Here at Grosvenor Technology, we’ve rounded up the forecasts for human capital management growth worldwide.
Over the coming decade, the rapid acceleration of the Human Capital Management (HCM) market will be primarily driven by the advances and adoption of technologies like automation and AI in the HR space and the shift to cloud-based solutions.
Let’s look at how major global markets are responding to the market uptick.
Human Capital Management applications have demonstrated demand in recent years across Europe, and the continent is now a significant growth area. Its sharp rise is the result of the transition to cloud-based software and solutions. As with most regions, European enterprises are embracing a digital transformation in readiness for the future. The ability to unify and streamline HR functions and the real-time information and longer-term insights cloud platforms has proven to be a compelling offering.
A report from ResearchAndMarkets demonstrated the dominance of the German market throughout 2021, which is projected to maintain its position in the coming years. The report suggested that the market value of the German HCM sector will achieve $2.35 billion by 2028.
“The UK market is experiencing a CAGR of 6.3% during (2022-2028). Additionally, the French market is expected to showcase a CAGR of 8% during (2022-2028),” it added. As a whole, the European Human Capital Management market is tipped to achieve market growth of 7.2% CAGR from 2022-2028.”
Conversely, market analysis from Data Bridge found that in 2021, “The UK accounted for maximum share in the European human capital management market, as large numbers of HR software providers are present in the region and more start-ups are being established.
“Germany accounts for the second largest market as the region has high growth in the manufacturing industry that has a large workforce which requires HCM software for talent management and other HR activities.”
Asia Pacific is undoubtedly a market to monitor as it’s on the cusp of rapid adoption of HCM solutions. There’s particularly strong demand from China, Japan and India. A report from ResearchAndMarkets predicts that the region will experience an impressive CAGR growth of 8.1% from 2022-2028, likely steered by changes in the makeup and demands of its major economies.
“In the future years, the rising number of start-ups and the adoption of new technologies like Industry 4.0, data analytics, cloud technology, and artificial intelligence will necessitate a trained and talented workforce in the APAC region. Thus, the requirement for human capital management solutions in the region is predicted to rise as a result of managing and hiring suitable professionals.”
APAC has two of the world’s fastest-growing economies – China and India – with millions of manufacturing and service sector jobs expected to arise in the near future. This will increase the requirement for human capital management tools and technologies.
The Polaris Market Research HCM report provides the following insight for 2022-2030: “Asia Pacific is expected to witness a high CAGR in the global human capital management market. Large numbers of HCM vendors and the rising usage of cloud-native technologies drive growth in the region.
“The major countries are witnessing massive investments in market verticals such as BFSI, retail, healthcare, manufacturing, telecommunication services, and IT, resulting in Asia countries’ economic growth. The market in the Asia Pacific is expected to be driven by organisations’ increasing adoption of industry 4.0, data analytics, and cloud computing.”
The traditional economic powerhouses are at the helm of the surge in South American HCM demand. An Envision Intelligence report released in September 2022 looking at HCM in the region over the six years, ranging from 2022-2028 notes: “The consumer goods sector and retail are growing rapidly regarding technological advancements, customer needs, and employment.
“The HCM market is emerging in South America due to the introduction of new cloud technologies in countries like Brazil and Argentina, making them more technologically advanced. The reason the HCM market is evolving is due to the release of new software and better data analytics tools.”
Middle East and Africa
According to Fortune Business Insights, ample opportunities to tap into several thriving economies in the Middle East & Africa will present over the coming years. In its HCM forecast covering 2022-2029, it outlined the following:
“The Middle East & Africa is projected to experience significant market opportunities during the forecast period. According to the World Bank collection of development indicators in 2018, the Middle East, Africa, and North Africa reported 85.5% literacy rate. This figure represents that the region poses potential job opportunities that are expected to boost the adoption of advanced HR tools across the region.
“The rising adoption of advanced technology such as AI, cloud, and analytics-enabled solutions by organisations is likely to exhibit substantial opportunities to implement advanced HR solutions in the region. For instance, in July 2021, Office Depot Europe incorporated Oracle Fusion Cloud solutions to transform HR processes and support the rising workforce. Thus, digital transformation across the region creates new market opportunities.”
Grosvenor Technology blends over three decades of engineering know-how with innovative development and technology. Our range of human capital management hardware is complemented by our outstanding software partners. The combination of our products and first-class support will enable your business to be more productive, cost-effective and provide a greater employee experience. To discover more about our HCM solutions, click here.