Employee Experience Management Market Research Report Information By Component (Software (Integrated Software and Standalone Software) and Services (Implementation & Integration, Support & Maintenance, Training & Development)), By Industry (BFSI, Healthcare, IT & ITeS, Telecom, Government, Manufacturing, and Other Industries) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2032

Employee Experience Management Market Overview

The Employee Experience Management Market size is projected to grow from USD 7.58 Billion in 2024 to USD 12.108 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.90% during the forecast period (2024 - 2032). Additionally, the market size for employee experience management was valued at USD 7.1 Billion in 2023.

Some of the major market drivers anticipated to boost market expansion during the forecast period include the growing emphasis on workplace satisfaction and employee engagement, the increased use of remote and hybrid work modes, and the rising need for real-time performance management systems.

Figure 1: Employee Experience Management Market Size, 2022-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Employee Experience Management Market Trends

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  Growing need for real-time performance monitoring is driving the market growth

  
  

Market CAGR for employee experience management is being driven by a growing need for real-time performance monitoring. Employing flexible and adaptable methods to assess, direct, and enhance worker performance continuously is becoming increasingly important to organizations. This change favors continuous feedback loops and prompt acknowledgment over conventional, sporadic performance appraisals. The demands of contemporary workers, who want timely feedback and acknowledgment, are met by real-time performance management, which also fits with the evolving work environment. Employee experience management systems help businesses monitor and react to performance metrics quickly, which boosts employee engagement and productivity. Additionally, they do this by leveraging technology and data analytics. A strategic focus on developing a responsive, flexible, and encouraging work environment that fosters both individual and group success is reflected in the growing need for real-time performance management within the larger employee experience management framework.

Recent research from Slack indicates that burnout is a serious problem among middle managers in the US. Burnout affects middle managers at a rate of 43%, higher than that of other worker groups. In addition, women burn out at a rate that is 32% higher than that of men. This emphasizes the necessity of finding workable methods to deal with this issue. According to a Harvard study, employee burnout may cost US companies up to USD 190 billion a year. This points to a large window of opportunity for creative approaches to employee experience management that might assist businesses in addressing and averting burnout. By using tools like Microsoft's Viva Insights, businesses may engage in employee experience management initiatives that address burnout symptoms like longer working hours. Solutions that proactively manage and improve the entire employee experience are becoming more and more popular as companies realize the negative effects that burnout has on their bottom line. Thus driving the employee experience management market revenue.

Employee Experience Management Market Segment Insights

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  Employee Experience Management Component Insights

  
  

The Employee Experience Management Market segmentation, based on component, includes Software (Integrated Software and Standalone Software) and Services (Implementation & Integration, Support & Maintenance, Training & Development). In 2023, the software (Integrated Software and Standalone Software) segment dominated the market. Businesses are prioritizing employee productivity and satisfaction, which is reflected in the growing adoption of new software-driven EXM solutions. In order to establish a productive workplace, these tools enhance communication and speed up processes. With the use of EXM software, which offers capabilities like analytics, automation, and customized experiences, employers may optimize employee engagement and retention. The market will grow because employee experience is becoming more and more important and because there is a greater demand for innovative software solutions that can adapt to the ever-changing needs of modern workplaces.

Figure 2: Employee Experience Management Market, by Component, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Employee Experience Management Industry Insights

The Employee Experience Management Market segmentation, based on industry, includes BFSI, Healthcare, IT & ITeS, Telecom, Government, Manufacturing, and Other Industries. The BFSI category generated the most income in 2023. In order to provide a work environment that draws top talent and guarantees ongoing engagement and productivity, employee experience management is essential in the BFSI sector. The BFSI industry has led the way in digital transformation, using technology to increase productivity, improve employee experience, and streamline procedures. In order to make remote work, collaboration, and communication easier, digital tools and platforms are frequently combined. In BFSI, cultivating a positive workplace culture is an essential part of employee experience management. This covers programs to improve mental health assistance, accomplishment acknowledgment, and work-life balance.

Employee Experience Management Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American employee experience management market area will dominate this market. Organizations in this region are progressively implementing EXM solutions to provide robust features, like analytics, automation, and tailored experiences, to maximize employee engagement. They place a high priority on employee satisfaction and productivity. The need for EXM will increase as more North American businesses realize the connection between satisfied workers and profitable operations.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: EMPLOYEE EXPERIENCE MANAGEMENT MARKET SHARE, BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe employee experience management market accounts for the second-largest market share. Employee experience management (EXM) is becoming increasingly popular in the region as businesses look to improve worker satisfaction, productivity, and engagement. Europe is a major growth market for employee experience solutions due to rising technological investments and an increasing focus on employee well-being, which are driving demand for these platforms. Further, the German employee experience management market held the largest market share, and the UK employee experience management market was the fastest-growing market in the European region.

The Asia-Pacific employee experience management market is expected to grow at the fastest CAGR from 2024 to 2032. Global and regional businesses make up the Asia Pacific EXM vendor landscape. Enterprises are presented with an array of options, spanning from all-inclusive EXM systems to specialized instruments catering to particular facets of the worker experience. There is a desire for solutions that assist firms in upholding compliance standards while preserving a great employee experience. Moreover, China’s employee experience management market held the largest market share, and the Indian employee experience management market was the fastest-growing market in the Asia-Pacific region.

Employee Experience Management Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the employee experience management market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the employee experience management industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global employee experience management industry to benefit clients and increase the market sector. In recent years, the employee experience management industry has offered some of the most significant advantages to various industries. Major players in the employee experience management market are attempting to increase market demand by investing in research and development operations, including Qualtrics (US), Oracle (US), Microsoft (US), SAP (Germany), Workday (US), Culture AMP (Germany), Achievers (Canada), Workleap (Canada), SurveySparrow (US), Zoom Video Communication (US), 15Five (US), Awardco (US), Vantage Circle (US), ClearCompany (US), Jostle (Canada), Quantum Workplace (US), and Kudos (Canada).

Oracle Corp., also known as Oracle, offers cloud-based solutions to businesses. The company sells hardware systems, application software, cloud infrastructure software, database and middleware software, and hardware. Moreover, it provides integrated cloud solutions, such as Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS). Oracle offers relevant support solutions, updates licenses, and grants licenses for new software installed on-premises. The company uses resellers, system integrators, and independent software and hardware manufacturers to promote its solutions.

SAP SE is a company that offers services connected to corporate application software. Numerous solutions are offered by it, such as financial management and enterprise resource planning, analytics, digital supply chain, people engagement, human resources, network, customer relationship management, intelligent technologies, spend management, and customer experience. With a focus on applications, analytics, cloud, mobile, database, and technology operations, the company provides a variety of commercial software and enterprise apps.

Key Companies in the Employee Experience Management Market Include

• Qualtrics (US)


• Workday (US)


• SAP (Germany)


• Oracle (US)


• Microsoft (US)


• Culture AMP (Germany)


• Achievers (Canada)


• Workleap (Canada)


• SurveySparrow (US)


• Zoom Video Communication (US)


• 15Five (US)


• Awardco (US)


• Vantage Circle (US)


• ClearCompany (US)


• Jostle (Canada)


• Quantum Workplace (US)


• Kudos (Canada)

Employee Experience Management Industry Developments

June 2023: Workleap purchased the US-based HR IT SaaS startup Pingboard. The acquisition expands the software product line of the company and aligns with Workleap's goal of creating the best-in-class workplace tool ecosystem.

May 2023: GoCo.io, a well-known supplier of flexible software solutions meeting payroll, benefits, and HR requirements, announced that it had acquired WFHomie. WFHomie specializes in people analytics and employee experience platforms made especially for remote-first businesses. Through the use of effective, user-friendly technologies that streamline HR procedures and appeal to both HR professionals and employees, this strategic shift seeks to empower customers.

April 2023: The goal of Zoom's acquisition of Workvivo, a company that specializes in employee experience, is to expand the possibilities of the Zoom platform by offering new ways to guarantee that workers are informed, involved, and connected wherever they work.

Employee Experience Management Market Segmentation

Employee Experience Management Component Outlook

• Software
  
  
  
  • Integrated Software
  
  
  • Standalone Software
  
  
  
  


• Services
  
  
  
  • Implementation & Integration
  
  
  • Support & Maintenance
  
  
  • Training & Development
  
  
  
  

Employee Experience Management Industry Outlook

• BFSI


• Healthcare


• IT & ITeS


• Telecom


• Government


• Manufacturing


• Other Industries

Employee Experience Management Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America