Global Talent Management Software Market Forecast Trends - Market Size, Share, Growth Analysis Report (2024-2032)

Global Talent Management Software Market Outlook

The global talent management software market size reached approximately USD 8.05 billion in 2023. The market is projected to grow at a CAGR of 4.10% between 2024 and 2032, reaching a value of around USD 11.53 billion by 2032.

Key Takeaways

• Talent management software is increasingly integrated with AI and ML, hence enhancing personalised experiences and streamlining talent acquisition processes.

• The market is evolving with a focus on analytics integration for real-time insights and a shift towards cloud-based solutions.

• Rising remote work trends and a commitment to diversity and inclusion are shaping the talent management software market.

Talent management software can be utilised by human resource managers to track, monitor, and ensure that every employee has the right skills. By using talent management software, talent managers can detect and eliminate barriers that hamper employee development.

The talent management software market growth is influenced by several key trends. The increasing adoption of AI and machine learning is enhancing personalised employee experiences and making talent acquisition more efficient. Concurrently, the market is witnessing a surge in the integration of analytics, providing essential real-time workforce insights for better decision-making. Another significant trend aiding the market growth is the shift towards cloud-based solutions, which offer greater scalability, flexibility, and remote accessibility.

Accommodating the rising trend of remote work, the talent management software market share is also growing while emphasising mobile-friendly talent management platforms. Additionally, the market is focusing more on diversity and inclusion features, aiming to establish more equitable and varied workforce management practices.

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Key Trends and Developments

AI-driven personalisation for talent acquisition; advanced analytics for decision-making; cloud-based solutions for flexibility; and mobile optimisation for remote workforce management are positively impacting the market growth

Jan 29th 2024

The Government of Canada (GC) Digital Talent Platform was launched at the 2024 Digital Government Leaders Summit.

Nov 14th 2023

Accenture and Workday Inc. announced their collaborative effort to aid organisations adopt more skill-based talent strategies.

Sep 20th 2023

Gemspring Capital Management, LLC announced the acquisition of a majority interest in ClearCompany Holdings, Inc., a human capital management software provider.

Sep 19th 2023

Remote released its global HR platform designed to aid organisations in managing globally distributed workforces.

AI-Driven Personalisation in Talent Acquisition

Increasing adoption of AI and machine learning for personalised employee experiences and efficient talent acquisition is a major trend in the market.

Advanced Analytics for Workforce Decision-Making

The integration of analytics for real-time workforce insights and decision-making is becoming a key trend in the talent management software market.

Embracing Cloud Technology for Talent Management

The shift towards cloud-based talent management solutions for scalability, flexibility, and remote accessibility is shaping the market growth.

Mobile Optimisation for Remote Workforce Management

There is a growing emphasis on mobile-friendly talent management platforms to accommodate the rising trend of remote work and on-the-go workforce management.

The global talent management software market demand is primarily being driven by the quick adoption of web-based applications and digitisation. The market is also expected to expand with the support of new and improved tools due to the rapid adoption of talent management tools and solutions by organisations. As more companies are expanding their workforce to keep up with growing consumer demands, the talent acquisition software market size is likely to witness expansion in the coming years.

With the increasing use of smartphones in professional settings, talent management software is being optimised for mobile devices, allowing employees and managers to access and interact with the system anytime, anywhere.

Furthermore, recognising that each organisation has unique needs, providers are offering more customisable and modular solutions, enabling companies to tailor the software to their specific requirements.

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Market Segmentation

“Global Talent Management Software Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Solution
  • Workforce Planning
  • Talent Acquisition
  • Performance Management
  • Learning Management
• Service
  • Support and Maintenance
  • Training and Education
  • Professional Service

Talent Management Software Market Bifurcation by Deployment Mode

• Cloud

• On-Premises

Market Division by Organisation Size

• Large organisation

• Small and medium businesses

Market Breakup by Industry Vertical

• Banking, Financial Services, and Insurance

• IT and Telecommunication

• Manufacturing

• Retail

• Education

• Government

• Media and Entertainment

• Healthcare

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Cloud-based talent management software is expected to increase in demand owing to its versatility

According to the global talent management software market analysis, cloud-based systems are accessible from anywhere with an internet connection, offering greater flexibility for remote work and accessibility across multiple devices. Small to medium-sized businesses often prefer cloud solutions for their cost-effectiveness and ease of use.

However, on-premises solutions offer complete control over the software and data, which large enterprises may lean towards for enhanced control and customisation.

Talent management systems are high in demand in the IT and telecommunication sector owing to the highly competitive nature of the field

The IT and telecommunication sector is characterised by a highly dynamic and competitive environment, where the rapid pace of technological advancements necessitates continuous skill development and workforce adaptability. Talent management software plays a crucial role in facilitating this by helping to identify skill gaps, planning training programmes, and managing career development paths efficiently.

This sector also experiences a higher rate of employee turnover and a constant need for attracting and retaining top tech talent, making effective talent management systems critical for HR processes.

Meanwhile, other industries such as banking, financial services, and insurance (BFSI), manufacturing, retail, and education also utilise these tools significantly. This can be attributed to the software addressing addresses specific domain challenges, helping organisations manage their workforce more effectively, maintain compliance, and achieve operational efficiency.

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Competitive Landscape

Some of the major market players are integrating innovative technologies in talent management software to surge their capabilities:

Oracle Corporation

Oracle Corporation, a global computer technology giant, specialises in database software and technology, cloud-engineered systems, and enterprise software products. Renowned for its fully integrated cloud applications and platform services, Oracle is a pivotal player in the IT industry.

IBM Corporation

IBM Corporation, an American multinational technology company, is known for its significant contributions to hardware, software, and computing services. Pioneering AI, cloud computing, and quantum computing, IBM remains a key innovator and leader in the technology sector.

SAP SE

SAP SE, a European multinational software corporation, excels in creating enterprise software to manage business operations and customer relations. As a leader in ERP software, SAP is instrumental in streamlining processes across various industries globally.

Saba Software

Saba Software, specialising in talent management solutions, offers a comprehensive suite of learning, performance, and recruiting management systems. Its cloud-based platform is designed to empower organisations in developing, managing, and engaging their workforce effectively.

Other key players in the global talent management software market are Workday Inc., TalentQuest, LLC, Cegid Group, ADP, Inc., Ceridian HCM, Inc., Zoho Corporation Pvt. Ltd., and UKG Inc., among others.

Companies are increasingly integrating artificial intelligence, machine learning, and data analytics, propelling the talent management software market growth. AI and ML are being extensively used to enhance the functionality of talent management systems. This includes automating routine tasks, providing advanced analytics for better decision-making, and offering personalised recommendations for employee development and career planning.

Moreover, companies are leveraging big data and analytics to gain deeper insights into workforce trends and employee behaviour.

As per the talent management software market analysis, North America is anticipated to hold a substantial share in the market over the coming years owing to a growing adoption of advanced technologies. Another contributing factor in the market expansion is the strong presence of the market players like IBM Corporation, and Oracle, among others, in the region.

Meanwhile, the Asia Pacific region is likely to boost the market growth of talent management software during the forecast period. This is on account of the drastic shift in organisational management technologies in the region. The active ecosystem, coupled with the increasing number of MNCs in IT and telecom and BFSI, among other sectors, are expected to fuel the talent management software (TMS) market growth across the Asia Pacific region.

Key Highlights of the Report