The human capital management (HCM) solutions market size is set to grow by USD 11,195.8 million from 2022 to 2027 and register a CAGR of 8.45%, according to Technavio’s latest market research report. With a focus on identifying dominant industry influencers, Technavio’s reports present a detailed study by way of synthesis, and summation of data from multiple sources. Technavio offers an up-to-date analysis regarding the current global market scenario and the overall market environment. View Sample Report
The report also covers the following areas:
- Human Capital Management (HCM) Solutions Market size
- Human Capital Management (HCM) Solutions Market trends
- Human Capital Management (HCM) Solutions Market industry analysis
Factors such as the demand for automated recruitment processes, Increasing demand for unified solutions for all HR functions, and Increasing workforce diversity will offer immense growth opportunities. To leverage the current opportunities, market vendors must strengthen their foothold in the fast-growing segments, while maintaining their positions in the slow-growing segments. The human capital management (HCM) solutions market is fragmented, and the degree of fragmentation will accelerate during the forecast period.
Human Capital Management (HCM) Solutions Market 2023-2027: Segmentation
The HCM market is segmented as follows:
- Application
- Core HR
- Talent
- Workforce
- Component
- Solution
- Service
- Geography
- North America
- Europe
- APAC
- South America
- Middle East And Africa
The market share growth by the core HR segment will be significant for overall market growth during the forecast period. These functions include employee recruitment, employee training, payroll, scheduling, benefits administration, internal relations, and safety and compliance. Organizations are rapidly adopting digital technologies. This factor, along with the need for cost reduction and efficient workforce management, will increase the demand for HCM solutions for core HR applications during the forecast period. For instance, Oracle Corp. (Oracle), SAP SE (SAP), and Workday Inc. (Workday) offer various HR functional software solutions, which help in managing basic information about employees and process data for future reference. Hence, with the growth in the use of HCM solutions, more companies are expected to use HCM solutions for core HR applications during the forecast period.
Human Capital Management (HCM) Solutions Market 2023-2027: Vendor Analysis and Scope
Some of the major vendors of the human capital management (HCM) solutions market include Asure Software Inc., Automatic Data Processing Inc., Cegid SA, Ceridian HCM Holding Inc., Cognizant Technology Solutions Corp., EmployWise, Inplenion, Koch Industries Inc., Kronos Inc., OnePoint Human Capital Management, Oracle Corp., PeopleStrategy Corp., Ramco Systems Ltd., Safeguard World International LLC, SAP SE, SolutionDot, Talentia Software Group, The Goldman Sachs Group Inc., Workday Inc., and WorkForce Software LLC. To help businesses improve their market position, Technavio’s report provides a detailed analysis of around 15+ vendors operating in the market.
What’s New? –
- Special coverage on the Russia–Ukraine war; global inflation; recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession
- Global competitiveness and key competitor positions
- Market presence across multiple geographical footprints – Strong/Active/Niche/Trivial – Buy the report!
Vendor Offerings
- Asure Software Inc. – The company offers human capital management solutions such as Integrated Human Capital Management System.
- Automatic Data Processing Inc. – The company offers human capital management solutions such as payroll, HR productivity, and higher payroll accuracy.
- Cegid SA – The company offers human capital management solutions such as Cegid Talentsoft.
Human Capital Management (HCM) Solutions Market 2023-2027: Market Dynamics
Key Drivers
The increasing demand for unified solutions for all HR functions is a major driver for the growth of the market. Due to the increased adoption of digital technologies, most companies prefer unified solutions for all HR functions. Furthermore, HCM solutions offer software solutions that help streamline the entire HR process of an organization.
Also, they automate payroll, recruitment, performance review, onboarding, training, time and attendance management, strategic planning, and operation control processes. For instance, the banking, financial services, and insurance (BFSI) industry in India is using HCM solutions to decrease the complexities of HR functioning. Hence, such factors will drive the global HCM solutions market during the forecast period.
Significant Trends
There is an increased demand from SMEs, which is a major trend in the HCM market during the forecast period. Time, user adoption, and money are the major constraints for most SMEs, which leads to companies seeking optimal HR solutions.
SMEs gain global workforce management, staffing and hiring, payroll processing, training and education, performance management, employee self-service, and business intelligence with these solutions. Hence, such benefits are expected to lift the demand for HCM solutions during the forecast period.
Major Challenges
The rising workforce diversity is a major challenge impeding market growth. As a result of technological developments, the preference for digital technologies has increased. This leads to various open-source software solutions posing stiff competition for HCM solutions. There are multiple companies that offer on-premise and cloud-based open-source software for HCM solutions.
For example, Sapplica offers an open-source HRMS software called Sentrifugo, which can be configured to meet organizational needs. Furthermore, separate software for HR functions is also offered by some companies. These HR fucntions include recruitment and performance appraisal, which can become a source of severe threat to HCM solutions during the forecast period. Hence, such factors hamper the market growth during the forecast period.
Human Capital Management (HCM) Solutions Market 2023-2027: Key Highlights
- CAGR of the market during the forecast period 2023-2027
- Detailed information on factors that will assist human capital management (HCM) solutions market growth during the next five years
- Estimation of the human capital management (HCM) solutions market size and its contribution to the parent market
- Predictions on upcoming trends and changes in consumer behavior
- The growth of the human capital management (HCM) solutions market
- Analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of human capital management (HCM) solutions market vendors
