Human Capital Management (HCM) Market Research Report- Global Forecast 2027

Human Capital Management Market, By Component (Service, Software Solution), By Organization size (SMEs, Large Enterprise), By Deployment (Cloud, On Premise), By End-User (Manufacturing, BFSI, IT/ITES, Healthcare, Transportation, Government). - Forecast 2027

ID: MRFR/ICT/1846-HCR | February 2021 | Region: Global | 100 pages

Human Capital Management Market Overview


From, Human capital management market analysis it has been marked that the market covers a medium-sized high CAGR of 10% where it has covered a market value of USD 22 bllion during the human capital management market forecast period ranging from 2016 to 2022. About people resource management, some particular competencies in the business sectors have been related to it. From the human capital management market outlook, it was noted that this resource management is being used especially in the work areas for workforce acquisition, and managing the revenue. HCM is a practice where individuals are considered to be the assets in the HCM organizations. Human capital management system assists in the evaluation of the present market value of the revenue of the market. From human capital management market trends, you can mark the contribution of this market’s future value where much more investment is needed to be done.


COVID 19 ANALYSIS


Globally, the outbreak of the pandemic has hugely affected the lives of the people as well as the business. COVID led to the downfall of the Human capital management market where the economic condition has deteriorated. Due to this pandemic, many of the employees were being fired. Due to the presence of a lockdown situation, the human capital management market growth was affected. Lack of revenue conditions led to the closure of the production and manufacturing unit. COVID made a huge interruption in consumer behavior and the supply chain analysis of the industry was affected. Some of the human capital management key players that played a huge role in the market are concerned with other business sectors that helped the population nationwide to give protection against the virus. Some of the units are strongly protected while the rest of the business sectors are willing to refund its redefined and reshaped phase.


The government has taken all the necessary steps and has imposed some guidelines for making the working place safe. He has made some rules to carry out human policies safely. During this serious phase, the government gave the right guidance and suggestions against COVID. He made wearing masks and use of sanitizers mandatory. It is expected that the human capital market will recover soon during the human capital management market forecast period of 2016 to 2020.


MARKET DYNAMICS



  • Drivers- Rise in human capital management market growth takes place due to the rise in mobile applications and the widespread demand for workforce optimization. The major driving factor for growth is the rise in R and D investment by various companies which helps in increasing the demand for mobile applications. This is because there are a huge number of employees in each business unit which becomes a tedious job that is to be managed by the human resource managers.

  • Opportunities- Managing the cost-effective assessment efficiently by the large workforce of a big organization drives up the human capital management market growth opportunities. Globally, it has also been noted that increasing awareness among the population and the growth of the human capital management market trend of assessing the staff with the help of advanced technology has given various opportunities during the human capital management market forecast period of 2016 to 2022.

  • Challenges- Unavailability of the workforce in the dominant regions is the most challenging factor. Improper launching of products becomes a challenging factor for the market.

  • Cumulative Growth- Growth in cloud adoption in large, small, and medium enterprises creates opportunities for market growth. The simplicity of HCM deployment helps in the growth and extension of market size.

  • Restraints- The human capital management market has given various opportunities and has increased the demand of imposing HCM solutions act as the restraining factor of human capital management market size. The rise in security and privacy concerts which pushes up to increase the use of cloud deployment has hampered the growth. Lack of awareness among the population is the restraining factor for human capital management market growth.


VALUE CHAIN ANALYSIS


The rising growth of the latest technology, like the use of cloud-based applications and using artificial intelligence has helped in the growth of the market. This has made the job of the manager of the human capital management market easy and well accessible. With the advancement of technology and rapid growth in the market, the staff members are treated as an asset. Here in fact expenses of the employees for training and expenses are regarded as an investment. With the expansion of the business and human capital market, it becomes easier and well accessible for evaluating the performance of the workers which helps in rewarding the staff for their better performance.


MARKET SEGMENTATION



  • By Type- The HCM market has been classified into component type, deployment type, size of the organization, and end-users industries. Based on components, the industry is segmented into software solutions and services. The software division is subdivided into workforce analytics, competency and performance management, time management along with expense management, e-learning, e-recruiting and e-boarding, tax, Payroll, and Core HR talent Management. The services segment is classified into transformation services, implementation of management control services, consulting services along with support and maintenance of it. Based on deployment type, the market is divided into cloud-based and premise-based. Based on organization size, the human capital management market is divided into large enterprises which also comprises small and medium-sized enterprises. Based on end-user, the HCM market is segmented into manufacturing, BFSI, IT/ITES, healthcare unit, transportation unit, government sector, and many more.

  • By Technology- Due to the advancement of technology, automation of services has been developed. Technology led to the setting up of various enterprises which hold large HCM market share thus discovering innovative software. Technology led to the discovery of data security apps and privacy concern apps. It led to the development of digital HR technology.


REGIONAL ANALYSIS


From the human capital management market outlook, it has been marked that globally and regionally, the HCM market is split into the Asia-Pacific region, North American region, European region, and some rest parts of the world. These regions are said to be widely dominant as you can see various human capital management market opportunities as they have adopted the latest technology and have risen the internet penetration which is widely held by the North American region. The second-largest dominant share is held by the Asia Pacific region. This region is in high demand for using cloud deployment technology and the population has also adopted the use of IT services during the human capital management market forecast period.


COMPETITIVE LANDSCAPE


Some of the human capital management market key players operating in the market are IBM Corporation of the United States, SAP SE of Germany, Software AG of Germany, Workforce Software of the United States, AAD LLC of the United States, WORKDAY of the United States, Oracle Corporation of the United States, Kronos Inc. of the United States, Linkedin of the United States, Ultimate Software of the United States, Infor of the United States, Zenefits of the United States and Talent soft of France and many more. These key players use all the resources for fulfilling the demands of the customer which increases the base of the customer thus expanding the size of the market globally and regionally.


RECENT DEVELOPMENTS



  • Oracle Corporation in October 2018, have used artificial intelligence facilities for training the public and giving full resources and facilities of human resources. Artificial intelligence has helped them to answer all human-related questions easily and at a faster speed.

  • Microsoft in May 2019, has merged with Workday for carrying out the proper plan strategies for expansion of the cloud-based technology and its enterprise which increases the accessibility of the customers and the users.

  • Ultimate Software has launched an Employee File Management in July 2019, which helps the human resource manager for sharing the information and all the necessary documents of the candidates to any place along with the third parties which help in reducing the burden of the human resource manager.

  • A renounceable multinational company in a partnership with a Chinese company launched its Workforce integrated management solutions in May 2020, thus providing effective and efficient utilization of the workforce and for proper scheduling of the staff.

  • Cezanne HD ltd in April 2021, launched the new unique payroll module which is properly designed for UK organizations for carrying out online pension management and proper payroll solutions.


REPORT OVERVIEW


The report gives a proper overview of the market research of the market scenario of human resource management. Globally the human capital management market report gives information about the driving factors that help in the acceleration of the human capital management market size. The HCM market report gives information about the opportunities and the factors hampering the market growth. The human capital management market analysis gives information about the COVID and its impact on the environment. From the human capital management market outlook, you can mark the market size expansion and growth estimation.


 



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Frequently Asked Questions (FAQ) :


Human Capital Management can be described as a set of practices that are associated with people resource management and are highly focused on the organizational requirement to offer certain competencies.

The human capital management market has been studied with respect to segments like components, deployment type, organization size and end-user.

Human capital management offers a variety of benefits including better recruitment, organizational management, advanced time management, better payroll processing, personnel administration, and others.

Human Capital Management security issues that are associated with software as a service-based human capital management solution can dissuade the human capital management market growth in the forthcoming years.

Surge in cloud deployment and the increasing adoption of IT services are the primary growth boosters in the APAC market.