Employee Engagement Software Market

Market Overview:

The global employee engagement software market size reached US$ 826.9 Million in 2022. Looking forward, IMARC Group expects the market to reach US$ 1,825 Million by 2028, exhibiting a growth rate (CAGR) of 14.37% during 2023-2028. The rapid digital transformation across workplaces, widespread adoption of cloud-based employee engagement software, and the integration of gamification elements represent some of the key factors driving the market.

Employee engagement software refers to a technological platform designed to facilitate and enhance employee experience within an organization. It offers a wide range of functions, including surveys, feedback, performance management, collaboration, training, recognition and rewards, onboarding, analytics, and reporting. Employee engagement software is widely used by human resource (HR) professionals, managers, executives, team leaders, and consultants. It allows users to measure, monitor, and analyze engagement levels, identify areas of improvement, and develop strategies to enhance employee satisfaction, productivity, and retention. It also assists in improving communication channels, strengthening recognition programs, supporting employee development, and making data-driven decisions. As a result, employee engagement software finds extensive applications across the retail, telecommunication, healthcare, information technology (IT), hospitality, manufacturing, and banking, financial services, and insurance (BFSI) industries.

Employee Engagement Software Market Trends:

The rapid digital transformation across workplaces is one of the primary factors providing an impetus to the market growth. Employee engagement software is a highly efficient digital tool that aids in streamlining administrations, reducing manual labor, boosting productivity, increasing operational efficiency, and automating several processes, such as data collection, survey distribution, performance evaluations, and recognition programs. Along with this, the increasing software utilization to facilitate virtual communication, collaboration, and engagement among team members, owing to the emerging work-from-home (WFH) culture, is acting as another growth-inducing factor. Furthermore, the widespread adoption of cloud-based employee engagement software that is cost-effective, highly secure, and provides easy accessibility, scalability, automatic updates, and data recovery is positively influencing the market growth. Additionally, the integration of gamification elements, such as points, badges, and leader boards to foster healthy competition, increase employee engagement, and incentivize desired behavior, accomplishments, and contributions, is catalyzing the market growth. Apart from this, the utilization of artificial intelligence (AI) to provide deeper and more valuable insights into employee data, analyze trends, predict engagement levels, and facilitate data-driven decision-making is contributing to the market growth. Moreover, the growing software adoption among organizations to improve work-life balance, reduce burnout, minimize stress levels, and enhance overall employee health and well-being is supporting the market growth. Other factors, including changing workforce dynamics, extensive research and development (R&D) activities, and the growing focus on diversity, equity, and inclusion (DEI), are anticipated to drive the market growth.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global employee engagement software market, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on deployment mode, enterprise size, function, and industry.

Deployment Mode Insights:

• Cloud-Based
• On-premises
   

The report has provided a detailed breakup and analysis of the employee engagement software market based on the deployment mode. This includes cloud-based and on-premises. According to the report, on-premises represented the largest segment.

Enterprise Size Insights:

• Large Enterprises
• Small and Medium Enterprises
   

A detailed breakup and analysis of the employee engagement software market based on the enterprise size has also been provided in the report. This includes large enterprises and small and medium enterprises. According to the report, large enterprises accounted for the largest market share.

Function Insights:

• Onboarding
• Training
• Collaboration and Interaction
• Customer Service
• Rewards and Recognitions
• Others
   

A detailed breakup and analysis of the employee engagement software market based on the function has also been provided in the report. This includes onboarding, training, collaboration and interaction, customer service, rewards and recognitions, and others. According to the report, onboarding accounted for the largest market share.

Industry Insights:

• Retail
• BFSI
• Government
• Healthcare
• IT and Telecom
• Hospitality
• Manufacturing
• Others
   

A detailed breakup and analysis of the employee engagement software market based on the industry has also been provided in the report. This includes retail, BFSI, government, healthcare, IT and telecom, hospitality, manufacturing, and others. According to the report, IT and telecom accounted for the largest market share.

Regional Insights:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for employee engagement software. Some of the factors driving the North America employee engagement software market included rapid digitalization activities, increasing focus on employee well-being, and significant technological advancements.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global employee engagement software market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the companies covered include 15five Inc., Bitrix24, Culture Amp Pty Ltd., Lattice, Leapsome GmbH, Quantum Workplace, Salesforce Inc., Transcend Engagement LLC, Vantage Circle, Workvivo Limited, Xoxoday Emplus, etc. Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Questions Answered in This Report:

• How has the global employee engagement software market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global employee engagement software market?
• What is the impact of each driver, restraint, and opportunity on the global employee engagement software market?
• What are the key regional markets?
• Which countries represent the most attractive employee engagement software market?
• What is the breakup of the market based on the deployment mode?
• Which is the most attractive deployment mode in the employee engagement software market?
• What is the breakup of the market based on the enterprise size?
• Which is the most attractive enterprise size in the employee engagement software market?
• What is the breakup of the market based on function?
• Which is the most attractive function in the employee engagement software market?
• What is the breakup of the market based on the industry?
• Which is the most attractive industry in the employee engagement software market?
• What is the competitive structure of the global employee engagement software market?
• Who are the key players/companies in the global employee engagement software market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the employee engagement software market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global employee engagement software market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the employee engagement software industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.