The Rising Demand Among Enterprises to Streamline Operations is Driving the Growth of Human Capital Management Market

Globally, the human capital management market is expected to grow with a CAGR of 8.5% during the forecast period from 2023 to 2030, starting from US$ 17.95 Bn in 2021. The market is driven by the increase demand among organizations to streamline the resource management, payroll, vendor management and other HR functions. As the competition among the organizations is increasing and business models are changing, the organizations are looking for more advance ways to reduce the cost of operations and enhance the efficiency of the business processes. Human capital management solutions enable the organization to address these challenges by offering unified solution for multiple HR functions.

Furthermore, the numerous benefits offered by these solutions such as employee engagement activities, workforce productivity and central management makes it an ideal solution for organizations. However, the data safety and security issues associated with the use of human capital management solutions are acting as a major inhibitor in the growth of the market. Moreover, the reluctance of organization to move from traditional practices to new solutions is also hindering the growth of the market.

Staffing Vendor Management is Estimated to Grow Significantly During the Forecast Period  

The human capital management market is bifurcated on the basis of software into core HR functions, workforce management, sourcing and recruiting, application tracking system, along with staffing vendor management. Sourcing and recruiting accounted for more than 30% share in the revenue in 2020. The growth of the market is attributed to the integration of advance technologies such as AI and Big Data to source talented professionals. Furthermore, the need among the organizations is to centrally manage all the job applications and candidates also drive the market growth. On the other hand, staffing vendor management solutions are estimated to grow significantly during the forecast period.

North America is Leading the Human Capital Management Market             

North America accounted for more than 37% share in the human capital management market in 2020. The market growth is credited to the early adoption of software as service solutions across the region. Furthermore, the growing adoptions of mobility solutions among the enterprises are also acting as a major driver for the growth of the market. Asia Pacific is estimated to gain significant growth during the forecast period. The market is driven by the increasing adoption of cloud services across the region.

The key players in the human capital management market are Accenture PLC, Automatic Data Processing (ADP), Cezanne HR Ltd, Ceridian HCM, IBM Corporation, Kronos Incorporated, Mercer LLC, NetSuite, Oracle Corporation, PricewaterhouseCoopers, SAP SE, Talentsoft, Ultimate Software, and Workday.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Human Capital Management market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Human Capital Management market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Human Capital Management market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Human Capital Management market?
• Which is the largest regional market for Human Capital Management market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Human Capital Management market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Human Capital Management market worldwide?