HCM Growth Expected To Hit An All-Time High

HCM market value is tipped to soar, with growth being guided by technological leaps and a move towards a distributed workforce.

Colin Leatherbarrow - Managing Director of Grosvenor Technology

Colin Leatherbarrow

Managing Director

HCM market value is tipped to soar, with growth being guided by technological leaps and a move towards a distributed workforce.

Increasingly, organisations are seeing the advantage of centring human capital management technology (HCM) within their HR, payroll, and recruitment functions.

With such widespread adoption of HCM solutions, the market will likely enjoy significant growth over the next few years. There are variances when assessing just how much the sector will increase in value. However, according to the vast majority of recent HCM forecasts, billions of dollars are expected to be added to its value over the next decade, with the US and North America leading the charge.

Technavio’s May 2022 report predicts that the global HCM market will increase by $12.16 billion between 2020 and 2025.

The HCM market observed year-on-year growth of 9.52% in 2021, and it’s thought that we’ll see that growth momentum accelerating at a CAGR of 10.57% during the forecast period. North America is anticipated to have the largest market share, with around 34% of the overall market growth.

The longer-term forecast is also optimistic. A report by Fortune Business Insights predicted the following: “The global HCM market size was $23.6 billion in 2021. The market is expected to grow to $25.53 billion by 2029, exhibiting a CAGR of 9.1% during the forecast period.

“The global impact of COVID-19 has been unprecedented and staggering, with HCM experiencing high-than-anticipated demand across all regions compared to pre-pandemic levels.”

North America has accounted for nearly half the market for the past two years, with an estimated value of over $10 billion – a trend that’s likely to continue. The report noted: “North America is anticipated to hold a dominant position in the global market. The rising adoption of advanced technologies, smartphones, and workforce analytics solutions is expected to spur the region’s market growth.”

So, the rapid and sustained growth value of Human Capital Management over the next ten years looks assured, but what is the motivation behind this surge in ongoing demand?



HCM capabilities have come a long way, propelled by advances in enterprise technology. In the world of HCM, businesses are increasingly using software with artificial intelligence (AI) and robotic process automation (RPA) capabilities.

In the US, the battle for talent is fierce; hiring managers are using AI and machine learning tools built into HCM software to filter hundreds of candidates and select those most suited to the position, reducing admin time significantly.

Businesses are widely utilising RPA as part of their HCM strategy. RPA is effectively a digital worker that automates repetitive and time-consuming tasks, such as payroll, data input, and remittance, enabling HR teams to focus on high-level tasks.


The Cloud

Enterprises worldwide are turning to cloud-based solutions to hone efficiency, improve output, and reduce costs. In the HCM sector, customers can choose from many bespoke cloud-based HCM solutions that can be customised to suit the needs of their organisation.

These cloud solutions connect all HR processes across a business, meaning companies with multiple locations across the US and further afield can collaborate on recruitment, talent acquisition, employee relations, and other HR functions such as payroll and remittance.

This is a vast improvement on previous methods, where a business would have stored sensitive HCM information locally on one or two machines.


The Pandemic

No single corner of the business world hasn’t seen change brought about by the pandemic, and HCM is no exception. It changed the way businesses and their people work, with hybrid and remote working becoming the norm for many.

As a result, cloud-based solutions and collaboration tools such as HCM have been brought in since they allow HR and personnel teams to handle onboarding, employee communications, and payroll functions efficiently.

HCM solutions have aided the continuation of businesses’ operations and allowed them to stay connected to their employees during a time of real upheaval.

Having experienced the benefits of HCM, the business world welcomes these solutions in increasing numbers. By the end of this year, Gartner predicts organisations will retain the majority of solutions deployed to support new ways of working.


If you’d like to join the ranks of the many businesses that have embraced HCM solutions to streamline and manage their HR processes, contact one of our team today.