North America Human Capital Management Market Size, Share & Trends Report

North America Human Capital Management Market Size, Share & Trends Analysis Report By Software, By Service, By Deployment, By Enterprise Size, By End Use, And Segment Forecasts, 2019 - 2025

  • Published Date: Sep, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-812-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 136

Industry Insights

The North America Human Capital Management Market size was valued at USD 5,218.9 million in 2018 and is expected to register a CAGR of 10.5% over the forecast period. The growing application of HCM solutions in human resources processes is expected to drive the growth of the market. Rapid advances in artificial intelligence (AI) and information technology (IT) are also expected to contribute to the growth of the market for human capital management in North America. Another factor that is expected to drive the demand for human capital management solutions is the initiatives being pursued and the aggressive investments being made in digitalizing human resources processes to enhance organizational productivity. The growing preference for HCM solutions delivered in a Software as a Service (SaaS) delivery model is further expected to propel the growth of the market for human capital management in North America.

Organizations in North America are focusing on creating a digital workplace that offers flexibility and mobility for their human capital. Some of the modern communication tools being utilized in North America for the purpose include social media, email, video conferencing, and instant messaging. However, such a paradigm shift in the business process is necessitating to centralize the human resources data of all the branches of the organization. The growing need to centralize the entire human resources data is expected to drive the growth of the HCM market in North America over the forecast period.

U.S. Human Capital Management (HCM) market

Efforts to reduce the costs associated with the human resources function are prompting organizations in North America to opt for human capital management solutions. HCM solutions help in streamlining the entire human resources process and optimizing the management of various human resources functions, such as payroll & compensation, workforce scheduling, and time & attendance management, among others. In North America, human resources functions, such as talent management, employee engagement & collaboration, recruitment, and training & development, are likely to be automated in the near future. This would allow the management and human resources staff in North America to focus on analyzing the data available with them and use for organizational development.

HCM solutions are supposed to enable easy access to human resources data. Particularly when an organization’s human resources data is decentralized across various branches, cloud-based HCM solutions can be very helpful in centralizing the human resources data. Cloud-based deployment of HCM solutions can help organizations in reducing the installation time and maintenance costs. This is expected to open potential growth opportunities for providers of cloud-based HCM solutions in North America. The increasing use of predictive analytics by organizations in talent management to improve decision making and strengthen their capital by retaining human assets is also expected to drive the growth of the market for human capital management in North America.

Software Insights

Based on software, the market for human capital management in North America has been further segmented into core HR, employee collaboration & engagement, recruiting, talent management, workforce planning & analytics, and others. The growing need to organize the large volumes of employee data being generated and the subsequently rising adoption of big data and digital technologies is prompting organizations in North America to opt for core HR tools offered under HCM solutions. Core HR tools can help in reducing labor costs, enhancing user accessibility, and increasing employee productivity. Hence, small and medium enterprises are expected to aggressively adopt core HR tools offered human capital management solutions over the forecast period.

On the other hand, the increasing adoption of big data and the rising demand for predictive analytics in North America are expected to propel the growth of the talent management segment over the forecast period. In North America, large companies having adequate capital are particularly investing some part of that capital in talent management tools offered under HCM solutions. Large companies in North America are equally adopting talent management software for sorting qualified candidates, management of talent pool, and tracking the available human capital resources within the organization. Talent management tools also help organizations in aligning the workforce with high-level objectives.

Service Insights

Based on service, the market for human capital management in North America has been further segmented into integration & deployment, support & maintenance, and training & consulting. The integration & deployment segment was valued at USD 646.9 million in 2018. In North America, the demand for integration of new human capital management solutions in the existing human resources processes has been rising lately. The segment accounted for the largest HCM market share in 2018 as a result. The implementation of new HCM systems at workplaces is also expected to drive the growth of the segment over the forecast period.

The growing adoption of data-driven decision-making practices and IoT-based technologies in HR processes is driving the demand for integration & deployment services for HCM solutions in North America. On the other hand, the evolving technology scenario in North America is triggering the need for continuous updates to human capital management solutions. As a result, the support & maintenance segment is also expected to grow at a noticeable pace. The support & maintenance segment is expected to grow over the forecast period, given that implementation of HCM systems would necessitate organizations in North America to prepare themselves for understanding the technicalities, frequent maintenance and repairs, and periodic software updates.

Deployment Insights

Based on deployment, the market for human capital management in North America has been further segmented into hosted and on-premise. Hosted deployment helps in improving cost structures and ensuring flexibility, and also facilitates in setting up a control center for coordinating and arranging human resources processes. It also allows organizations to integrate new functions, such as social media, adaptive intelligence, and mobility, within their existing HCM solutions, thereby driving the demand for hosted HCM solutions in North America over the forecast period. Various organizations are adopting hosted HCM solutions as they can be easily accessed through web browsers. Hosted deployment also eliminates the need for frequent updates to the systems.

The absence of in-house IT infrastructure and expertise often prompts organizations to opt for hosted HCM solutions and realize benefits, such as easy installation and cost savings. Hosted deployment also enables easy service delivery for human capital management vendors. However, concerns prevailing in North America over data security and initiatives to restrict access to the third parties are prompting organizations to opt for on-premise HCM solutions. As such, concerns over data security and information privacy bode well for the growth of the on-premise segment.

Enterprise Size Insights

Based on enterprise size, the North America Human Capital Management market has been segmented into large enterprises and small & medium enterprises. Large enterprises often have to confront large volumes of employee data owing to the large workforce they employ. Moreover, North America is home to several large multi-regional corporations, which are expected to aggressively adopt human capital management solutions to ease workforce management. As a result, the large enterprises segment is expected to dominate the market for human capital management over the forecast period.

The number of small & medium enterprises (SMEs) is growing in North America. Moreover, these SMEs are increasingly implementing HCM systems so that they can automate their human capital management and focus on strategic decision making. These SMEs are also gradually strengthening their IT infrastructure to digitalize their human resources processes. All these conditions bode well for the growth of the small & medium enterprises segment over the forecast period.

End Use Insights

Based on end use, the market for human capital management in North America has been further segmented into academia, BFSI, government, healthcare, IT & telecom, manufacturing, retail, and others. Globalization of IT industry has resulted in a large database of human capital and necessitated its effective management. As a result, incumbents of the IT & telecom industry in North America are increasingly adopting HCM solutions. The IT & telecom segment dominated the market in 2018 as a result.

Canada Human Capital Management (HCM) market

Managing cultural differences and maintaining a cosmopolitan workplace is very important for an organization. Hence, organizations implement various tools offered under HCM solutions to improve employee engagement and reduce the attrition rate. Incumbents of the IT & telecom industry are increasingly implementing different types of human resources tools to improve employee engagement. The IT & telecom segment is expected to grow over the forecast period as a result.

Country Insights

Based on country, the market for human capital management in North America has been further segmented into U.S. and Canada. The U.S. dominated the market in 2018 with a market size of USD 4,148.5 million. Employers in the U.S. are aggressively adopting HCM systems for effective management of employee data. Moreover, given that the U.S. is home to several HCM solution providers, the levels of awareness about HCM solutions and their benefits among organizations in the U.S. are relatively higher. Hence, companies based in the U.S. are readily adopting HCM solutions for the management of human capital.

In North America, governments are convening various events to acquaint organizations with the latest technologies being introduced in the market. Such efforts are expected to increase the levels of awareness about and boost the demand for HCM solutions in North America. For instance, in Canada, the government has embarked upon an initiative called ‘Workplace 2.0’. The initiative envisages creating a modern workplace that encourages public sector employees to work smarter.

North America Human Capital Management Market Share Insights

Key players in the market for human capital management in North America include Accenture PLC; Ceridian HCM, Inc.; Cezanne HR Ltd.; IBM Corporation; Mercer LLC; Automatic Data Processing (ADP), Inc.; NetSuite, Inc.; Kronos Incorporated; PricewaterhouseCoopers (PwC); Talentsoft; SAP SE; Oracle Corporation; Workday, Inc.; and Ultimate Software. Market incumbents are adopting various strategies, including partnerships, mergers & acquisitions, and collaborations for the development of new products and technologies. For instance, in October 2017, Ceridian HCM, Inc. launched the Dayforce Software Partner Program that can help organizations to connect to HCM-related solutions. The new software offers access to Application Programming Interfaces (APIs), thereby improving communication and saving costs.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million and CAGR from 2019 to 2025

Regional scope

North America

Country scope

U.S. and Canada

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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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 in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the North America Human Capital Management market report on the basis of 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

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