The Global Talent Management Software (TMS) Market was valued at USD 6.19 billion in 2020 and is expected to reach ~USD 18 billion by 2028 at a CAGR of +14% from 2021 to 2028.
The growth in the market can be attributed to the increasing demand for TMS software by organizations to manage employee performance, recruitment, learning, and development activities. Additionally, the rising adoption of cloud-based TMS solutions is expected to further drive market growth.
The Talent Management Software (TMS) Market is highly competitive and fragmented. Some of the key players in the market include.
The major trends and drivers affecting the Talent Management Software (TMS) Market include the increasing demand for cloud-based solutions, rising adoption of mobile devices, and the need for automation in HR processes. Additionally, the growing focus on employee engagement, talent retention, and development is driving the adoption of TMS solutions. Moreover, the increasing use of data analytics and machine learning is expected to transform the way organizations manage their talent.
The opportunities in the Talent Management Software (TMS) Market include the increasing adoption of TMS solutions by SMEs, rising demand for integrated talent management solutions, and growing need for real-time performance monitoring. However, the market faces several threats such as high implementation costs, the risk of data breaches, and the lack of skilled professionals to manage TMS solutions.
The Talent Management Software (TMS) Market is subject to various regulatory and legal issues such as data privacy and security regulations, compliance with labor laws, and anti-discrimination laws. The growing focus on data privacy and security is expected to lead to the adoption of strict data protection regulations, which may increase compliance costs for TMS vendors. Additionally, the increasing focus on diversity and inclusion is expected to lead to the adoption of solutions that promote fair and unbiased talent management practices.
The target demographics of the Talent Management Software (TMS) Market include large enterprises, SMEs, and government organizations. The preferences and behaviors of these demographics include the need for customized solutions, ease of use, and scalability. The pricing trends in the TMS market vary across different segments and are influenced by factors such as the level of functionality, deployment model, and vendor pricing strategies. Generally, cloud-based TMS solutions are priced on a subscription basis, while on-premise solutions are priced on a perpetual license basis.
The Talent Management Software (TMS) Market is expected to witness significant growth in the coming years, driven by factors such as the increasing adoption of cloud-based solutions, rising demand for automation in HR processes, and the growing focus on employee engagement and talent development. However, the market faces several challenges such as high implementation costs and the risk of data breaches. Companies such as SAP SuccessFactors, Oracle Corporation, and Cornerstone OnDemand are leading players in the market, focusing on product innovation and strategic partnerships to strengthen their global market position. The target demographics for TMS solutions include large enterprises, SMEs, and government organizations, with pricing trends varying across different segments based on factors such as functionality and deployment model. As the market evolves, it is expected that the focus on data privacy and security, diversity and inclusion, and the use of data analytics and machine learning will continue to shape the future of the Talent Management Software (TMS) Market.