The global Talent Management Software (TMS) market, valued at $9.17 billion in 2023, is expected to grow at a CAGR of 12.0%, reaching $25.42 billion by 2032, according to a new report. The increasing adoption of cloud-based solutions, AI/ML-driven talent measurement, and workforce analytics is driving market growth.
Market Trends & Drivers
1. AI & Digitalization Transforming Talent Management
- Over 60% of organizations now utilize AI in hiring, streamlining candidate assessment.
- 90% of Fortune 500 companies rely on Applicant Tracking Systems (ATS) to optimize recruitment.
- Companies are increasingly investing in comprehensive platforms to enhance workforce optimization and employee retention.
2. Employee Lifecycle Management Leads with 30% Market Share
- Retention strategies drive demand: In May 2024, 45% of employees were actively seeking new job opportunities.
- Organizations are implementing hybrid work models, inclusive cultures, and flexible schedules (e.g., four-day workweeks) to improve engagement and reduce turnover.
3. Cloud-Based Solutions Cut Hiring Time by 50%
- Companies are rapidly shifting to cloud-based recruitment platforms to automate hiring workflows.
- AI-powered resume screening, job matching, and interview scheduling enable recruiters to process applications faster and reduce hiring time by half.
4. Large Enterprises Drive Market Growth
- Large corporations are leading the market due to their complex HR structures and higher budgets for AI-driven HR solutions.
- Investments in automated hiring, onboarding, and workforce analysis are accelerating cloud-based TMS adoption.
5. IT & Telecom Sector Leads in Adoption
- The IT & Telecommunication sector dominates the TMS market, driven by high employee turnover and the need for skilled talent.
- Companies in this sector rely on AI-powered hiring tools to automate recruitment, workforce planning, and upskilling initiatives.
Key Players in the Market
Major companies shaping the TMS market include:
- Workday, Inc.
- IBM Corporation
- Oracle Corporation
- SAP SE
- BambooHR LLC
- CornerStone OnDemand Inc.
- Saba Software Inc.
These companies are actively investing in AI, workforce analytics, and cloud-based HR technologies to enhance recruitment, employee engagement, and workforce planning.
