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The talent management software market size is projected to increase by USD 10.69 billion, growing at a CAGR of 11.8% between 2023 and 2028. The market growth is driven by the demand for efficient solutions in talent management and recruitment processes. Additionally, the increasing adoption of cloud-based software and cloud-based workload scheduling software enhances accessibility and scalability. These factors optimize workforce management and foster organizational success globally. The talent management software market is growing rapidly as organizations seek advanced solutions and services to enhance workforce management. Cloud computing and data analytics are key drivers, enabling web-based applications for recruitment management and talent retention. Software solutions now offer comprehensive talent management tools, focusing on identifying and retaining top talent. Support and maintenance services, along with training and education, are essential for seamless integration of these systems. Companies are increasingly adopting cloud-based solutions for flexibility and scalability, allowing them to optimize talent acquisition and development processes, enhancing overall productivity and employee engagement in competitive markets.
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The market is revolutionized by the IT & telecommunication sector, leveraging technological advents and artificial intelligence (AI) to enhance real-time employee engagement. Enterprise performance management and performance improvement planning tools are crucial for SMEs, while recruiting and applicant tracking software streamline hiring processes. Social platforms foster skills development and real-time employee engagement, vital for small to medium-sized enterprises (SMEs). With advanced servers supporting these systems, organizations achieve efficient talent management, driving overall productivity. As AI continues to evolve, the integration of these tools becomes indispensable in maintaining a competitive edge in the global market.
The talent management software market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share growth by the cloud-based segment will be significant during the forecast period. The rapid digitization of businesses and the growing geographic presence of IT and retail companies will cause this segment to grow at a higher CAGR than the on-premises segment.
The cloud-based segment was valued at USD 5.60 billion in 2018. Software for cloud-based talent management is typically hosted in distant data centers, allowing users to access it online. The widespread adoption of cloud-based software is being fueled by its low upfront costs. As a result, many businesses provide SaaS-based talent management software. Real-time application performance analytics, regular security updates, global accessibility from any location, and scalability are a few advantages of cloud-based talent management software. Due to these advantages, numerous organizations have begun utilizing it. For instance, a leading construction group has implemented Oracle's human capital management (HCM) cloud to modernize its HR functionalities. Thus, such factors will drive talent management software market growth during the forecast period.
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APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
North America holds the majority share and is expected to dominate the global market during the forecast period. The rapid digitalization of industries and the growing acceptance of cutting-edge technologies are the main drivers of market expansion in the region. The IT services, healthcare, banking, and retail sectors are primarily responsible for driving demand for talent management software. Moreover, the North America talent management software market, a number of Companies compete in the global market, such as Oracle. Large, small, and medium-sized businesses, as well as a number of market players, have operations or their headquarters in the US; as a result, the workforce ecosystem for businesses there is extremely competitive. Another popular region is the United States and its K-12 talent management software market that is witnessing a steady rise, keeping the varied consumer insterests in mind.
Businesses can identify, screen, and find candidates due to the rising popularity of professional social media networks like LinkedIn and the growing use of smartphones. A popular professional social networking site, LinkedIn is growing in popularity among recruiters and job seekers as it simplifies the recruitment process. A potential candidate pool can be developed by organizations. Data from social media platforms is incorporated by talent management software and executive search services (headhunters) to give a comprehensive picture of the candidate pool and to conduct trustworthy background checks. The software is increasingly being made available as a mobile-based application for HR managers to post jobs on these apps and search for candidates from a variety of apps.
Furthermore, as it streamlines the hiring process and lowers CAPEX, cloud-based talent management software is becoming popular in the US. Companies are both launching new cloud-based products and expanding their current offerings through the cloud. For instance, Oracle Corporation introduced Oracle Analytics, a cloud-based HCM platform, in May 2020 to help HR teams make better decisions and boost business performance. As a result, the growth of the market in North America is being driven by the substantial presence and penetration of key Companies like SAP, Oracle, and others. Therefore, all of the abovementioned factors will fuel the market growth during the forecast period.
The global market offers comprehensive AI-driven HR technology solutions, including data security features and cloud computing capabilities, facilitating data analytics and web-based applications for efficient talent management across large enterprises and small to medium organizations, integrating recruiting and applicant tracking, performance management, learning and development, and planning through SaaS HR products and integrated systems. In the dynamic and competitive IT telecommunication segment, businesses require advanced talent management solutions to optimize their workforce. One such innovative offering is Workday Prism Analytics, which integrates with TalentGuard WorkforceGTP. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The demand for efficiency in talent management and recruiting is notably driving market growth. This demand arises from the evolving nature of human capital management, characterized by diverse competencies, specialized HR requirements, and sophisticated talent management practices. As job roles become more specialized, recruiters face the challenge of evaluating candidates based on specific, niche criteria, leading to time-consuming tasks such as paperwork evaluations, performance record-keeping, business accounting, training scheduling, and compensation management. Manual execution of these tasks poses the risk of errors. Consequently, organizations are turning toward it to streamline operations and mitigate human error.
In multinational corporations (MNCs), HR managers are tasked with hiring individuals who meet precise qualifications, possess specific experience levels, originate from particular academic backgrounds, fall within defined age brackets, or have completed specific courses. This hiring approach, known as competency-based recruiting, underscores the importance of human capital in driving productivity, profitability, and service quality in today's competitive market landscape. By leveraging it, HR managers can identify competency gaps that impede organizational growth. Therefore, these factors are poised to propel market growth during the forecast period.
The growing use of social media as a real-time data source for talent management software is an emerging trend in the market growth. Due to the growing global adoption of the Internet, social media usage is growing. Internet users choose online platforms to market their goods, services, or talents in order to reach a large audience. For instance, job seekers can update their profiles on online job boards where employers post open positions, such as LinkedIn Inc., Jobcase Inc., Indeed Inc., and Glassdoor Inc. More than 600 million people currently use LinkedIn. On this portal, it is estimated that more than 130 million posts are shared each month. With the proliferation of such portals, the market for online job searches is expanding rapidly. As a result, businesses are utilizing it to integrate multiple online databases and find the best employees for their business.
Using social media platforms for recruitment procedures has a number of advantages, including access to a large pool of potential applicants who haven't actually applied but are looking for work. Employers can use the databases of various social media platforms to cross-check an applicant's credentials. Therefore, many businesses and organizations are automating their hiring process by using AI in recruitment process. Hence, such factors will drive the growth of the market during the forecast period.
Lack of awareness and availability of open-source software are major challenges impeding the market growth. A suite of tools is provided by talent management software to efficiently automate, monitor, and analyze HR functions in businesses. However, one of the main factors impeding the market's expansion is a lack of awareness regarding the availability and advantages. Additionally, spending on IT for HR functions is not always welcomed by organizations, especially SMEs. Such businesses follow customary HR procedures and employ customary methods for assessing employee performance. Thus, during the forecast period, the market's growth is anticipated to be constrained by organizations' low investments in the automation of HR functions and a lack of knowledge of talent management software.
The accessibility of free and open-source talent management software is another hindrance to the expansion of this industry globally. The software is created and provided without charge by businesses or a group of developers, and it can be used for profit. Open-source software is being adopted by many organizations, including SMEs, because it allows for source code modification and offers financial advantages. These programs provide the bare minimum of functionality.
The talent management software market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the talent management software market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Furthermore, the report includes historic market data from 2018 to 2022. The talent management software market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Accenture Plc, Automatic Data Processing Inc., Avalture Ltd., Bambee Inc., Bamboo HR LLC, Bullhorn Inc., Cegid SA, Ceipal Corp., Cornerstone OnDemand Inc., HireRoad, iCIMS Inc., International Business Machines Corp., Koch Industries Inc., Learning Technologies Group Plc, Oracle Corp., SAP SE, Skillsoft Corp., Talent Guard Inc., UKG Inc., and Workday Inc.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing rapid growth driven by advancements in HR technology and data analytics. With the increasing adoption of cloud computing and web-based applications, organizations are turning to talent management tools for efficient performance management, learning management and recruitment management. These tools offer comprehensive solutions for recruiting and applicant tracking, learning and development, and data security. Integrated system provide a consolidated console for planning and managing talent across large enterprises and small and medium organizations alike. SaaS HR products further enhance accessibility and scalability, making them popular choices in the market. As businesses prioritize talent optimization, the demand for recruiting solutions and learning management platforms continues to rise.
The market is witnessing a rise in demand as organizations increasingly prioritize real-time employee engagement and efficient recruitment processes. Leveraging AI-based algorithms and machine learning (ML), these solutions enable resume screening and streamline succession planning for businesses of all sizes, particularly small and medium businesses (SMBs). With deployment options including on-cloud solutions, the software caters to various industries like IT and telecom and media & entertainment, offering comprehensive solutions and services. Professional services encompass support and maintenance, along with training and education to maximize system utilization. As companies focus on talent acquisition, identifying, and retaining talent, the market continues to evolve with technological advancements, reshaping HR practices and talent management strategies.
In today's dynamic workplace landscape, organizations are increasingly adopting learning and management systems to foster employee growth and skill enhancement. These platforms facilitate real-time employee engagement through interactive features and integration with social platforms, promoting collaboration and knowledge sharing among teams. With flexible deployment types, including on-premise and cloud-based solutions, companies can align the software with their specific needs and infrastructure. Leveraging technological advancements like AI and machine learning, these platforms enable scouting for talent within the organization, identifying skill gaps, and recommending personalized learning paths.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.8% |
Market growth 2024-2028 |
USD 10.69 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.67 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
US, Germany, India, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks, Talent Management Software Market Industry Report. |
Key companies profiled |
Accenture Plc, Automatic Data Processing Inc., Avalture Ltd., Bambee Inc., Bamboo HR LLC, Bullhorn Inc., Cegid SA, Ceipal Corp., Cornerstone OnDemand Inc., HireRoad, iCIMS Inc., International Business Machines Corp., Koch Industries Inc., Learning Technologies Group Plc, Oracle Corp., SAP SE, Skillsoft Corp., Talent Guard Inc., UKG Inc., and Workday Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period, talent management software market growth analysis. |
Customization purview |
If our talent management software market trends and analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Business Segment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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