Human Capital Management Market to Record CAGR of 9.6% Over 2025-2032; Increasing Use of Cloud Computing in HR and Talent Management Solutions to Foster Market Progress

The human capital management market size was valued at USD 31.34 billion in 2024 and is predicted to reach USD 34.12 billion in 2025. The market is anticipated to touch USD 64.97 billion by 2032, recording a CAGR of 9.6% over 2025-2032.

Fortune Business Insights™ presents this information in its latest report titled “Human Capital Management Market Size, Share & Industry Analysis, By Offering (Software (Core HR, Talent Management, Workforce Management, Payroll & Compensation, and Others) and Services), By Deployment (On-premises and Cloud), By Enterprise Type (Large Enterprises and Small and Medium-sized Enterprises), By End-use Industry (IT & Telecommunication, BFSI, Government, Retail, Healthcare, Education, Manufacturing, and Others), and Regional Forecast, 2025 – 2032”.

Human Capital Management (HCM) covers HR tools, methods, and systems that are used by organizations to recruit, train, and supervise employees to help them achieve their goals. HCM solutions are proficient in handling employee data, can generate reports, and offer a seamless user experience. The growing integration of HCM solutions with advanced technologies, such as Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process Automation (RPA) will positively impact the market’s growth.

The COVID-19 outbreak had a positive impact on the market’s progress as an increasing number of companies adopted the remote work culture due to lockdowns and social distancing norms imposed by governments across the world. This increased the demand for human capital management software solutions to help companies efficiently manage employees working remotely.

Generative AI to be Widely Used in HCM Solutions to Decrease Errors and Enhance HR Processes

Generative AI is gaining traction among the HR departments of various organizations as this technology can help them decrease errors on the job, thereby improving their overall productivity. The other benefits that generative AI can offer to HR teams include better employee performance management, automation of routine tasks, enhanced employee engagement, and customized development plans. These factors will increase the use of Gen AI in human capital management systems.

Oracle Launched Oracle ME to Improve Employee Engagement and Success Rate

Oracle announced the launch of Oracle ME, a comprehensive platform for employee experience. This platform is made for improving employee engagement and ensuring employee success and is integrated into Oracle Fusion Cloud Human Capital Management (HCM). Oracle ME enables business and HR leaders to simplify communication throughout the company, improve talent retention by creating a supportive and trustworthy work environment, and increase productivity by guiding employees on complex tasks.

Increasing Use of Cloud Computing in HR and Talent Management Solutions to Foster Market Progress

Cloud computing solutions and technologies are being extensively used in HR and talent management solutions to help firms enhance their employee engagement rate and improve their experience by offering advanced features. These features can play a key role in improving talent and performance management solutions. Moreover, several organizations are transitioning to cloud-based human capital management systems to decrease their infrastructure and maintenance costs. These factors will increase the integration of cloud technologies with HCM solutions.

However, data breaches can limit the human capital management market growth.

Leading Companies to Enter Partnerships to Increase Presence in Various Regions

Some of the top market players are focusing on signing a wide range of partnership and acquisition agreements to help them improve their presence in several regions across the world. This will help them expand their current customer base and encourage them to develop more advanced versions of their current range of human capital management solutions.

Notable Industry Development:

• September 2024: ADP introduced ADP Lyric HCM, a human capital management platform that addresses the changing needs of today's workforce with the help of global payroll, HR, and service capabilities. Lyric incorporates GenAI technology into ADP's large dataset to offer smart, adaptable, and human-centric HCM solutions.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/human-capital-management-hcm-market-100240

List of the Companies Profiled in the Report:

• SAP SE (Germany)


• Automatic Data Processing (ADP), Inc. (U.S.)


• Oracle Corporation (U.S.)


• Microsoft Corporation (U.S.)


• Cornerstone OnDemand, Inc. (U.S.)


• Ceridian HCM, Inc. (U.S.)


• Infor, Inc. (U.S.)


• Ramco Systems Ltd. (India)


• Workday, Inc. (U.S.)


• Paycom Software, Inc. (U.S.)


• UKG Inc. (U.S.)


• Cegid (France)


• Bamboo HR LLC (U.S.)


• Sumtotal Systems, LLC (U.S.)

And more…

Further Report Findings

• North America is anticipated to showcase major growth in the global market due to the rising presence of leading companies, such as IBM Corporation and Oracle. Moreover, the increasing use of predictive analytics by organizations across the U.S. in talent management processes will fuel the market’s growth in the region.


• Europe is also predicted to showcase commendable growth due to the growing demand for workforce automation solutions to enhance compliance.


• Based on end-use industry, the IT & telecom segment will dominate the global human capital management market share owing to the rising adoption of talent management, core HR, and workforce management solutions by telecom organizations.

Table of Segmentation