The global HR software market is projected to reach $9.2 billion by 2022, a CAGR of 2.4%. The growth rate masks a shift from traditional HR functions of payroll, time and attendance and benefits to the lucrative talent management sectors. These high-growth areas include recruiting, training, performance management/business intelligence and leadership/succession management as well as a shift to software-as-a-service.
While the HR software market went through an unprecedented wave of consolidation in recent years, the digital transformation is under way. The ERP software giants pursue a double strategy in acquiring HR software companies by expanding and integrating the new best-in-class HR management functionality into their comprehensive product/service offerings; and introducing broader ERP product/service offerings through HR management loophole.
Transportation and Logistics is the heavy-user of HCM solutions, according to Market & Markets. The growing technological developments in the field of Cloud, analytics and the emergence of mobile technologies have led to the high adoption of HCM solutions in major industries such as banking, financial services, insurance (BFSI), and health care.
By region, North America is expected to be the largest user of HCM solutions. The high adoption of digital technology across all major industries helps the HCM market to grow in North America, particularly in the U.S. and Canada. The market is in the emerging stage in the regions of Asia-Pacific (APAC), Latin America, the Middle East and Africa (MEA). Therefore, these regions exhibit immense scope for the adoption of HCM solutions.