"Smart Strategies, Giving Speed to your Growth Trajectory"
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.
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,
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.
Request a Free sample to learn more about this report.
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.
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.
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.
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.
To know how our report can help streamline your business, Speak to Analyst
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.
North America 360 Degree Feedback Software Market Size, 2021 (USD Million)
To get more information on the regional analysis of this market, Request a Free sample
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,
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.
To know how our report can help streamline your business, Speak to Analyst
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 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,
An Infographic Representation of 360 Degree Feedback Software Market
To get information on various segments, share your queries with us
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.
Value (USD million)
By Type, Application, and Region
The market is projected to reach USD 1,908.4 million by 2029.
In 2021, the market stood at USD 820.2 million.
The market is projected to grow at a CAGR of 11.2% in the forecast period (2022-2029).
By deployment, the web-based segment is likely to lead the market.
Use of the software for personal and organizational performance development will bolster the market growth.
Explorance Inc., Qualtrics, Momentive, Actus Software, Engagedly, QuestionPro Survey Software, Trakstar, Lattice, SurveySparrow Inc., and SmartSurvey are the top players in the market.
North America is expected to hold the highest market share.
By application, the education segment is expected to grow with the highest CAGR.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry