The “Global Human Capital Management Market with COVID-19 Impact Analysis, by Component, Software (Core HR, Applicant Tracking System, HR Analytics, & Workforce Management), Services, Deployment Model, Organization Size, Vertical & Region – Forecast to 2026″ report has been added to ResearchAndMarkets.com’s offering.
The publisher estimates the global Human Capital Management (HCM) market would grow from USD 22.3 billion in 2021 to USD 32.0 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 7.5% during the forecast period.
HCM advancements can be related to a number of factors; however, some of the major factors include the adoption of AI and ML technologies in HR processes and cost reduction achieved using HR software, which is the primary driver, enabling the adoption of HCM technologies within enterprises. Cloud security remains a restraint for adopting HCM cloud among enterprises users, specifically in the highly regulated verticals, such as BFSI, healthcare, and energy and utilities. The opportunities in adjacent markets, such as contingent workforce management and AI-based recruitment, open up new revenue prospects for vendors in the HCM market.
The adoption of the remote work culture by businesses across the globe due to the COVID-19 pandemic is introducing new challenges to HCM software and service providers. The major challenge faced is updating offerings as per the working culture of organizations. HCM providers can advance their software during this pandemic by adding new capabilities, such as tracking employee health and location. This is expected to boost the adoption of HCM software. However, cost cutting and delay in projects by enterprises may offer a restraint in the adoption of HCM software.
Cloud deployment model is expected to grow at a higher CAGR during the forecast period
Majority of HCM solutions are expected to be deployed in cloud, and so cloud based deployment will outperform the on-premises deployment and will have a higher CAGR during the forecast period. Enterprises are moving toward cloud-based deployment to minimize operational cost and achieve greater ease in sharing data with multiple parties.
BFSI industry vertical to hold the highest market share in 2021.
The Banking, Financial Services, and Insurance (BFSI) vertical is one of the early adopters of HCM solutions to effectively manage the entire lifecycle of employees. The same trend is expected to be there in coming years, and the vertical is expected to adopt HCM solutions to manage internal as well as external employees. BFSI enterprises deal with a diverse workforce from office employees, contingent workforce, third-party workforce, and others. As the vertical needs to manage these workforces and comply with government regulations, the vertical will have the highest adoption of HCM solutions and services.
Asia Pacific to grow at the highest CAGR during the forecast period
The Asia Pacific (APAC) region is expected to be the top adopter of HCM solutions where the vertical will have the highest growth rate during the forecast period. The APAC region has huge potential in terms of adoption due to the presence of countries such as India, China, and Japan, growing workforce, and huge number of small and medium enterprises. Small and medium enterprises are expected to have high adoption of HCM solutions in the next 5 years due to the rising demand by these enterprises to manage their workforce.
Market Dynamics
Drivers
- Integration of Ai and Ml in Hcm Suites
- Need for Reducing Hr-Related Costs
Restraints
- Security Concerns Over Cloud-Based Deployment
Opportunities
- Rising Adoption of Cloud-Based Software Solutions
- Advancements in Potential Markets
Challenges
- Data Inconsistency due to Adoption of Multiple Advanced Technologies and Hr Standards Among Businesses
- Lack of Competent Resources
Companies Mentioned
- Adp
- Ascentis
- Bamboohr
- Benefitfocus
- Bitrix
- Bizmerlinhr
- Ceridian
- Cornerstone Ondemand
- Employwise
- Epicor Software
- Gusto
- Ibm
- Infor
- Kronos
- Meta4
- Microsoft
- Namely
- Oracle
- Paylocity
- Peoplefluent
- Peoplestrategy
- Ramco Systems
- Rippling
- Sage Group
- Sap
- Sumtotal
- Talentia Software
- Talentsoft (Now ‘Cegid’)
- Ultimate Software
- Vibe Hcm
- Webhr
- Workday
- Workforce Software
- Zenefits
- Zoho
For more such Updates Log on to www.hrtechcube.com
