Human capital management (HCM) market is anticipated to grow at a considerable CAGR of6.8% during the forecast period. HCM refers to the strategic management of an organization's workforce, including recruitment, training, development, compensation, and performance management. The demand for HCM is being driven by several factors, including the changing nature of work and the workforce and the increasing use of technology in HR processes. As the business environment becomes increasingly complex, companies need to ensure that they have the right people in the right roles with the right skills and knowledge to succeed. This has led to a growing demand for HCM solutions that can help organizations attract, retain, and manage talent effectively.

Segmental Outlook 

The global human capital management market is segmented by software type and deployment model. Based on software type, the market is sub-segmented into core HR, applicant tracking system, HR analytics, and workforce management. Based on the deployment model, the market is sub-segmented into cloud and on-premise. In the deployment model, the cloud-based segment is expected to account for the largest market share during the forecast period owing to its numerous benefits, such as scalability, cost-effectiveness, accessibility, and ease of use. Cloud-based software is hosted on remote servers, and users can access it from anywhere with an internet connection, making it an ideal choice for distributed teams or those who work remotely. Additionally, cloud-based software typically requires minimal upfront investment, as it does not require the purchase of hardware or the hiring of IT staff to manage the infrastructure.

The Core HR Sub-Segment Holds a Prominent Share in the Global Human Capital Management Market

Based on software type, the market is sub-segmented into core HR, applicant tracking system, HR analytics, and workforce management. Among these, the core HR segment is expected to hold a significant market share during the forecast period. Core HR systems are the backbone of any HR department and are used for managing employee information such as payroll, benefits, and time and attendance. As such, they are a fundamental requirement for most organizations, regardless of size or industry.

Regional Outlook

The global human capital management market is segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the rest of the world (the Middle East and Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among the regions, the North American region is expected to generate the highest market share, followed by the Asia-Pacific and European markets. These markets are driven by the growing IT infrastructure and the demand for high performance HR departments.

Global Human Capital Management Market Growth, by Region (2023-2030)

The North American Region is Expected to Dominate the Global Human Capital Management Market

Owing to the presence of major players in the region and the growing emphasis on optimizing human resource operations, North America dominates the market. Other important factors determining this region's dominance include the prevalence of advanced infrastructure and the rising adoption rates of such infrastructure by small scale enterprises. North American organizations are focusing on creating a digital workplace that provides flexibility and mobility for their human capital. In North America, some of the modern communication tools being used for this purpose include social media, email, video conferencing, and instant messaging. However, such a paradigm shift in the business process necessitates the centralization of all branches of the organization's human resources data. Hence, over the forecast period, the growing need to centralize all human resource data is expected to drive the growth of the HCM market in the region.

Market Players Outlook

The major companies serving the global human capital management market include Benefit focus, Bitrix, Cornerstone, EpicorSoftware, and others. These companies are considerably contributing to the market’s growth through the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, investments, and new software launches to stay competitive in the market. For instance, in September 2021, Workday, Inc. announced that Google LLC had agreed to use Workday Adaptive Planning, Extend, Prism Analytics, and Strategic Sourcing to help its employee base. It will also expand its current use of Workday HCM as part of its ongoing investment in talent management, which includes introducing new applications to provide better employee experiences and hiring to support its global workforce.

The Report Covers-

• Market value data analysis for 2023 and forecast to 2030.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global human capital management market. Based on the availability of data, information related to new product launches and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who stands where’ in the market.