What Has Been the Growth of the Employee Onboarding Software Market So Far?
The employee onboarding software market has seen considerable growth due to a variety of factors.
• The market size for employee onboarding software has seen significant expansion over the past few years. The prediction is that it will increase from $1.77 billion in 2024 to $2.12 billion in 2025, with a compound annual growth rate (CAGR) of 20.1%.
The growth seen in the previous years can be associated with digital transformation, increased diversity in the workforce, regulatory compliance requirements, the shift to remote work, and an emphasis on employee experience.
What Are the Future Growth Projections for the Employee Onboarding Software Market?
The employee onboarding software market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of employee onboarding software is projected to experience swift expansion in the approaching years, expected to balloon to $4.36 billion in 2029 with a compounded annual growth rate (CAGR) of 19.7%.
Factors contributing to the projected growth during the forecast period include the increasing uptake of AI and automation, burgeoning gig economy, focus on data security and confidentiality, integration with HR analytics and insights, and the increase in mobile workforce. Emerging trends for the forecast period comprise of fortified integration with HR analytics and insights, customised onboarding experiences designed to meet individual employee requirements, uplifted focus on remote onboarding solutions, and the adoption of mobile-centric onboarding platforms for increased convenience and adaptability.
What Are The Core Factors Supporting Growth In The Employee Onboarding Software Market?
The growth in the employee onboarding software market is advancing due to the escalating trend of remote work. Remote working constitutes a mode of operation where tasks are carried out outside the conventional office premises, predominantly from home. This trend is driven by the need for enhanced flexibility, improved work-life equilibrium, and the prospects of heightened productivity and cost-effectiveness. Employers use onboarding software to facilitate an entirely digital onboarding process, from form-filling to training. This is particularly beneficial for remote employees who may otherwise be required to partake in physical onboarding sessions. According to a report published by the U.S. telecommunications firm AT&T in February 2022, the proportion of companies shifting to a hybrid approach involving a combination of remote and office-based work is expected to see an increase from 42% in 2021 to 81% in 2024. Therefore, this growing propensity toward remote working is fueling the expansion of the employee onboarding software market.
What Are The Major Segments Within The Global Employee Onboarding Software Market?
The employee onboarding software market covered in this report is segmented –
1) By Type: Cloud-Based, On-Premises
2) By Application: Small And Medium-Sized Enterprises (SMEs), Large Enterprises
3) By End-User: Banking, Financial Services, And Insurance (BFSI), Information Technology (IT) And Telecommunications, Government, Energy And Utilities, Healthcare, Manufacturing, Retail And Consumer Goods, Transportation And Logistics, Other End-Users
Subsegments:
1) By Cloud-Based: SaaS (Software As A Service) Onboarding Solutions, Web-Based Onboarding Platforms, Cloud-Hosted Onboarding Solutions
2) By On-Premises: Self-Hosted Onboarding Solutions, On-Premises Integrated Systems, Customized On-Premises Platforms
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What Emerging Trends Are Influencing The Growth Of The Employee Onboarding Software Market?
Leading players in the employee onboarding software market engage in strategic collaborations to innovate in the development of the software. These partnerships provide added value to finished vehicle logistics firms by merging their resources and know-how, which augments research & development, widens market reach, and fast-tracks the process of commercializing their efforts. This, in turn, fuels innovation and growth in the finished vehicle logistics sector. For example, Salesforce Inc., a software company based in the US, formed a partnership with a fellow US-based system software company, Workday Inc., in July 2024. This collaboration is aimed at developing an integrated, AI-backed service agent dedicated to employee services — this tool will facilitate tasks like onboarding, career advancement, and benefits management. The partnership leverages an amalgamation of Salesforce's CRM and Workday's HR and financial data to deliver an optimized, personal experience while boosting overall productivity for the workforce.
Who Are the Key Players In The Employee Onboarding Software Market?
Major companies operating in the employee onboarding software market are:
• SAP SE
• ADP LLC
• Workday Inc.
• Paychex Inc.
• Paycom Software Inc.
• Ceridian HCM Inc.
• Paylocity Corporation
• Monday.com Ltd.
• Paycor Inc.
• iCIMS Inc.
• TriNet Zenefits
• Bamboo HR LLC
• Namely Inc.
• ClearCompany Inc.
• GoCo.io Inc.
• OrangeScape Technologies Ltd.
• WalkMe Ltd.
• Click Boarding LLC
• Lessonly Inc.
• Ultimate Software Group Inc.
• WorkBright LLC
• HR Cloud
• Talmundo NV
• EmployeeConnect Pty Ltd.
• HROnboard Pty Ltd
What Is The Most Dominant Region In The Employee Onboarding Software Market?
North America was the largest region in the employee onboarding software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the employee onboarding software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
