Employee Experience Management Market Size - By Component (Software, Service), By Organization Size (SMEs, Large Enterprises), By Deployment Model (On premises, Cloud), By End User, Growth Prospects, Regional Outlook & Forecast 2024 – 2032

Employee Experience Management Market Size

Employee Experience Management Market size was valued at USD 6.1 billion in 2023 and is estimated to register a CAGR of over 6.5% between 2024 and 2032. The market growth is fueled by the rising number of surveys highlighting its significance. These surveys affirm that prioritizing employee experience directly correlates with retention and productivity. For instance, in January 2024, Riverbed, a leader in Unified Observability, released findings from its 2023 Global Digital Employee Experience (DEX) survey for focusing on the energy and utilities sector.
 

The survey underscored the sector's urgency in enhancing digital experiences for both employees and customers. Amid intense competition, a robust DEX was deemed essential for seamless collaboration across dispersed teams. A staggering 93% of respondents viewed DEX as critical for competitiveness, especially with the industry embracing renewable energy and digital transformation. With the workforce evolving, addressing the digital needs of Millennials and Gen Z has also grown imperative.
 

Furthermore, implementing workforce management software and talent management software is essential for optimizing employee experience management. Workforce management software automates tasks like scheduling and attendance, ensuring efficient resource utilization and promoting work-life balance. Meanwhile, talent management software streamlines recruitment, fosters skill development, and identifies high-potential employees, enhancing engagement and retention. These software solutions empower organizations to create a positive workplace culture, drive productivity, and retain top talent, ultimately contributing to long-term success.
 

The demand for EXM solutions is further driven by a quest for improved innovations and services offered by leading companies. Lately, the strong focus of organizations on prioritizing employee satisfaction and productivity is propelling the demand for cutting-edge EXM technologies that streamline processes, enhance communication, and foster a positive work environment. Leading companies in the EXM market are continuously offering advanced features and services to cater to the evolving needs of modern workplaces, thus driving the employee experience management market growth and expansion.
 

For instance, in June 2023, VMware, Inc. announced four innovative enhancements to its comprehensive DEX solution: the availability of DEX for 3rd party managed devices, AI-driven Guided RCA, DEX for VMware Horizon and plans to expand Workspace ONE ITSM Connector for ServiceNow support for remediation actions. These advancements reinforced VMware's commitment to providing a holistic DEX solution, to boost productivity, expedite issue resolution, and enhance employee engagement amidst evolving the workplace dynamics.
 

However, the employee experience management market is facing several restraints as organizations are navigating the evolving workplace dynamics. These include resistance to change from traditional management practices, concerns about data privacy and security in EXM platforms, budget constraints for implementing comprehensive solutions, and the complexity of integrating EXM technologies with existing HR systems. Additionally, the lack of standardized metrics for measuring employee experience effectiveness may pose a challenge for the industry progress.
 

Employee Experience Management Market Trends

Rising collaborations and acquisitions are reshaping the employee experience management industry, in addition to innovations and introduction of new projects from leading companies. Strategic partnerships between EXM providers and technology firms are helping combine expertise and resources to deliver comprehensive solutions to meet the evolving needs of modern workplaces.
 

These collaborations are also fostering the integration of cutting-edge technologies, such as AI, analytics, and automation into EXM platforms, for enabling organizations to enhance employee engagement, productivity, and satisfaction. To cite an instance, January 2024, Nexthink celebrated its 20th anniversary with the acquisition of AppLearn, a digital adoption leader, signaling a significant advancement in DEX.
 

Employee Experience Management Market Analysis

Based on component, the software segment dominated around USD 3.5 billion revenue in 2023. As organizations prioritize employee satisfaction and productivity, the adoption of EXM solutions powered by innovative software is rising. These platforms streamline processes and enhance communication to foster a positive work environment. With features, such as analytics, automation, and personalized experiences, EXM software is empowering companies to optimize employee engagement and retention. The surging importance of employee experience and the higher demand for advanced software solutions tailored to meet the evolving needs of modern workplaces will boost the segment growth.
 

Based on the organization size, the large enterprises segment held over 69% of the employee experience management market share in 2023. With expansive workforces, large organizations are prioritizing employee satisfaction and productivity to maintain competitiveness. EXM solutions offer comprehensive tools to streamline processes, improve communication, and enhance workplace culture. The growing recognition of employee experience in talent retention and performance by large enterprises is further driving heavy investments in EXM initiatives. The growing development of advanced EXM platforms tailored to meet the unique needs of large-scale operations will also ensure sustained market growth.
 

North America employee experience management market accounted for 35% of the revenue share in 2023. With a strong emphasis on employee satisfaction and productivity, organizations in this region are increasingly adopting EXM solutions to offer robust features, such as analytics, automation, and personalized experiences to optimize employee engagement. As North American companies recognize the link between positive employee experiences and business success, the demand for EXM will further continue to grow. The growing efforts led on shaping the future of workplace management and employee well-being will further drive the regional market growth.
 

Employee Experience Management Market Share

Oracle and Qualtrics hold a significant market share of over 9% in the employee experience management industry. These prominent players in the market are leveraging advanced technology and analytics to provide comprehensive EXM platforms that cover various aspects of the employee journey. These platforms offer features such as employee feedback mechanisms, performance management tools, learning and development modules, and well-being initiatives, all integrated into a seamless user experience. By focusing on holistic EXM solutions, these companies are helping organizations create a positive work culture, boost employee engagement, and drive better business outcomes.
 

These companies provide customizable survey tools, real-time feedback mechanisms, and actionable insights to help organizations understand and address the evolving needs of their workforce. By harnessing the power of data and analytics, these companies enable organizations to make informed decisions, prioritize initiatives, and continuously improve the employee experience.
 

Employee Experience Management Market Companies

Major companies operating in the employee experience management industry are:

• ADP
• Cornerstone OnDemand
• IBM
• Microsoft
• Oracle
• Qualtrics 
• Salesforce
• ServiceNow
• SurveyMonkey Enterprise
• Workday
   

Employee Experience Management Industry News

• In April 2023, Zoom's acquisition of Workvivo, a provider specializing in employee experience, aims to broaden the Zoom platform's capabilities, providing fresh avenues to ensure employees remain informed, engaged, and interconnected regardless of their work location.
   
• In February 2023, GoCo.io, a prominent provider of adaptable software solutions catering to HR, benefits, and payroll needs announced its acquisition of WFHomie. WFHomie specializes in employee experience and people analytics platforms designed specifically for remote-first companies. This strategic move aims to empower customers by streamlining HR workflows with efficient, intuitive solutions that resonate with both HR teams and employees.
   

The employee experience management market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Component

• Software
• Employee engagement platforms
• Learning & development tools
• Performance management software
• Employee feedback & surveys
• Employee well-being solutions
• HR analytics & insights
• Onboarding & offboarding solutions
• Others 
• Service
• Consulting & advisory service
• Implementation & integration service
• Training & support service
• Managed service

Market, By Organization Size

• SMEs
• Large enterprises

Market, By Deployment Model

• On premises
• Cloud

Market, By End-user

• BFSI
• Manufacturing
• Retail
• IT & technology
• Healthcare
• Government & public sector
• Hospitality
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA