From GlobeNewswire: 2024-11-08 09:00:00

The Human Capital Management Market was valued at USD 27.1 billion in 2023 and is projected to reach USD 57.8 billion by 2032, with a CAGR of 8.8% from 2024 to 2032. Organizations are adopting HCM solutions to streamline processes, improve productivity, and enhance employee engagement in response to evolving workforce dynamics.

The integration of AI, machine learning, and analytics in HCM software is driving data-driven decision-making to enhance talent management practices and improve workforce productivity. Companies across various industries are prioritizing the employee experience to attract, develop, and retain top talent while optimizing workforce efficiency.

Key players in the HCM market include SAP SE, Oracle Corporation, Workday, Inc., ADP, Inc., and Ceridian HCM, Inc., among others. The market scope covers regions such as North America, Europe, Asia Pacific, Middle East & Africa, and Latin America, with key growth drivers including increased demand for digital HCM solutions, focus on employee satisfaction, and compliance with labor laws and data privacy regulations.

In 2023, the software segment led the HCM market with a 59% market share, offering tools for managing critical HR functions like payroll, benefits administration, and performance tracking. Core HR, workforce management, talent management, and payroll software equipped with AI and analytics capabilities are becoming essential for automating processes and ensuring compliance with regulatory standards.

Large enterprises dominated the HCM market in 2023, accounting for a 69% share due to their extensive resources and infrastructure supporting the adoption of advanced HCM solutions. These organizations benefit from streamlined talent management, enhanced compliance, and improved data security offered by HCM tools, enabling them to proactively manage employee performance and support professional development initiatives.

The IT & Telecommunications sector emerged as a major contributor to the HCM market in 2023, holding a 24% share. Known for its dynamic work environment, this sector relies on HCM solutions to manage a highly skilled workforce efficiently, improve recruitment processes, facilitate continuous learning, and track employee performance amidst high turnover rates and evolving skill requirements. The Human Capital Management market is segmented by offering into software and services, by organization size into large enterprises and small and medium-sized enterprises, by deployment mode, and by end-use industry. North America dominates the market with a 38% share due to advanced technology adoption and employee-centric policies.

The Asia-Pacific region is expected to experience the highest growth rate in the HCM market, driven by rapid economic development and the adoption of digital HR solutions. Countries like China, India, and Japan are witnessing a surge in demand for HCM solutions to improve workforce management and productivity.

Recent developments in the HCM market include Workday’s partnership with Kainos to launch “Spark&Grow” and ADP’s introduction of ADP Workforce Now for Construction. These solutions aim to help businesses implement HCM quickly and address industry-specific challenges in construction.

For comprehensive insights into the Human Capital Management market, access the detailed analysis report for 2024-2032. The report covers market segmentation, regional analysis, company profiles, and use cases to provide a thorough understanding of the market landscape and trends driving growth.

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