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Global Human Capital Management Market

Name: Global Human Capital Management Market
SKU: 1793
Availability: InStock

Category: Technology

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Human capital management (HCM) changes the traditional administrative functions of human resources (HR) departments, recruiting, payroll, training, compensation, and performance management into opportunities to thrust the engagement, productivity, and business value.

HCM considers the workforce as more than just a cost of doing business, it is a crucial business asset whose value can be maximized through strategic investment and management just like any other asset. The term HCM can refer both to a business strategy and a set of modern IT applications and other technologies that are used to implement that strategy.

Though sometimes used interchangeably, the terms related HR, HRMS, and HRIS do have subtle distinctions. A complete HCM solution connects all HR processes, including recruiting, global HR, compensation, benefits, talent management, learning, workforce planning, work-life solutions, time tracking, and payroll.

With HCM solutions, businesses can make smarter and faster decisions, deliver a best-in-class employee experience, and leverage embedded cutting-edge technologies, such as artificial intelligence (AI) and chat-bots to automate workflows, improve efficiency, and engage quickly.

Global Hcm Market: Overview

The Global Human Capital Management (HCM) market size is anticipated to grow from USD 23.97 Billion in 2022 to USD 42.75 Billion by 2032, at a CAGR of 7.5%.

Attribute	Key Insights
Estimated Market Value (2022)	23.97 USD Billion
Forecasted Market Value (2032)	42.75 USD Billion
CAGR % 2023-2028	7.5%
Leading Region	North America

Integration of emerging technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), with HCM software has evolved out as one of the rigid factors for HCM software and services endorsed across regions. Factors such as rising cloud acquiring among small and medium enterprises to effectively manage field and office personnel are expected to create multiple opportunities for HCM vendors.

Enterprises are concerned over security, as most of the HCM software are in cloud premises, which is managed by a third-party. Majority of the vendors are offering HCM software in cloud to avail cloud technology benefits, such as security, scalability, and IT infrastructure cost reduction. Cloud-based software often consists of built-in robust security features.

This prevents the dangers of hacking or data breaches. Still, many businesses are often hesitant to take HR files and systems, which usually include sensitive employee information, and move them to cloud.

Thus, enterprises are not ready to move their employee data, payroll, and admin information in cloud.

Key Trends Of Global HCM Market:

Integration Of AI And ML In HCM Suites:

Most of the businesses across verticals are facing lack of a highly skilled workforce, as business operations are getting complex day-by-day due to the adoption of latest technologies and innovations. Thus, HR managers are facing challenges in hiring the right personnel for the right job globally. Using Artificial Intelligence (AI) and Machine Learning (ML) technologies, HCM suites can help HR managers in finding skilled workforce. AI and ML can help automate the process of recruitment and provide more filters that help in finding the right person.

Rising Adoption Of Cloud-Based Software Solutions:

The cloud-based deployment model offers benefits, such as lucrativeness, easy and high speed of deployment, and more agile management and operations of software. The cloud platform caters to the needs of geographically dispersed business units by providing one consolidated platform.

To grip the benefits of this technology, organizations are shifting from on-premises HCM software to the HCM software in cloud. Considering the demand for cloud software, HCM vendors are focusing on providing SaaS-based software that help lower costs and achieve higher ROI.

The shift from on-premises deployment to cloud-based deployment is an upcoming opportunity for most vendors, as the on-premises deployment is costlier and riskier as compared to SaaS-based deployment, which offers flexibility and stability to most of the organizations.

Furthermore, it also limits capital expenditure and optimizes the return on assets. Thus, the transition to cloud is an added opportunity for HCM vendors.

Segmental Analysis Of Global HCM Market:

Based On Component:

Software
Core HR
Applicant Tracking System
HR analytics
Workforce Management
Services
Integration and Implementation
Training and Education
Support and Maintenance
Consulting

The HCM market by component covers software and services. The service component is estimated to hold a larger market size during the forecast period. Increasing adoption of software to manage entire lifecycle of employees coupled with growing need to comply with government regulations are some of the critical factors responsible for software segment to have a highest market share during the forecast period.

Based On Deployment Model:

On-premises
On-cloud

Cloud adoption of HCM software is currently high and the same trend is expected to continue, where majority of the end users will have their software on premises, as it offers more security to the data and also helps enterprises comply with various regulations.

Based On Organization Size:

Small Enterprises and Medium Size Enterprises
Large Enterprises

HCM software traditionally were deployed by large enterprises. But now this trend has shifted to SMEs. In the coming years SMEs will contribute the highest to the HCM market. Factors such as growing need to manage diverse workforce, increase employee productivity, and comply with regulations are some of the factors responsible for this high growth.

Based On Vertical:

BFSI
Retail and E-Commerce
Government
Transportation and Logistics
Education
Hospitality
Media and Entertainment
Energy and Utilities
Telecom an IT
Manufacturing

Based On Region:

North America

Canada

Europe

Germany

Italy

France

APAC

China

India

Japan

UAE

Kuwait

South Africa

Latin America

Mexico

Brazil

Asia Pacific is expected to account for the largest market size during the forecast period due to the presence of a large number of HCM vendors and increasing adoption of cloud-native technologies.

Competitive Landscape:

Oracle
ADP
SAP
IBM
Cerdian
SumTotal
Kronos
Cegid
Employwise
Cornerstone on Demand
Infor
Netsuite Inc.
Namely
Zoho
Sage Group
WebHR
Ultimate Software
Vibe HCM
Akrivia
Others

Scope Of The Report:

Global HCM Market: Base Year-2022

Global HCM Market: Historical Year- 2019-2022

Global HCM Market: Forecast Year- 2022-2032

Global HCM Market: CAGR-7.5%

Global HCM Market: USD Value in 2022

Global HCM Market: USD Value in 2032

Segments Covered- Deployment Type, Vertical, Component, Organization Size And Region

Global Human Capital Management Market

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