Global Employee Engagement Software Market 2023-2030

Global Employee Engagement Software Market 2023-2030

Global employee engagement software market is anticipated to grow at a considerable CAGR of 18.5% during the forecast period. The rising need for businesses to manage activities and workflow in order to accelerate development, as well as the rapid breakthroughs in machine learning (ML) and artificial intelligence (AI), are the primary reasons driving the market. Implementing technology-based solutions can assist firms in overcoming issues related to operational efficiency and transparency, resulting in higher revenue returns. As a result, these variables may aid market expansion in the next few years. Additionally, the rising usage of cloud computing in corporate operations, as well as enterprise mobility, smartphones, and bring your own device (BYOD) to extend the mobile workforce, is anticipated to drive demand for employee engagement software, adding to market development.

Segmental Outlook

The global employee engagement software market is segmented by deployment type, enterprise type, function, and industry. Based on deployment type, the market is sub-segmented into cloud and on-premise. Based on enterprise type, the market is sub-segmented into large enterprises and small & medium enterprises. Based on function, the market is sub-segmented into training, onboarding, customer service, collaboration & integration, and rewards & recognitions. Based on industry, the market is sub-segmented into retail, BFSI, government, IT& telecom, hospitality, healthcare, and manufacturing. Among functions, the collaboration & integration segment is expected to hold the largest market share. The key factor driving this segment’s demand is that this function allows real-time communication to employees, which increases their decision-making ability and improves productivity.

The Cloud Sub-Segment Holds a Prominent Share in the Global Employee Engagement Software Market

Based on deployment type, the market is sub-segmented into cloud and on-premise. Among these, the cloud segment is expected to hold a significant share of the market. Businesses are concerned about the expense of on-premises data hosting, both in terms of implementation and maintenance, which results in high demand for cloud-based software solutions. Another reason boosting the adoption of cloud-based solutions is the rising trend of organizations toward digital transformation and faster customer interaction, both of which reduce corporate expenses. Pay-as-you-go cloud services allow organizations to pay for cloud services based on how often they use them, resulting in lower costs.

Regional Outlook

The global employee engagement software market is segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the rest of the world (the Middle East and Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among the regions, the North American region is expected to generate the highest market share, followed by Asia-Pacific, owing to the increased acceptance of employee monitoring systems by small- and medium-sized business organizations. Additionally, the region’s expanding IT infrastructure will support market expansion in this region.

The North American Region is Expected to Dominate the Global Employee Engagement Software Market

Growing investment in digital solutions and HR tech tools is likely to drive regional software demand. According to Gallup's State of the Global Workplace 2022, 33% of employees in the US are involved in customer service and communication, which is more than double the global percentage. Similarly, Mexico is currently investing in employee-focused products following COVID-19 to secure company continuity and increase staff productivity. Additionally, with the presence of major market players such as Salesforce, Oracle, IBM, Microsoft, and Google, the region is dominating the global market. These companies offer efficient software solutions in this field. For instance, Office vibe is an employee engagement platform that includes surveys, feedback, and recognition tools to help companies improve employee engagement and retention. Similarly, Glint is an employee engagement and performance management platform that uses real-time surveys and data to help companies improve employee engagement and retention. Besides, the rising usage of PMS solutions to manage routine duties and the rapidly expanding infrastructure in enterprises are also responsible for the growth.

Market Players Outlook

The major companies serving the global employee engagement software market include Humu, Inc., Imperva, Impraise, InterGuard, ObserveIT, and others. These companies are considerably contributing to the market’s growth through the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, investments, and new employee engagement software launches to stay competitive in the market. For instance, in February 2023, Empyrean, a business dedicated to improving corporate cultures via benefits, announced the acquisition of Enspire, an employee communication and engagement platform. Empyrean adds a people-centric component to its revolutionary benefits administration technology and compassionate assistance services as a result of the acquisition. The new solution, called +YOU, combines Enspire's employee communication and engagement technology with Empyrean's benefits administration platform to create a fully customizable and employer-branded people experience — a single entry point to an employer's suite of tools for employee productivity, wellness, communications, and benefits.

The Report Covers-

Market value data analysis for 2023 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global employee engagement software market. Based on the availability of data, information related to new product launches and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market entry and market expansion strategies.

Competitive strategies by identifying ‘who stands where’ in the market.