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2025 Employee Onboarding Software Industry Trends Report: Long-Term Outlook Through 2034
Employee Onboarding Software
How Large Will the Employee Onboarding Software Market Size By 2025?
In recent times, the market size of employee onboarding software has seen an explosive growth. The market that was worth $1.77 billion in 2024 will escalate to $2.12 billion in 2025, marking a compound annual growth rate (CAGR) of 20.1%. The substantial growth observed in the historic period is a result of factors such as digital transformation, a rise in workforce diversity, regulatory compliance needs, a shift towards remote working, and an emphasis on employee experience.
How Big Is the Employee Onboarding Software Market Size Expected to Grow by 2029?
Rapid expansion is expected in the employee onboarding software market over the forthcoming years, anticipated to reach a value of $4.36 billion by 2029, with a compound annual growth rate (CAGR) of 19.7%. This forecast period growth is due to factors such as rising utilization of AI and automation, the growing gig economy, an emphasis on data security and privacy, and integration with HR analytics and insights, in addition to the increase in mobile workforce. Notable trends in the forecast period include greater integration with HR analytics and insights, onboarding experiences customized to individual employees, greater focus on remote onboarding solutions, and the introduction of mobile-centric onboarding platforms for improved accessibility and flexibility.
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Which Key Market Drivers Powering Employee Onboarding Software Market Expansion and Growth?
The growing trend of work-from-home is forecasted to stimulate the expansion of the employee onboarding software market. Work-from-home refers to an employment structure where staff members carry out their tasks outside the conventional office settings, typically at their residences. The shift towards remote work is attributed to the search for enhanced flexibility, better work-life equilibrium, and the probability of heightened productivity and cost reduction. Employee onboarding software gives employers the ability to carry out the onboarding process virtually, from filling out paperwork to training sessions, which is particularly beneficial for remote workers who might need the chance to partake in in-person onboarding activities. Case in point, a study conducted in February 2022 by AT&T, an American telecommunications company, predicted that the proportion of companies embracing a hybrid work model, where workers undertake both remote and office-based work, is forecasted to grow from 42% in 2021 to 81% in 2024. Hence, the surging remote work trend is fueling the expansion of the employee onboarding software market.
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Which Fast-Growing Trends Are Poised to Disrupt the Employee Onboarding Software Market?
Leading firms in the employee onboarding software market are opting for strategic collaboration tactics to pioneer innovation in employee onboarding software. Such partnerships offer advantages to end-vehicle logistics firms via resource pooling and skill sharing, bolstering research and development, enlarging market reach, and accelerating the progress toward commercialization. This collectively instigates innovation and triggers growth in the finished vehicle logistics sector. For example, Salesforce Inc., a US-based software company, joined forces with Workday Inc., a US-based system software firm, in July 2024. Their mutual goal is to develop a unified, AI-fueled employee service agent capable of simplifying tasks like onboarding, benefits management, and career progression. The blend of Salesforce CRM and Workday's HR and financial data results in a collaboration that boosts productivity and offers personalized, streamlined support for employees.
What Are the Emerging Segments in 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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Who Are the Global Leaders 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
Which are the Top Profitable Regional Markets for the Employee Onboarding Software Industry?
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.
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