Global Human Capital Management Market to Expand At 8.7% Till 2023
According to a new report released by Research on Global Markets, the global human capital management market is expected to expand at a compound annual growth rate (CAGR) of 8.7% and reach a market size of USD 29.9 Bn by 2023.
The term human capital management (HCM) refers to practices adopted by management bodies of organizations to regulate employee performance and requirement data. The major focus areas for the management bodies include human resource acquisition, human resource management and optimizing the efficiency of workers. The applications that help to enable proper human capital management practices form the global human capital management market.
Witnessing expansion at a CAGR of 8.7%, the global human capital management market is predicted to be worth USD 29.9 billion by 2023. Demand for automation in the administration of employees, policies, and procedures in regional as well as multi-national firms is an important driving factor for the HCM market. Important global players such as SAP, Oracle, Workday, Ramco, ADP, Microsoft, Ultimate Software, and Cornerstone have already acquired large shares of the market. The larger companies support and employ the services of smaller vendors that have established a network of connections at the end-consumer levels. This enables them to become service and application providers at all segments.
The integration of cloud-based SaaS applications has increased the demand for HCM software and this segment is currently garnering the largest market revenue. Flexible rates play a vital role in the sale of HCM software and this factor is responsible for the shift in consumer preferences from on-premises or data center to SaaS-based HR software. The services segment includes several post-sales activities such as maintenance, improvements, agreement renewal, and consultation. The market share of this segment is estimated to increase owing to the rising demand for migration services, extension, and plug-in development.
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Flexibility, cost-effectiveness, easy accessibility, and adaptability across platforms have motivated the demand for cloud-based HCM software more than the on-premises segment to maintain HR operations across offices spread across different regions.
Manufacturing, energy & utilities, consumer goods & retail, healthcare, transportation, telecom & IT, and BFSI are the major industry verticals adopting HCM solutions. The HCM market is expected to witness a spurring demand from government and manufacturing sectors. The shift of workforce from baby boomers to millennial is projected to encourage the adoption of HCM solutions to automate talent acquisition and workforce management operations.
According to the report, North America at present is the largest consumer of HCM solutions and accounts for 56.5% of the market share. This region is expected to continue generating a significant revenue for the market in the foreseeable future. A group of software vendors, customers, developers, and system integrators have encouraged the high market share of the region. The Asia-Pacific region is estimated to experience a significant gain in market share of 3.3% from 2018 to 2023. The rise of corporate culture owing to the expanding footprint of global companies in emerging economies like India, and other Asian countries is expected to drive the global human capital management market growth in the Asia Pacific.
Key highlights of the report include:
- Market Definition and Executive Summary
- Market assumptions based on key trends
- Global market guidelines and key insights
- Global market opportunities, drivers and challenges
- Market overview - historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), market key market observations
- Market segmentation based on type, deployment, usage and industry verticals
- Market analysis based on region
- Competitive landscape
- Comprehensive analysis of the key developments and major innovations in the market