How Has The Human Capital Management Market Size Evolved Historically?
The human capital management market has seen considerable growth due to a variety of factors.
• In previous years, there has been a swift expansion in the human capital management market size. The market, which was $23.89 billion in 2024, is predicted to reach $26.31 billion in 2025, reflecting a compound annual growth rate (CAGR) of 10.1%.
Factors contributing to the growth during the historical period include the introduction of cloud-based HR management software, substantial advancement in the e-commerce industry, and rapid globalisation.
What Does Future Hold for The Human Capital Management Market Size?
The human capital management market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market size of human capital management is predicted to undergo swift expansion. By 2029, it is projected to escalate to a value of $39.32 billion with a Compound Annual Growth Rate (CAGR) of 10.6%.
This growth during the forecast period can be linked to the rise in the use of cloud-based techniques, the increasing urban proliferation and escalating investments. Dominant trends in this forecast period encompasses talent acquisition powered by AI, technological progress, innovation in products, video-based recruitment, Learning Experience Platforms (LEPs), along with platforms promoting employee efficacy.
Which Drivers Are Accelerating Growth In The Human Capital Management Market?
The growth of the human capital management market is anticipated to be fueled by the incorporation of robotic process automation (RPA). This refers to the utilization of software robots to perform a range of repetitive tasks automatically. The benefits of RPA include time efficiency, enhanced focus on staff development, retention, and policy enactment. RPA supports human capital management by automating redundant tasks like compensation management, payroll administration, the onboarding process of new employees, and regulatory reporting. For example, Flobotics, a software firm in the US, mentioned in January 2024 that by 2022, 85% of the large and very large enterprises had taken on the use of Robotic Process Automation (RPA). Consequently, the assimilation of robotic process automation is driving the expansion of the human capital management market.
What Is The Segmentation Of The Global Human Capital Management Market?
The human capital management market covered in this report is segmented –
1) By Component: Software, Services
2) By Deployment Model: On-Premises, Cloud
3) By Organization Site: Small And Medium-sized Enterprises, Large Enterprises
4) By Vertical: Banking, Financial Services, And Insurance, Government, Manufacturing, Telecom And IT, Consumer Goods And Retail, Healthcare And Life Sciences, Energy And Utilities, Transportation And Logistics, Other Verticals
Subsegments:
1) By Software: Talent Management Software, Payroll Management Software, Workforce Management Software, Recruitment And Applicant Tracking Systems
2) By Services: Consulting Services, Implementation Services, Training And Support Services, Outsourcing Services
Pre-Book The Human Capital Management Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What Emerging Trends Are Shaping The Human Capital Management Market?
Leading firms in the human capital management sector are concentrating on the invention of new technologies and automated solutions to streamline tasks. The term HR technology is used to describe a range of software and tools specifically created to simplify and augment human resource tasks such as recruitment, payroll, performance management, employee engagement, and adherence to legal requirements, with the aim of boosting the efficiency and effectiveness of HR operations within companies. For illustration, ADP, a company based in the USA that provides human capital management solutions, introduced ADP Lyric HCM in September 2024. ADP Lyric HCM is a versatile human capital management platform that combines cutting-edge HR technology with GenAI to improve the experiences of employees worldwide. The platform, Lyric, is geared towards large companies and provides real-time data and tailored services to cater to the changing needs of today's workforce.
Who Are the Key Players in the Human Capital Management Market?
Major companies operating in the human capital management market include:
• Automatic Data Processing (ADP) Inc
• Oracle Corporation
• SAP SE
• Paycom Software Inc
• Ceridian HCM Holding Inc
• Microsoft Corporation
• Ultimate Kronos Group
• Workday Inc
• IBM Corporation
• Paylocity Corporation
• CareerNet
• Global InnovSource
• IKYA Human Capital
• Kelly Services
• China International Intellectech Co. Ltd.
• Huisi Group
• Horizons
• Scaleup Consulting
• Sapience Pro
• HROne
• Anhui Tiancheng Technology Co. Ltd
• Arcoro GmbH
• Platri IT GmbH
• Gini Talent
• INKUBIT Business Solutions GmbH
• DevsData Tech Talent LLC
• The Stakeholder Management Group
• Prabisha Consulting
• Ingold Solutions GmbH
• Leinonen Group
• ManpowerGroup
• Brainpower
• Unistaff Payroll Company
• Unity Business Solutions
• ABU Accounting Services
• UCMS Group
• Rufil Russia Consulting
• Coleman Services
• Paychex. Inc
• People Hum
• Volaris Group
• Black Mountain HR
• Talentor
• Grant Thornton's
• Infor
• RSM
• Maof Group
• Capterra
• Houlihan Lokey
• Finesse
• Ramco Systems
• Azdan
• Apploye
• Nexus Busines Solution
• Sage
• Syspro
• Monday.com
• QuickBooks
What are the Regional Insights into the Human Capital Management Market?
North America was the largest region in the human capital management market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the human capital management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
