RedThread Releases 2023 People Analytics Technology Market Report — Reveals Thriving, Cautious Indus
RedThread Research, human capital analysts and thought leaders, today released their highly-anticipated People & Analytics Technology (PAT) State of the Market 2023 report. The first half of a two-part annual study, this is the fourth annual publication of this definitive report on the people analytics technology space. The executive report is now available to the public, with an in-depth report available to RedThread members, only. RedThread is widely considered the most knowledgeable, unbiased authority on both the people analytics technology and the learning technology markets.
The 2023 PAT shows the market for people analytics technology thriving. The overall market has expanded from 135 to 150 vendors — and grew to an estimated $5.6 billion in 2022 from $3.1 billion in 2021.
People and analytics tools have become essential to doing business, the PAT market report shows. “Software solutions have become a lifeline of important insights for HR and leaders in uncertain and unstable times,” said RedThread co-founder and report co-author Stacia Garr. “People analytics is now critical for organizations to successfully navigate a tight labor market, turnover, inflation, hybrid work, employee wellness, workplace safety, engagement, and general volatility.”
Despite impressive 41% growth in 2022, and a three-year growth rate of 50%, this year’s PAT report finds vendors beginning to shift tactics to be more introspective in the face of a slowing economy. Many vendors have lowered growth expectations, with only 39% expecting to see higher than 31% growth for 2023 — vs 57% in 2022.
PAT vendors are also pulling back on mergers and acquisitions, and shifting to a more nuanced go-to-market approach, said co-author and RedThread senior analyst Priyanka Mehrotra. “Companies are focusing on refining technologies and services, and PAT vendors are more carefully targeting their growth to specific segments and needs in 2023.”
Sponsored by the RedThread Tech Consortium, the executive summary of the PAT market report is now available to the public on RedThread’s website. The publication of this report will be followed on May 30, with the release of the second part of the study — the People Analytics Technology Vendor Report. That report will contain a more in-depth look at individual vendors and where they fit in the marketplace.
RedThread Research will share insights and findings from both halves of this research to its members in an invitation-only webinar on June 8. They will also host a public webinar on June 29. Registration for that webinar is now open on RedThread’s website.
One of the most comprehensive and meticulous studies currently available in the market, the PAT report is comprised of three separate surveys, deployed in January of this year to PAT vendors, market, and customer respondents. That data was then combined with vendor briefings and a review of four years of data to produce the market report and executive summary.
“As always, our goal with this research is to help buyers and vendors of people analytics technology (PAT) understand the current state of the market and how it is changing,” writes Stacia Garr in the report. “Our aspiration is that this research will enable better decision-making—whether by those who are buying or creating the technology—that leads to more humanistic, data-driven approaches to people enablement.”
The PAT report is sponsored by the RedThread Tech Consortium, a community of software vendors who have demonstrated a strong commitment to supporting high-quality, unbiased industry intelligence. Launched in February of 2023, the Consortium includes: Augmentir, Axonify, Betterworks, Claro Analytics, Cornerstone, Crunchr, Degreed, Eightfold, Lightcast, Medallia, NovoEd, Perceptyx, Quantum Workplace, Reejig, SeekOut, Skillable, SplashBI, TechWolf, Top Employers Institute, Torch, Visier, and Workday. Though they sponsor RedThread’s work, Tech Consortium members do not influence research outcomes or content in any manner.
The full versions of both halves of the study will be made available to RedThread research members and Consortium members via the RedThread member website. RedThread members also have exclusive access to RedThread’s 2023 People Analytics Technology tool, which will be updated in May, which helps members quickly search and compare information on specific vendors.
Anyone interested in joining the RedThread member community or companies interested in joining the Tech Consortium can learn more about membership on the RedThread website or reach out to RedThread by emailing firstname.lastname@example.org.