Global Human Capital Management Software Market - Segmented by Solutions, Deployment (On-premise, Cloud), and Region (North America, South America, Europe, APAC, ME&A) - Growth, Trends, and Forecast (2022 - 2030)

The Human Capital Management Software Market is expected to register a CAGR of over 6.4% during the forecast period (2018 - 2023).

The human capital management (HCM) software, an enterprise application solution has been the need across all the enterprises as they automate the cumbersome clerical tasks related to employee data, payroll, and benefits administration. However, the growth of the HCM software market in the recent time is due to the huge opportunities arising from the growing SMEs across regions and the need to manage the increasing workforce in the enterprises. Enterprises’ global expansion focus also facilitates the need for effective workforce management and therefore, the HCM software. The employee mobile-centric internet usage patterns are persuading the enterprises to deploy mobile application for extending the employee management functions to enhance the culture i.e., people management, thus providing growth prospects to the HCM vendors. As several companies have the same HR software for over seven years, which needs to be updated in order to stay on par with the market, such factors are expected to influence the growth of human capital management software market.

The HCM software market has witnessed consolidation (since 2011) and is dominated by software giants, like Oracle, SAP, Workday, ADP, and also consists of Enterprise Resource Planning (ERP) providers like Netsoft, IBM, Epicor etc. However, new players are sustaining in the market, like Namely Inc., Greenhouse Software Inc., BambooHR, etc., that are specializing in specific services over cloud, like Application tracking, Employee Onbording.

Growing Demand for Mobile HCM Apps

Internet usage shift from browser to mobile phone is influencing the HCM vendors to develop mobile applications on their web-based systems. It is estimated that approximately more than 40% of candidates apply for jobs through mobile phones, and more than 60% of all online video is now consumed on mobile device. Also according to Aruba Networks’s survey, a networking company, 64% of employees believe usage of mobile devices made them more productive. In addition to these statistics, the features, like embedded video, gamification, and analytics features that mobile apps offer contributing to enhanced employee onboarding and employee engagement also persuade the enterprisers to use mobile-based HCM. Oracle, SAP, Workday, ADP, Ceridian, Infor, Ultimate Software, Cornerstone, and other big players in the HCM market developed mobile apps with complete HR solutions in the light of this trend. This shift towards mobile-based HCM services thus, contribute to the growth of the market.

Growing adoption of Cloud-based Solutions

The feature-richness, ease of use, and data capacity characteristics of the cloud-based applications are driving the cloud adoption across all enterprise application solutions of which CRM and HCM were the first to be taken to the cloud. The cloud-based HCM solutions are enabling enterprises to make effective employee engagement tools leveraging the social media integration, and other APIs for learning, coaching and recruiting tools that disrupt the market. In 2018, Oracle in their cloud predictions forecasted that by 2020, 50% of production workloads in regulated industries will migrate to the cloud. Anticipating the growth in the cloud adoption across enterprises, the HCM vendors are also offering cloud-based solutions while continuing their on-premise offerings, but with lesser focus on innovation compared to the cloud-based solutions. Therefore, the push from the vendors and the expected growth in the cloud migration contributes to the growth in the cloud-based segment of HCM software during the forecast period.

Asia-Pacific expected to witness the Highest Growth

Asia-Pacific is expected to have the highest growth rate considering the increasing labor force, and SME growth in the region during the forecast period. The high cloud adoption and mobile-centric internet usage in developed regions are also influencing the growth of the market.

Key Developments in the Human Capital Management Software Market

• Jun 2018: ADP collaborated with Microsoft to bring together ADP’s HCM platform, Workforce Now, and Microsoft Dynamics 365 Business Central. The collaboration was aimed at integration of business solutions. Through this collaboration, the companies are enabling their mutual clients to access an overall view of their business and human resources data by connecting their multiple, cloud-based systems to make use of employee data and business performance tools to gain powerful insights.

Major Players: ORACLE CORPORATION, SAP AG, WORKDAY, INC., ULTIMATE SOFTWARE GROUP, INC., ADP, LLC., CERIDIAN DAYFORCE (CERIDIAN HCM, INC.- PARENT COMPANY), IBM CORPORATION, META4 and TALENTIA SOFTWARE, among others.

Reasons to Purchase The Report

• Current and future human capital management software market outlook in the developed and emerging markets
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis
• The segment that is expected to dominate the market
• Regions that are expected to witness the fastest growth during the forecast period
• Identifying the latest developments, market shares, and strategies employed by the major market players
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