North America Human Capital Management Market Analysis Report By Software, By Service, By Deployment, By Enterprise Size, By End Use And Segment Forecasts From 2019 To 2025

Industry Insights

The North American human capital management (HCM) market generated USD 5,218.9 million in 2018 and is anticipated to witness a 10.5% CAGR during the forecasted years, 2019 to 2025. This growth can be attributed to the surging need for simplifying the processes of the human resources department coupled with the emergence of IT (Information Technology) and AI (Artificial Intelligence) sectors.

Several organizations are developing digital workplaces that can provide mobility and flexibility to their employees. Many communication tools like emails, social media platforms, instant messaging, and video conferencing tools are being used across all organizations. But, the rising importance to maintain and centralize the human resource process is gaining traction. Thus, such solutions are expected to witness exponential demand across North America.     

Many organizations are focusing on reducing costs incurred in implementing human resource processes for their effective and smooth functioning. Functions such as compensations and payroll, attendance and time management, and workforce scheduling can be simplified with the usage of such solutions. Also, functions like employee collaboration, talent management, recruitment, and training can be facilitated with the adoption of such solutions.

Such solutions provide enhanced access to human resource data, thereby facilitating the centralization of human resources. Installation of such solutions with cloud technologies helps in lowering the maintenance costs and installation time. Moreover, the rising influence of predictive analytics for talent management, decision making, and human asset retention is projected to boost its market growth in the upcoming years.

Software Insights

The North American HCM market can be segmented into recruiting, employee collaboration and engagement, core HR, workforce planning and analytics, talent management, and others. The rising need for organizing employee data is driving the need for the adoption of HCM solutions. Adoption of these solutions also provides benefits like reduction in labor cost, time consumption, and enhanced employee productivity. Thus, even small & medium enterprises have started the adoption of such solutions, thereby driving the market growth.

The surging adoption of digital technologies and big data coupled with the rising popularity of predictive analytics has contributed majorly to the growth of the segment of talent management. Several large organizations are adopting these talent management tools to sort qualified candidates, track human capital resources, and manage talent pools. These factors are projected to fuel up the demand for HCM solutions across North America.

Service Insights

In 2018, the service segment of integration and deployment generated revenue of USD 646.9 Million. It held the largest market share across the North American market. This can be attributed to the surging adoption of such HCM solutions across the majority of organizations.

The service segment of support and maintenance is also anticipated to witness substantial growth in the upcoming years. This can be associated with the continuous need for maintenance and support required for such solutions. Moreover, the need for gaining technical expertise for the usage of such solutions is projected to drive market growth in the upcoming years.

Deployment Insights

The market can be segmented into on-premise and hosted based on deployment type. The hosted segment allows flexibility and control over the arrangement and coordination of human resources. Moreover, the adoption of new functions like adaptive intelligence, mobility, and social media across existing HCM solutions is projected to drive the market growth for hosted segments across North America.

Several organizations have started opting for hosted solutions due to the absence or shortage of expertise, IT infrastructure, and ease of installation. But, the rising concerns over the security of data and restrictions over the third party for accessing the data are influencing several organizations to prefer the usage of the on-premise solutions segment.

Enterprise Size Insights

The large enterprise segment dominated the market of human capital management systems owing to the generation of large volumes of their employee data. Also, the rising adoption of such HCM solutions by multinational corporations for easing workforce management is gaining traction across North America. Thus, this segment is expected to register the fastest growth in the upcoming years.

The Small & Medium Enterprises segment is also expected to possess significant growth across North America in the upcoming years. This can be associated with the surging adoption and implementation of these HCM solutions among SMEs for automating the HCM process. This adoption also assists these SMEs to focus on the implementation of several marketing strategies.

End-Use Insights

The North American human capital management market is segmented into BFSI, academia, healthcare, government, manufacturing, IT & telecom, retail, manufacturing, and others. The surging IT industry across the globe has paved the way for the demand for HCM solutions. Thus, several players across the IT & telecom industry have started the usage of such solutions.

The need for maintaining a friendly and cosmopolitan nature across several organizations is rising continuously. Thus, several organizations in the IT & Telecom industry have started implementing different HCM tools for improving employee engagement and reducing the attrition rate. These factors are anticipated to drive the demand for HCM solutions in the near future.

Country Insights

In 2018, the U.S. held the largest share across the market and generated a revenue of USD 4,148.5 million. A majority of the employers across the U.S. have started adopting such HCM systems to facilitate employee data management. As the majority of the HCM solution providers are based across the U.S., the intensity of awareness about its benefits is largely being foreseen across all organizations.

Several governmental initiatives are being undertaken for promoting the usage of advanced solutions and technologies. For example, the ‘Workplace 2.0’ initiative was undertaken by the Canadian Government. This initiative was set up for creating a well-equipped and modern workplace for promoting employees to work smartly.

COVID-19 Impact Insights

The market has been impacted positively due to the ongoing COVID-19 crisis. This can be attributed to the rising complexities in organizational workflow due to lockdown being imposed by governmental authorities and work from home policies being offered by several organizations. Further, the rising need to ensure proper communication among the employees to streamline workflow, employee engagement, and promote the hiring process has paved the way for the demand for such HCM solutions. The market is also projected to witness significant growth during the post-pandemic period for the reduction of excessive time and cost incurred during such processes.

North America Human Capital Management Market Share Insights

The key players in this market are IBM Corporation; Accenture PLC; Ceridian HCM, Inc.; NetSuite, Inc.; Oracle Corporation; SAP SE; Workday, Inc.; Ultimate Software; and Kronos Incorporated. These players are constantly engaged in implementing several marketing strategies like collaborations, acquisitions, and mergers for gaining a competitive advantage over other players. For example, in 2017, the Dayforce Software Partner Program was set up by Ceridian HCM, Inc. for providing HCM solutions to other organizations.

Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at the regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the North America human capital management(HCM) market report based on software, service, deployment, enterprise size, end-use, and country:

• Software Outlook (Revenue, USD Million, 2014 - 2025)
    • Core HR
    • Employee Collaboration & Engagement
    • Recruiting
    • Talent Management
    • Workforce Planning & Analytics
    • Others

• Service Outlook (Revenue, USD Million, 2014 - 2025)
    • Integration & Deployment
    • Support & Maintenance
    • Training & Consulting

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)
    • Hosted
    • On-premise

• Enterprise Size Outlook (Revenue, USD Million, 2014 - 2025)
    • Large Enterprises
    • Small & Medium Enterprises

• End-Use Outlook (Revenue, USD Million, 2014 - 2025)
    • Academia
    • BFSI
    • Government
    • Healthcare
    • IT & Telecom
    • Manufacturing
    • Retail
    • Others

• Country Outlook (Revenue, USD Million, 2014 - 2025)
    • U.S.
    • Canada