Human Capital Management can refer to both a business strategy and a collection of contemporary IT tools and other implementation-related technology. Additionally, it incorporates workforce rewards & talent, workforce management, as well as the same hiring, job & position administration, HR regulation, and reporting activities. Additionally, the use of cloud-based Human Capital Management is growing as a result of characteristics like remote data access, unlimited storage capacity, lower costs and maintenance costs, and accessibility via online and mobile devices from any place and at any time. As a result, there is a sharp increase in demand for Human Capital Management.

Additionally, as employees were forced to work remotely owing to lockdown regulations, the COVID-19 pandemic had a favorable effect on the market. Human Capital Management assisted in tracking employees’ employment conditions and assisting the HR department with remote hiring. Based on deployment, the global market for human capital management is divided into cloud and on-premise types. The market also examines a number of industry sectors, including BFSI, retail, IT & communications, healthcare, hotel, government, industrial, and others (education, logistics, facilities & utilities, and media & entertainment).

The development of cloud-based HRM software enabled human capital departments to move employees’ work schedules to the cloud because they performed remote work. These are the main drivers of market growth for Human Capital Management. The market is primarily driven by the growing need for unified HR suites and streamlined HR processes. The installation of a cloud-based Human Capital Management deployment, however, raises questions about data security and privacy that are impeding market expansion. Additionally, one of the main market restraints is the requirement to adhere to governmental rules. On the other hand, the use of digital HR technology and workforce analytics solutions will present significant and lucrative potential for market expansion.

The examination of the human capital management market’s growth possibilities, challenges, and trends is the primary emphasis of the news. In order to understand the effects of various factors on the market for human capital management, including bargaining power of suppliers, strong competition of competitors, new entrants, threat of substitute products, and bargaining power of buyers, the research demonstrates Porter’s Five Forces analysis.

Segment Review

Components, distribution mode, product engineering, and region are the divisions used to segment the human capital management market. Components are further divided into software and services. It is divided into core HR, recruitment, employee management, remuneration & payroll, and others based on the type of solution. The market is divided into management solutions and professional service categories based on the type of service. The market is divided into on-premise and cloud segments based on the deployment model. It is divided into IT & telecom, retail, BFSI, medical, tourism, administration, production, and others on the basis of industry vertical. It is examined across North America, Europe, Asia-Pacific, and LAMEA based on region.

Inc., ADP, SAP SE, IBM Corporation, Epicor Software Corporation, Kronos Incorporated, Oracle, Infor, Sumtotal Systems, LLC, Cornerstone, and UKG Inc. are just a few of the major companies whose profiles are examined in the report. To enhance their market penetration and solidify their standing in the human capital management market, these players have used a variety of techniques.

COVID-19 Impact Analysis

All enterprises have been affected by COVID-19, creating a demanding and complex atmosphere for administrative and human resource management (HRM) professionals who must come up with creative solutions to maintain the viability of their businesses and assist their staff in navigating this crisis. By giving employees opportunities for professional learning and progress, human capital management has aided HR departments in retaining and fostering talent. Additionally, it has assisted in controlling labor hours, scheduling, and related expenditures, monitoring expenses for particular projects and other costs, and creating a culture of pay-for-performance during the COVID-19 pandemic. As a result, the market for human capital management benefited from the pandemic.

The Top Influencing Elements

1. Cloud-based Human Capital Management Software is Becoming More Widely Used
   The adoption of cloud-based Human Capital Management solutions is accelerating across a number of business verticals, including BFSI, retail, medical, production, IT & communications, and media & entertainment. Through an HR staff access portal, these systems offer secure access to numerous administrative activities. Employees can practically access their data from anywhere using desktop or mobile devices thanks to this.
2. Demand for Human Capital Management Unified Solutions is Growing
   Businesses all across the world concentrate on increasing productivity and resource efficiency. Businesses may bring business strategy synchronization, team execution, and optimum job performance to the company by implementing a unified Human Capital Management solution and streamlining HR and people operations. Onboarding, social business & engagement, performance appraisal, and adapting to change are just a few of the modules included in the Human Capital Management suite.
3. Cloud Deployment and Data Security and Privacy Issues
   Because they don’t require installation fees, costly upgrades, or ongoing maintenance, cloud solutions are highly cost-effective. The data is kept in a third-party cloud service provider’s storage, nevertheless, while using the cloud. Sensitive data loss is now more likely as a result. Additionally, putting data in the cloud may expose the company to outside threats and attacks.
4. Rising Interest in Workforce Analytics Solutions
   Workforce analytics helps businesses create and enhance recruiting strategies, optimize organizational design, and assess upcoming technological requirements. As a result, as firms increasingly rely on workforce analytics to gain insights from employees, there will be several chances for industry growth in the future.

Principal Advantages for Stakeholders

1. To show the potential investment pockets, the study offers a detailed analysis of the worldwide human capital management market share, together with present and future trends.
2. In the study, important drivers, restraints, and opportunities are discussed, along with an analysis of how they will affect the growth of the worldwide human capital management market.
3. The effectiveness of buyers and suppliers in the market for human capital management is demonstrated through Porter’s five forces analysis.
4. Understanding the developments in the worldwide human capital management market requires a thorough examination of the key industry segments.
5. To assess market potential, a quantitative estimate of the size of the worldwide human capital management market from 2021 to 2030 is presented.