Human Capital Management Market Overview:
Human capital management (HCM) provides solutions to streamline human resource functions, which includes the management of employee profile, time & attendance, payroll & compensation, benefits & perks, training & development, and workforce analytics. Further, several key industry players, such as Cornerstone OnDemand, Kronos, SAP SE, and IBM Corporation, offer solutions to cater to the need of process automation for various user types, including small & medium enterprises (SMEs) and large enterprises.
Global Human Capital Management Market Segmentation
The global HCM market is segmented on the basis of component, deployment type, industry verticals, and geography. On the basis of component, the market is divided into software and services. On the basis of deployment model, the market is classified into cloud and on-premises. Based on industry verticals, the market is bifurcated into banking financial services and insurance, retail, IT & telecommunication, healthcare, hospitality, government, manufacturing, and others. Based on geography, the HCM market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
The global HCM market was valued at $13,004 million in 2016, and is expected to reach at $22,174 million by 2023, growing at a CAGR of 7.8% from 2017 to 2023. The major factors driving the HCM market growth are growth in need to streamline HR operations, rise in demand of unified HCM suite, and growth in adoption of cloud-based deployment model in the several developed and the developing countries such as India, China, Brazil, Mexico, and Russia.
North America generated the highest revenue in the global market in 2016, owing to increase in need to automate HR processes such as talent management, performance management, and compensation management, high ICT expenditure, and others. Moreover, Asia-Pacific is expected to grow at the highest CAGR, due to rise in adoption of mobility trends and cloud computing in countries such as China, Australia, Singapore, and Japan.
The key players operating in the global HCM market includes are ADP LLC, Cornerstone OnDemand, Epicor Software Corporation, IBM Corporation, Infor, Kronos, Inc., Oracle Corporation, SAP SE, SumTotal Systems, LLC, and Ultimate Software Group, Inc. These players have expanded their market presence by adopting various business strategies such as acquisition, geographical expansion, product development, strategic alliance, and collaboration.
Drivers, Restraints, and Opportunities: Global HCM Market
Rise in Adoption of Cloud Based HCM Software
Several industry verticals such as banking, financial services, and insurance (BFSI), healthcare, manufacturing, retail, telecommunication & IT, media & entertainment, and others adopt cloud-based HCM software at a rapid pace. The software provides secure access to various administrative tasks through an HR employee access portal. This allows employees to access their data through mobile or desktop devices from virtually any location.
Data Security and Privacy Concern Related to Cloud Deployment
Cloud solutions are quite cost-effective, as they do not require installation cost and expensive upgrades and maintenance. However, with cloud, the data is stored with a third-party cloud service provider. This increases the possibility of losing sensitive data. Further, storing information in the cloud also make the organization vulnerable to external attacks and threats.
Increasing Adoption of Digital HR Technology
There is an increase in the adoption of digital HR technology due to advantages such as ability to manage time & attendance automatically, determine appointments and meeting locations, and deliver on-demand video learning to participants. These factors are expected to boost the growth of the HCM market in the coming years.
- Qualitative analysis is performed in order to understand current market scenario.
- The report includes in-depth analysis of HCM market, outlining the possible driving factors, restraints, and opportunities.
- The report provides highlights of top investment pockets, key impacting factors, and wining strategies for the global HCM market.
- Key players of the market are identified with their market strategies such as product launch, mergers & acquisitions, and partnerships.
Human Capital Management Market Key Segments:
- Core HR
- Workforce Management
- Compensation & Payroll
- Managed Service
By Deployment Type
By Industry Verticals
- Banking Financial Services, and Insurance (BFSI)
- It & Telecommunication
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
- ADP LLC
- Cornerstone OnDemand, Inc.
- Epicor Software Corporation
- IBM Corporation
- Kronos, Inc.
- Oracle Corporation
- SAP SE
- SumTotal Systems, LLC
- Ultimate Software Group, Inc.