The human capital management (HCM) market in Asia Pacific will grow at a faster rate than in regions such as Europe and the United States, according to Fortune Business Insights.
This is because human resource strategy is crucial to building skills, technology, and employee productivity can help businesses grow. Fortune Business Insights says that human capital management is helping to manage this strategy by managing resources and streamlining HR functions.
The Human Capital Management (HCM) Market: Global Market Analysis, Insights, and Forecast, 2018-2026 report suggests that globally, there will be a 9.4% CAGR between 2018 and 2026. The market will also reach US$30.5 billion by 2026.
Core HCM solutions will make up a major portion of HCM market share across the forecast years. These solutions include core HR, workforce management, talent management, payroll and compensation.
“Of these, workforce management and core HR enjoy a leading position in the market, fuelling the HCM market demand,” the report notes.
“These solutions help HR personnel to take strategic decisions while planning initiatives for talent acquisition and recruitment. Core HR solution ensures to maintain transparency between management and employees. “
“Workforce management solution analyzes data for businesses and monitors HR activities. Moreover, the demand for workforce management HCM solution is increasing in migration services, plug-in development, and extension.
Sectors reporting demand for HCM software include BFSI, education, government, healthcare, IT - telecom and manufacturing.
Currently IT - telecom cover a market share of 21.8%. Additionally, demand in BFSI and IT - telecom are expected to see the highest demand for HCM technologies, which in turn will expand the HCM market size.
The market in Asia Pacific is being driven by developments in both talent management practices and core HR.
“In addition to this, the rising shift from the agricultural sector to services sector among the people is enabling growth in the market in Asia Pacific. This shift is mainly on account of better lifestyle and higher pay scale,” the report notes.
The HCM market in the United States is expected to maintain dominance, while Europe will bring increasing levels of automation into workforce task management.
The global HCM market was worth US$15.04 billion in 2018, according to the report.
The report names the following organisations as some of the leading players in the industry:
- Accenture PLC
- Automatic Data Processing (ADP), Inc.
- Ceridian HCM, Inc.
- IBM Corporation
- NetSuite, Inc.
- Oracle Corporation
- SAP SE
- Ultimate Software
- Workday, Inc.