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Home Artificial Intelligence

Robotic Process Automation (RPA) Integration Fuels Growth In Human Capital Management Market: A Key Factor Shaping the Future of the Human Capital Management Market in 2025

March 7, 2025
in Artificial Intelligence, OpenPR, Web3
Reading Time: 8 mins read
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Human Capital Management

Human Capital Management

How Are the key drivers contributing to the expansion of the human capital management market?
The human capital management market is projected to expand considerably due to the incorporation of robotic process automation (RPA). RPA, which employs software robots to automate recurring tasks, brings numerous benefits such as time proficiency, an enhanced emphasis on staff development, retention, and enforcement of policy. The repetitive tasks such as compensation control, payroll administration, new employee onboarding, and compliance reporting in human capital management are streamlined by RPA. As an illustration, in January 2024, Flobotics, a software firm based in the US, revealed that by 2022, 85% of large and very large enterprises had embraced Robotic Process Automation (RPA). Consequently, the assimilation of robotic process automation is spurring the growth of the human capital management market.

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What growth opportunities are expected to drive the human capital management market’s CAGR through 2034?
In recent times, the size of the human capital management market has experienced rapid expansion. The market, which was at $23.89 billion in 2024, is expected to rise to $26.31 billion in 2025, indicating a compound annual growth rate (CAGR) of 10.1%. The considerable increase in its size during the historic period can be traced back to the emergence of cloud-based HR management software, a substantial rise in the e-commerce sector, and accelerated globalization.

In the forthcoming years, the human capital management market is poised for swift expansion, with predictions indicating it will balloon up to $39.32 billion by 2029, demonstrating an impressive compound annual growth rate (CAGR) of 10.6%. The escalation during the projected period is correlated with the higher adoption of cloud-centric strategies, burgeoning urbanization, and amplified investments. AI-enabled talent hunting, technological leaps in the sector, product novelty, video-based recruitment, learning experience platforms (LEPs), and platforms bettering employee productivity are some of the key trends anticipated during this forecast period.

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How are the latest trends influencing the growth of the human capital management market?
Key players in the human capital management market are putting their efforts into creating enhanced technologies and automated systems to make tasks easier. The term HR technology applies to a range of software and tools devised to improve and simplify processes in human resources, such as recruitment, payroll, performance evaluation, employee involvement, and regulations compliance, all with a view to boosting the efficiency and effectiveness of HR operations within companies. For example, in September 2024, ADP, an American human capital management solutions firm, rolled out ADP Lyric HCM. This is a versatile Human Capital Management platform that couples sophisticated HR technology with GenAI to upgrade employee experiences on a global scale. Tailored to meet the needs of large corporations, Lyric presents immediate insights and custom services to cater to the evolving demands of today’s workforce.

Which growth-oriented segments of the human capital management market are leading the industry’s development?
The human capital management market covered in this report is segmented –

1) By Component: Software, Services
2) By Deployment Model: On-Premises, Cloud
3) By Organization Site: Small And Medium-sized Enterprises, Large Enterprises
4) By Vertical: Banking, Financial Services, And Insurance, Government, Manufacturing, Telecom And IT, Consumer Goods And Retail, Healthcare And Life Sciences, Energy And Utilities, Transportation And Logistics, Other Verticals

Subsegments:
1) By Software: Talent Management Software, Payroll Management Software, Workforce Management Software, Recruitment And Applicant Tracking Systems
2) By Services: Consulting Services, Implementation Services, Training And Support Services, Outsourcing Services

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What regions are leading the charge in the human capital management market?
North America was the largest region in the human capital management market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the human capital management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What companies are at the forefront of innovation in the human capital management market?
Major companies operating in the human capital management market include Automatic Data Processing (ADP) Inc, Oracle Corporation, SAP SE, Paycom Software Inc, Ceridian HCM Holding Inc, Microsoft Corporation, Ultimate Kronos Group, Workday Inc, IBM Corporation, Paylocity Corporation, CareerNet, Global InnovSource, IKYA Human Capital, Kelly Services, China International Intellectech Co., Ltd., Huisi Group, Horizons, Scaleup Consulting, Sapience Pro, HROne, Anhui Tiancheng Technology Co., Ltd, Arcoro GmbH, Platri IT GmbH, Gini Talent, INKUBIT Business Solutions GmbH, DevsData Tech Talent LLC, The Stakeholder Management Group, Prabisha Consulting, Ingold Solutions GmbH, Leinonen Group, ManpowerGroup, Brainpower, Unistaff Payroll Company, Unity Business Solutions, ABU Accounting Services, UCMS Group, Rufil Russia Consulting, Coleman Services, Paychex, Inc, People Hum, Volaris Group, Black Mountain HR, Talentor, Grant Thornton’s, Infor, RSM, Maof Group, Capterra, Houlihan Lokey, Finesse, Ramco Systems, Azdan, Apploye, Nexus Busines Solution, Sage, Syspro, Monday.com, QuickBooks

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What Is Covered In The Human Capital Management Global Market Report?

• Market Size Forecast: Examine the human capital management market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the human capital management market for a structured understanding.
• Key Players Overview: Analyze major players in the human capital management market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the human capital management market.
• Segment Contributions: Evaluate how different segments drive overall growth in the human capital management market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the human capital management market.
• Industry Challenges: Identify potential risks and obstacles affecting the human capital management market.
• Competitive Landscape: Review strategic developments in the human capital management market, including expansions, agreements, and new product launches.

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