In a recent Technavio report titled Human Capital Management Solutions Market is projected to grow at a rapid pace in the coming years. The market size is estimated to grow by USD 11.19 billion, accelerating at a CAGR of almost 8.45% during the forecast period. It is revealed that North America is estimated to contribute 34% to the growth of the global market’s share.
The growing demand for integrated HR solutions, driven by digital technology adoption, is boosting the HCM solutions market. These systems streamline HR processes like payroll, recruitment, and performance reviews. HCM offers a unified platform that simplifies HR tasks and facilitates information sharing with other software, benefiting sectors like finance and banking. The BFSI industry in India, for instance, is leveraging HCM solutions to streamline their HR functions, leading to a projected global market growth for HCM solutions.
North America is expected to contribute significant growth due to factors like increased job opportunities, globalization leading to more job seekers, expanded use of social media in recruitment, and a strong focus on cost optimization. The continuous expansion of the US economy, particularly in sectors like manufacturing, IT, and oil and gas, has attracted investments in digital technologies. This increased competition in industries such as automotive and IT will drive companies to adopt advanced HR technologies like HCM, further boosting the North American market forward.
Technavio highlights the emerging trends of Human Capital Management Solutions Market:
- Increased demand from SMEs for optimal HR solutions due to constraints in time, user adoption, and finances.
- Availability of varied-priced HCM solutions driven by technological advancements benefits SMEs in hiring quality candidates faster, enhancing competitive advantage.
- Advantages for SMEs using HCM solutions: global workforce management, staffing, payroll processing, training, performance management, employee self-service, and business intelligence, boosting demand during the forecast period.
Technavio has segmented the market based on application (core HR, talent, and workforce), component (solution and service), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
The core HR segment is expected to contribute more to the market share during the forecast period. Core HR functions encompass tasks like recruiting employees, providing training, managing payroll, scheduling, administering benefits, handling internal relations, and ensuring safety and compliance.
According to Technavio Analysis, the HCM solutions market’s growth is influenced by various factors such as technological advancements, market trends, and regional dynamics. Despite challenges provided by open-source alternatives, the demand for unified HR solutions and the increasing adoption by SMEs signal promising opportunities for market expansion, particularly in regions like North America.
