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Talent Management Software Market Size, Share & COVID-19 Impact Analysis, By Type (Talent Acquisition, Performance Management, Compensation Management, Learning Management, and Others), By Enterprise Type (Small & Medium Enterprises (SMEs) and Large Enterprises), By Deployment (Cloud and On-premise), By End-User (IT and Telecommunication, BFSI, Government, Healthcare, Education, Manufacturing, and Others), and Regional Forecast, 2023-2030

Region : Global | Format: PDF | Report ID: FBI100374

 

KEY MARKET INSIGHTS

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The global talent management software market size was valued at USD 8.14 billion in 2022. The market is projected to grow from USD 9.05 billion in 2023 to USD 20.59 billion by 2030, exhibiting a CAGR of 12.5% during the forecast period.


Talent management software is experiencing substantial technological modifications primarily driven by the introduction of mobile technology. The market is obtaining significant traction supported by dynamic human resource practices and the continuous implementation of innovative technologies. In addition, the increasing demand for hiring process automation and performance management among enterprises has driven the market growth. Key companies operating in the market are focusing on software enhancements to increase their market share. For instance,



  • In May 2020, Oracle Corporation released Oracle Analytics, a cloud-driven HCM platform, to increase company performance and enhance HR teams' decision-making capabilities.


COVID-19 IMPACT


Pandemic-induced Supply Chain Disruptions Dented the Talent Management Software Industry Growth


The short-term impact of the COVID-19 pandemic on the global market is multifaceted, depending on the distinct end-user impact. Organizations were negatively impacted by the pandemic as they were compelled to decrease their workforce, reducing hiring operations. These restrictions hampered the adoption of talent management software technologies globally.


Furthermore, organizations are projected to focus on adopting advanced technologies to boost business operations and decrease costs following the COVID-19 outbreak, which would likely generate profitable prospects. Furthermore, owing to several advantages, AI-enabled platforms will be in high demand shortly, boosting the market during the forecast period.


LATEST TRENDS


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Acceptance of Cloud-based Talent Management Solutions to Foster Market Potential


Due to digitization, organizations generate vast amounts of data, exerting pressure to exploit that data to obtain competitive advantages. Agencies are increasingly adopting cloud-based solutions to turn massive data into relevant insights. Talent management is proving to be a critical competitive advantage for key players. Furthermore, organizations are shifting to cloud-driven software, owing to flexible payment and plan options. For instance,



  • In March 2021, IBM OpenPages launched cloud-powered data privacy management software, enabling companies to resolve emerging data privacy issues.


Therefore, cloud-based solutions provide organizations with a customized model to fit their needs, including analytical functions and talent management capabilities.


DRIVING FACTORS


Streamlining Hiring Process through Technological Innovations to Boost Market Potential


One of the essential factors driving the talent management software market growth is the increasing penetration of cloud-based platforms as well as the use of mobile-based personnel management systems. Organizations and HR professionals are increasingly using Software-as-a-Service (SaaS) platforms to automate scouting, identifying, and recruiting new talent from talent pools, and retain existing personnel. Talent management software can also help streamline the hiring process, reinforce workplace culture, provide flexible learning opportunities, and identify top performers. Various technical breakthroughs, such as Machine Learning (ML) and Artificial Intelligence (AI), also expand the economy. For instance,



  • In June 2021, Trakstar, a Software-as-a-Service (SaaS) performance management and employee engagement organization, announced the merger of its modular offerings into a single Trakstar Platform. Trakstar Learn is offered for employee development, Trakstar Hire is available for better hiring and quicker onboarding, and Trakstar Perform is accessible for constant performance engagement and tracking.


Furthermore, prominent players are introducing various talent management solutions that aid in staff management and give proper development opportunities for employees. As a result of the increased need to optimize HR operations, talent management software has become more popular among companies.


RESTRAINING FACTORS


Limited Awareness of Talent Management Software Solutions among SMEs to Hinder Market Growth


Although data and analytics have long been used to make informed business decisions, most companies still have a long way to go with respect to adopting talent analytics. A lack of understanding of the benefits of talent management software is a significant factor hindering the market growth. Furthermore, the costs of talent management in terms of resources, time, and money can be significant. Talent management necessitates using tools to map out talent requirements at all levels of the organization, which can be expensive. Due to their limited resources, Small & Medium Enterprises (SMEs) find it challenging to invest in advanced technologies. As a result, limited adoption of talent management technologies across SMEs will stifle the market growth.


SEGMENTATION


By Type Analysis


Talent Acquisition Captured Maximum Market Share with Rising Demand to Boost Productivity


By type, the market is classified into talent acquisition, performance management, compensation management, learning management, and others. In 2022, the talent acquisition segment held the largest market share and was predicted to continue to grow, owing to the need for smooth onboarding, recruiting, and sourcing processes.


Furthermore, recruiting and HR teams use a performance management dashboard to manage and track the recruitment process. Thus, the rising demand for performance management dashboards is estimated to fuel the segment growth throughout the forecast period.


By Enterprise Type Analysis


Growing Integration of Talent Management Solutions with Emerging Technologies in Large Enterprises to Aid Growth


Based on enterprise type, the market has been divided into SMEs and large enterprises.


The large enterprises segment dominated the market. Large enterprises will likely integrate their talent management systems with emerging technologies to provide services such as staff headcount and working hours. These firms use analytical solutions to handle problems such as recognizing the threat of high-potential employees leaving for different countries and essential roles.


SMEs are predicted to be the early adopters of HR technologies. As a result, market participants are being forced to create economical options that produce quality and high-value outcomes. Similarly, mid-sized enterprises are projected to increase their HR technology spending in the coming years.


By Deployment Analysis


Adoption of Cloud-based Software to Rise Due to Its Beneficial Properties


By deployment, the market is segmented into cloud and on-premise.


Cloud is expected to have the largest market share. Cloud-based solutions are highly adopted as they offer benefits such as on-demand services, adaptability, and agility.


The other advantages of cloud-based services and solutions include regular software upgrades, improved user experience, and enhanced dashboards & analytics.


By End-User Analysis


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IT & Telecommunications Sector to Capture Maximum Market Share Due to Digital Competition and Unpredictable Economy


By end-user, the market has been segmented into IT & telecommunication, BFSI, government, healthcare, education, manufacturing, and others.


The IT & telecommunication segment is predicted to capture a sizable market share during the forecast period. This industry is facing tremendous problems owing to digital competition, an unpredictable economy, and a new generation of customers with precise information and high demands. As a result, there is a robust need for a highly trained workforce and advanced recruiting tactics. Talent management platforms provide complete insights and efficient business strategies to respond to the demand for appropriate criteria.


The demand for talent management solutions across the BFSI segment is driven by the changing dynamics of employee relationships and the domain's rising reliance on digitalization for managing daily operations. The healthcare industry's demand for skilled employees is increasing, contributing to the development of human capital management technologies.


REGIONAL INSIGHTS 


North America Talent Management Software Market Size, 2022 (USD Billion)

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By region, the market has been analyzed across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.


North America dominated the market and is projected to continue its dominance during the forecast period. According to a Cornerstone OnDemand, Inc. survey, North America is a potentially developed region for adopting talent management, core HR, and recruitment technologies. The presence of prominent HCM software suppliers, such as Ceridian HCM Holding Inc., Oracle Corporation, and IBM Corporation, among others, contributes to the regional market growth.


Asia Pacific is expected to record the highest CAGR. The market's growth may largely be credited to organizations’ increasing acceptance of innovative technologies. A significant shift in organizational management technologies is driving the product demand across developed countries. Due to active ecosystems, SMEs are projected to promote the adoption of this software in Japan, India, and Australia. On the other hand, large companies in IT & telecom, BFSI, manufacturing, education, and other sectors are predicted to generate significant revenue.


Europe is expected to register a significant growth rate during the forecast period. Active government initiatives and policies related to talent management may generate demand for robust talent management software for employee selection, mobility, and assessment. The European government is implementing such policies to produce a competent, skilled, adaptable, and networked workforce in the region.


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The Middle East & Africa and South America markets will likely grow steadily. IT & telecommunication, healthcare, manufacturing, and government sectors are some of the high-tech investors. As a result, it is anticipated that the number of potential consumers for this software will expand.


KEY INDUSTRY PLAYERS


Key Players Focus on Acquisitions & Mergers to Expand Market Opportunities


IBM Corporation, Cisco Systems, Inc., Talentsoft, Oracle Corporation, and CornerStone OnDemand, Inc. are the market's major participants. These players provide solutions integrated with advanced technologies such as cloud and AI. Moreover, high market competition has forced major players to implement the acquisition strategy to strengthen their positions.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • May 2022: TriHealth chose Oracle Human Capital Management (HCM) to streamline and integrate its present HR systems. This allowed TriHealth’s staff to reduce manual processes and enhance employee engagement.

  • May 2022: IBM and EY announced a program that aids organizations and businesses in identifying workforce challenges, such as employee retention, recruitment, and upskilling, and showcases the need to integrate HR systems technology at pace.

  • January 2022: Workday Inc. acquired VNDLY for USD 510 million. This acquisition allowed VNDLY to boost its value to customers by offering greater visibility, collaboration, and oversight of workforce opportunities and needs.

  • October 2021: CEIPAL launched an AI-powered solution for addressing diversity, equity, and inclusion across companies for talent management sources. This solution enabled hiring companies to simplify their workforce and hiring processes.

  • November 2020: IBM acquired Instana, a software company focused on developing application performance management software. The acquisition signified IBM’s continual investment in Big Data, hybrid cloud, and artificial intelligence (AI) capabilities.


REPORT COVERAGE


An Infographic Representation of Talent Management Software Market

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The report highlights the key regions across the globe for better user understanding. In addition, it provides an overview of the latest industry trends and analyzes the technologies being rapidly adopted worldwide. Furthermore, it highlights growth-stimulating factors and constraints, aiding the reader in obtaining in-depth knowledge of the market.


REPORT SCOPE & SEGMENTATION






























































  ATTRIBUTE



  DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Unit



Value (USD billion)



Growth Rate



CAGR of 12.5% from 2023 to 2030



Segmentation



By Type, Enterprise Type, Deployment, End-User, and Region



By Type




  • Performance Management

  • Talent Acquisition

  • Learning Management

  • Compensation Management

  • Others (Workforce Planning)



By Enterprise Type




  • Small and Medium Enterprises (SMEs)

  • Large Enterprises



By Deployment




  • Cloud

  • On-Premise



By End-user




  • IT and Telecommunication

  • BFSI

  • Government

  • Healthcare

  • Education

  • Manufacturing

  • Others (Retail, M&E)



By Region




  • North America (By Type, By Enterprise Type, By Deployment, By End-User, and By Country)

    • U.S. (By End-User)

    • Canada (By End-User)

    • Mexico (By End-User)





  • South America (By Type, By Enterprise Type, By Deployment, By End-User, and By Country)

    • Brazil (By End-User)

    • Argentina (By End-User)

    • Rest of South America





  • Europe (By Type, By Enterprise Type, By Deployment, By End-User, and By Country)

    • U.K. (By End-User)

    • Germany (By End-User)

    • France (By End-User)

    • Italy (By End-User)

    • Spain (By End-User)

    • Russia (By End-User)

    • Benelux (By End-User)

    • Nordics (By End-User)

    • Rest of Europe





  • Middle East & Africa (By Type, By Enterprise Type, By Deployment, By End-User, and By Country)

    • Turkey (By End-User)

    • Israel (By End-User)

    • GCC (By End-User)

    • North Africa (By End-User)

    • South Africa (By End-User)

    • Rest of the Middle East & Africa





  • Asia Pacific (By Type, By Enterprise Type, By Deployment, By End-User, and By Country)




    • China (By End-User)

    • Japan (By End-User)

    • India (By End-User)

    • South Korea (By End-User)

    • ASEAN (By End-User)

    • Oceania (By End-User)

    • Rest of Asia Pacific




Frequently Asked Questions

According to Fortune Business Insights, the global market size is expected to reach USD 20.59 billion by 2030.

The market value stood at USD 8.14 billion in 2022.

The market is expected to grow at a CAGR of 12.5% during the forecast period of 2023-2030.

By type, the talent acquisition segment is expected to lead the market during the forecast period.

Streamlining the hiring process through technological innovations will boost the market growth.

IBM Corporation, Cornerstone OnDemand (Saba Software, Inc.), Workday Inc., Applied Training Systems, Inc. (Trakstar), Talentsoft, and Lattice BambooHR LLC, among others are the top companies in the market.

The IT & telecommunication segment holds a significant market share in terms of end-user.

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