Human Capital Management (HCM) Market Report Scope

Global Human Capital Management (HCM) Market Size, Forecast, and Trend Highlights Over 2022- 2031

The global human capital management (HCM) market is estimated to garner a revenue of USD 57,848.4 Million by the end of 2031 by growing at a CAGR of 10.53% over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of USD 22,034.2 Million in the year 2021. The primary factor for the growth of the market is the need to ease out HR’s day-to-day tasks by implementing artificial intelligence and machine learning working with HCM software. Out of total AI users, around 56% have adopted it for improving employee working experience. In addition, approximately 40% of organizations have implemented AI specifically for HR operations.

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Besides this, backed by the rising need to automate manual tasks, organizations are introducing RPA (robot process automation) which is known to perform tasks with precision, with no area of mistakes, and saves a lot of time while operating large volumes of data. It has been observed that around 64% of workers trust robots more than the manager for crucial advice related to work. Furthermore, the surge in the number of startups, and the popularity of cloud-based HCM software are likely to push the market growth of the global human capital management (HCM) market in the coming years.

Global Human Capital Management (HCM) Market: Growth Drivers and Challenges

Growth Drivers

• Artificial Intelligence & Machine Learning Integration in HCM Software

AI and ML compensate for the shortage of skilled professionals. AI saves a lot of time, by effectively processing huge volumes of data, by making smart decisions in manual tasks such as faster hiring of worthy candidates, employee management, and others. IBM AI is known to provide nearly 95% accuracy in anticipating the expected resignation from an employee.

• Need to Cut HR-Related Expenses

HR-related cost is increasing every day with an increase in the hiring of new employee and their management. HR cost is expected to increase approximately an equal percentage as of newly- hired employee percentage.

• Increasing Number of Startups Globally

With the surge in the number of startups, the adoption of HCM software is also increasing for easing the workflow process. According to Department for Promoting Industry and Internal Trade, India currently has 75,442 recognized startups.

• Use of RPA Technology to Automate Work Process

Robotic process automation technology plays a pivotal role in automating HR’s repetitive tasks such as hiring, payroll management, compliance reporting, and many more. Approximately 86% of RPA’s users have been satisfied with the result of RPA’s performance and around 61% of users’ expectations are met on cost reduction by robotic integration.

• Growth in Cloud-Based Software Adoption

The cloud solution is highly adopted by companies for bringing their scattered networks at one point, to get end-to-end fixes for all the stages of employee management, it is a one-stop solution for scalability. Around 61% of businesses have transferred their workload to the cloud for effective and smooth working.

Challenges

• Government Rules and Regulations for Organizations

• Data Inconsistency Due to Huge Data Produced by HCM Technology

• Security Issues while Deploying Cloud-Based HCM - Deployment of cloud-based solutions for HCM is usually managed by a third party, therefore instances of security issues, such as identity theft, salary data, and sabotage of regulatory rules on the human resource systems increase.

The global human capital management (HCM) market is segmented and analyzed for demand and supply by functionality into core HR, talent acquisition, performance management, succession planning, reward & recognition, advanced analytics, compliance, and others. The core HR segment is expected to expand by the most, by a CAGR of 10.23%, and to garner the highest revenue of USD 26,027.8 million by the end of 2031. The growth of the segment is anticipated on the account of rising need to efficiently perform functions of the HR department which includes payroll, recruitment, compliance training, employee safety, human resource management, and many more. In many companies, HR faces a dilemma in managing time for all the assigned activities, as nearly 50% of their time is spent on answering and solving employee queries.

Global Human Capital Management (HCM) Market Regional Synopsis

Regionally, the global human capital management (HCM) market is studied into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region. Amongst these markets, the market in North America is projected to hold the largest market share by growing at a CAGR of 9.57% and accumulating revenue of USD 25,771.5 million at the end of 2031. The increase in the number of startups and the rise in utilization of advanced technology are the factors attributing to the market growth in North America. Around 16% population of the United States is involved in startups. Moreover, companies in North America are among the highest-valued unicorns. In addition, the presence of major players, new mergers & acquisitions, and innovation of products is expected to contribute to the market growth.

The study further incorporates Y-O-Y Growth, market opportunities, demand & supply, and forecast future opportunity in North America (United States, Canada, Mexico), South America, Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of the Middle East and Africa).

Market Segmentation

Our in-depth analysis of the global human capital management (HCM) market includes the following segments:

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Key Companies Dominating the Global Human Capital Management (HCM) Market

Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global human capital management (HCM) market that are included in our report is Infor Inc., UKG Inc. (Ascentis Corporation), UKG Inc. (Ultimate Software), IBM, Oracle Corporation, Microsoft Corporation, Workday, Inc., UKG Inc. (Kronos Incorporated), EmployWise, Cornerstone, and others.

Global Human Capital Management (HCM) Market: Latest Developments

• October, 2020: Kronos Incorporated, announced its strategic partnership with Ultimate Software to form Ultimate Kronos Group (UKG). The motive of this merger is to make UKG, the world’s one of the largest companies dedicated for human capital management and workforce management.

• May, 2022: Oracle Corporation, announces its selection as Nokia’s human capital management solution. Nokia will use a worldwide deployment of Oracle Cloud HCM to manage all HR processes, including recruitment, compensation, and performance management, for its global workforce in its 130 countries of operation.

Key Reasons to Buy Our Report

• The report covers detailed analysis comprising market share attained by each market segment and its sub-segments.

• It covers market dynamics including growth drivers, trends, potential opportunities, price trend analysis, and challenges that impact market growth.

• The report includes detailed company profiles of the major players dominating the market.

• We use effective research methodologies to calculate the market numbers and provide value-added assessments for overall growth.

• We provide customized reports as per the clients’ requirement helping them to see possible and unexpected challenges and unforeseen opportunities in order to help them reach their goals. 

Geography Analysis:

The report further discusses the market opportunity, compound annual growth rate (CAGR) growth rate, competition, new technology innovations, market players analysis, government guidelines, export and import (EXIM) analysis, historical revenues, future forecasts etc. in the following regions and/or countries:

• North America (U.S. & Canada) Market Size, Y-O-Y Growth, Market Players Analysis & Opportunity Outlook
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC(Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market Size, Y-O-Y Growth Market Players Analys  & Opportunity Outlook
• Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Middle East and Africa  (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market Size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook

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