The Global Talent Management Software Market size is expected to reach $19.4 billion by 2030, rising at a market growth of 11.4% CAGR during the forecast period.
Employee lifecycle management software demand may be influenced by the growth of remote work and the need for digital team management solutions. Hence, the Employee Lifecycle Management segment will capture approximately 2/5th share in the market by 2030. There is a growing need for software solutions which can streamline and automate many elements of personnel management as firms look to improve their HR operations. Talent management software provides robust solutions for performance management, development & learning, and succession planning, enabling companies to increase employee engagement, recognize high-potential individuals, and develop a continuous growth and development culture.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. In June, 2023, Cornerstone OnDemand, Inc signed an agreement with Skillsoft to acquire SumTotal to deliver its services to a larger number of customers and help the organizations to identify talent and maintain workload efficiently. Additionally, in November, 2021, Workday came into an agreement to acquire VNDLY to offer its customers to manage their workforce dynamics.
Based on the Analysis presented in the KBV Cardinal matrix; Oracle Corporation is the forerunner in the Market. Companies such as SAP SE, IBM Corporation, and The Sage Group plc are some of the key innovators in the Market. In December, 2019, The Sage Group plc completed the acquisition of CakeHR to develop Sage Business Cloud to boost its native cloud services for small businesses and enhance its SaaS vision.
The increasing use of mobile-based personnel management systems and cloud-based platforms is one of the key factors fueling the growth of the market. Software-as-a-Service (SaaS) platforms are used by organizations and HR professionals to automate the identification, hiring, and retention of people from talent pools. Companies use talent management software more widely due to the growing demand to streamline HR processes. In light of this, the demand for talent management software will grow as a result of the rising technology innovation to simplify hiring.
The growing focus on employee engagement and retention is a significant factor boosting this market. Organizations recognize the significance of effectively managing and cultivating talent to maintain a competitive edge. Software programs for managing performance, learning and improving, and advancing one's career are becoming increasingly crucial as companies seek to keep and attract pinnacle skills. As a result of this increased focus on employee engagement and retention, the talent management software will be more in demand. Due to this, the market is expected to grow during the projection period.
Most businesses still have a long way to go before implementing talent analytics, even though data and analytics have long been utilized to make wise business decisions. A lack of awareness of the advantages of talent management software significantly hampers the expansion of the market. Lack of knowledge of talent management software's benefits is a significant barrier to the market's growth. Additionally, talent management may have substantial resources, time, and financial implications. Due to SMEs' limited adoption of talent management systems, market expansion will be constrained.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions.
By application, the market is segmented into IT & telecom, BFSI, government, healthcare, education, manufacturing, and others. In 2022, the IT & telecom segment dominated the market with maximum revenue share. Due to fierce digital competition, an unstable economy, and a new generation of customers with specific information and high expectations, this segment is experiencing enormous difficulties. As a result, there is a significant need for a highly skilled workforce and cutting-edge recruiting strategies. Platforms for talent management provide comprehensive insights and effective business strategies in response to the demand for suitable criteria.
By solution, the market is classified into performance management, learning & training management, compensation management, employee lifecycle management and recruiting management. The compensation management segment acquired a substantial revenue share in the market in 2022. In recent years, compensation administration has undergone radical changes, with employee participation and data analysis assuming a prominent position, increasing the demand for these solutions. The segment for compensation management software is anticipated to be driven by the rising demand for automated compensation management processes, which streamline administrative procedures by reducing errors brought on by manual work and saving organizations money & time while enhancing efficiency and productivity.
On the basis of deployment, the market is categorized into cloud and on-premise. The cloud segment garnered a significant revenue share in the market in 2022. Cloud-based solutions are widely used because they provide advantages, including on-demand services, adaptability, and agility. Other benefits of cloud-based services and solutions are regular software upgrades, expanded dashboards & analytics and improved user experience. The segment's expansion is driven by the rising popularity of cloud-based services, which provide numerous additional advantages like on-demand services, flexibility, and agility of the solutions.
Report Attribute | Details |
---|---|
Market size value in 2022 | USD 8.3 Billion |
Market size forecast in 2030 | USD 19.4 Billion |
Base Year | 2022 |
Historical Period | 2019 to 2021 |
Forecast Period | 2023 to 2030 |
Revenue Growth Rate | CAGR of 11.4% from 2023 to 2030 |
Number of Pages | 286 |
Number of Table | 403 |
Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Companies Strategic Developments, Company Profiling |
Segments covered | Solution, Deployment, Application, Region |
Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
Growth Drivers |
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Restraints |
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Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region acquired a significant revenue share in the market. The market's expansion can be partly attributed to the organization’s growing acceptance of cutting-edge technologies. The demand for the product is driven in industrialized nations by a dramatic shift in organizational management technologies. In Japan, India, and Australia, SMEs are anticipated to encourage the adoption of this software due to active ecosystems. On the other hand, large companies in IT & telecom, BFSI, manufacturing, education, and other industries are anticipated to generate substantial revenue.
Free Valuable Insights: Global Talent Management Software Market size to reach USD 19.4 Billion by 2030
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Cornerstone OnDemand, Inc., Workday, Inc, Trakstar, Cegid, Bamboo HR LLC., Oracle Corporation, SAP SE, IBM Corporation, The Sage Group plc, and 15Five, Inc.
By Solution
By Deployment
By Application
By Geography
This Market size is expected to reach $19.4 billion by 2030.
Technological Innovations to Simplify Hiring Process are driving the Market in coming years, however, Lack of Awareness Among SMEs restraints the growth of the Market.
Cornerstone OnDemand, Inc., Workday, Inc, Trakstar, Cegid, Bamboo HR LLC., Oracle Corporation, SAP SE, IBM Corporation, The Sage Group plc, and 15Five, Inc.
The expected CAGR of this Market is 11.4% from 2023 to 2030.
The On-premise segment is leading the Market by Deployment in 2022; thereby, achieving a market value of $10.0 billion by 2030.
The North America region dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $6.7 billion by 2030.
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