The skills management software market is expected to be worth USD 388.1 million in 2023. With increased investment in skills management software by various organizations worldwide, the skills management software industry is predicted to reach around USD 872.1 million by the end of 2033, with an 8.4% CAGR from 2023 to 2033.
The skills management software industry grew by 6.3% CAGR between 2018 and 2022. Large firms can use skills management software to analyze and increase their employees' abilities and expertise, allowing them to fully and efficiently utilize their staff.
The software informs HR managers and employers about their employees' strengths and shortcomings, which aids in closing the talent gap and placing the right employee in the right position, hence boosting the value of Skills Management software.
Skills management software is in high demand in the healthcare and welfare sectors, where professional growth is critical. This software can measure and map vital documents too for various operating lines and machines.
Although the numerous benefits provided by skills management software, one of the most difficult issues faced by major firms adopting skills management software is gathering and properly documenting all of their employee’s skills and abilities as required by the software system.
Skills Management Software Industry (From 2018 to 2022)
| Attribute | Details |
|---|---|
| Market HCAGR (From 2018 to 2022) | 6.3% |
| Market Size - 2018 | USD 284.1 million |
| Market Size - 2022 | USD 363.4 million |
Skills Management Software Industry (From 2023 to 2033)
| Attribute | Details |
|---|---|
| Market CAGR (From 2023 to 2033) | 8.4% |
| Market Size - 2023 | USD 388.1 million |
| Market Size - 2033 | USD 872.1 million |
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The skills management software industry grew significantly between 2018 and 2022, owing to the rising need for effective talent management solutions. As other sectors recognized the need to efficiently control and increase their workforce's abilities, such software solutions were adopted.
The skills management software industry is expected to grow even more significantly between 2023 and 2033. The rapid growth of technologies such as artificial intelligence and machine learning surges the demand for sophisticated skills management software, which enables businesses to optimize talent acquisition, training, and workforce planning. To cater to growing corporate needs, the market is likely to see the creation of innovative features and integration capabilities, boosting market growth for skills management software.
Several factors are propelling the Skills Management Software market. The increased emphasis on talent development and workforce optimization accelerates the adoption of such software solutions. Organizations recognize the importance of properly identifying, assessing, and developing their employees' abilities to remain competitive.
The increased demand for automation and digitalization in human resource management procedures drives market expansion. Skills management software improves overall productivity by streamlining and automating operations like skill tracking, performance evaluation, and training. Incorporating sophisticated technologies such as artificial intelligence and machine learning expands the software's capabilities, enabling personalized skill development programs and predictive analytics, hence increasing market demand.
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There is the issue of data accuracy and reliability. Ensuring that the skills data inputted into the software is up-to-date, relevant, and accurately reflects employees' capabilities can be a significant challenge. Integration with existing HR systems and processes can be complex, requiring seamless compatibility to avoid disruptions.
User adoption and engagement can pose a challenge, as organizations may need more employee enthusiasm in using the software effectively. Evolving technology trends and changing skill requirements demand continuous updates and customization, which can be challenging for software providers to keep up with.
| Countries | 2023 value share in Global Market |
|---|---|
| North America | 28.8% |
| Europe | 21.1% |
North America dominated the skills management software market due to the presence of technically advanced countries like the United States and Canada. The adoption of skills management software by small and medium-sized enterprises is also one of the key reasons for the expanding market in the region. The United States dominated the North American market.
Asia Pacific may see significant growth in skills management software in the next ten years. This is due to rapidly developing nations in regions like China, Japan, South Korea, and India. Asia-Pacific also represented over 60% of the global workforce as of 2023. The need to manage the skills of around 2 billion regional workers creates significant opportunities in the skills management software business.
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| Attribute | Details |
|---|---|
| United States Market Share - 2023 | 16.3% |
| Australia Market Share - 2023 | 3.5% |
The United States has the leading share in the skills management software market. By the year 2033, the market in the United States is expected to be worth USD 285.5 million, with an absolute dollar opportunity of USD 153.4 million. The market has previously experienced a CAGR of 10.2% from the year 2018 to 2022 and is expected to experience a CAGR of 8.2% in the next ten years.
OrgVue published a report that states that 64% of the United States companies may focus on cost reduction in the coming years. As of 2020, there are 20,139 large companies present in The United States. Thus with the increasing number of organizations in the country, the need to manage the workforce efficiently in a cost-efficient way is also increasing. This is fuelling the growth of skills management software demand in the country.
| Attribute | Details |
|---|---|
| Japan Market Share - 2023 | 4.5% |
| China Market CAGR (From 2023 to 2033) | 6.1% |
| India Market CAGR (From 2023 to 2033) | 8.7% |
China has a promising market even though it is still in its budding stage. By 2033, the market in China is expected to be valued at USD 55.8 million, with an absolute dollar opportunity of USD 29.2 million. In the next ten years from 2023 to 2033, the market is expected to experience a CAGR of 7.9%. From 2018 to 2022, the market has experienced a CAGR of 10.2%.
The increasing older population in China and the decreasing rate of urbanization are pushing China to use its existing workforce efficiently. Studies have found that by 2030, 30% of China’s workforce which is 220 million people may need to transfer between jobs and there may be an 18% and 11% decrease in demand for physical and manual labor demand respectively.
There may be an 18% and 51% increase in demand for emotional and technological skills respectively. This situation may lead to an increased demand for skills management software in the Chinese market to better arrange their changing workforce.
| Attribute | Details |
|---|---|
| Germany Market Share - 2023 | 8.7% |
| United Kingdom Market CAGR (From 2023 to 2033) | 8.2% |
| Segment | Application |
|---|---|
| Segment Name | Large organizations |
| Segment Share | 61.2% |
Large organizations generate the maximum demand for skills management software because of the large number of people employed. Revenue through this segment experienced a CAGR of 4.9% from the year 2018 to 2022, and from 2023 to 2033 the revenue is expected to see a CAGR of 8.1%.
The essential feature provided by efficient skill management software like resource planning, organization, coordination, and reporting for analysis and decision-making makes it essential for all large organizations. This helps them to increase the efficiency of their work by using their workforce to its full potential.
| Segment | Type |
|---|---|
| Segment Name | On-Premises |
| Segment Share | 61.2% |
In the skills management software market, the On-Premises sector has emerged as the major revenue source. The deployment of software solutions within an organization's own infrastructure, where the software is deployed and maintained on the company's servers or data centers, is referred to in this category. On-premises deployment provides improved data control, customization possibilities, and security safeguards, making it a popular choice among many businesses.
The requirement for effective skill evaluation, talent acquisition, and staff development plans has increased demand for on-premises skills management software solutions. As a result, the On-Premises segment generates the most revenue in the skills management software market.
The competition in the skills management software market is fierce and ever-changing. Numerous software companies have entered the market as organizations recognize the need to manage their staff skills efficiently. Established firms compete for market share, while new entrants try to establish a footing.
Product features, functionality, scalability, user experience, pricing methods, and customer support are the primary drivers of competition. Companies distinguish themselves by ongoing innovation, strategic alliances, and the ability to react to changing market demands. The competition creates a dynamic environment in which providers continually strive to improve their offers, resulting in more value for customers.
Novel Breakthroughs and Advancements
| Company | AG5 |
|---|---|
| Strategy | AG5 Receives USD 1.4 Million Funding Boost from Peak to Enhance Skill Management Software Offering |
| Details | In May 2022, AG5’s team raised USD 1.4 million in their recent investment round from Tech Investor Peak. They plan on using the fund to develop their skill management software further and make it available worldwide. |
| Company | EmployPlan |
|---|---|
| Strategy | Introducing EmployPlan 2.0 |
| Details | In May 2022, EmployPlan introduced EmployPlan 2.0, the most user-friendly multi-project resource planning platform available. EmployPlan reduced the amount of time-consuming administrative work required to handle resource management to a minimum by using a responsive modern user interface. |
| Company | Gloat |
|---|---|
| Strategy | Gloat Secures USD57 Million Funding to Fuel Expansion and Platform Enhancement |
| Details | In June 2021, Gloat secured USD 57 Million in funding, which it may use to continue business development as well as to add more features to its own platform. For instance, it may use this money to expand into more contractor openings, create more opportunities for secondments at other companies, and include front-line positions in addition to the knowledge worker roles that the AI is currently optimized for. |
| Company | MuchSkills |
|---|---|
| Strategy | MuchSkills Introduces Mapping Software with Version 3.1 |
| Details | In October 2021, Real-time skills gap analysis has become much simpler because of MuchSkills' most recent release of skills and competency mapping software. The MuchSkills 3.1 upgrade makes it simple for teams and organizations to spot skill shortages that can have an impact on performance with the aid of intelligent filters and meaningful data visualizations. They can then utilize this information which includes the number of employees by skill and skill level to find chances for upskilling, reskilling, or hiring. |
| Company | Skillnet |
|---|---|
| Strategy | Skillnet Expands Reach in Latin American Market with Mexico Subsidiary Launch |
| Details | In September 2021, Skillnet announced the expansion of their geographical territories with the launch of their Mexico Subsidiary. The company believes that it may help them expand their customer base as they can now serve customers in Mexico and Central and Southern America. |
| Company | Intelligent Role Studio (IRS) |
|---|---|
| Strategy | TalentGuard Unveils Intelligent Role Studio (IRS) |
| Details | In March 2021, Intelligent Role Studio (IRS), an Artificial Intelligence powered solution that combines deep subject matter expertise with algorithmic intelligence, was launched by TalentGuard. |
The United States, India, and Germany dominate the global market.
The market is forecast to register a CAGR of 8.4% through 2033.
From 2018 to 2022, the market registered a CAGR of 6.3%.
Workforce optimization is the current market trend.
The global market size is to reach USD 872.1 million by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. On Premises 5.2. Cloud-Based 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Large Companies 6.2. Small and Medium-Sized Companies 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Softworks 17.2. AG5 17.3. Gloat 17.4. Skillnet 17.5. Retain 17.6. Kahuna 17.7. CABEM Technologies 17.8. Centranum 17.9. MuchSkills 17.10. Pluralsight 17.11. Visual Workforce 17.12. SkillsTX 17.13. TalentQuest 17.14. CompetencyCore 17.15. SkillStation 17.16. viSkills 17.17. EmployPlan 17.18. TalentGuard 17.19. iCombine 17.20. WebMentor Skills 18. Assumptions & Acronyms Used 19. Research Methodology
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Skills Management Software Market
