The North America human capital management market size was USD 7.77 Billion in 2022 and is likely to reach USD 19.08 Billion by 2031, expanding at a CAGR of 10.5% during 2023–2031. The growth of the market is attributed to growing applications in human resources processes.
Human capital management (HCM) provides solutions to human resource functions, which includes the benefits & perks, payroll & compensation, training & development, management of employee profile, time & attendance, and workforce analytics.
Moreover, several industry players offer solutions to cater to the need of process automation for various user types, including small & medium enterprises and large enterprises. The impact of COVID-19 has been positive on the HCM market due to rise in demand for performance management and workforce management solutions in the new era of remote working option.
Market Trends, Drivers, Restraints, and Opportunities
Rise in adoption for cloud based HCM software is one of the key factors driving the market growth.
Growing need to streamline human resource operations across the region is expected to boost the market growth of HCM software and its services in the coming years.
Issues concerning to cyber-attacks and data security presents a major restraining factor, which is anticipated to hamper the market expansion during the projected period.
Need to comply with stringent regulations by government is likely to hinder the market growth during the forecast period.
Increasing popularity for workforce analytics solution is projected to create a significant growth opportunity for the market in the near future.
Scope of North America Human Capital Management Market Report
The report on the North America human capital management market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
North America Human Capital Management Market - Industry Analysis, Growth, Share, Size, Trends, and Forecast
Deployments (On-premise and Hosted), Services (Training & Consulting, Integration & Deployment, and Support & Maintenance), Software (Recruiting, Core HR, Talent Management, Employee Collaboration & Engagement, Workforce Planning & Analytics, and Others), Enterprise Sizes (Small & Medium Enterprise and Large Enterprise), and End-users (Retail, IT & Telecom, BFSI, Academia, Government, Manufacturing, Healthcare, and Others)
The U.S. & Canada
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
IBM Corp.; Mercer LLC; Kronos Inc.; Oracle Corp.; Accenture PLC; Ceridian HCM, Inc.; Cezanne HR Ltd.; Automatic Data Processing (ADP), Inc.; NetSuite, Inc.; PricewaterhouseCoopers (PwC); Talentsoft; SAP SE; Workday, Inc.; and Ultimate Software
North America Human Capital Management Market Segment Insights
Hosted segment is expected to grow at a rapid pace
Based on deployments, the North America human capital management market is bifurcated into on-premise and hosted. The hosted segment is expected to grow at a rapid pace during the forecast period owing to the new functions, such as adaptive intelligence, social media, and mobility within their existing HCM solutions. However, the on-premise segment is anticipated to hold a key share of the market in the coming years attributed to the major adoption of the technology in the region.
Demand for new solutions in HCM to drive integration & deployment segment
On the basis of services, the market is segregated into training & consulting, integration & deployment, and support & maintenance. The integration & deployment segment is projected to expand at a considerable CAGR during the forecast period owing to increase in demand for integration of new HCM solutions in the existing human resources processes.
On the other hand, the support & maintenance segment is anticipated to account for a major market share during the forecast period due to flexibility it offers, such as frequent maintenance and repairs, technicalities, and periodic software updates.
Core HR segment is anticipated to hold significant market share
In terms of software, the North America human capital management market is segmented into recruiting, core HR, talent management, employee collaboration & engagement, workforce planning & analytics, and others.
The core HR segment is anticipated to hold significant market share in the coming years attributed to growing need to organize the large volumes of employee data being generated and the subsequently rising adoption of big data and digital technologies by organizations.
However, the talent management segment is expected to register a considerable CAGR during the forecast period due to large companies investing capital in talent management tools offered under HCM solutions.
Large workforce to drive the large enterprise segment
On the basis of enterprise sizes, the market is bifurcated into small & medium enterprise and large enterprise. The large enterprise segment is expected to hold account for major market share during the projected timeline owing to large workforce as they manage large volumes of employee data.
On the other hand, the small & medium enterprise segment is expected to grow at a significant rate due to increase in implementation of human capital management software systems, which can automate their human capital management and focus on strategic decision making.
IT & telecom segment to constitute robust market share
Based on end-users, the North America human capital management market is divided into retail, IT & telecom, BFSI, academia, government, manufacturing, healthcare, and others. The IT & telecom segment is expected to witness constitute robust market share during the forecast period attributed to large database of human capital and its effective management by HCM solutions in the region.
The U.S. is anticipated to constitute a key market share
In terms of geography, the North America human capital management market is classified as the U.S. & Canada. The U.S. is expected to constitute a key share of the market during the projected period owing to aggressive adopting of HCM systems for effective management of employee data.
However, the market of Canada is anticipated to expand at a rapid pace during the forecast period attributed to initiative by the governments for modern workplace that encourages public sector employees to work smarter.
The North America human capital management market has been segmented on the basis of
- Training & Consulting
- Integration & Deployment
- Support & Maintenance
- Core HR
- Talent Management
- Employee Collaboration & Engagement
- Workforce Planning & Analytics
- Small & Medium Enterprise
- Large Enterprise
- IT & Telecom
- IBM Corp.
- Mercer LLC
- Kronos Inc.
- Oracle Corp.
- Accenture PLC
- Ceridian HCM, Inc.
- Cezanne HR Ltd.
- Automatic Data Processing (ADP), Inc.
- NetSuite, Inc.
- PricewaterhouseCoopers (PwC)
- SAP SE
- Workday, Inc.
- Ultimate Software
Key players competing in the North America human capital management market are IBM Corp.; Mercer LLC; Kronos Inc.; Oracle Corp.; Accenture PLC; Ceridian HCM, Inc.; Cezanne HR Ltd.; Automatic Data Processing (ADP), Inc.; NetSuite, Inc.; PricewaterhouseCoopers (PwC); Talentsoft; SAP SE; Workday, Inc.; and Ultimate Software. Some of these players are actively engaged in various market development strategies, such as capacity expansion, new product launches, acquisition, partnership, collaboration, and mergers to increase their market share.
For instance, in October 2017, Ceridian HCM, Inc. introduced the Dayforce Software Partner Program, which help organizations to connect to HCM-related solutions.