and engaging learning management, all within the HCM suite. Now, some companies get a little nervous about security with cloud-based systems. Since a lot of HCM software lives in the cloud, managed by someone else, they worry about keeping things safe. But hey, most vendors are now offering HCM software in the cloud to help you tap into cool benefits like better security, easy scalability, and cutting down on IT costs.

Cloud software often comes with beefed-up security, but a lot of companies still hesitate to move their HR stuff – you know, all the sensitive employee data – to the cloud. That's why you see many businesses dragging their feet when it comes to putting their admin, payroll, and employee information up there. But hey, there's good news! The market's booming thanks to workforce analytics – that's the stuff that helps companies build better recruiting strategies, fine-tune how they're organized, and figure out what tech they'll need down the road. So basically, as companies lean more and more on workforce analytics to understand their employees, we're going to see a ton of opportunities for growth in this market.

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.

Report Scope

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We take a close look at the market using both numbers (quantitative) and descriptions (qualitative), breaking it down into segments based on all sorts of things, not just money. We'll give you the market value in USD Billion for each segment and sub-segment. We'll point out the region and segment we think will grow the fastest and be the biggest. You'll get a geographical breakdown, seeing how the product or service is used in each region and what's influencing the market there. We'll show you the competitive landscape, including the major players' market rankings and what they've been up to in the last five years – new service/product launches, partnerships, expansions, and acquisitions. There are detailed company profiles, too, covering overviews, insights, product comparisons, and a SWOT analysis for the big names. We'll give you our view of where the market is now and where it's headed, considering recent events, opportunities, drivers, challenges, and restraints in both new and established areas. We also dive deep with Porter’s five forces analysis and give you insight into the Value Chain. Expect a look at market dynamics and future growth possibilities. Plus, you get 6 months of analyst support after the sale!

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