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Global Employee Onboarding Software Market Analysis 2025-2030: Growth Drivers, Challenges, And Opportunities
Employee Onboarding Software
How Big Is the Employee Onboarding Software Market Size Expected to Be by 2034?
The market size of employee onboarding software has seen a massive expansion in the past few years. The growth is predicted to increase from $1.77 billion in 2024 to $2.12 billion in 2025, with a compound annual growth rate (CAGR) of 20.1%. This surge during the historical period can be traced back to aspects such as digital transformation, growing diversity in the workforce, the need for regulatory compliance, transition to remote work, and an emphasis on employee experience.
The market size for employee onboarding software is set to experience significant expansion in the coming years, reaching a value of $4.36 billion in 2029 with a compound annual growth rate (CAGR) of 19.7%. This growth during the forecast period is due to increasing adoption of AI and automation technology, the booming gig economy, the focus on securing data and maintaining privacy, and integration with HR analytics and insights, as well as the growing mobile workforce. Key trends during this period include improved integration with HR analytics and insights, custom onboarding experiences designed to meet individual employee requirements, heightened focus on remote onboarding solutions, and the adoption of mobile-first onboarding platforms to increase accessibility and flexibility.
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What Are the Emerging Segments Within the 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 Long-Term Drivers Are Shaping Employee Onboarding Software Market Trends?
The increasing trend of remote work is anticipated to drive the expansion of the market for employee onboarding software. Remote work pertains to a work setup where employees complete their tasks outside the conventional workplace, usually from their homes. The need for more flexibility, enhanced work-life equilibrium, and the opportunity for greater productivity and cost efficiencies have contributed to the surge in remote work. Software for employee onboarding enables companies to facilitate the onboarding process virtually, from filling in necessary paperwork to undertaking training sessions. This proves to be particularly advantageous for remote workers who may be unable to participate in face-to-face onboarding sessions. For example, based on a study released by AT&T, a telecommunication firm from the US, in February 2022, it is predicted that the proportion of companies embracing a hybrid work model, where employees both work remotely and from an office, will rise from 42% in 2021 to 81% in 2024. Therefore, the burgeoning trend of remote work is propelling the growth of the market for employee onboarding software.
Who Are the Top Competitors in Key Employee Onboarding Software Market Segments?
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 Employee Onboarding Software Market Trends Are Gaining Traction Across Different Segments?
Top firms in the employee onboarding software market are turning to strategic collaborations to create cutting-edge software for employee onboarding. These alliances provide significant advantages to finished vehicle logistics firms, such as pooling of resources and expertise, enhancement of research and development initiatives, widened market penetration, and quickened commercialization activities. This collectively fuels innovation and business growth in the finished vehicle logistics sector. To illustrate, in July 2024, Salesforce Inc., a software firm headquartered in the US, initiated a partnership with Workday Inc., another US-based system software company. Both Salesforce and Workday are striving to develop an integrated, AI-driven employee service agent to simplify various tasks like onboarding, benefits administration, and career progression. This partnership, which integrates Salesforce CRM with Workday's HR and financial data, significantly boosts productivity and delivers customized, efficient support to employees.
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Which Regions Are Becoming Hubs for Employee Onboarding Software Market Innovation?
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.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Employee Onboarding Software Market?
2. What is the CAGR expected in the Employee Onboarding Software Market?
3. What Are the Key Innovations Transforming the Employee Onboarding Software Industry?
4. Which Region Is Leading the Employee Onboarding Software Market?
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