Top 10 HCM Software Vendors, Market Size and Market Forecast 2018-2023

Worldwide HCM Applications Market to reach $29.4 billion by 2023, compared with $25.9 billion in 2018 at a compound annual growth rate of 2.6%

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In 2018, the top 10 HCM software vendors accounted for 43.4% of the global HCM applications market which grew 6.9% to approach $25.9 billion in license, maintenance and subscription revenues.

Last year SAP (and SuccessFactors) was No. 1 with a 8.4% market share riding on a 4% jump in HCM license, maintenance and subscription revenues. Workday was #2 followed by Microsoft, ADP and Oracle.

We ask the simple question: Who’s buying HCM applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)

Exhibit 1 - 2018 HCM Applications Market Shares Split By Top 10 HCM Vendors and Others
Exhibit 1 – 2018 HCM Applications Market Shares Split By Top 10 HCM Vendors and Others

Through our forecast period, the HCM applications market size is expected to reach $29.4 billion by 2023, compared with $25.9 billion in 2018 at a compound annual growth rate of 2.6%.

Exhibit 2: Worldwide HCM Software Market 2018-2023 Forecast, $M
Year201820232018-2023 CAGR, %
Total25966294512.6%

Source: Apps Run The World, December 2019

Top 10 HCM Software Vendors

Human capital management includes such functions as eRecruiting (applicant tracking), Onboarding (employee profile), Performance Management (assessment, goal management, succession planning), Core HR (personnel administration, benefits, compensation management, payroll), Workforce Management (absence management, activity tracking, scheduling, time and attendance), and eLearning (learning management system).

Here are our forecast assumptions for the HCM applications market. Talent shortages, demographic shifts, contingent labor surges are reshaping the global workforce as firms of all sizes revamp their HR systems to better acquire, retain and source a new generation of employees. For more on our forecast assumptions, please visit our Quarterly Win/Loss Analysis Scoreboard and our Enterprise

Here are the rankings of the top 10 HCM applications vendors in 2018 and their market shares.

RankVendor2017 HCM Apps Revenues, $M2018 HCM Apps Revenues, $MYoY Growth2018 HCM Market Share, %Recent Developments
1SAP Subscribe Subscribe4.0% SubscribeSuccessFactors is planning to identify and close the employee experience gap with SuccessFactors HXM, a AI/ML powered platform that will combine the O-Data, the operational data from SuccessFactors and X-Data, the experience data from Qualtrics, SAP’s recent $8 billion acquisition.
2Workday Subscribe Subscribe33.4% SubscribeWorkday has more than 2,800 customers and over 40 million users, more than 70% of which are live and in production, ranging from mid-sized businesses to more than 35% of the Fortune 500 and half of the Fortune 50.
3Microsoft Subscribe Subscribe14.4% SubscribeAs Microsoft has set its goal of reaching $20 billion in Cloud recurring revenues by end of its fiscal 2018, a combination of organic growth and the acquisition of LinkedIn could give the vendor a leg up its competitors.
4ADP Subscribe Subscribe7.6% SubscribeADP Acquired Celergo for global payroll and WorkMarket for contingent labor management in 2018.
5Oracle Subscribe Subscribe4.3% SubscribeOracle’s ERP and HCM applications reaches annualized SaaS revenues of $2.6 billion, up more than 25%. Oracle also acquired Iridize for personalized and contextual user onboarding and training for cloud applications.
6Ultimate Software Subscribe Subscribe24.3% SubscribeIn 2019, Ultimate customer count topped 6,600, up from 2,800 in 2015. In May 2019, Ultimate was acquired by Hellman & Friedman.
7Kronos Incorporated Subscribe Subscribe7.5% SubscribeKronos announced $1.4 billion in FY18 revenues, up from $1.3 billion in FY17. More than 33,000 customers now run Kronos Cloud, up from 24,000 a year ago.
8Ceridian Subscribe Subscribe32.2% SubscribeBoth Dayforce and Powerpay have seen robust double-digit gains since Ceridian went public. In October 2018, Ceridian launched new succession planning capabilities to round out its talent management suite.
9Paycom Subscribe Subscribe30.7% SubscribeIn November 2018, Paycom launched a sophisticated machine learning (ML) technology with its Employment Predictor technology, giving an employer greater insight into employees at risk of leaving its organization, based on a proprietary algorithm.
10Cornerstone OnDemand Subscribe Subscribe22.9% SubscribeIn 2018, Cornerstone OnDemand acquired Grovo for microlearning solutions
Subtotal Subscribe Subscribe15.0% Subscribe
Other Subscribe Subscribe1.3% Subscribe
Total Subscribe Subscribe6.9% Subscribe

Source: Apps Run The World, December 2019

Other HCM software providers included in the report are: Asure Software, Beeline, Benefitfocus, Blackboard, Bullhorn, Businessolver, Campus Management, CareerBuilder, Castlight Health, Constellation Software Inc., Epicor, Equifax, Excelity Global, Field Nation, First Advantage, Freelancer, Genesys Telecommunications Laboratories, Gusto, HealthcareSource, HealthStream Inc., Hilan, HireRight, HotSchedules, IBM, iCIMS, Infor, Insperity, Inc., Instructure, Inc., Intuit Inc., iSolved Human Capital Management, Jobvite, Madison Performance Group, Meta4, Morneau Shepell Inc., P&I Personal & Informatik AG, Paychex, Paycor, Paylocity, Peoplefluent, a Learning Technologies Group Company, Roper Technologies, Inc., Saba Software, Sage, ServiceNow, SHL, SmartRecruiters, Snag, Sopra HR Software, a subsidiary of Sopra Steria, Sterling Talent Solutions, SumTotal Systems, a Skillsoft Company, Talentsoft, TOTVS, Tricor Group, Trimble, TriNet, Tyler Technologies, UNIT4, UNIT4, Upwork, Vertafore, Visier, Visma, Visma, Vitech Systems Group, WalkMe, Wolters Kluwer, Workday, WorkForce Software, LLC, Works Apps, Works Apps, Xero, Yardi, Yonyou, Yonyou, Zellis (ex NGA Human Resources UK & Ireland), Zoho Corp., Zoho Corp., Zuora and many others.

Custom data cuts related to the HCM Applications market are available:

  • Top 500+ HCM Applications Vendors and Market Forecast 2018-2023
  • 2018 HCM Applications Market By Industry (21 Verticals)
  • 2018 HCM Applications Market By Functional Market (16 Markets)
  • 2018 HCM Applications Market By Country (USA + 45 countries)
  • 2018 HCM Applications Market By Region (Americas, EMEA, APAC)
  • 2018 HCM Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
  • 2018 HCM Applications Market By Customer Size (revenue, employee count, asset)
  • 2018 HCM Applications Market By Channel (Direct vs Direct)
  • 2018 HCM Applications Market By Product

Exhibit 4 shows the enterprise applications market by functional area. The highest growth functional markets revolve around smaller segments like eCommerce, Enterprise Performance Management, Sales Performance Management and Treasury and Risk, where first movers remain less established than those that for decades have been entrenched in functional areas like ERP, CRM and PLM.

Exhibit 4 - Worldwide Enterprise Applications Market Forecast 2018-2023, By Functional Market, $M
Exhibit 4 – Worldwide Enterprise Applications Market Forecast 2018-2023, By Functional Market, $M

HCM Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database

On the buyer side, customers are investing in HCM systems based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.

Since 2010, our global team of researchers have been studying the patterns of the latest HCM software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.

What follows is a sample of our latest findings, which are being updated continuously. Each year our research team identifies tens of thousands of these HCM customer wins and losses from public and proprietary sources.

The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.

CustomerIndustryEmpl.RevenueCountryVendorNew Product
Rush EnterprisesAutomotive6700$4.86BUnited StatesADPADP Vantage HCM
Orion Marine GroupConstruction and Real Estate1200$466.0MUnited StatesADPADP Vantage HCM
SanMarConsumer Packaged Goods4000$530.0MUnited StatesADPADP Vantage HCM
LundbeckLife Sciences5119$2.62BUnited StatesBenefitfocusBenefitfocus Marketplace
Aegide-DomitysConstruction and Real Estate2300$398.0MFranceCegidCegid Talent Management Solution
OptusProfessional Services8350$6.30BAustraliaCeridianDayforce HCM
Rubio’s Coastal GrillRetail4200$1.00BUnited StatesCeridianDayforce HCM
Denver BroncosProfessional Services1400$300.0MUnited StatesCeridianDayforce HCM
Power ConstructionConstruction and Real Estate600$1.00BUnited StatesCeridianDayforce HCM
SUEZUtility90000$18.36BFranceCornerstone OnDemandCornerstone HR Suite
University of GeorgiaEducation18725$1.60BUnited StatesCornerstone OnDemandCornerstone Learning Suite
University of TennesseeEducation9744$1.70BUnited StatesCornerstone OnDemandCornerstone Learning Suite
Press Ganey AssociatesHealthcare996$100.0MUnited StatesHealthStreamHealthStream Learning Center
ArcBestDistribution13000$28.21BUnited StatesIBMIBM Watson Talent Frameworks
Goodwill of North GeorgiaMedia3000$143.0MUnited StatesIBMIBM Watson Talent Frameworks
AmTrust Financial ServicesBanking and Financial Services9300$5.96BUnited StatesiCIMSiCIMS Recruit Applicant Tracking System
Southeastern GrocersRetail66000$10.50BUnited StatesiCIMSiCIMS Recruit Applicant Tracking System
NorthStar AnesthesiaHealthcare2465$446.0MUnited StatesiCIMSiCIMS Recruit Applicant Tracking System
Mackenzie HealthHealthCare2900$300.0MCanadaKronosKronos Workforce Dimensions
Best MarketConsumer Packaged Goods3237$300.0MUnited StatesKronosKronos Workforce Dimensions
Southcoast HealthHealthcare7400$838.0MUnited StatesKronosKronos Workforce Central
RWJUHEducation10100$1.50BUnited StatesKronosKronos Workforce Central
Ward Transport & LogisticsTransportation1500$350.0MUnited StatesKronosKronos Workforce Central
MGM Resorts InternationalLeisure and Hospitality78000$10.37BUnited StatesKronosKronos Workforce Ready
BrookstoneRetail2000$500.0MUnited StatesKronosKronos Workforce Dimensions
CHRISTUS HealthHealthcare33000$4.92BUnited StatesKronosKronos Workforce Ready
Roche BrosRetail4600$389.0MUnited StatesKronosKronos Workforce Central
University of Colorado BoulderEducation7800$1.60BUnited StatesKronosKronos Workforce Dimensions
HHS – Hospital Housekeeping SystemsHealthcare11000$600.0MUnited StatesKronosKronos Workforce Central
MercyHealthcare44000$5.00BUnited StatesKronosKronos Workforce Central
Village Of RosemontLeisure and Hospitality4236$54.0MUnited StatesKronosKronos Workforce Central
Sedano’s SupermarketsConsumer Packaged Goods3000$450.0MUnited StatesKronosKronos Workforce Central
U.S. BancorpBanking and Financial Services74000$20.04BUnited StatesNice SystemsNICE Performance Management
ArcadisConstruction and Real Estate27000$3.40BNetherlandsOracleOracle HCM Cloud
Saudi Telecom CompanyCommunication17000$13.00BSaudi ArabiaOracleOracle HCM Cloud
West Midlands PoliceInsurance10884$728.0MUnited KingdomOracleOracle HCM Cloud
Vanderbilt UniversityEducation9162$4.13BUnited StatesOracleOracle HCM Cloud
UW HealthHealthcare18000$2.90BUnited StatesOracleOracle HCM Cloud
Southwestern EnergyOil and Gas2597$3.13BUnited StatesOracleOracle HCM Cloud
Ithaca CollegeEducation1600$234.0MUnited StatesOracleOracle HCM Cloud
Office DepotRetail24067$14.50BUnited StatesOracleOracle HCM Cloud
BrightSource EnergyUtility450$13.50BUnited StatesOracleOracle HCM Cloud
StocklandConstruction and Real Estate1440$2.60BAustraliaSAPSAP SuccessFactors Employee Central
KENGEEConsumer Packaged Goods3000$500.0MChinaSAPSAP SuccessFactors Employee Central
Chimelong Group Co. Ltd.Leisure and Hospitality10000$950.0MChinaSAPSAP SuccessFactors Employee Central
Grupo QAutomotive2400$500.0MEl SalvadorSAPSAP SuccessFactors Employee Central
Grupo QAutomotive2400$500.0MEl SalvadorSAPSAP SuccessFactors Employee Central
Kesko OyjRetail23173$10.68BFinlandSAPSAP SuccessFactors Employee Central
DEUTZConstruction and Real Estate3754$1.48BGermanySAPSAP SuccessFactors Employee Central
Mercedes-AMGAutomotive1400$7.70BGermanySAPSAP SuccessFactors Employee Central
Boehringer IngelheimLife Sciences50000$21.14BGermanySAPSAP SuccessFactors Employee Central
CommerzbankBanking and Financial Services48743$9.94BGermanySAPSAP SuccessFactors Employee Central
Apleona GmbHConstruction and Real Estate22000$2.00BGermanySAPSAP SuccessFactors Employee Central
Teva PharmaceuticalsLife Sciences57000$22.39BIsraelSAPSAP SuccessFactors Employee Central
Intesa Sanpaolo S.p.A.Banking and Financial Services96892$7.35BItalySAPSAP SuccessFactors Employee Central
SberbankBanking and Financial Services270000$15.37BRussiaSAPSAP SuccessFactors Employee Central
SberbankBanking and Financial Services270000$15.37BRussiaSAPSAP SuccessFactors Employee Central
TelefónicaCommunication125000$11.95BSpainSAPSAP SuccessFactors Employee Central
TelefónicaCommunication125000$11.95BSpainSAPSAP SuccessFactors Employee Central
L’Occitane en ProvenceConsumer Packaged Goods8630$1.32BSwitzerlandSAPSAP SuccessFactors Employee Central
Arvato Financial Solutions UKProfessional services3500$1.00BUnited KingdomSAPSAP SuccessFactors Employee Central
Associated British PortsTransportation2432$550.0MUnited KingdomSAPSAP SuccessFactors Employee Central
Arvato Financial Solutions UKProfessional services3500$1.00BUnited KingdomSAPSAP SuccessFactors Employee Central
Pets at HomeDistribution7500$1.11BUnited KingdomSAPSAP SuccessFactors Employee Central
Associated British PortsTransportation2432$550.0MUnited KingdomSAPSAP SuccessFactors Employee Central
City Football GroupMedia800$636.0MUnited KingdomSAPSAP SuccessFactors Employee Central
Welcome BreakConsumer Packaged Goods4500$834.0MUnited KingdomSAPSAP SuccessFactors Employee Central
MicrosoftProfessional services131300$110.00BUnited StatesSAPSAP SuccessFactors Employee Central
ZS AssociatesProfessional Services5000$850.0MUnited StatesSAPSAP SuccessFactors Employee Central
CintasProfessional services41000$6.48BUnited StatesSAPSAP SuccessFactors Employee Central
Mars, IncorporatedConsumer Packaged Goods80000$35.00BUnited StatesSAPSAP SuccessFactors Employee Central
Brooks BrothersRetail5500$900.0MUnited StatesSAPSAP SuccessFactors Employee Central
General MotorsAutomotive216000$152.36BUnited StatesSkillsoftSkillport Learning Management System (LMS)
BoschManufacturing400500$89.47BGermanySmartRecruitersSmartRecruiters Talent Acquisition Suite
Conexus Credit UnionBanking and Financial Services900$170.0MCanadaUltimate SoftwareUltiPro
Phoenix SunsLeisure and Hospitality600$218.0MUnited StatesUltimate SoftwareUltiPro
Los Angeles DodgersMedia375$522.0MUnited StatesUltimate SoftwareUltiPro
United States Olympic CommitteeProfessional Services500$350.0MUnited StatesUltimate SoftwareUltiPro
Warren Equipment CompanyRetail1700$500.0MUnited StatesUltimate SoftwareUltiPro
Crescent Hotels & ResortsLeisure and Hospitality6000$1.20BUnited StatesUltimate SoftwareUltiPro
AmeriPrideRetail6000$600.0MUnited StatesUltimate SoftwareUltiPro
VELUXConstruction and Real Estate10200$2.81BDenmarkWorkdayWorkday HCM
TomTomProfessional Services4800$903.0MNetherlandsWorkdayWorkday HCM
Office Depot Europe B.V.Professional Services6500$11.60BNetherlandsWorkdayWorkday HCM
Airbus GroupAerospace and Defense134000$74.00BNetherlandsWorkdayWorkday HCM
CentricaUtility60000$36.50BUnited KingdomWorkdayWorkday HCM
Aggregate IndustriesConstruction and Real Estate4100$400.0MUnited KingdomWorkdayWorkday HCM
Denny’sLeisure and Hospitality8900$529.0MUnited StatesWorkdayWorkday HCM
Point Loma Nazarene UniversityEducation1250$300.0MUnited StatesWorkdayWorkday HCM
3MLife Sciences91000$31.70BUnited StatesWorkdayWorkday HCM
ZillowConstruction and Real Estate3334$1.08BUnited StatesWorkdayWorkday HCM
ConAgra FoodsConsumer Packaged Goods32000$17.70BUnited StatesWorkdayWorkday HCM
Cook County GovernmentGovernment22000$600.0MUnited StatesWorkForce SoftwareEmpCenter
Nebraska Furniture MartRetail5006$1.21BUnited StatesWorkForce SoftwareEmpCenter
Goodwill of Central and Southern IndianaProfessional Services3500$156.4MUnited StatesWorkForce SoftwareWorkForce Suite

Source: Apps Run The World, January 2019

Further Readings

The HCM Top 500 report series covers more than 3,000 pages of content, make sure that you don’t miss any of the 500+ profiles by becoming a subscriber. Or you can catch the highlights with the following links:

More Enterprise Applications Research Findings

Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2018 product revenues.

Their 2018 results are being broken down, sorted and ranked across 16 functional areas (from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.

Research Methodology

Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market.

We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.

Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.

The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.

The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.

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