360 Degree Feedback Software Market Size, Share & COVID-19 Impact Analysis, By Type (Installed and Web-Based), By Application (Education, Retail, Corporate, Travel and Hospitality, and Healthcare), and Regional Forecast, 2022-2029

The global 360 degree feedback software market size was valued at USD 820.2 million in 2021. The market is projected to grow from USD 905.3 million in 2022 to USD 1,908.4 million by 2029, exhibiting a CAGR of 11.2% during the forecast period. Based on our analysis, the global 360 degree feedback software market exhibited an average growth of 9.8% in 2020 as compared to 2019.

Companies around the world are deploying various performance management tools and techniques to monitor and promote effective performance at the workplace. 360 degree feedback software is one of the most significant elements of performance management as it aids the management in gaining relevant insights regarding the potential performance of their workforce. Apart from these, it also provides a real-time understanding of every individual's opportunities in the areas of learning and development. This platform enables businesses to receive and provide non-anonymous and anonymous feedback across all levels of the departments in businesses as well as external customers.

• In July 2020, Grapevine Evaluations launched its 360 degree feedback assessment tool for HR consultants and HR firms to allow them to customize the changes as per the employee assessment needs and requirements.

COVID-19 IMPACT

Increased Market Readiness to Purchase Cloud-Based Solutions to Boost the Market

The COVID-19 outbreak has disrupted daily life and caused people and organizations to reconsider their activities and objectives. These improvements are driving technological progress and innovation. Companies have invested time and money in developing a complete, integrated platform of 360 degree feedback software as well as promoting, selling, and supporting this platform. Although their revenues have consistently increased yearly, the revenue growth rate remained stable in 2020 due to an increase in the competition. Thus, the COVID-19 pandemic is laying the groundwork for future market growth.

Investing in 360 degree feedback tools will help businesses to gather feedback on employees from their managers, peers, and direct reports. This software assists in gaining insights into their employees' performance. To ensure the performance of all the employees, the software helps generate insights and create goals for them based on feedback results.

The players adopted new technologies in their product offerings to enhance their delivery and smooth workflow for the organizations. For instance,

• August 2020, SurveySparrow launched a 360 degree assessment solution. As an employee-friendly solution, 360 surveys will aid leaders, managers, and individuals within a company to understand their blind spots, strengths, and areas of improvement.


• In October 2020, SurveyMonkey revealed a solution called GetFeedback to support B2B companies in providing high-value customer experiences. It would also aid in fostering customer relationships and adapting to customer requirements.

The increased market readiness to purchase cloud-based software could lead to even faster cloud adoption of the core software than projected, resulting in stronger cloud and overall revenue growth in the coming years.

Thus, the aforementioned factors will boost the market growth.

LATEST TRENDS

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Growing Acceptance Rates of Cloud-based Technologies to Propel the Market Growth

Cloud technologies have been in the limelight of extensible data potentials, which have led to a revolution in the software management markets. The growth of cloud technologies has positively impacted the 360 degree feedback software. Unlike online software, cloud technologies have allowed companies to analyze, collect, and share team member information anywhere and anytime.

Moreover, the cloud has provided companies with more expandability, thus minimizing their operating costs previously absorbed by data scalability software. Furthermore, maintenance concerns are dealt with by the cloud vendor, not the organization itself, decreasing expenses.

Furthermore, it allows the business to keep its information secret without worrying about possible leakages. All these factors mentioned above are expected to positively impact the market growth. As a result, the global market is expected to grow during the forecast period.

DRIVING FACTORS

Use of 360 Degree Feedback Software for Personal and Organizational Performance Development to Bolster Growth

The agile performance management approach offers additional value to the employees by assisting their visualizations that align better with the existing vibrant business models. Collecting feedback from numerous persons instead of one specific senior individual decreases the possible shortcomings of the thoughts about any individual. The software enables open communication about performance as it includes the practice of sending and receiving feedback. This complete feedback method further aids employees in comprehending how others perceive their skills, attitude, and behaviors in the workplace. This would benefit employees to recognize their weaknesses, strengths, and areas for growth. In addition, it accommodates managers and employees to use the feedback to identify the need for training and build a certified development strategy that would boost their professional growth.

Companies use this software to make appraisals, promotions, and pay-related decisions. Thus, this software combines the self-assessment and external assessment to envision a team member's potential for future development. 360 degree feedback software enhances the worth of employees by keeping up with today's varying business models. It permits the assembly of input from several persons rather than just one supervisor or manager, minimizing the chances of just learning about one person. Its open communication characteristic aids management in tracking team member performance. This software can also understand team members' behaviors, attitudes, and skills. Moreover, the software aids in detecting the potential areas of growth and development of a team member. The reviews left by peers support understanding a team member's performance. These types of assessments are presented and analyzed on a slide with the help of a visual representation of information or data (infographic) that highlights the areas of development where the team member outperforms.

Furthermore, revising each team member's review within a previous statement is tedious and does not yield the same results as the software analysis. Thus, the ease of analysis and shorter time consumption while delivering precise data about a team member drives the growth of the market.

These factors, as mentioned above, fuel the 360 degree feedback software market growth.

RESTRAINING FACTORS

Time Consuming Practice and Improper Use of Software May Impede Growth

Even though the software comes with several benefits, it has some drawbacks too, which would limit its acceptance among companies. The process of feedback is tedious as it involves a large number of people and steps. Besides, as it allows inspectors to express opinions easily and freely, it is anticipated to negatively affect the evaluated team member's confidence if vindictive reviews are received.

Hence, when the software is utilized appropriately, it allows employees to recover or improve their crucial areas and fix major clashes within a team. But when done poorly, it may create conflict, anger, and distrust among employees. These issues may refrain companies from adopting this software.

Though 360 degree feedback software may aid the Human Resource (HR) department in identifying potential accomplishments; however, sometimes peer reviews can be unusable and seem biased in favor of an individual.

Various companies have started leveraging text sentimental analysis practices for understanding the quality of the reviews made by a peer for a specific person. It may support in analyzing the bias and help in eradicating the study. However, sentiment analysis might not be as effective as other authentication methods. It may need separate in-person valuations, making 360 degree tools needless.

Thus, the abovementioned factors are hampering the market.

SEGMENTATION

By Type Analysis

Installed Segment to Hold Maximum Share Backed by Faster Data Entry and Reporting

Based on type, the market has been bifurcated into installed and web-based.

Among these, the installed segment is set to capture the maximum market share as it does not require the internet to operate and can be customized according to specific needs. Also, users can control their data seamlessly. Besides, faster data entry and reporting features will also increase its popularity in the market.

The web-based segment is expected to show the highest CAGR during the forecast period. This type of software allows users to log in and access data from any internet-connected devices from anywhere. Users need not have to download, install, manage, or update the software as it is always up to date. These factors are set to attract organizations to adopt web-based software at their workplaces.

By Application Analysis

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Corporate Segment to Generate Highest Share Fueled by the Need to Improve Employee Performance

Based on application, the market has been categorized into education, retail, corporate, travel and hospitality, and healthcare. Among these, the corporate segment is anticipated to lead the market with the highest share. The software is majorly used in corporations to improve employee performance. The constructive feedback approach enables employees to uncover their strengths and areas of improvement and continuously develop their confidence.

However, the travel and hospitality segment is expected to be the fastest-growing segment during the forecast period. Using this software in the travel and hospitality industry helps create an environment where customers can share their views on the services offered, and employees can share their feedback about the company. This would help companies expand and better understand their cohesion and ambition.

Similarly, universities, school boards, and educational institutions are implementing this software for students' and teachers' personal development, thereby creating an educational environment that is conducive to learning. In the healthcare sector, the feedback software is used to observe and provide valuable perspectives on different aspects of the healthcare professional's performance that are important to the effectiveness and quality of the care provided.

Successful retailers do not just sell products but also try to attract and retain loyal customers. To retain their customers, retailers use feedback tools to gain insights from them regarding their purchase experiences. The valuable insights enable retailers to deliver personalized services and recommendations across every channel and touchpoint.

REGIONAL INSIGHTS

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Geographically, the market is divided into five key regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

North America dominated the market by holding USD 275.0 million market size in 2021. This region is considered home to millions of doctors, technology experts, scientists, and other professionals employed on a contract basis. Therefore, the demand for deploying 360 degree feedback software to evaluate the performance and engagement of employees regularly is high in North America. Also, the rising adoption of web/cloud-based feedback software among organizations is expected to fuel the growth of the market.

Similarly, SMEs' growing adoption of cloud solutions would propel market growth. Prominent players in the industry, such as Lattice, Engagedly, Explorance Inc., Qualtrics, and others, are focusing on acquisitions and product launches, which is likely to propel the market growth in the region. For instance,

• In April 2022, Explorance Inc. launched BlueML, a machine learning-enabled platform for higher education institutes. The platform provides recommendations and insights into the qualitative data gained from the mass student base. It helps in increasing agility and precision for analyzing and improves teaching effectiveness and students' learning outcomes.


• In May 2022, Qualtrics integrated into SAP Service Cloud that includes machine learning capabilities and Qualtrics XM Discover's artificial intelligence (AI). This enables customer service to resolve customer issues, improve customer satisfaction, and increase the resolution rate.

Asia Pacific is anticipated to showcase the highest CAGR, owing to the increasing adoption of the software in the rapidly expanding outsourcing businesses across the region. The demand for 360 degree feedback software is gaining traction in multiple applications such as performance appraisal and performance evaluation in corporate and training organizations. Also, the surging industrialization in the countries of Asia Pacific is expected to boost the growth of the market.

Europe holds the second-highest market share in the market. The increasing need to implement advanced technologies and the rising number of organizations are set to drive the growth of the market in this region. Besides, the rising demand for advanced management communication solutions to improve the output of organizations, retain employees, and better recognize and assess employee work would further enhance the market growth.

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South America and the Middle East & Africa are likely to exhibit considerable growth in the market. Numerous organizations across South America are deploying data-driven decision-making software solutions for evaluating employee performance. This is anticipated to create several growth opportunities for the market in these regions. Also, the intensifying competition among organizations to deliver superior productivity is expected to drive growth.

KEY INDUSTRY PLAYERS

Key Players Emphasize on Advanced 360 Degree Feedback Software to Strengthen their Positions

The global market comprises a vibrant start-up ecosystem. The market is expected to have 100+ start-ups developing and innovating 360 degree feedback solutions and services for consumers. Such a fragmented market is likely to create intense competition by forcing existing companies to upgrade and adopt new developments in the product offerings continuously. Hence, increasing competition is likely to increase market size creating more opportunities for market players. For instance,

• March 2022 – Explorance Inc. announced a partnership with Qatar-based real estate developer United Development Company to implement 360 degree feedback software Blue. The company aims to use the software to analyze the employee's talent as per the organization's demands and requirements.

List of Key Companies Profiled:

• Explorance Inc. (Canada)


• Qualtrics (U.S.)


• Momentive (U.S.)


• Actus Software (U.K.)


• Engagedly (U.S.)


• QuestionPro Survey Software (U.S.)


• Trakstar (U.S.)


• Lattice (U.S.)


• SurveySparrow Inc. (U.S.)


• SmartSurvey (England)

KEY INDUSTRY DEVELOPMENTS:

• June 2022 – Lattice announced the partnership with AMI to secure the data center platform and next gen server. This partnership helped to integrate firmware expertise Lattice Sentry and lattice FPGA technology to create "AMI’s Tektagon XFR platform Root of Trust” Solution.


• March 2022 – The University of Texas in Austin selected Explorance Inc. feedback software Blue for automating the course evaluation process.


• October 2021 – SurveyMonkey launched the GetFeedback platform, which is a customer experience (CX) solution for an event. The CX Impact Summit is a cost-efficient CX and easy-to-deploy solution, which helps organizations to set up CX programs easily.


• April 2021 – Explorance Inc. announced a partnership with Gallup, the global analytics and advisory firm for delivering Gallup’s clients with streamlined 360 assessments that make deployment smooth, robust, and worry-free for the end-user.


• June 2020 – Microsoft Corporation offered project management software on a month-to-month basis. The availability of software tailored to the preferences of customers is projected to boost productivity and business across the globe.


• August 2019 – Rybbon and SurveySparro entered into a partnership that allows users to create and share highly engaging and mobile-first surveys. This partnership allows SurveySparrow users to increase survey response rates within automated incentive delivery.

REPORT COVERAGE

An Infographic Representation of 360 Degree Feedback Software Market

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The study on the market includes prominent areas worldwide to get a better knowledge of the industry. Furthermore, the research provides insights into the most recent industry and market trends as well as an analysis of technologies that are being adopted quickly on a worldwide scale. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.

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