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
Market Segmentation
The global human capital management market segmentation focuses on Component, Deployment, Organization, End-Use, and Region.
By Component
By Deployment Model
By Organization Size
By End-use Industries
By Region
