Global Talent Management Software Market Insights Forecasts to 2032

• The Global Talent Management Software Market Size was valued at USD 8.91 Billion in 2022.
• The Market Size is Growing at a CAGR of 11.79% from 2022 to 2032
• The Worldwide Talent Management Software Market Size is Expected To Reach USD 27.15 Billion by 2032
• Asia Pacific is Expected To Grow the fastest during the forecast period

The Global Talent Management Software Market Size is Expected To Reach USD 27.15 Billion by 2032, at a CAGR of 11.79% during the forecast period 2022 to 2032.

Talent management software has its innovative features, talent management software assists organisations in managing talent acquisition, development, and retention processes. The global market is undergoing significant transformation as a result of the emergence of advanced technologies that are revolutionising workforce management within organisations. Cloud computing and data analytics are important factors in reshaping this industry. The increased demand for software solutions is being driven by the growing preference for web-based applications and digitalization. Furthermore, the rapid adoption of talent management tools and solutions across various industries is expected to result in a lack of new and improved tools hitting the market. Furthermore, the talent management software market has reinvented itself through the continuous adoption of advanced technologies and dynamic human resource practices. Next-generation performing employees, process automation, and the growing need for better performance management among organisations are driving growth in the talent management software market. Alignment of personal goals with organisational goals, team collaboration, and feedback are also important factors influencing the global talent management software market growth.

Driving Factors

One of the key factors that boosts market growth is the rising acceptance rate of cloud-based platforms, as well as the adoption of mobile-based personnel management systems. Organisations and human resource professionals are increasingly turning to software-as-a-service (SaaS) platforms to automate scouting, identifying, and acquiring new talent from talent pools, as well as retaining existing talent. A TMS also aids in the streamlining of the recruitment process, the reinforcement of workforce culture, the provision of agile learning opportunities, and the identification of top performers. Furthermore, technological advancements such as the use of machine learning (ML) and artificial intelligence (AI) are acting as growth inducers. Through transactional activities and analytical inputs, the software uses optical trackers to monitor individuals and identify market trends and patterns. Other factors, such as the growing need to replace traditional talent management methods in order to optimise resource utilisation and improve the quality of hiring decisions, are expected to drive market growth in the forecast period.

Restraining Factors        

The global talent management software market is hampered by concerns about data security and privacy. As organisations depend more on software solutions to manage sensitive employee data, there is growing concern about data breaches and unauthorised access. Organisations must ensure that talent management software providers adhere to robust security measures and strict privacy policies in the face of stringent data protection regulations, such as the General Data Protection Regulation (GDPR).

Market Segmentation

By Type Insights

The performance management segment dominates the market with the largest revenue share over the forecast period.

On the basis of type, the global talent management software market is segmented into talent acquisition, compensation management, learning management, and others. Among these, the performance management segment is dominating the market with the largest revenue share over the forecast period. Recruiting and HR teams manage and track the performance process using a performance management dashboard and demand for a smooth onboarding and smooth performance process is increasing. As a result, rising demand for performance management dashboards is expected to drive segment growth over the forecast period.

By Component Insights

The solutions segment is witnessing significant CAGR growth over the forecast period.

On the basis of component, the global talent management software market is segmented into solutions and services. Among these, the solutions segment is witnessing significant growth over the forecast period. Solutions are classified into performance management, talent acquisition, learning management, compensation management, and other categories. Onboarding, recruiting, and sourcing are all part of the personnel acquisition process such factors boost the market growth in the forecast period.

By Deployment Mode Insights

The cloud segment is expected to hold the largest share of the global talent management software market during the forecast period.

Based on the deployment mode, the global talent management software market is classified into cloud and on-premise. Among these, the cloud segment is expected to hold the largest share of the talent management software market during the forecast period. The growing popularity of cloud-based services, which provide numerous additional benefits such as on-demand services, flexibility, and agility of the solutions, is driving market growth. Cloud-based solutions are widely used because they offer benefits such as on-demand services, adaptability, and agility of solutions. Regular software updates, improved user experience, and improved dashboards and analytics are all advantages of cloud-based services and solutions.

By End-User Insights

The IT & telecommunication segment accounted for the largest revenue share over the forecast period.

On the basis of end-user, the global talent management software market is segmented into IT & telecommunication, BFSI, government, healthcare, education, manufacturing, and others. Among these, the IT & telecommunication segment dominates the market with the largest revenue share over the forecast period. This industry is facing significant difficulties as a result of digital competition, an unpredictable economy, and a new generation of customers with precise information and high demands. As a result, there is a strong demand for a highly trained workforce as well as advanced recruiting strategies. Talent management platforms provide comprehensive insights as well as effective business strategies to meet the demand for appropriate criteria.

Regional Insights

North America dominates the market with the largest market share over the forecast period.

North America is dominating the market with the largest market share over the forecast period. The diverse and competitive job market in the region necessitates effective tools for talent acquisition, development, and retention. Stricter labour regulations, as well as the need to comply with data privacy laws, necessitate the use of robust software solutions. The emphasis on data-driven decision-making, as well as the rapid adoption of technology in HR processes, all contribute to the demand. As companies prioritise employee engagement and skill development, talent management software becomes critical for optimising workforce performance in this volatile business environment.

Asia Pacific is expected to grow the fastest during the forecast period. A developing start-up culture, government incentives to adopt cloud technology, and a desire to improve employee and company performance and efficiency will drive the region's market. Furthermore, regional businesses are implementing HR analytics to develop data-driven talent strategies. As a result, the market is expected to grow significantly.

List of Key Market Players

• 15Five
• BambooHR LLC 
• IBM Corporation
• Sage Group plc
• Applied Training Systems, Inc.
• Workday, Inc
• Oracle Corporation 
• Cornerstone OnDemand
• Infor
• Kronos Incorporated 
• Ultimate Software 
• ADP, LLC

Key Market Developments

• In February 2023, SAP completed the acquisition of Qualtrics, a leader in experience management software, with the goal of integrating experience data and talent management capabilities.
• In January 2023, Cornerstone OnDemand, a provider of talent management software, launched its "Cornerstone Edge" platform, which allows customers to create, share, and sell apps on the Cornerstone Marketplace.
• In May 2022, IBM and EY announced a programme to assist organisations and businesses in identifying workforce challenges such as employee retention, recruitment, and upskilling, as well as highlighting the need to integrate HR systems technology at a rapid pace.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2032. Spherical Insights has segmented the global talent management software market based on the below-mentioned segments:

Talent Management Software Market, Type Analysis

• Talent Acquisition
• Performance Management
• Compensation Management
• Learning Management
• Others

Talent Management Software Market, Component Analysis

• Solution
• Services

Talent Management Software Market, Deployment Mode Analysis

• Cloud
• On-Premise

Talent Management Software Market, End-User Analysis

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

Talent Management Software Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa