Human Capital Management Global Market Report 2024

The human capital management market size has grown rapidly in recent years. It will grow from $21.81 billion in 2023 to $24.01 billion in 2024 at a compound annual growth rate (CAGR) of 10.1%. The expansion observed in the historical period can be credited to the emergence of cloud-based HR management software, substantial advancements in the e-commerce sector, and the swift pace of globalization.

The human capital management market size is expected to see rapid growth in the next few years. It will grow to $35.39 billion in 2028 at a compound annual growth rate (CAGR) of 10.2%. The anticipated growth in the forecast period can be linked to the heightened adoption of cloud-based approaches, the escalating trend of urbanization, and growing investments. Key trends expected in this period encompass AI-featured talent acquisition, technological advancements, product innovations, video recruiting, learning experience platforms (LEPs), and platforms designed to enhance employee productivity.

The growth of the human capital management market is anticipated to be driven by the integration of robotic process automation (RPA). Robotic process automation involves the use of software robots to automate repetitive tasks, providing advantages such as time efficiency, enhanced focus on personnel development, retention, and policy implementation. RPA plays a crucial role in automating tasks such as compensation management, payroll management, onboarding of new employees, and compliance reporting within human capital management. Notably, according to US-based IT research firm Computer Economics, 20% of organizations adopted robotic process automation in 2021, marking a 13% increase from 2020, thereby contributing to the growth of the human capital management market.

The growth of the human capital management market is further expected to be fueled by the increasing adoption of cloud-based approaches. Cloud services, which involve the provision of infrastructure and application resources over the Internet by third-party providers, find widespread use in workplaces for data management and human capital management. According to Cloudwards, a Germany-based company specializing in cloud technology, the total value of the cloud computing market was $371.4 billion in 2020 and is projected to reach $832.1 billion by 2025. This surge in cloud-based approaches is poised to drive the human capital management market.

A notable trend gaining traction in the human capital management market is technological advancement. Major companies in this sector are actively engaged in developing new technologies and automated solutions to simplify work processes. For example, in June 2021, India-based software company Ramco Systems introduced Self Explaining Payslip, an AI-based service that assists employees in understanding pay slip components, payroll queries, and compensation. Technological advancement is thus emerging as a significant factor shaping the human capital management market.

Product innovations represent a key trend in the human capital management market as companies strive to stay competitive and address the evolving needs of their clients. Innovations in products generate excitement, increase brand awareness, and drive sales. Leading companies in the human capital management market focus on product innovations to strengthen their market position. In April 2023, US-based provider of artificial intelligence hiring solutions, PandoLogic, launched pandoDIVERSITY, an innovative solution facilitating diversity recruitment goals. PandoDIVERSITY utilizes AI-based programmatic recruitment technology to automate and optimize hiring campaigns.

In May 2023, RSM US LLP, a US-based audit, tax, and consulting firm, completed the acquisition of Wise Consulting for an undisclosed amount. This strategic move enables RSM to offer integrated workforce solutions to mid-market clients. RSM's human capital services practice, with offerings in HR transformation, outsourcing, HCM transformation, workforce transformation, and employee experience, will be complemented by Wise Consulting, a US-based human capital management technology consulting firm.

Major companies operating in the human capital management market report are Automatic Data Processing (ADP) Inc., Oracle Corporation, SAP SE, Paycom Software Inc., Ceridian HCM Holding Inc., Microsoft Corporation, Ultimate Kronos Group, Workday Inc., IBM Corporation, Paylocity Corporation, CareerNet, Global InnovSource, IKYA Human Capital, Kelly Services, China International Intellectech Co., Ltd., Huisi Group, Horizons, Scaleup Consulting, Sapience Pro, HROne, Anhui Tiancheng Technology Co., Ltd., Arcoro GmbH, Platri IT GmbH, Gini Talent, INKUBIT Business Solutions GmbH, DevsData Tech Talent LLC, The Stakeholder Management Group, Prabisha Consulting, Ingold Solutions GmbH, Leinonen Group, ManpowerGroup, Brainpower, Unistaff Payroll Company, Unity Business Solutions, ABU Accounting Services, UCMS Group, Rufil Russia Consulting, Coleman Services, Paychex, Inc., People Hum, Volaris Group, Black Mountain HR, Talentor, Grant Thornton's, Infor, RSM, Maof Group, Capterra, Houlihan Lokey, Finesse, Ramco Systems, Azdan, Apploye, Nexus Busines Solution, Sage, Syspro, Monday.com, QuickBooks.

North America was the largest region in the human capital management market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the human capital management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the human capital management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Human capital management comprises software and services as its primary components. Deployment models include on-premises and cloud solutions. The software component consists of an integrated suite of technologies designed to aid businesses in managing their employees throughout the entire employment lifecycle, from recruitment to retirement. This software assists the HR team in overseeing various departmental activities, including personnel information, payroll, benefits administration, HR service delivery functions, and more. The diverse organizational sites utilizing human capital management span small and medium-sized enterprises, as well as large enterprises, found in sectors such as banking, financial services, and insurance (BFSI), government, manufacturing, telecom and IT, consumer goods and retail, healthcare and life sciences, energy and utilities, transportation and logistics, and other verticals.

The human capital management market research report is one of a series of new reports that provides human capital management market statistics, including human capital management industry global market size, regional shares, competitors with a human capital management market share, detailed human capital management market segments, market trends and opportunities, and any further data you may need to thrive in the human capital management industry. This human capital management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The human capital management market consists of revenues earned by entities by providing competency management and workforce planning. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.