GVR Report cover Talent Management Software Market Size, Share & Trends Report

Talent Management Software Market Size, Share & Trends Analysis Report By Solution, By Deployment (Cloud, On-premise), By Application, By Region, And Segment Forecasts, 2018 - 2025

  • Report ID: GVR-1-68038-330-0
  • Number of Pages: 90
  • Format: Electronic (PDF)

Report Overview

The global talent management software market size to be valued at USD 24.03 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 15.1% during the forecast period, owing to its growing application scope in almost all the human capital-centric industries. The industry is undergoing a facelift with many new technologies disrupting the workforce management in organizations, of which cloud and data analytics are the most prominent ones. A rapid shift toward web-based applications and digitization is the major driver for the increased demand for software solutions, whereas the rate at which different industries are adopting talent management tools and solutions is further anticipated to result in the influx of new and enhanced tools in the marketplace.

Talent Management Software Market size, by deployment

The industry is expanding at a rapid rate owing to many reasons including extensive research and development activities, an optimistic investment landscape, and the increasing interest of large technology companies in the industry developments.

The demand for various products is also a vital factor in shaping the future trends as some companies are looking for standalone capabilities, such as performance management or recruitment management, whereas large organizations are in search of solutions that offer all the necessary functionalities under one integrated offering.

Talent Management Software Market Trends

The market is increasing due to changing trends such as an increasing number of users on social media, and the cloud. The popularity of SaaS HR tools is growing, with talent management systems leading to the growth of the market. These developments are well-nurtured and incorporated into other mobile apps by syncing with social media tools, which increases the overall usage of talent management software.

Employee engagement features are projected to drive the growth of the talent management software market. Effective recruitment, learning, and development practices increase employee engagement. Talent management functionality, such as creative performance management, is crucial for increasing employee engagement. Delivering fast quarterly and annual employee engagement surveys, and data gathering that allows to be swiftly connected with other data, are examples of related technology that can aid in the effectiveness of employee engagement activities.

However, there are some restraints impeding the growth of the talent management software industry such as a lack of awareness of the benefits of the software. Furthermore, the expenditure on talent management is massive in terms of investment, time, and money. The use of technology to map talent at all levels of the business is required for talent management, which is expensive as well. Moreover, due to the resource scarcity, most businesses find challenging to invest in innovative technologies. As a result, talent management systems are accepted by a limited enterprise which hinders the growth of the market.

The use of social media platforms is on the rise, which is opening up new opportunities for the worldwide market. To meet business needs, many apps and social media platforms are working with talent management software. In addition, due to the pandemic, demand for talent management software is anticipated to increase. Employees worked from home during the pandemic, as a result, all firms relied on talent management software for their operations.

Solutions Insights

The industry, through its diverse solutions, has created a mosaic of offerings and products, which can be segregated into recruitment management, compensation management, employee lifecycle management, learning and training management, and performance management. Of these, the employee lifecycle management has the largest share in the market, which can be attributed to an increasing shift toward employee engagement and not just mapping but also retaining their work.

Compensation management is expected to exhibit the highest growth followed by the learning and training management segment. Compensation management has witnessed some radical changes in recent years with employee participation and data analysis coming to the forefront, which is driving the demand for these solutions.

Deployment Insights

Talent management software solutions are deployed either by on-premise or through the cloud infrastructure. The increasing popularity of cloud-based services is driving the growth of the segment as it offers many additional benefits such as on-demand services, flexibility, and agility of the solutions. Though the on-premise segment dominates the market today, the coming years are expected to witness an even greater number of organizations opting for cloud-based solutions and services.

Application Insights

The talent management software market has been witnessing an influx of numerous solutions in recent years, which can be attributed to the increasing demand from a diverse set of industries. The IT and telecom sector held the largest market share in 2015 but is expected to be overtaken by the banking, financial, and insurance sector by 2025.

Talent Management Software Market share, by solution

The demand for solutions in the BFSI segment is driven by the changing dynamics of employee relations and the growing dependence on digitization for management in the domain. The healthcare segment has been witnessing an increase in the demand for acquiring and retaining skilled manpower, which is anticipated to aid in the growth of human capital management tools in the segment. The segment is expected to exhibit a growth rate of 16.6% over the forecast period.

Regional Insights

The North American region has the largest share in the market, owing to a greater technological adoption as well as the availability of technical know-how about the industry. The region is anticipated to maintain its dominant position over the forecast period.

Talent Management Software Market Trends by Region

The Asia Pacific region is predicted to witness a rather high growth rate in the coming years due to the region’s propensity to adopt new and upcoming technologies. Also, a radical shift in the very fabric of organizational management in the region is driving the demand in the developing countries.

Key Companies & Market Share Insights

The industry is fragmented in nature with the presence of large as well as small companies offering a varied range of products. While some companies offer integrated solutions in the business, others cater to a niche market or provide specific functionalities as products or services. The major players include IBM Corp., Oracle Corp., SAP SE, Peoplefluent, Inc., Cornerstone OnDemand Inc., Haufe Group, Lumesse AS, DelTek Inc., Saba Software Inc., and Halogen Software Inc.

Recent Developments

  • In May 2022, EY and IBM announced a new program that helps businesses and organizations identify some of the most demanding workforce challenges, such as employee recruitment, retention, and upskilling, as well as the need to incorporate HR systems technology at pace and scale.

  • In May 2022, TriHealth, one of Greater Cincinnati's leading integrated health systems, has elected Oracle Fusion Cloud Human Capital Management (HCM) to integrate and streamline its existing HR systems. The company's HR staff will be able to minimize manual processes to improve employee engagement using Oracle Cloud HCM, allowing its more than 13,000 employees and physicians to waste considerable time on administrative activities and more time taking care of patients.

Talent Management Software Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 44.3 billion

Revenue forecast in 2025

USD 24.03 billion

Growth Rate

CAGR of 15.1% from 2018 to 2025

Base year for estimation

2015

Historical data

2015

Forecast period

2018 - 2025

Quantitative units

Revenue in USD million & CAGR from 2018 to 2025

Report coverage

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

Segments covered

Solution, deployment, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; UK; Germany; Japan; China; India; Brazil

Key companies profiled

IBM Corp.; Oracle Corp.; SAP SE; Peoplefluent; Inc.; CornerStone OnDemand Inc.; Haufe Group; Lumesse AS; DelTek Inc.; Saba Software Inc.; Halogen Software Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Global Talent Management Software Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2015 to 2024. For the purpose of this study, Grand View Research has segmented the global talent management software market on the basis of type, application, and region:

Global Talent Management Software Market Segmentation

  • Solution Outlook (Revenue, USD Million; 2014 - 2025)

    • Recruiting Management

    • Compensation Management

    • Employee Lifecycle Management

    • Learning and Training Management

    • Performance Management

  • Deployment Outlook (Revenue, USD Million; 2014 - 2025)

    • On-Premise

    • Cloud

  • Application Outlook (Revenue, USD Million; 2014 - 2025)

    • BFSI

    • Retail

    • IT & Telecom

    • Healthcare

    • Government

    • Education

    • Others

  • Regional outlook (Revenue, USD Million; 2014 - 2025)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa (MEA)

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