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Robotic Process Automation (RPA) Integration Fuels Growth In Human Capital Management Market: Critical Driver Shaping the Global Human Capital Management Market in 2025
Human Capital Management
Human Capital Management Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The market size for human capital management has experienced significant expansion in the last few years. The market, valued at 23.89 billion USD in 2024, is projected to reach a value of 26.38 billion USD in 2025, growing at a compound annual growth rate (CAGR) of 10.4%. This surge in growth during the historical period is due to factors including the introduction of cloud-based HR management software, substantial expansion in the e-commerce sector, and the swift pace of globalization.
Human Capital Management Market Size Forecast: What's the Projected Valuation by 2029?
Projected to undergo swift expansion in the coming years, the market size for human capital management is predicted to attain a value of $39.68 billion in 2029, with a compound annual growth rate (CAGR) of 10.7%. Factors contributing to this predicted expansion during the forecast period include a surge in the utilization of cloud-based strategies, escalating urbanization, and augmented investments. Key trends to watch during the forecast period are talent acquisition featuring AI, advancements in technology, product innovation, video-based recruiting, learning experience platforms (LEPs), and platforms designed to boost employee productivity.
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What Are the Drivers Transforming the Human Capital Management Market?
The human capital management market is predicted to see a significant uptick due to the implementation of robotic process automation (RPA). This type of automation involves using software robots to execute tedious tasks repetitively. Such automation comes with numerous benefits, including better time management, an enhanced concentration on staff development, retention, and execution of policies. It assists human capital management in automating routine tasks like compensation and payroll management, new hires onboarding, and compliance reporting. For example, Flobotics, a US software corporation disclosed in January 2024 that by 2022, 85% of the largest enterprises had utilized Robotic Process Automation (RPA). Hence, the use of robotic process automation is indeed fuelling growth in the human capital management market.
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What Long-Term Trends Will Define the Future of the Human Capital Management Market?
Companies in the human capital management sector, including major players, are concentrating their efforts on creating novel technologies and automated solutions to ease operations. Human Resources (HR) technology encompasses diverse software and tools crafted to refine and boost various HR processes, such as recruitment, payroll, performance management, employee engagement, and ensuring compliance. These technological advancements aim to bolster the efficiency and efficacy of HR roles across all types of organizations. One such example is the launch of ADP Lyric HCM by ADP, a leading United States-based provider of human capital management solutions, in September 2024. ADP Lyric HCM is a versatile Human Capital Management platform that synergizes the sophisticated HR technology with GenAI to enrich the employee experiences worldwide. Lyric, primarily designed for large corporations, provides instant insights and tailored services to cater to the evolving needs of today's workforce.
Which Segments in the Human Capital Management Market Offer the Most Profit Potential?
The human capital managementmarket 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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Which Firms Dominate the Human Capital Management Market by Market Share and Revenue in 2025?
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,
Which Regions Offer the Highest Growth Potential in the Human Capital Management Market?
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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