Human capital management (HCM) is related to people resource management and is a set of practices focussed on the organizational need of fulfilling certain competencies, through workforce acquisition, workforce management, and workforce optimization.
The global human capital management market is expected to expand at a CAGR of 8.7% and be worth $29.9 billion by 2023. Factors such as automation in policies, employees, and procedures on a regional and global scale is a key driver of the HCM market. Larger companies have acquired smaller companies so that they can get end-to-end solutions to cater to all customers. The global market for human capital management is segmented into component, software deployment type, organization size, vertical and geography.
Based on component, the HCM software segment accounted for 66.5% of the market revenue in 2018, driven by factors such as price flexibility and demand for cloud-based SaaS applications. The service segment is expected to see an increase in market share to 7% from 2018 to 2023. Based on software, the workforce management software occupied a market size of USD 4.4 Bn in 2018. The learning software segment is expected to expand at a CAGR of 12.8% in 2018-2023.
Based on the deployment type, the cloud-based HCM solution garnered a market size of $15.4 billion in 2018. Based on the vertical, the global human capital management market is expected to witness a great demand from government and manufacturing sectors. The demand from the manufacturing vertical is anticipated to reach USD 3.8 Bn in 2023. Based on the organization, the HCM market is divided into large companies and SMEs. The SME segment accounted for a market share of 52.5% in 2018.
Geographically, North America accounted for 56.5% of the market share, making it the largest consumer of HCM solutions in 2018. The Asia-Pacific region is expected to gain a market share of 3.3% by 2023.
Research On Global Markets 