The demands of managing an increasingly far-flung workforce and the need to replace legacy systems with up-to-date HCM products will drive the market value for HR management solutions to an estimated $30 billion by 2025, new research says.
According to Research and Markets, the proliferation of analytics, machine learning, AI and the Internet of Things are also pushing the HCM tech market’s growth. The company said a number of vendors are developing solutions to integrate advanced technologies into existing platforms.Report: Demands of managing an increasingly complex workforce and replacing legacy systems will drive market value for #HRTech solutions to $30B by 2025. #HR #HCM #HRTribe Click To Tweet
In addition, solutions providers have become more focused on developing products that integrate easily with mobile apps, allowing greater use of self-service tools and simpler access to information on time, attendance, leaves and performance from personal devices as well as those owned by employers.
Another contributing factor: continued adoption of cloud services, which Research and Markets expects to allow smaller enterprises to upgrade their HCM solutions.
Employers will require support from vendors after implementation, of course, and that’s expected to increase demand for the support and maintenance services at a CAGR of more than 14.0 percent between 2019 to 2025.
Increased Reliance on HCM Solutions
Among the report’s other key findings:
- The talent management software segment will grow at an estimated CAGR of over 13.5 percent because of the need to attract, recruit and retaining workers.
- Ease of integration, ease of use and reduced costs will increase demand for hosted deployment. The segment will be worth an estimated $14 billion by 2025, R&M said.
- Large enterprises will continue to drive the lion’s share of the market as organizations increase their focus on using HCM solutions to improve productivity and efficiency.
- The Asia-Pacific market will expand significantly, reaching about $7 billion by 2025.
In terms of industries, R&M predicts retail will expand the most rapidly, at a CAGR of above 13.6 percent. The sector’s rapid growth has resulted in the large-scale hiring as well as increased employee retention efforts at all levels, the report said. In their efforts to create better job roles, career paths and benefits packages, a number of companies in the business are making more use of HR technology.
Research and Market’s findings dovetail with those of most other researchers, who seem to have come to a consensus that HR’s reliance on technology has become essential to managing today’s workforce in most areas of the world. In December, for example, Brian Kropp, group vice president of Gartner’s HR practice, described CEOs as pushing HR to drive digital transformation and increase innovation throughout their organization. Employers who “get it right,” he said, “and are able to improve their innovative effectiveness can increase annual revenue by as much as $8,800 per employee.”
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