How Has the Talent Management Software Market Evolved Historically and What is its Current Size?
The talent management software market has seen considerable growth due to a variety of factors.
• The market size of talent management software has witnessed a significant surge in the recent past. The market size is anticipated to escalate from $13.05 billion in 2024 to $14.56 billion in 2025, registering a compounded annual growth rate (CAGR) of 11.6%. This growth in the historic period was primarily driven by factors such as vendor ingenuity, competitive market environment, user-centric interfaces, a shift towards cloud-based solutions, and performance and goal management.
What Is The Projected Growth Of The Talent Management Software Market Size?
The Talent Management Software market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of talent management software is anticipated to witness substantial growth in the upcoming years, growing to $24.83 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 14.3%.
The growth during the forecasted period could be due to the shift towards hybrid work models, emphasis on employee health, shortage of skills and talent, diversity, equity, and inclusion (DEI) and ongoing performance management. Notable trends for the future include talent and internal mobility, employee wellness and interaction, integration into the HR ecosystem, security measures and compliance, succession strategy and leadership cultivation, as well as integration with HRIS and ERP platforms.
What Are The Key Drivers Fueling Growth In The Talent Management Software Market?
The escalating utilization of social networking sites is propelling the demand for talent management software in the future. These social network platforms are web-based services that let users establish a public or semi-public profile inside a confined system, develop a list of other connected users, and explore both their connections and the connections of others within the system. Specifically, social media platforms present an excellent opportunity for employers to boost their brand and allow them to reach a wide pool of talents. For example, the University of Maine, an American public research university, reports that there are 4.8 billion social media users globally, with 150 million new users added from April 2022 to April 2023—an average of 410,000 users daily or 4.7 new users every second. Consequently, the growing use of social network platforms is fuelling the expansion of the talent management software market.
What Are The Principal Market Segments In The Global Talent Management Software Industry?
The talent management software market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment: On-Premise, Cloud
3) By Organization Size: SMEs, Large Enterprises
4) By Industry Vertical: BFSI, IT And Telecom, Manufacturing, Government, Healthcare, Education, Retail, Other Industry Verticals
Subsegments:
1) By Solution: Recruitment Management, Performance Management, Learning And Development, Compensation Management, Succession Planning, Workforce Planning
2) By Services: Consulting Services, Implementation Services, Training Services, Support And Maintenance Services
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Which Emerging Market Trends Are Altering The Talent Management Software Industry?
The trend of technological advancement is picking up pace in the talent management software market. To maintain a stronghold in their respective industry, the leading players in the talent management software arena are keenly focusing on advancing their technology. As an illustration, the services company based in India, ADP launched a sophisticated Talent Management Suite in May 2024. This new suite is dedicated to supporting organizations in attracting, nurturing, and retaining elite professionals through a complete solution. The suite comprises modules for talent acquisition, performance management, compensation management, succession planning, and learning management. The main objective is to seamlessly integrate different talent management processes to tackle the challenges organizations encounter while efficiently managing their workforce. By utilizing advanced learning tools along with insights from Bersin & Associates, ADP is determined to enhance the overall human capital management strategy of its clients, facilitating them to optimize operations and boost employee engagement and performance.
Who Are the Key Players In The Talent Management Software Market?
Major companies operating in the talent management software market include:
• Cornerstone OnDemand Inc.
• International Business Machines Corporation
• Oracle Corporation
• PeopleFluent Holdings Corp.
• Skillsoft Corporation
• SAP SuccessFactors
• TalentSoft SA
• SumTotal Systems LLC
• Workday Inc.
• TalentGuard Inc.
• Haufe Group GmbH & Co. KG
• Ultimate Software Group Inc.
• PageUp People Limited
• Automatic Data Processing Inc.
• Eightfold AI Inc.
• Deltek Inc.
• ClickUp Inc.
• Cornerstone Growth Acquisition Corp.
• Deel Technologies Inc.
• Dun & Bradstreet Corporation)
• Paycor Inc.
• Remo First Oy
• Cegid Group SA
• Rippling Inc.
• Sage HR
What Are The Regional Insights Into The Talent Management Software Market?
North America was the largest region in the talent management software market share in 2024. The regions covered in the talent management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
