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What Is The Leading Driver Behind Remote Work Drives Surge In Employee Onboarding Software Market Growth Market Expansion in 2025
Employee Onboarding Software
How Large Will the Employee Onboarding Software Market Size By 2025?
The market size of employee onboarding software has exponentially expanded in the past few years. The market, which stood at $1.77 billion in 2024, is projected to rise to $2.11 billion in 2025, equating to a compound annual growth rate (CAGR) of 19.6%. Key factors behind the observed growth during the historic period include digital transformation, growing workforce diversity, compliance with regulatory requirements, the transition to remote work, and a greater emphasis on employee experience.
How Big Is the Employee Onboarding Software Market Size Expected to Grow by 2029?
The market size for employee onboarding software is predicted to experience significant expansion in the upcoming years, reaching $4.12 billion by 2029 with a compound annual growth rate (CAGR) of 18.2%. This projected growth during the forecast period is primarily due to the increasing adoption of AI and automation, growth of the gig economy, a focus on data privacy and security, and integration with HR analytics and insights, as well as the rise in a mobile workforce. Key trends anticipated during this period include improved integration with HR analytics and insights, customised onboarding processes to meet each employee's distinct requirements, heightened focus on remote onboarding solutions, and the introduction of mobile-first onboarding platforms for improved accessibility and flexibility.
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Which Key Market Drivers Powering Employee Onboarding Software Market Expansion and Growth?
The increasing popularity of remote work is set to fuel the expansion of the employee onboarding software market in the future. Remote work is a form of employment setting where employees carry out their responsibilities outside the usual office setting, often from their homes. This expanding trend of remote work derives from the quest for better flexibility, enhanced work-life balance, and the possibility for heightened productivity and cost efficiency. Employers can carry out the onboarding process virtually through employee onboarding software, from paperwork completion to training sessions. This is particularly beneficial for remote workers who may require the option to participate in face-to-face onboarding activities. For example, a study conducted by AT&T, a United States telecommunication corporation, in February 2022 shows that the proportion of enterprises embracing a mixed work model where employees both work remotely and from the office is expected to surge from 42% in 2021 to 81% in 2024. Consequently, the burgeoning remote work trend is propelling the progress of the employee onboarding software market.
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Which Fast-Growing Trends Are Poised to Disrupt the Employee Onboarding Software Market?
Top firms in the employee onboarding software market are resorting to strategic alliances to innovate their onboarding software products. Such alliances come with several benefits to completed vehicle logistics firms, including the pooling of resources and expertise, enhancement of research and improvement efforts, wider market accessibility, and accelerated commercialization, all of which collectively fuel innovation and growth in the completed vehicle logistics sector. For example, Salesforce Inc., a software company from the US, formed a strategic alliance with Workday Inc., another US-based system software firm in July 2024. The main goal of this partnership between Salesforce and Workday is to develop a unified, artificial intelligence-enhanced employee service agent that simplifies tasks such as onboarding, benefits management, and career progression. Through the integration of Salesforce's CRM and Workday's HR and finance data, this partnership aims at maximizing productivity while offering personalized and efficient assistance to employees.
What Are the Emerging Segments in the Employee Onboarding Software Market?
The employee onboarding softwaremarket 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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