DUBLIN--(BUSINESS WIRE)--The "Human Capital Management Market by Software (Core HR, Applicant Tracking System, HR Analytics, Workforce Management), Services, Deployment Model (cloud and on-premises), Organization Size, and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The HCM market is estimated to be USD 17,570 million in 2020 and projected to reach USD 24,310 million by 2025, at a CAGR of 6.7% during the forecast period.
The integration of emerging technologies, such as Artificial Intelligence (AI) and machine Learning (ML), with HCM solutions is expected to be one of the strongest factors for HCM solution and services adoption across regions.
Attractive Opportunities in the Human Capital Management 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
The 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 2020
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 the 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.
APAC 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, a growing workforce, and a huge number of small and medium enterprises. Small and medium enterprises are expected to have a 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 Fueling the Market Demand
Restraints
- Security Concerns Over Cloud-Based Deployment
Opportunities
- Rising Adoption of Cloud-Based Software Solutions
- Advancements in Potential Markets
Challenges
- Data Inconsistency Due to the Adoption of Multiple Advanced Technologies and HR Standards Among Businesses
- Lack of Competent Resources
Companies Profiled
- Workday
- Oracle
- ADP
- Sap
- Microsoft
- IBM
- Ultimate Software
- Ceridian
- Sumtotal
- Kronos
- Talentsoft
- Employwise
- Peoplestrategy
- Infor
- Cornerstone Ondemand
- Meta4
- Ramco Systems
- Bamboohr
- Namely
- Workforce Software
- Zoho Corporation
- Sage Group
- Epicor Software
- Zenefits
- Paylocity
- Gusto
- Bitrix
- Benefitfocus
- Webhr
- Talentia Software
- Peoplefluent
- Vibe Hcm
- Rippling
- Ascentis
- Bizmerlinhr
For more information about this report visit https://www.researchandmarkets.com/r/gwucd4
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