Human Capital Management Market Analysis And Trends By Segmentations, Top Key Players, Geographical Expansion, Future Development & Forecast 2026
The global Human Capital Management Market size is expected to grow from USD 22.3 billion in 2021 to USD 32.0 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 7.5% during the forecast period. HCM advancements can be related to a number of factors; however, some of the major factors include the adoption of AI and ML technologies in HR processes and cost reduction achieved using HR software, which is the primary driver, enabling the adoption of HCM technologies within enterprises. Cloud security remains a restraint for adopting HCM cloud among enterprises users, specifically in the highly regulated verticals, such as BFSI, healthcare, and energy and utilities. The opportunities in adjacent markets, such as contingent workforce management and AI-based recruitment, open up new revenue prospects for vendors in the HCM market.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=193746782
SMEs segment to hold a larger market size during the forecast period
The adoption of HCM is high among SMEs as these enterprises must manage huge volumes of personnel information for employees, especially to be managed virtually after the pandemic outbreak. SMEs are located across geographies and need a centralized system to manage this information. Increased attrition rates, high recruitment costs, and competitive market have prompted SMEs to invest in HCM software and adopt go-to-market strategies to make informed decisions for their business growth.
BFSI segment to grow at the highest CAGR during the forecast period
BFSI segment is expected to have the highest adoption of HCM software where this vertical is expected to outperform other verticals in terms of growth. The vertical has mainly adopted HCM software to have a centralized system to manage the information of all employees have efficient coordination with enhanced performance especially during pandemic outbreak. Economic changes significantly affect this vertical. Advanced technologies and various software and services can help this vertical prioritize its actions and manage its workforce smoothly. Hence, the BFSI vertical is a major contributor to the HCM market growth.
Request Sample Pages: https://www.marketsandmarkets.com/requestsampleNew.asp?id=193746782
Human Capital Management Market Regional Analysis:
HCM is a critical aspect of HR and workforce management in Europe, where businesses and organizations across the region use HCM solutions to optimize their HR processes, enhance talent management, ensure compliance with labor regulations, and improve employee engagement. Data analytics and predictive HR analytics have gained prominence in Europe. Organizations use data to make informed decisions about talent acquisition, performance management, and workforce planning.
In the UK, HCM systems have adapted to support remote and hybrid work models, including tools for managing remote teams, tracking productivity, and fostering collaboration. Large enterprises in the UK often have the resources and complexity in their workforce management, making adopting HCM systems more common. These organizations are more likely to invest in comprehensive HCM solutions to streamline HR processes and manage many employees effectively.
German organizations use HCM solutions to streamline HR processes, enhance talent management, ensure compliance with labor regulations, and improve employee engagement and productivity. Germany has comprehensive labor laws and regulations governing employment contracts, working hours, minimum wage, and employee rights. HCM solutions are vital for organizations to maintain compliance with these laws.
France is expected to grow at the highest growth rate in the HCM space during the forecast period. Data-driven HR decision-making is on the rise in France. HCM systems provide advanced analytics and reporting capabilities to help organizations extract valuable insights from their workforce data.
Unique Features in the Human Capital Management Market:
A unique feature is integrated talent management, which unifies succession planning, performance management, onboarding, and recruitment into one centralised platform. The analysis of personnel data for predictive insights in areas like hiring and retention is where artificial intelligence (AI) and machine learning (ML) play a crucial role. Employee self-service portals enable users to control their personal data, hence decreasing HR administrative responsibilities.
Organisations need compliance and regulatory tools to help them stay compliant with labour laws and industry norms. Another aspect, which promotes staff development, is learning management systems (LMS). HR professionals can gain insightful knowledge about trends and performance in the workforce thanks to robust data analytics and reporting capabilities. In order to increase convenience and flexibility, mobile accessibility makes sure that HCM systems are available from anywhere.
Features for managing payroll and benefits ensure that payments are made accurately and promptly and that benefits are administered. Aligning workforce strategies with organisational goals is made easier with the use of workforce planning and forecasting technologies. Surveys on employee engagement provide useful methods for feedback. Data exchange is streamlined by interaction with external systems, and global HCM solutions assist international corporations in managing a diverse workforce.
Features that track diversity and inclusion help to create fair workplaces. A more comprehensive approach to employee care is now reflected in certain HCM systems’ emphasis on employee welfare and mental health. Employee credentials, such as educational credentials and certifications, are secure and tamper-proof thanks to blockchain-based verification. These characteristics show how the HCM market has evolved dynamically and how it offers organisations a variety of tools and approaches to manage their personnel effectively, legally, and strategically.
Major Highlights of the Human Capital Management Market:
Since recruitment, onboarding, performance management, and succession planning are all combined into a single platform by integrated talent management, the entire employee lifetime is made simpler. Furthermore, AI and machine learning have assumed a prominent role, utilising predictive analytics to improve hiring practises and staff retention plans.
Employee self-service portals are now essential because they provide workers the freedom to manage their personal information, access financial information, and take part in training programmes, which lessens the administrative burden on HR. Tools for compliance and regulation have grown in popularity, helping businesses comply with labour laws and industry standards while lowering their risk of facing legal repercussions. Organisations cannot build, deliver, and track training programmes for skill development without Learning Management Systems (LMS).
Strong payroll and benefits management capabilities additionally guarantee accurate and prompt salary processing, tax compliance, and benefits administration, boosting employee happiness. HR professionals are empowered with meaningful insights into worker performance and trends thanks to data analytics and reporting capabilities. Tools for workforce planning make it easier to match staffing requirements with strategic goals and improve resource allocation.
Employee engagement surveys are common and provide a way to gauge job satisfaction and pinpoint areas that need improvement. Employees and managers may access HR tasks from anywhere thanks to the mobile accessibility of HCM systems, which increases flexibility and convenience. Features for tracking diversity and inclusion encourage diversity initiatives by establishing equal workplaces.
Inquire Before Buying: https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=193746782
Top Key Companies in the Human Capital Management Market:
The HCM market comprises major software providers, such as Workday (US), Oracle (US), ADP (US), SAP (UK), Microsoft (US), IBM (US), Ultimate Kronos Group (US), Ceridian (US), SumTotal (US), Infor (US), Cegid (France), EmployWise (India), PeopleStrategy (US), Cornerstone OnDemand (US), Meta4 (US), Ramco Systems (India), Bamboo HR (US), Namely (US), Workforce Software (US), Zoho (India), Sage Group (UK), Epicor Software (US), Zenefits (US), Paylocity (US), Gusto (US), Bitrix (US), Benefitfocus (US), WebHR (US), Talentia Software (France), PeopleFluent (US), Vibe HCM (US), Rippling (US), Ascentis (US), and BizMerlinHR (US).
The study includes an in-depth competitive analysis of key players in the HCM market with their company profiles, recent developments, and key market strategies. The players in this market have embraced different strategies to expand their global presence and increase their market shares. New product launches and enhancements; and partnerships, acquisitions, and collaborations, have been the most dominating strategies adopted by the major players from 2019 to 2021, which helped them strengthen their offerings and broaden their customer base.
Workday (US) is among the leaders in the HCM market with a prominent geographic presence. The company primarily provides software and services in business planning, financial management, HCM analytics, and professional services automation. It specializes in providing cloud-based HCM and tailored software according to the client’s specifications. With HR, workforce planning, and talent management working together in one system helps gain complete visibility into the global workforce. Workday serves customers from diverse industry verticals, such as communication service providers, energy and utilities, financial services, government, healthcare, higher education, hospitality, insurance, life sciences, manufacturing, media and entertainment, retail, and technology. The company has more than 700 customers and over 12,200 employees worldwide. It has a wide range of customers, such as Amazon, Netflix, Hewlett Packard, AON, Rolls Royce, and Airbnb. The company adopted various inorganic growth strategies and continues to enhance its expertise in the market. For instance In March 2021, Workday acquired Peakon (Denmark) to have access to a continuous listening platform, including real-time visibility into employee experience, sentiment, and productivity. This is to help drive engagement and improve organizational performance.
Oracle (US) has a strong foothold in the HCM market with its robust offerings. Oracle offers various HCM products, such as HR, Talent Management, Workforce Management, and AI apps for HCM. The company operates in the cloud and on-premises deployment of software, hardware, and services. Apart from these services, it builds ERP software, HCM software, and Supply Chain Management (SCM) software. It is prevailing in growing technologies, such as the Internet of Things (IoT), blockchain, ML, and AI. The company adopted various organic growth strategies and continues to enhance its expertise in the market. For instance, in May 2020, the company introduced Oracle Analytics for Cloud HCM. The introduction of analytics is to help organizations derive insight from workforce analytics. It offers self-service analytics capabilities to provide HR executives, analysts, and line-of-business leaders with deeper insight. Moreover, Oracle Analytics for Cloud HCM offers cross-functional data model and more than 50 HR KPIs (Key Performance Indicators).
Media Contact
Company Name: MarketsandMarkets™ Research Private Ltd.
Contact Person: Mr. Aashish Mehra
Email: Send Email
Phone: 18886006441
Address:630 Dundee Road Suite 430
City: Northbrook
State: IL 60062
Country: United States
Website: https://www.marketsandmarkets.com/Market-Reports/human-capital-management-market-193746782.html
