Top 10 HCM Software Vendors and Market Forecast 2016-2021

In 2016, the top 10 HCM software vendors accounted for 51% of the global HCM applications market which grew 4.9% to approach $16.4 billion in license, maintenance and subscription revenues.

Last year SAP was No. 1 with a 10% market share and $1.7 billion in HCM product revenues, riding on a 19.8% jump in license, maintenance and subscription revenues. In 2016, Workday was No. 2, followed by ADP, Oracle and Linkedin(now part of Microsoft) in that order. In 2015, the top five were SAP, ADP, Oracle, Workday and Kronos.

Through our forecast period, the HCM applications market is expected to reach $18.7 billion by 2021, compared with $16.4 billion in 2016 at a compound annual growth rate of 2.6%.

Source: Apps Run The World, December 2016

HCM Market Definitions And Forecast Assumptions

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 Applications Buyer Insight Customer Database.

Top 10 HCM Software Vendors

Here are the rankings of the top 10 HCM applications vendors in 2016 and their market shares.

Source: Apps Run The World, December 2016

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 2016-2021, By Functional Market, $M

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:

• Top 10 Core HR Vendors, Market Forecast 2015-2020, and Customer Wins
• Top 10 Talent Acquisition Vendors, Market Forecast 2015-2020, and Customer Wins
• Top 10 Workforce Management Vendors, Market Forecast 2015-2020, and Customer Wins
• Top 10 HCM Software Vendors and Market Forecast 2015-2020
• HCM Top 500 Vendors To Navigate 22 HR Software Markets In Bumpy Year
• HCM Top 500 Leaderboard Showcases Biggest HR Apps Vendors in 22 Markets
• HCM Top 500 Ranks the World’s 500 Largest HCM Software Vendors

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

On the buyer side, customers are investing in HCM applications 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.

DON’T MISS OUR CUSTOMER DATABASE

Source: Apps Run The World, August 2016