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Transformative Trends Impacting the Human Capital Management Market Landscape: Advancements in Human Capital Management Technology
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.How Large Will the Human Capital Management Market Size By 2025?
In recent years, the market size for human capital management has experienced considerable growth. A rise from $23.89 billion in 2024 to $26.31 billion in 2025 is projected, showcasing a compound annual growth rate (CAGR) of 10.1%. Factors such as the emergence of cloud-powered HR management software, substantial expansion in the e-commerce sector, and swift globalization have led to this significant growth during the historic period.
How Big Is the Human Capital Management Market Size Expected to Grow by 2029?
Over the coming years, the human capital management market size is forecasted to experience significant expansion. It is projected to reach a valuation of $39.32 billion by 2029, growing at a compound annual growth rate (CAGR) of 10.6%. The growth expected during this period is primarily due to the increasing adoption of cloud-based technologies, rising levels of urbanization, and higher investments. Key trends forecasted for this period include the use of AI in talent recruitment, technological advancements, innovative product developments, video-based recruitment, learning experience platforms (LEPs), and platforms designed to enhance employee productivity.
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Which Key Market Drivers Powering Human Capital Management Market Expansion and Growth?
The amalgamation of robotic process automation (RPA), which employs software robots to carry out repetitive tasks, is anticipated to fuel the advancement of the human capital management market. The utilization of RPA comes with several benefits such as improved time efficiency, heightened concentration on employee development, preservation, and policy execution. Human capital management benefits from RPA as it automates monotonous tasks like rewards management, payroll processing, orienting new hires, and regulatory reporting. For example, Flobotics, an American software firm, reported in January 2024, that by 2022, 85% of large-scale and colossal enterprises had incorporated Robotic Process Automation (RPA). Hence, the fusion of robotic process automation is accelerating the expansion of the human capital management market.
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Which Fast-Growing Trends Are Poised to Disrupt the Human Capital Management Market?
Leading enterprises involved in the human capital management industry are concentrating on the creation of novel technologies and automated solutions to make work simpler. Human resources technology encompasses a range of software and tools engineered to expedite and enrich HR processes. These processes include hiring, payroll, performance appraisal, employee engagement, and adherence to regulations, which collectively bolster the efficacy and efficiency of HR operations within corporations. For example, in September 2024, ADP, a company based in the US that offers human capital management solutions, introduced ADP Lyric HCM. This adaptable Human Capital Management platform merges cutting-edge HR technology with GenAI to augment employee experiences on a global scale. Tailored for large corporations, Lyric presents real-time data and bespoke services to cater to the evolving requirements of today's workforce.
What Are the Emerging Segments in the Human Capital Management Market?
The human capital management market covered in this report is segmented -
1) By Component: Software, Services
2) By Deployment Model: On-Premises, Cloud
3) By Organization Site: Small And Medium-sized Enterprises, Large Enterprises
4) By Vertical: Banking, Financial Services, And Insurance, Government, Manufacturing, Telecom And IT, Consumer Goods And Retail, Healthcare And Life Sciences, Energy And Utilities, Transportation And Logistics, Other Verticals
Subsegments:
1) By Software: Talent Management Software, Payroll Management Software, Workforce Management Software, Recruitment And Applicant Tracking Systems
2) By Services: Consulting Services, Implementation Services, Training And Support Services, Outsourcing Services
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Who Are the Global Leaders in the Human Capital Management Market?
Major companies operating in the human capital management market include Automatic Data Processing (ADP) Inc, Oracle Corporation, SAP SE, Paycom Software Inc, Ceridian HCM Holding Inc, Microsoft Corporation, Ultimate Kronos Group, Workday Inc, IBM Corporation, Paylocity Corporation, CareerNet, Global InnovSource, IKYA Human Capital, Kelly Services, China International Intellectech Co., Ltd., Huisi Group, Horizons, Scaleup Consulting, Sapience Pro, HROne, Anhui Tiancheng Technology Co., Ltd, Arcoro GmbH, Platri IT GmbH, Gini Talent, INKUBIT Business Solutions GmbH, DevsData Tech Talent LLC, The Stakeholder Management Group, Prabisha Consulting, Ingold Solutions GmbH, Leinonen Group, ManpowerGroup, Brainpower, Unistaff Payroll Company, Unity Business Solutions, ABU Accounting Services, UCMS Group, Rufil Russia Consulting, Coleman Services, Paychex, Inc, People Hum, Volaris Group, Black Mountain HR, Talentor, Grant Thornton's, Infor, RSM, Maof Group, Capterra, Houlihan Lokey, Finesse, Ramco Systems, Azdan, Apploye, Nexus Busines Solution, Sage, Syspro, Monday.com, QuickBook*s
Which are the Top Profitable Regional Markets for the Human Capital Management Industry?
North America was the largest region in the human capital management market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the human capital management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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