Global Human Capital Management Market (2023-2028) Competitive Analysis, Impact of Covid-19, Ansoff Analysis

The Global Human Capital Management Market is estimated to be USD 21.93 Bn in 2023 and is expected to reach USD 32.23 Bn by 2028 growing at a CAGR of 8.01%.

• Significant factors driving the Global Human Capital Management market are integration of emerging technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), with HCM software. The rising focus on cloud-based technologies for workforce planning and Integration of Robot Process Automation (RPA) in business processes also helps in driving the market growth of the segment. Small and medium enterprises are highly adopting cloud technologies. It helps them manage the office personnel and field executives and create ample opportunities for HCM vendors, which helps in fuelling the market growth.
• However, Data Security is the primary concern that an organization faced after the implementation of HCM software. Also, the reluctance of the organization to change from traditional practices to new solutions is hampering the growth of the market. Moreover, the adaptation of cloud-based technologies by several developed and developing countries such as India, China, Brazil, Mexico, etc., provides huge opportunities that help grow the SMEs across regions, thus propelling the market growth.

Market Dynamics

Drivers

• Integration of AI And ML in HCM Suites
• Rising Focus on Talent Mobility and Cloud-Based Business Models for Workforce Planning
• Integration of Robot Process Automation (RPA) with HR Tools to be A Prominent Trend in HCM Transformation

Restraints

• Data Security And Privacy Concerns Due To Cloud-Based Deployment
• The pressure to Meet The Revenue As Per The Demands
• Need to Comply with Government Regulations

Opportunities

• Rising Adoption of Cloud-Based Software Solutions
• Advancements in Potential Markets
• The Increasing Popularity of Workforce Analytics Solutions
• Increasing Adoption of Digital HR Technology

Challenges

• Data Inconsistency due to The Adoption of Multiple Advanced Technologies and HR Standards among Businesses
• Lack of Competent Resources

Segments Covered

• By Software, the Core HR segment is projected to have the largest market share during the forecast period owing to the increasing demand for automation of different HR functions across various departments. The Code HR is further segmented into Benefits and Claims Management, Payroll and Compensation Management, Learning Management, and Succession Planning. Out of which, payroll and compensation management is accounted to have the highest market share because payroll administration, HR compliance tasks, and timely attendance are some of the major functions provided by the HRM software, thus driving market growth. The rising emergence of social media platforms and video platforms for recruiting purposes is also becoming the latest trend that boosts this segment's growth.
• By Services, the Integration And Deployment Segment accounted for the largest market share in the global HCM market during the forecast period. Integration and deployment help the organizations to access and visualize the data for better decision making. The increasing demand for the implementation of new HRM systems and the integration of new systems with the existing ones at the workplace helps drive the growth of the segment. The support and maintenance segment is also expected to witness the highest CAGR due to changing technologies and continuous up-grading of the systems.
• By Deployment Mode, the On-premises segment is expected to hold the largest market share during the forecast period due to the rapid adoption of HCM software among various industrial sectors. The majority of the end-users are using the software on-premises because it provides them more data security and helps them comply with various rules and regulations. On-premise solutions are the most feasible option for the HR processes when they have undergone the transition from paper to software, thus driving the growth of this segment. Furthermore, several organizations have opted for on-premise HR solutions. It does not require an internet connection and offers feasible options for the radical customization of the software, thus fuelling market growth.
• By Organization Size, the SMEs segment is projected to expand at the highest CAGR during the forecast period. Many small and medium-sized enterprises are implementing HR solutions to reduce the burden of carrying out administrative tasks and help enterprises focus on organizational development. This segment is also highly adopting cloud-based deployment to implement Human Capital Management (HCM) solutions due to the cost benefits. Moreover, increasing foreign investments in major emerging economies such as India and China for the development of SME businesses are further propelling the market growth.
• By Vertical, the IT & Telecom segment is expected to witness the largest market share during the forecast period, owing to the increasing adoption of deploying advanced technologies in business processes. The organizations are focusing more on automating the systems and sourcing the candidates as per the job requirements. The advanced organizational structure also helps to boost the demand for HR solutions across various sectors. Furthermore, the companies are also emphasizing expanding the global footprint, which has created complexities in managing the workforce and hence, propelling the demand for HRM software and services.
• By Geography, North America is expected to dominate the Global Human Capital Management Market during the forecast period. This is owing to an increase in the need to automate HR processes among various verticals. The organizations are majorly focusing on increasing the productivity and efficiency of labor by using HRM solutions for payroll, time, attendance, and talent management activities, which is further expected to boost the market growth. The presence of numerous HRM solution provider companies and the adoption of the latest technologies also help drive market growth.
• The Global Human Capital Management Market is segmented based on Software, Services, Deployment Mode, Organization Size, Vertical, and Geography.

Global Human Capital Management Market, By Software

• Introduction
• Core HR
•  Benefits and Claims Management
•  Payroll and Compensation Management
•  Learning Management
•  Succession Planning
• Applicant Tracking System
• HR Analytics
• Workforce Management
•  Absence Management
•  Performance Management
•  Workforce Scheduling
•  Time and Attendance Management
•  Workforce Analytics

Global Human Capital Management Market, By Services

• Introduction
• Integration & Deployment
• Support & Maintenance
• Training & Consulting
• Others

Global Human Capital Management Market, By Deployment Mode

• Introduction
• On-premises
• Cloud

Global Human Capital Management Market, By Organization Size

• Introduction
• Large Enterprises
• Small and Medium-Sized Enterprises

Global Human Capital Management Market, By Vertical

• Introduction
• Banking, Financial Services, and Insurance
• Manufacturing
• Government
• IT & Telecom
• Retail & Consumer Goods
• Healthcare & Life Sciences
• Energy and Utilities
• Transportation and Logistics
• Others

Global Human Capital Management Market, By Geography

• Introduction
• North America
• South America
• Europe
• Asia-Pacific
• Rest of the World

Company Profiles

Some of the companies covered in this report are Workday Inc., ADP LLC, Oracle Corporation, Microsoft Corporation, SAP SE, IBM Corporation, Ultimate Software Group Inc., Ceridian HCM Inc., Talentsoft SA, PeopleStrategy Inc., Sage Group PLC, Epicor Software Corporation, Zenefits Inc., Paylocity Corporation, Kronos Incorporated, Talentia Software SAS, PeopleFluent Holdings Corporation and NetSuite Inc.

Competitive Quadrant

The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Human Capital Management Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes in-depth market analysis using Porter’s 5 force model and the Ansoff Matrix. The impact of Covid-19 on the market is also featured in the report.
• The report also contains the competitive analysis using Competitive Quadrant, the proprietary competitive positioning tool.

Report Highlights:

• A complete analysis of the market including parent industry
• Important market dynamics and trends
• Market segmentation
• Historical, current, and projected size of the market based on value and volume
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market