Global 360 Degree Feedback Software Market- Industry Trends & Forecast Report 2026
The global 360-degree feedback software market was worth USD 734.66 Million in 2020. The market is further projected to reach USD 1,409.40 Million by 2027 at a CAGR of 10.1% during the forecast period (2021-2027). The growth is driven by an increased need to assess employee engagement levels. As per studies, if employees are unsatisfied or unhappy at the workplace, 85% of them are not actively engaged at work. The 360 Degree Feedback Software market has witnessed significant developments over the recent years and is anticipated to grow tremendously during the forecast period. The software offers the advantage of easy scalability, which helps it gain maximum market share. The software is also deployable at any location depending on the position of the employees or the HR team. Its availability on the cloud, helps the application gets automatically updated leaving more time to drive improvement and evaluate data.
Source: BlueWeave Consulting
Global 360 Degree Feedback Software Market Overview
360-degree feedback software provides an advantage by allowing multiple raters to leave feedback on an employee, including managers, colleagues, subordinates, and external raters (clients or vendors). The feedback is often used as a benchmark in the employee's growth plan. In a team-oriented culture, 360-degree feedback surveys can be very effective and helpful. It lets the employee know how his/her team members view the effectiveness of their performance.360 reviews are also a key to identify employee strengths. Identifying strengths is important for self-awareness and personal growth. Additionally, identifying strength in a particular competency allows for the creation of a tailored development and training plan. For an employee's career development and the company's effectiveness, it's critical to develop strengths. The necessity of identifying and developing employees’ strengths is a major factor propelling the market growth.
Global 360 Degree Feedback Software Market Forecast and Trends
Use of 360-degree Feedback Software for Personal & Organizational Performance Development to Bolster Growth
Employees get more benefit from active performance management because it supports their visions, which align better with the evolving competitive business models. Gathering feedback from multiple individuals instead of one particular senior person reduces the possible shortcomings of the opinions about an individual. Additionally, 360-degree feedback software allows for open communication about performance since it involves collecting and providing feedback from all angles - vertical, diagonal, and horizontal. This comprehensive process of feedback further helps employees to understand how others perceive their attitudes, skills, and behaviors in the workplace. Consequently, this helps employees to understand their strengths, weaknesses, and areas for growth.
Time-Consuming Practice and Improper Use of Software May Impede Growth
Although 360-degree feedback software has a number of advantages, it also has some drawbacks that may limit its adoption by businesses. The feedback process is a bit time-consuming as it involves a large number of individuals and steps. Furthermore, it allows evaluators to openly express their thoughts, which can damage the morale of the evaluated employee if spiteful feedback is received.
It is true that when 360-degree feedback software is used properly, it helps workers to strengthen their main areas and overcome major team disputes. However, if implemented incorrectly, it may lead to employee resentment, conflict, and distrust. As a result of these factors, many organizations are hesitant to use this software.
Impact of COVID-19 on Global 360 Degree Feedback Software Market
Employees working remotely from home as a result of the current COVID-19 scenario has sparked the interest of many organizations in incorporating 360-degree feedback software to assess their employees' working conditions and productivity rates. For instance, in October 2020, Indian tech giant TCS allowed more than 90% of its entire workforce to continue to work from home. Many other tech companies soon followed the footsteps of TCS.
The flexible nature of 360-degree feedback software allows companies to integrate and use the software without any issues. Companies have been constantly contemplating how to approach issues of work ethics and how to provide better working conditions to their workers during the ongoing pandemic situation. Because of these factors, the demand for 360-degree feedback software has increased since the pandemic, making it easier for businesses to look after their staff and determine performance indicators for potential appraisals, promotions, and demotions. More and more companies have adopted 360-degree feedback software during the lockdown to track the performance of their employees working from home.
Educational institutes also had to adapt to the situation and shift to online classes. The ed-tech industry is witnessing a boom across the globe, especially in India. Companies are integrating survey and feedback forms to track teachers' performance and gain valuable feedback from the students. Companies are expected to shift toward incorporating 360-degree feedback software, and the industry is expected to expand in 2021 as the second wave of COVID-19 sweeps the globe, and work from home appears to be the new normal.
Global 360 Degree Feedback Software Market- By Type
Based on the type, the global 360-degree feedback software market is segmented into web-based and installed types. The web-based segment in the global 360-degree feedback software market is anticipated to hold the largest market share during the forecast period while the installed segment is expected to be the fastest-growing during the forecast period.
Source: BlueWeave Consulting
Global 360 Degree Feedback Software Market- By Application
Based on the application, the Global 360-degree feedback software market is segmented into corporations, schools, and other types. The corporation segment held over 75% market share in 2020. This is attributed to a rise in the need to track an employee's performance status, as well as the need for real-time performance feedback from colleagues, subordinates, and supervisors, which are some of the factors leading to the increasing implementation of 360-degree feedback software in the corporate segment. The school segment is also catching up and is expected to be the fastest-growing segment during the forecast period.
Global 360 Degree Feedback Software Market- By Region
Global 360-degree feedback software is segmented into five regions, North America, Europe, Asia-Pacific, Middle East & Africa, and South America. North America is anticipated to hold the largest market share during the forecast period. An increasing need for performance evaluations, along with the growing emphasis on employee retention and the importance of determining the best time for training are a few factors driving the growth of the global 360-degree feedback software market in North America.
North America is home to some of the world's most powerful corporations in a variety of industries. In the North American area, millions of physicians, technology experts, scientists, researchers, data experts, and other professionals work full-time, part-time, or on a contract basis. Thus, companies need to consistently track their performance and evaluate them as part of their policy. This is the primary factor driving the growth of the 360-degree feedback software market in North America.
Source: BlueWeave Consulting
The Global 360 Degree Feedback Software market is highly fragmented with many players holding a larger share in the market, primarily in terms of equipment purchase. The key players in the market include Qualtrics International Inc, SVI LLC, Performly Inc., Spidergap, Salesforce.Com, Inc., Sutisoft Inc., Cornerstone Ondemand, Inc., Grosum, Sumtotal Systems, LLC, Impraise, Mettl Online Assessment, Trakstar, Synergita, Assessteam, LLP, Talentguard, Svmk Inc, Survey Sparrow, and other prominent players.
In July 2020, SutiSoft, a leading provider of cloud-based applications, announced the introduction of SutiCRM 7.1, its customer relationship management system, which includes advanced features and functionality to add flexibility.
In July 2019, employee performance management software Synergita added a new Voice to Text function to its pre-existing modules named "Continuous Feedback" and "Core Values Rating." The voice recognition feature in the software translates audio input to text.
Scope of Report
Historical data- 2017-2020
Base Year- 2021
Revenue in USD Million
North America, Europe, Asia-Pacific, Middle-East & Africa and South America
Product/ Service segmentation
By Type, By Application and By Region
Qualtrics International Inc, SVI LLC, Performly Inc., Spidergap, Salesforce.Com, Inc., Sutisoft Inc., Cornerstone Ondemand, Inc., Grosum, Sumtotal Systems, LLC, Impraise, Mettl Online Assessment, Trakstar, Synergita, Assessteam, LLP, Talentguard, Svmk Inc, Survey Sparrow and other prominent players.
Ø North America
Ø The Middle East & Africa
Ø South America
1. What is the current size of the global 360-degree feedback software market?
Answer: The global 360-degree feedback software market has reached USD 734.66 Million in 2020.
2. What are the major factors driving the growth of the global 360-degree feedback software market?
Answer: The growing necessity of assessing employee engagement levels and identifying employees’ strengths, along with the growing work from home trend are some of the major factors propelling the growth of the global 360-degree feedback software.
3. Who are the key players in the global 360-degree feedback software market?
Answer: The key players in the Global 360-degree feedback software market includes: Qualtrics International Inc, SVI LLC, Performly Inc., Spidergap, Salesforce.Com, Inc., Sutisoft Inc., Cornerstone Ondemand, Inc., Grosum, Sumtotal Systems, LLC, Impraise, Mettl Online Assessment, Trakstar, Synergita, Assessteam, LLP, Talentguard, Svmk Inc, Survey Sparrow and Other Prominent Players.
4. Based on type, which segment accounted for the largest share in the global 360-degree feedback software market?
Answer: Based on type, web-based software accounted for the largest share in the global 360-degree feedback software market.
5. Which application is dominating the global 360-degree feedback software market?
Answer: Corporation is dominating the Global 360-degree feedback software market.