Employee Engagement Software Market Report 2025 (Global Edition)

Global Employee Engagement Software Market Report 2025 Market Size Split by Solution (Software, Services, Managed Services), by Deployment (Cloud Based, On Premises), by Enterprise Size (Small and Mid...

Employee Engagement Software Market Report Description

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Competitive Landscape of the Employee Engagement Software Market

The Employee Engagement Software Market features a competitive landscape characterized by diverse offerings and evolving strategies. Companies vie for market share through innovation, customization, and customer-centric approaches. This dynamic environment fosters continual development and differentiation as competitors seek to meet the evolving needs of organizations worldwide.

Top Companies Market Share in Employee Engagement Software Industry: (In no particular order of Rank)

• 15Five
• Lattice
• Smartly Inc (Bonusly)
• Vantage Circle
• Slack
• Xoxoday Emplus
• Workvivo Limited
• Synergita Software Private Limited
• Leapsome GmbH
• Kudos Inc
• Culture Amp Pty Ltd
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Employee Engagement Software Market

Which Region Will Dominate the Employee Engagement Software Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue due to several factors. Firstly, the region boasts a robust economy and a high level of technological adoption, driving demand for innovative software solutions. Additionally, stringent labour regulations in North America incentivize businesses to invest in employee engagement tools to maintain compliance and enhance workforce satisfaction. Moreover, a strong culture of employee empowerment and talent management practices in the region further fuels the adoption of engagement software. Lastly, North American enterprises prioritize employee well-being and productivity, leading to increased investments in software solutions that facilitate collaboration, feedback, and recognition.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is the fastest-growing region due to several compelling reasons. Firstly, rapid economic growth and industrialization across countries like China, India, and Southeast Asian nations are leading to a burgeoning workforce with increasing demands for modern workplace practices. Secondly, the proliferation of digital technologies and internet penetration in the region is creating opportunities for remote work and virtual collaboration, driving the need for employee engagement solutions. Furthermore, cultural shifts towards valuing employee satisfaction and retention are prompting organizations to invest in software platforms that foster a positive work environment.

The current report Scope analyzes Employee Engagement Software Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Employee Engagement Software Market

According to Cognitive Market Research, the global employee engagement software market size was estimated at USD 796.2 Million out of which North America held the major market of around 40% of the global revenue with a market size of USD 318.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.0% from 2024 to 2031. The region's highly competitive business landscape drives companies to prioritize employee satisfaction and retention, leading to heightened demand for engagement solutions. Secondly, the widespread adoption of remote work, accelerated by the COVID-19 pandemic, necessitates robust digital platforms for maintaining connectivity and morale among dispersed teams. Additionally, stringent labour regulations in North America propel organizations to invest in software solutions for compliance and workforce management. Lastly, the dominance of large enterprises in the region fuels growth in the software segment, driven by their need for scalable and customizable solutions to manage complex workforce dynamics.

Country Analysis

• According to Cognitive Market Research, The United States employee engagement software market had a market share of USD 251.28 million in 2024 and is projected to grow at a CAGR of 15.8% during the forecast period. Sales of employee engagement software in the U.S. will increase due to a strong emphasis on workforce productivity, remote work optimization, compliance requirements, and the need for innovative HR solutions.
• Canada employee engagement software market had a market share of USD 38.22 million in 2024 and is projected to grow at a CAGR of 16.8% during the forecast period. In Canada, sales of employee engagement software will surge driven by a focus on enhancing workplace culture, improving employee morale, meeting regulatory standards, and fostering collaboration in remote work setups.
• Mexico employee engagement software market had a market share of USD 28.98 million in 2024 and is projected to grow at a CAGR of 16.5% during the forecast period.

Europe Employee Engagement Software Market

According to Cognitive Market Research, with a market value of USD 796.2 million in 2024 out of which Europe held the major market of around 30% of the global revenue with a market size of USD 238.86 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.3% from 2024 to 2031. The region's emphasis on work-life balance and employee well-being incentivizes organizations to invest in engagement tools to foster a positive work culture. Moreover, the increasing adoption of hybrid work models necessitates digital platforms for effective communication and collaboration among distributed teams. Furthermore, the rise of remote work in Europe drives demand for cloud-based solutions, offering flexibility and accessibility to geographically dispersed employees. In Europe, the software segment is expected to lead in sales growth, driven by the need for customizable solutions to accommodate diverse workforce structures and regulatory environments.

• The United Kingdom employee engagement software market had a market share of USD 40.13 million in 2024 and is projected to grow at a CAGR of 17.1% during the forecast period. The UK will see an uptick in sales of employee engagement software owing to initiatives aimed at talent retention, boosting employee satisfaction, ensuring compliance, and streamlining HR processes for enhanced productivity.
• France employee engagement software market had a market share of USD 21.98 million in 2024 and is projected to grow at a CAGR of 15.5% during the forecast period.
• Germany employee engagement software market had a market share of USD 47.29 million in 2024 and is projected to grow at a CAGR of 16.5% during the forecast period. Sales of employee engagement software in Germany will rise due to efforts to strengthen employee engagement, promote workplace diversity and inclusion, enhance communication, and address evolving labour regulations.
• Italy employee engagement software market had a market share of USD 20.54 million in 2024 and is projected to grow at a CAGR of 15.7% during the forecast period.
• Russia employee engagement software market had a market share of USD 37.02 million in 2024 and is projected to grow at a CAGR of 15.3% during the forecast period.
• Spain employee engagement software market had a market share of USD 19.59 million in 2024 and is projected to grow at a CAGR of 15.4% during the forecast period.
• Luxembourg employee engagement software market had a market share of USD 7.40 million in 2024 and is projected to grow at a CAGR of 16.4% during the forecast period.
• Portugal employee engagement software market had a market share of USD 5.02 million in 2024 and is projected to grow at a CAGR of 16.1% during the forecast period.
• Greece employee engagement software market had a market share of USD 2.87 million in 2024 and is projected to grow at a CAGR of 16.6% during the forecast period.
• Rest of Europe employee engagement software market had a market share of USD 37.02 million in 2024 and is projected to grow at a CAGR of 15.0% during the forecast period.

 

Asia Pacific Employee Engagement Software Market

According to Cognitive Market Research, the global employee engagement software market size was estimated at USD 796.2 Million out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 183.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 19.8% from 2024 to 2031. The region's rapid economic development and burgeoning digital infrastructure create opportunities for organizations to modernize their HR practices and invest in engagement solutions. Secondly, cultural shifts towards valuing employee satisfaction and retention prompt businesses to prioritize engagement initiatives supported by software platforms. Additionally, the increasing adoption of remote work and virtual collaboration tools in Asia Pacific accelerates the demand for digital solutions that enhance connectivity and productivity. Moreover, the software segment is expected to thrive in this region, catering to the diverse needs of enterprises seeking scalable and adaptable solutions to support their growth objectives.

• According to Cognitive Market Research, China employee engagement software market had a market share of USD 82.41 million in 2024 and is projected to grow at a CAGR of 19.3% during the forecast period. In China, sales of employee engagement software will increase driven by rapid digitization efforts, focus on talent development, need for efficient communication in dispersed teams, and compliance with evolving labour laws.
• Japan employee engagement software market had a market share of USD 25.27 million in 2024 and is projected to grow at a CAGR of 18.3% during the forecast period.
• India employee engagement software market had a market share of USD 21.98 million in 2024 and is projected to grow at a CAGR of 21.6% during the forecast period. India will witness a surge in sales of employee engagement software due to a growing focus on employee well-being, remote work enablement, adoption of performance management tools, and compliance with labour regulations.
• South Korea employee engagement software market had a market share of USD 18.31 million in 2024 and is projected to grow at a CAGR of 18.9% during the forecast period.
• Australia employee engagement software market had a market share of USD 9.52 million in 2024 and is projected to grow at a CAGR of 19.5% during the forecast period.
• South East Asia employee engagement software market had a market share of USD 12.64 million in 2024 and is projected to grow at a CAGR of 20.8% during the forecast period.
• Rest of Asia Pacific employee engagement software market had a market share of USD 13.00 million in 2024 and is projected to grow at a CAGR of 19.6% during the forecast period.

South America Employee Engagement Software Market

According to Cognitive Market Research, the global employee engagement software market size was estimated at USD 796.2 Million out of which Latin America market of around 5% of the global revenue with a market size of USD 39.81 million in 2024 and will grow at a compound annual growth rate (CAGR) of 17.2% from 2024 to 2031. The region's vibrant business landscape and growing emphasis on employee empowerment drive organizations to invest in software solutions that foster a positive work environment. Additionally, the increasing focus on compliance and data security regulations propels the adoption of software solutions tailored to the unique needs of Latin American markets. Furthermore, the software segment is expected to lead in sales growth, offering customizable and scalable solutions to meet the diverse workforce requirements of businesses in the region.

• According to Cognitive Market Research, Brazil employee engagement software market had a market share of USD 17.04 million in 2024 and is projected to grow at a CAGR of 17.8% during the forecast period. Sales of employee engagement software in Brazil will soar as organizations prioritize employee satisfaction, invest in talent development, leverage analytics for workforce insights, and adapt to remote work dynamics.
• Argentina employee engagement software market had a market share of USD 6.69 million in 2024 and is projected to grow at a CAGR of 18.1% during the forecast period. Argentina will experience increased sales of employee engagement software fuelled by initiatives to boost employee morale, foster teamwork, ensure regulatory compliance, and enhance communication across geographically dispersed teams.
• Colombia employee engagement software market had a market share of USD 3.54 million in 2024 and is projected to grow at a CAGR of 17.0% during the forecast period.
• Peru employee engagement software market had a market share of USD 3.26 million in 2024 and is projected to grow at a CAGR of 17.4% during the forecast period.
• Chile employee engagement software market had a market share of USD 2.87 million in 2024 and is projected to grow at a CAGR of 17.5% during the forecast period.
• Rest of Latin America employee engagement software market had a market share of USD 6.41 million in 2024 and is projected to grow at a CAGR of 16.3% during the forecast period.

 

Middle East and Africa Employee Engagement Software Market

According to Cognitive Market Research, the global employee engagement software market size was estimated at USD 796.2 Million out of which Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 15.92 million in 2024 and will grow at a compound annual growth rate (CAGR) of 17.5% from 2024 to 2031. The region's rapidly evolving business landscape and increasing digitalization efforts create opportunities for organizations to invest in software solutions that enhance employee satisfaction and productivity. Additionally, the adoption of remote work and virtual collaboration tools in the region accelerates the demand for software solutions that enable seamless communication and collaboration across distributed teams. Moreover, the software segment is expected to lead in sales growth, offering scalable and customizable solutions to meet the diverse needs of organizations in MEA.

• According to Cognitive Market Research, GCC Countries employee engagement software market had a market share of USD 6.82 million in 2024 and is projected to grow at a CAGR of 18.3% during the forecast period. Sales of employee engagement software in GCC Countries will rise due to investments in employee well-being, adoption of remote work solutions, compliance requirements, and initiatives to enhance organizational culture and productivity.
• Egypt employee engagement software market had a market share of USD 1.67 million in 2024 and is projected to grow at a CAGR of 17.8% during the forecast period.
• South Africa employee engagement software market had a market share of USD 2.52 million in 2024 and is projected to grow at a CAGR of 18.5% during the forecast period. In South Africa, sales of employee engagement software will increase driven by a focus on employee retention, digital transformation, fostering a culture of feedback, and ensuring compliance with labour laws.
• Turkey employee engagement software market had a market share of USD 1.37 million in 2024 and is projected to grow at a CAGR of 17.0% during the forecast period.
• Nigeria employee engagement software market had a market share of USD 1.67 million in 2024 and is projected to grow at a CAGR of 16.6% during the forecast period.
• Rest of MEA employee engagement software market had a market share of USD 1.88 million in 2024 and is projected to grow at a CAGR of 16.5% during the forecast period.

 

Employee Engagement Software Market Analysis

Employee Engagement Software Solution Segment Analysis

According to Cognitive Market Research, software held the major market share over the forecast period due to its versatility, offering a wide range of customizable features tailored to diverse organizational needs. Additionally, the scalability and ease of integration of software solutions appeal to businesses seeking comprehensive employee engagement platforms. Moreover, the increasing demand for data-driven insights and analytics capabilities drives the adoption of software for measuring and improving employee engagement metrics. Furthermore, the trend towards digitization and automation in HR processes further propels the sales of software solutions.

Managed services is the fastest-growing category over the forecast period due to the rising complexity of employee engagement strategies and the need for specialized expertise in implementation and management. Organizations increasingly opt for managed services to offload the burden of maintaining and optimizing engagement software, allowing internal resources to focus on core business functions. Moreover, the growing recognition of the strategic importance of employee engagement prompts businesses to seek dedicated service providers offering tailored solutions and ongoing support. Additionally, the shift towards subscription-based models and outsourcing non-core activities further accelerates the adoption of managed services in the market.

• Software
  • Integrated Employee Engagement Platform
  • Standalone Software
    • Unified Communications Software
    • Enterprise Social Intranet Software
    • Employee Recognition and Reward Software
    • Employee Performance Management Software
    • Others
• Services
  • Professional Services
  • Consulting Services
  • Integration and Implementation
  • Support and Maintenance
  • Training and Development
• Managed Services

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Employee Engagement Software Industry. Request a Free Sample PDF!

Employee Engagement Software Deployment Segment Analysis

According to Cognitive Market Research, cloud based held a prominent market share due to several factors. Firstly, the scalability and flexibility of cloud-based platforms cater to the evolving needs of businesses, especially in dynamic work environments. Secondly, the cost-effectiveness of subscription-based models appeals to organizations looking to minimize upfront investment and maintenance costs. Additionally, the accessibility of cloud solutions from anywhere with an internet connection supports the trend towards remote work and distributed teams. Moreover, the robust security measures offered by reputable cloud providers instil confidence in businesses, driving the adoption of cloud-based employee engagement solutions.

On premises is the fastest-growing category over the forecast period for various reasons. Firstly, certain industries with strict regulatory requirements or data privacy concerns prefer to maintain control over their data by opting for on-premises deployments. Secondly, legacy systems and infrastructure limitations in some organizations necessitate the use of on-premises solutions to ensure compatibility and seamless integration. Additionally, businesses with specific customization needs or unique security protocols may opt for on-premises solutions to address their unique requirements. Moreover, the trend towards hybrid work environments may also contribute to the growth of on-premises solutions as organizations seek to balance security and flexibility.

• Cloud Based
• On Premises

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Employee Engagement Software Enterprise Size Segment Analysis

According to Cognitive Market Research, large enterprises hold a prominent market share due to several factors. Firstly, their extensive resources allow them to invest in sophisticated employee engagement software solutions to enhance productivity and retention. Secondly, the complexity of operations in large enterprises necessitates robust software platforms that can scale to accommodate diverse workforce needs. Additionally, large enterprises often prioritize employee engagement as a strategic initiative to maintain competitiveness and attract top talent. Moreover, established corporate cultures and processes facilitate the integration of employee engagement software into existing workflows, driving adoption.

Small and mid-sized enterprises are the fastest-growing category over the forecast period for various reasons. Firstly, the increasing recognition of the importance of employee engagement in driving business success prompts SMEs to invest in affordable and scalable software solutions. Secondly, the agility of SMEs allows for faster adoption of innovative technologies to gain a competitive edge. Additionally, cloud-based solutions offer cost-effective options that align with the budget constraints of SMEs. Moreover, the growing trend towards remote work and virtual teams enhances the relevance of employee engagement software for SMEs seeking to maintain connectivity and cohesion in distributed work environments.

• Small and Mid Sized Enterprises
• Large Enterprises

Employee Engagement Software Industry Segment Analysis

According to Cognitive Market Research, IT and telecom hold a prominent market share due to their inherent reliance on technology and digital communication channels. These industries prioritize employee engagement software to streamline internal communication, collaboration, and performance tracking. Moreover, the fast-paced nature of IT and telecom necessitates agile solutions to adapt to changing market dynamics and workforce requirements. Additionally, the emphasis on innovation and talent retention in these sectors drives the adoption of advanced employee engagement platforms to foster a culture of creativity and continuous improvement.

Healthcare is the fastest-growing category over the forecast period due to several factors. Firstly, the increasing focus on patient care and satisfaction prompts healthcare providers to invest in employee engagement software to improve staff morale and productivity, leading to better patient outcomes. Secondly, the complexity of healthcare workflows and regulatory compliance requirements necessitates robust software solutions to streamline operations and ensure compliance. Additionally, the growing demand for remote healthcare services and telemedicine solutions during the pandemic underscores the need for employee engagement platforms to support remote workforce management and communication. Moreover, the shift towards value-based care models incentivizes healthcare organizations to prioritize employee engagement initiatives aimed at enhancing the quality of care and patient experience.

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

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

Author's Conclusion