Grosvenor Technology rounds up the fortunes and forecasts for human capital management around the world
The Human Capital Management (HCM) market is one of the technology sectors to watch over the next ten years, driven forward by the adoption of technologies like automation and AI in the HR space and the rapid take-up of cloud-based solutions.
We’ve already covered how the US HCM market will lead the way over the next decade, but how are other major markets faring regarding sector growth?
Human Capital Management applications have gained considerable popularity in recent years across Europe, and the continent is now a significant growth area. Its sharp growth results from the growing popularity of cloud-based software and solutions. As with other regions, European enterprises have embarked on comprehensive digital transformation initiatives. The ability to centralise and simplify all HR functions and the real-time information and longer-term insights offered by cloud platforms has proven to be a compelling offering.
According to a report from ResearchAndMarkets, the German market was dominant in 2021 and is expected to solidify its position. It predicts that the German HCM market will achieve a market value of $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.
However, market analysis from Data Bridge said the following about the HCM market 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 certainly a market to keep an eye on in the coming years, with the region tipped for rapid adoption of HCM solutions, with particularly strong demand from China, Japan and India. A report from ResearchAndMarkets predicts that the region will experience CAGR growth of 8.1% from 2022-2028, driven by changes in the makeup and demands of its major economies.
“In the future years, 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 in China and India, with millions of manufacturing and service sector jobs expected to come online in the coming years. This will power increased demand for human capital management tools and technologies.
A Human Capital Management Report from Polaris Market Research offers 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.”
As in the Asia Pacific, it is the traditional economic powerhouses in South America where HCM technologies are most prominent. An Envision Intelligence report released in September 2022 looking at HCM in the region over the next six years (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.”
According to Fortune Business Insights, there will also be large-scale opportunities to tap into several thriving economies in the Middle East & Africa. In its HCM forecast for 2022-2022-2029, 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.”
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