Talent Management Software Market Size - By Solution (Recruiting Management, Compensation Management, Employee Lifecycle Management, Learning and Training Management, Performance Management), Deployment Model, Enterprise Size, End-User & Forecast, 2023 – 2032

Talent Management Software Market Size

Talent Management Software Market size was valued at USD 10.1 billion in 2022 and is projected to register a CAGR of 12% between 2023 and 2032. The shift towards remote work and the rise of distributed teams has created a need for talent management solutions that could effectively manage and engage employees across various locations, driving market expansion.  According to Upwork, by 2025, an estimated 32% of Americans will be working remotely, which equates to about 32.6 million workforces. This forecast indicates a continuous, yet gradual, shift towards remote work arrangements.
 

Integration of AI and Analytics into talent management software to enable predictive modeling, identify patterns, and enhance recruitment and performance assessment processes is positively influencing the talent management software market landscape. To that end, in January 2023, Workday announced that it was integrating its AI-powered talent intelligence platform, Workday Prism Analytics, with its talent management software. This integration will allow businesses to use AI to automate tasks, improve decision-making, and gain insights into their workforce.
 

However, implementing and integrating talent management software across an organization can be a complex process. It often involves migrating data from existing systems, configuring the software to align with the organization's processes, and providing training to employees. This complexity can result in longer implementation times, increased costs, and potential disruptions to ongoing operations, leading to sluggish market growth.
 

COVID-19 Impact

The COVID-19 pandemic significantly impacted the talent management software market. As businesses adapted to remote work and digital operations, the demand for software that could manage remote teams, track employee performance, and facilitate virtual collaboration surged. This led to increased adoption of talent management solutions, with a focus on features such as remote onboarding, skill development, and performance evaluation. The pandemic accelerated the need for flexible, cloud-based platforms to support talent management in a rapidly changing work environment, reshaping the landscape of HR technology.
 

Talent Management Software Market Trends

Companies with a global presence needed software that could handle different languages, currencies, and compliance requirements across various regions, making global talent management more efficient. Software providers globally have been focusing on innovation by adding new features, improving user interfaces, and enhancing user experiences, driving the adoption of newer and more advanced talent management solutions.
 

For instance, TalentGuard WorkforceGPT, launched in March 2023, is a first-of-its-kind innovative product designed to transform the way organizations approach upskilling, reskilling, career pathing, succession planning, performance management, and more. It leverages a customized version of OpenAI's latest GPT model, fie-tuned with a decade's worth of customer data and real-time labor market data.
 

Talent Management Software Deployment Model Market Share

The on-premises segment recorded over 58% of the talent management software market share in 2022, due to the growing emphasis on data security and customization. Organizations are seeking greater control over their HR processes and sensitive employee data, leading to a preference for on-premises solutions that offer higher levels of security and compliance with data protection regulations. Moreover, the need for tailored solutions to align with specific business workflows and the desire to integrate software seamlessly with existing systems are driving the increased demand for on-premises deployment options.
 

The IT & telecommunication segment accounted for 21% of the talent management software market share in 2022, owing to its ability to address industry-specific challenges. As these sectors experience rapid technological advancements and skill requirements evolve swiftly, the software's features for skills assessment, performance tracking, and training prove invaluable. The software streamlines recruitment by identifying candidates with specialized tech skills. Additionally, its remote work support aligns with the sector's flexible work arrangements. This has led to increased adoption, enhancing workforce agility and the ability to keep up with dynamic industry demands.
 

The North America talent management software market held more than 30% of revenue share in 2022. The region's diverse and competitive job market requires effective tools for talent acquisition, development, and retention. Stricter labor regulations and the need for compliance with data privacy laws necessitate robust software solutions. Additionally, the emphasis on data-driven decision-making and the rapid adoption of technology in HR processes contribute to the demand. As companies prioritize employee engagement and skill enhancement, talent management software becomes essential for optimizing workforce performance in this dynamic business landscape.
 

Talent Management Software Market Share

Major companies operating in the talent management software market are:

• Cornerstone OnDemand (Saba Software, Inc.),
• Workday, Inc.
• Applied Training Systems, Inc
• (Trakstar), Talentsoft, BambooHR LLC
• Oracle Corporation
• SAP SE
• IBM Corporation.

These companies are majorly focus on launching new talent management software solutions for different end-users.
 

Talent Management Software Industry News

• In July 2022, SAP acquired Qualtrics to expand its talent management capabilities and provide customers with a more comprehensive view of employee engagement and performance.
   
• In June 2022, Oracle acquired Blue Prism to expand its automation capabilities and provide customers with a more seamless way to automate their talent management processes.
   

This talent management software market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Solution

• Recruiting Management
• Compensation Management
• Employee lifecycle Management
• Learning and Training Management
• Performance Management

Market, By Deployment Model

• On-Premises
• Cloud

Market, By Enterprise Size

• SMEs
• Large enterprises

Market, By End-User

• BFSI
• Healthcare
• Government
• IT & Telecommunication
• Education
• Manufacturing
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia