The global human capital management market size was US$ 18.0 billion in 2021. The global human capital management market is forecast to grow to US$ 31.3 billion by 2030 by registering a compound annual growth rate (CAGR) of 7.9% during the forecast period from 2022 to 2030.

Organizations use Human capital management (HCM) to recruit, manage, develop and optimize employees. The process helps improve the performance and skills of the employees. It also manages other functions like facilitating the process of human resource management and increasing operation efficacy.

Factors Influencing the Market

The benefits of Human Capital Management (HCM), such as time-saving and reducing the difficulty of lengthy processes, will primarily drive the market forward. Furthermore, the deployment of HCM is increasing across various verticals in order to facilitate HR operations. Thus, such factors will contribute to the Human Capital Management (HCM) market growth.

The software finds wide applications across various verticals, such as banking and insurance (BFSI), healthcare, telecommunications and IT, manufacturing, retail, media, entertainment, etc. Moreover, the software also offers secure access to various administrative tasks. Furthermore, it also benefits employees by enabling them to access their data via their mobile or desktop. Such advantages will propel the Human Capital Management (HCM) market forward.

Cyber security and privacy concerns may limit the growth of the Human Capital Management (HCM) market.

Cloud-based HCM solutions are gaining significant traction, which will escalate the growth of the Human Capital Management (HCM) market during the study period. For instance, Seagrass Boutique Hospitality Group deployed Ceridian's flagship HCM cloud-based software platform with the aim to pay, manage and engage its workforce. Thus, the growing deployment of HCM solutions will escalate the market growth.

COVID-19 Impact Analysis

The wake of the COVID-19 pandemic triggered digitalization across all industrial verticals. As a result, the global human capital management market witnessed lucrative growth opportunities. Moreover, the adoption of the work-from-home model further surged the demand for efficient tools and techniques. As a result, it contributed to the growth of the global human capital management market.

Regional Analysis

On the basis of region, the Asia-Pacific human capital management market is forecast to register the highest growth rate. It is attributed to the rising adoption of technologies in order to gain a competitive edge. Furthermore, growing digitalization has forced brands to adopt the technology in order to upgrade employee skills. Thus, all of these factors will drive the Asia-Pacific human capital management market forward.

Competitors in the Market

Workday
Oracle
ADP
SAP
Microsoft
IBM
Ultimate Software
Ceridian
SumTotal
Kronos
Infor
Talentsoft
EmployWise
Other Prominent Players
Market Segmentation

The global human capital management market segmentation focuses on Component, Deployment, Organization, End-Use, and Region.

By Component

Software-
Core HR
Applicant Tracking System
HR Analytics, Workforce Management
Services-
Integration and Implementation
Training and Education,
Support and Maintenance
Consulting
By Deployment Model

On-Premises
Cloud
By Organization Size

Large Enterprise
SMEs
By End-use Industries

Banking Financial Services and Insurance (BFSI)
Government
Manufacturing
Telecom and IT
Consumer Goods and Retail
Healthcare and Life Sciences
Energy and Utilities
Transportation and Logistics
Others
By Region

North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America