What are the Historical Developments and Current Growth Metrics of the Human Capital Management Software Market?
The human capital management software market has seen considerable growth due to a variety of factors.
• The human capital management software market has seen rapid growth in recent years. It will increase from $25.67 billion in 2024 to $28.6 billion in 2025, at a compound annual growth rate (CAGR) of 11.4%.
The growth is driven by regulatory compliance, the shift to remote work, a focus on employee experience, the use of data analytics, and a more strategic approach to HR.
What Does Future Hold for The Human Capital Management Software Market By 2029?
The human capital management software market is expected to maintain its strong growth trajectory in upcoming years.
• The human capital management software market is expected to grow to $43.49 billion by 2029, with a CAGR of 11.0%.
The growth is attributed to increased focus on employee well-being and mental health, skills-based talent management, workforce planning, and hybrid work models. Trends include AI-powered solutions, compliance support, continuous learning, agile workforce planning, and skills-based management.
What Are The Primary Growth Drivers In The Human Capital Management Software Market?
The increasing trend of remote work is expected to accelerate the growth of the human capital management (HCM) software market. HCM software supports remote performance management by providing tools for goal setting, performance tracking, and virtual collaboration. In June 2023, reports indicated that 12.7% of full-time employees in the US worked from home, with the number projected to reach 32.6 million by 2025, according to Forbes.
What Is The Segmentation Of The Global Human Capital Management Software Market?
The human capital management software market covered in this report is segmented –
1) By Solution: Payroll Management, Talent Management, Workforce Management
2) By Deployment: On-Premise, Cloud
3) By Application: Small Business, Midsized Business, Large Business
4) By End-Use Industry: Banking, Financial Services, And Insurance (BFSI), Retail And E-Commerce, Manufacturing, Healthcare, Government And Public Sector, Professional Services, Other End-Use Industries
Subsegments:
1) By Payroll Management: Payroll Processing, Tax Management, Benefits Administration, Compliance Management
2) By Talent Management: Recruitment And Onboarding, Learning And Development, Performance Management, Employee Engagement And Retention, Succession Planning
3) By Workforce Management: Time And Attendance Tracking, Scheduling And Shift Management, Labor Analytics, Absence And Leave Management, Employee Self-Service
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How Are Emerging Trends Reshaping The Dynamics Of The Human Capital Management Software Market?
Prominent players in the human capital management software market are concentrating on creating digital and smart solutions for human capital management, with the aim to boost management of workforce and spur company expansion. Digital and smart human capital management solutions are essentially tech-powered platforms that utilize data analytics and AI to simplify HR operations, enhance talent management, and assist in making strategic workforce choices. For instance, in August 2024, Neusoft, a firm based in China that supplies industry and product engineering solutions, unveiled TalentBase. This is a pioneering digital and smart human capital management solution that represents the company's inventive approach to intelligent solutions within human capital management. It blends the newest digital technologies, smart applications, and advanced talent management theories to aid businesses in accomplishing intelligent transformation and driving superior-quality growth.
Who Are the Key Players In The Human Capital Management Software Market?
Major companies operating in the human capital management software market are:
• Accenture plc.
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Automatic Data Processing Inc. (ADP)
• Workday Inc.
• Paychex Inc.
• Ultimate Kronos Group Inc. (UKG)
• Sage Group plc
• Paycom Software Inc.
• Ceridian HCM Inc.
• Unit4 NV
• Cornerstone OnDemand Inc.
• Gusto Inc.
• Zenefits
• SumTotal Systems
• BambooHR
• PeopleFluent Holdings Corporation
• Ramco Systems
• SmartRecruiters
• Talentsoft
• Namely
• Saba Software
What Are The Regional Insights Into The Human Capital Management Software Market?
North America was the largest region in the human capital management software 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 software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
