Skills Management Software Market Share, Size, Trends, Industry Analysis Report, By Type (On-premises, Cloud-Based); By Application; By Region; Segment Forecast, 2023 - 2032
- Published Date:Oct-2023
- Pages: 115
- Format: PDF
- Report ID: PM3847
- Base Year: 2022
- Historical Data: 2019-2021
Report Outlook
The global skills management software market was valued at USD 362.18 million in 2022 and is expected to grow at a CAGR of 13.2% during the forecast period.
The growing demand for technology that eliminates bias from the application and candidate screening processes presents a significant opportunity for the skills management software market. According to a recent survey conducted by Talent Board, an overwhelming 79% of companies expressed their intention to invest in such technology. This finding underscores the increasing recognition among organizations of the need for fair and unbiased talent acquisition practices. Skills management software can play a crucial role in mitigating bias during the hiring process. By leveraging data-driven assessments and objective criteria, this software helps organizations focus on evaluating candidates' skills, qualifications, and potential rather than being influenced by subjective factors. By removing bias from the screening and selection stages, companies can foster a more inclusive and diverse workforce.
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The pressing need for transparent growth opportunities to enhance employee engagement and retention is creating significant growth potential for skills management software. Cornerstone OnDemand, a renowned provider of talent experience solutions, conducted a global research study in 2023, surveying 1,060 employers and 1,000 learners across Europe, North America, Asia. The study emphasized the increasing importance of career mobility internal growth opportunities. According to the research, 51% of employees in the Europe, Middle East, and Africa (EMEA) region believe that the best way their company can support their skill development services to grow in the future. This growing emphasis on internal growth opportunities and career mobility has created a demand for effective solutions that can facilitate skills management and support employees in their professional development journeys. As a result, the demand for skills management software is on the rise.
Industry Dynamics
Growth Drivers
Technological Advancement
This software helps organizations to know the requirements for specific job profiles, which are essential in the hiring process. Human resource management is one of the main pillars of organizational success, and in the present generation, the importance of skills management software cannot be overstated. As the workplace continues to evolve rapidly, characterized by technological advancements, shifting job requirements, and a diverse workforce, organizations must adapt and effectively manage their talent pool. Skills management software plays a crucial role in this process by providing a comprehensive solution to identify, assess, and develop the skills of employees. Furthermore, skills management processes enable senior leaders to identify any skill gaps or areas of expertise that may be lacking within the organization. By understanding the skills that are in high demand and may be scarce internally, leaders can strategically plan for talent development initiatives, such as upskilling or reskilling programs, to bridge those gaps. These benefits are creating new growth potential for the skills management software market in the coming years.
Report Segmentation
The market is primarily segmented based on type, application and region.
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By Type |
By Application |
By Region |
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By Type Analysis
Cloud-based segment is expected to witness fastest growth during forecast period
The cloud-based segment is expected to have faster growth in the market. Cloud-based solutions have revolutionized the way organizations approach infrastructure and software management. By eliminating the need for costly on-premises infrastructure and maintenance, businesses can now subscribe to cloud-based services, paying a predictable subscription fee based on their usage. This cost-effective model has leveled the playing field, allowing businesses of all sizes to access advanced skills management software without significant upfront investments.
One of the primary advantages of cloud-based solutions is their accessibility. With an internet connection, organizations can access the software from anywhere, granting them greater flexibility and mobility. This is especially valuable in today's remote and distributed work environments, as employees can collaborate and access the skills management software using various devices and locations, enhancing overall productivity. Cloud-based solutions also alleviate security concerns for organizations through the implementation of robust security measures and data protection protocols.
By Application Analysis
Large Companies segment accounted for the largest market share in 2022
The large companies segment held the largest market share for the market in the study period. Large companies face the challenge of managing a complex organizational structure, which includes multiple departments, business units, and geographically dispersed teams. Effectively tracking, assessing, and developing the skills of their employees at scale becomes crucial in such scenarios. This is where skills management software comes into play, providing large companies with the necessary tools and functionalities to streamline and centralize their skills management processes.
Looking toward the future, large companies also prioritize long-term organizational sustainability and the development of future leaders. Skills management software plays a key role in facilitating succession planning. It helps identify high-potential employees, assess their skills and readiness for leadership roles, and provide targeted development opportunities. By investing in skills management software, companies ensure a robust talent pipeline and smooth leadership transitions. This will further enhance the demand for skills management software in the near future.
By Regional Analysis
APAC projected to experience highest growth rate in the study period
APAC is expected to have a higher growth rate for the market. The need to keep pace with technological change is a driving force behind the growth of the skills management software market in this region. According to the report published by Amazon Web Services (AWS), the number of professionals applying for digital skills in such countries is set to increase significantly, from 149 Mn professionals presently to 819 Mn workers by 2025. To achieve this level of upskilling, the average worker in countries is expected to acquire seven new digital skills by 2025.
This translates to a demand for approximately 5.7 billion digital skill training opportunities. Such a substantial requirement for upskilling underscores the necessity for robust skills management software solutions that can facilitate the identification, tracking, and development of digital skills within organizations. As companies strive to meet the growing demand for digital skills, the adoption of skills management software becomes crucial for effectively managing and addressing the upskilling needs of the workforce in the Asia Pacific.
Europe is expected to witness a larger revenue share for the market. The challenges faced by companies in Europe, particularly regarding the availability of skilled workers and the mismatch between skill sets and market demand, are key drivers behind the growth of the skills management software market. With over three-quarters of EU companies reporting difficulties in finding workers with the appropriate skill set, organizations are increasingly turning to skills management software to address these challenges. According to the 2022 DESI report, only 54% of Europeans aged between 16-74 possess basic digital skills.
However, the Digital Decade target aims to have at least 80% of citizens equipped with these skills by 2030. The push for digital transformation in Europe, coupled with the need to enhance digital literacy and competence, has fueled the demand for skills management software. By utilizing these software tools, businesses can better assess their workforce's skills, identify gaps, and implement targeted training and development programs to bridge those gaps. This approach enables companies to optimize their talent pool, enhance employee performance, and align skills with the evolving demands of the market.
Competitive Insight
The Skills Management Software market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market include
- Cornerstone OnDemand
- Oracle Taleo
- PeopleFluent
- Saba Software.
- SAP SuccessFactors
- Workday Talent Management
Recent Developments
- In May 2023, SAP & Microsoft embarked on a collaborative initiative to address the talent gap by jointly offering generative AI solutions to their customers. This partnership aims to tackle the fundamental business challenges faced by their customers.
- In September 2022, BBVA, a prominent financial institution, partnered with Cornerstone OnDemand, a global leader in adaptive HR solutions, to implement innovative learning strategies for its employees.
Skills Management Software Market Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 409.23 million |
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Revenue forecast in 2032 |
USD 1,248.08 million |
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CAGR |
13.2% from 2023 - 2032 |
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Base year |
2022 |
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Historical data |
2019 - 2021 |
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Forecast period |
2023 - 2032 |
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Quantitative units |
Revenue in USD million and CAGR from 2023 to 2032 |
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Segments covered |
By Type, By Application, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
FAQ's
key companies in skills management software market are Cornerstone OnDemand, SAP SuccessFactors, Oracle Taleo, Workday Talent Management.
The global skills management software market is expected to grow at a CAGR of 13.2% during the forecast period.
The skills management software market report covering key segments are type, application and region.
key driving factors in industrial skills management software market are technological advancement.
The global skills management software marketis expected to grow at a CAGR of 13.2% during the forecast period.
