Human Capital Management Market 2021 Business Overview, Challenges, Opportunities Analysis to 2027

Description

The global human capital management market is expected to grow from USD 17.0 billion in 2020 to USD 27.3 billion by 2027, at a CAGR of 7.0% from 2021 to 2027. Human capital management (HMC) is the set of practices used by an organization to recruit, manage, develop and optimize employees to increase their performance and skills for the company. HCM software manages various processes and functions required for effective workforce management, time management, and saving costs. HCM software is sometimes referred to as Human Resources Information System (HRIS) and Human resources management system (HRMS). HCM software eases the process of human resource management and increases operation efficacy by analyzing data, saving time, reducing lengthy processes. Such factors will pave the way for the growth of the human capital management market across the globe during the forecasting period.

Digitalization, AI-introduction in HCM, analytics, and other technologies and software will accelerate the growth of the HCM market in upcoming years. Legal and security concerns and corporate data theft are major restraining factors that may hamper the market's growth.

Global Human Capital Management Market Dynamics

Drivers: Rise HCM adoption in various verticals to streamline HR operations

Several verticals such as financial services, banking and insurance (BFSI), healthcare, telecommunications and IT, manufacturing, retail, media and entertainment, and others rapidly adopt cloud-based HCM software. The software provides secure access to various administrative tasks through a human resources employee login portal. Such factors will fuel the growth of the market in the upcoming years. This allows employees to access their data via their mobile or desktop from virtually anywhere. The software enables companies to attract and retain talents by providing professional learning and growth opportunities, optimizing workforce management and spending, streamlining HR operations, and more. This will drive the market growth of the human capital management solutions over the forecasting period.

Restraints: Cyber security and privacy concerns

The cloud-based HR automation platforms have led to concerns about data privacy and security. The inability of market players to provide robust cloud security solutions is likely to restrict the market growth. However, with the cloud, the data is stored with a third-party cloud service provider. This increases the possibility of losing sensitive data and security risks. Security risks such as identity theft (Espionage), salary data theft, violation of regulatory rules, denial of service attack (DDoS) on the HR system is likely to restrain the market growth. Nonetheless, to mitigate the probability of security risks, organizations deploy multi-factor authentication (MFA) and remote wipe technology to protect human resource data, increasing the cost and affecting the company's profitability. Such factors will hamper the growth of the human capital management market globally.

Opportunities: Digitalization HCM and rising adoption of cloud-based HCM solutions

The growing adoption of cloud-based business models and talent mobility is a factor that is anticipated to encourage the growth of the human capital management market globally during the forecasting period. Workforce management solution enables companies to build a strengthened leadership pool by improving employee engagement and retention. The growing attention towards talent mobility is forecasted to elevate the demand for human capital management solutions among various verticals. Cloud-based business models integrated with HCM services are expected to demonstrate rising demand from end-users across the globe. For instance, Ceridian HCM Holding Inc., global human capital management (HCM) technology providing company, announced that Seagrass Boutique Hospitality Group has employed, Dayforce, Ceridian's flagship HCM cloud-based software platform, to pay, manage and engage its workforce. Dayforce will assist Seagrass in transforming its employees' experience and interaction process and enabling enhanced decision-making at all levels. The software enables the company to develop an in-depth talent pool to enhance market strength and growth of the company, creating an employee experience for improved operations. This will contribute to the growth of the human capital management market globally in the upcoming years.  

Scope of the Report

The study categorizes the digital therapeutics market-based component, deployment model, organization size, end-use industries at the regional and global levels.

By Component (Revenue, USD Billion, 2017-2027)

• Software-
  • Core HR
  • Applicant Tracking System
  • HR Analytics, Workforce Management
• Services-
  • Integration and Implementation
  • Training and Education,
  • Support and Maintenance
  • Consulting

By Deployment Model (Revenue, USD Billion, 2017-2027)

• On-Premises
• Cloud

By Organization Size (Revenue, USD Billion, 2017-2027)

• Large Enterprise
• SMEs

By End-use Industries (Revenue, USD Billion, 2017-2027)

• Banking Financial Services and Insurance (BFSI)
• Government
• Manufacturing
• Telecom and IT
• Consumer Goods and Retail
• Healthcare and Life Sciences
• Energy and Utilities
• Transportation and Logistics
• Others

By Region (Revenue, USD Billion, 2017-2027)

• North America