Corporate Performance Management Market

Corporate Performance Management Market Outlook 2031

The global corporate performance management market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of XX% during 2023–2031. The market is propelled by the rising requirement to consistently monitor, analyze, and improve performance in a dynamic work environment.

Growing need to measure performance in an organization with effective approaches and technology tools is expected to drive the market. The rising competition across industries leads to the need for performance strategies that support achieving goals, enhance operation efficiency, and boost profits. Furthermore, the rising complexities in business operations are fueling the need for corporate performance management (CPM) tools that comprehend data from multiple sources and various stakeholders to provide performance analysis in a meaningful and actionable way. The growing adoption of advanced CPM technology solutions, owing to regulatory compliance needs and the need for real-time analysis and presentation is expected to generate opportunities in the market.

• According to a survey study of nationwide business owners in the US published in March 2022, about 98% asserted that performance management is important. However, only 64% agreed that they have an efficient strategy in place to track performance.

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The research report finds that the COVID-19 pandemic fueled the corporate performance management market, as numerous companies adopted remote work modes during the pandemic, due to lockdowns. The management team highly adopted efficient performance management solutions to boost employee productivity, engagement, and performance. Moreover, several businesses adopted software and gadget solutions to keep employees motivated and productive and to monitor the performance of the employees and teams. The majority of the firms switched from their outdated performance appraisal practices to the technology-powered, time-to-time tracking and rewarding approach. Thus, the market is expected to register a high demand for CPM tools and strategies that motivate the workforce consistently, as the dynamics of businesses and corporate workings are transforming with technology and globalization.

Impact of Artificial Intelligence (AI) on the Corporate Performance Management Market

The emergence of generative artificial intelligence is projected to benefit the market. AI solutions analyze data from various sources in real time and provide detailed insights. The consistent tracking enabled by the AI-powered CPM tools is expected to help companies acknowledge and reward the efforts of employees and teams. Companies can support employees in overcoming their limitations and scaling productivity levels, with advanced tools for performance management. Such AI-driven practices support organizations in boosting overall productivity to increase profits. Moreover, the increasing launch of different AI-based CPM tools is expected to fuel the market.

• In October 2023, Betterworks, an intelligent performance management software solution provider, announced the addition of three new generative artificial intelligence capabilities to its next-generation performance management solution. These capabilities enable the creation of clear goals, provide impactful feedback to employees, and make conversations about productive performance easier than in earlier times.

Corporate Performance Management Market Dynamics

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Major Drivers

Growing competition across the sectors is expected to drive the market. The need for consistent tracking of employee and team performance is growing rapidly to efficiently reach goals set by teams or organizations. The time-to-time analysis of performance helps in gaining insights about strengths and weaknesses. This further helps to quickly reach the final goals. Additionally, companies quickly provide highly productive employees with recognition and rewards to boost their confidence and morale within the team. Such dynamic work practices in a rapidly transforming business environment are expected to boost the market.

Rising preference for data-driven decisions across industries is expected to fuel the market. The data-based decisions help HR and management teams establish transparency within the organization. Furthermore, the employees and leaders can gain deep insights into the different aspects of the work to achieve goals, thereby propelling the market.

• According to a recent survey by Officevibe, an employee experience software platform, about 64% of participating employees expressed the need for better quality feedback.

Existing Restraints

High upfront cost of CPM tools implementation and maintenance is likely to restrain the market during the forecast period. These costs include the cost associated with software licenses, installation of hardware infrastructure, and consulting services for effective implementation. This cost varies based on the size of an organization and customization needs. Additionally, the cost required for the upgrade and maintenance of CPM tools further stretches the budgetary needs. Lack of awareness and low availability of skilled workforce for efficient use of CPM solutions is further expected to restrain the market.

Emerging Opportunities

Growing inclusion of perspective and predictive capabilities in the CPM technology is expected to create opportunities in the market. Advanced technologies such as generative AI and machine learning (ML) are expected to empower CPM tools in developing deep insights into the performance of an employee and team. This aids in working on skills and training in a more focused manner. Further, offering mobile applications for CPM and making them more collaborative is expected to generate growth potential in the market.

Scope of the Corporate Performance Management Market Report

The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Deployment Analysis

Based on deployment, the corporate performance management market is bifurcated into on-premises and cloud-based. The cloud-based segment is expected to hold the major share of the market during the projection period, owing to the growing availability of CPM software as a service (SaaS) solution. Cloud-based CPM software allows companies to track, evaluate, and analyze the performance of employees and teams constantly. Cloud performance management systems save a significant cost for companies, as cloud-based solutions eliminate the need to install huge technology infrastructure. SaaS solutions are easily and rapidly integrated into existing systems, offering the benefits of the latest technologies.

• A survey study published in May 2023 estimated that around 90% of worldwide companies have adopted cloud technology tools as of 2022. This is a high adoption rate of any new technology by the corporate sector.

The on-premises segment is anticipated to hold a considerable share in the market, as several organizations prefer keeping employee and productivity-related data in-house, due to privacy concerns. The rising cases of cybersecurity breaches necessitate the adoption of on-premise CPM solutions. In addition, the growing need for consistent performance tracking and employee appreciation boosts the adoption of on-premise systems for performance evaluation standards and practices in the company.

Organization Size Analysis

On the basis of organization size, the global market is divided into large enterprises and small & medium enterprises. The small & medium enterprises (SMEs) segment is anticipated to lead the market in terms of demand during the forecast period, owing to the increasing business competition and the rising need for efficient performance tracking solutions. The growing requirement to establish accountability and transparency for key stakeholders, including employees, shareholders, customers, and investors, is driving the need for enterprise performance management systems from SMEs. Furthermore, the rising number of SMEs across the globe is expected to generate opportunities in the market.

Application Analysis

On the basis of application, the corporate performance management market is fragmented into BFSI, manufacturing, energy & power, retail, IT & telecom, transportation & logistics, and others. The banking, financial services and insurance (BFSI) segment is expected to register a robust growth rate during the forecast period, owing to the diverse use of CPM tools to track, optimize, and enhance performance. CPM tools integrated into BFSI operations allow for planning asset management, lending, mortgage, and brokerage, and offer fee-based services. Integration of CPM tools into banking and insurance organizations enables monitoring of real-time performance data. Moreover, the rise of online banking and the increasing digitization of different workings to enhance performance and productivity propels the segment.

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Regional Outlook

In terms of region, the global corporate performance management market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the forecast period, due to the rising digitization of corporate workings across the sectors. The growing availability of various cloud-based services and solutions is enabling enterprises to adopt advanced digital solutions to compete effectively in the globalized business environment.

The flexibility and cost benefits offered by SaaS CPM solutions have driven up the adoption of these tools from SMEs in the region. Emerging economies, including India, Japan, China, Singapore, South Korea, and Indonesia, are among the major adopters of CPM digital tools. Furthermore, the increasing demand for AI and ML-driven performance management technology is anticipated to provide growth potential for market players in Asia Pacific.

The market in North America is anticipated to register rapid growth during the projection period, owing to the growing implementation of automation technology for deriving data-based decisions. The presence of numerous multinational corporations in this region creates major opportunities in the market. Rising investment in advanced technology integration as a part of digital transformation initiatives, coupled with fast-paced economic growth is likely to generate opportunities in the market. Growing focus on regulatory compliance and rising demand to establish transparency and clarity for the stakeholders are further expected to fuel the market in this region.

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Segments

The global corporate performance management market has been segmented on the basis of

Deployment

• On-premises
• Cloud-based

Organization Size

• Large Enterprises
• Small & Medium Enterprises

Application

• BFSI
• Manufacturing
• Energy & Power
• Retail
• IT & Telecom
• Transportation & Logistics
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Anaplan, Inc.
• BlackLine Inc.
• BOARD International
• IBM
• Ideagen
• Insightsoftware
• Jedox
• Kepion Incorporated
• MAGIQ Software
• OneStream
• Oracle Corporation
• Planful
• Prophix Software Inc.
• SAP SE
• Solver
• Unit4
• Vena Solutions
• Wolters Kluwer N.V.
• Workday, Inc.

Competitive Landscape

Key players competing in the Corporate Performance Management Market are Anaplan, Inc.; BlackLine Inc.; BOARD International; IBM; Ideagen; Insightsoftware; Jedox; Kepion Incorporated; MAGIQ Software; OneStream; Oracle Corporation; Planful; Prophix Software Inc.; SAP SE; Solver; Unit4; Vena Solutions; Wolters Kluwer N.V.; and Workday, Inc..

These companies adopted several development strategies, including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion, to expand their consumer base across the globe. The competitive landscape covers key insights into growth strategies adopted by major market players.

• On November 27, 2023, MAGIQ Performance, a provider of integrated cloud software to the public sector, announced that Moira Shire Council in Victoria has chosen MAGIQ Performance Cloud Budgeting and Reporting solution. This solution is designed to ensure precise and transparent data to decision-makers for informed planning and decision-making.

• On October 3, 2023, Wolters Kluwer launched AI Labs, a collaborative product that brings the capabilities of AI to UpToDate. This is a leading solution made by company for clinical decision support. The AI capabilities is expected to help medical professionals in making more informed decisions.