Benefits Management Software Global Market Report 2025

The benefits management software market size has grown rapidly in recent years. It will grow from $7.59 billion in 2024 to $8.47 billion in 2025 at a compound annual growth rate (CAGR) of 11.6%. The growth during the historic period can be attributed to factors such as the increasing adoption of digital solutions in HR departments, the rising need for cost-effective employee benefits administration, growing awareness about employee wellness programs, the increasing complexity of benefits compliance regulations, and the rising trend of outsourcing benefits management tasks.

The benefits management software market size is expected to see rapid growth in the next few years. It will grow to $12.98 billion in 2029 at a compound annual growth rate (CAGR) of 11.3%. The projected growth during the forecast period can be linked to the increasing demand for integrated benefits and payroll solutions, a heightened emphasis on employee experience and engagement, a growing transition toward self-service platforms, the expansion of remote and hybrid work environments, and increased investment in automated workflow management. Key trends expected in the forecast period include technological progress in benefits analytics tools, innovation in personalized employee benefit solutions, the emergence of mobile-first benefits management applications, heightened research and development efforts by HR technology companies, and improvements in cybersecurity measures to safeguard employee data.

The growing focus on employee wellness and engagement is anticipated to drive the expansion of the benefits management software market in the coming years. Employee wellness and engagement encompass initiatives and practices aimed at improving employees' physical, mental, and emotional well-being while promoting active participation, satisfaction, and motivation in the workplace. This heightened focus stems from a rising number of companies recognizing the positive impact of wellness programs on productivity, prompting greater investment in initiatives that enhance employee satisfaction and performance. Benefits management software supports employee wellness and engagement by simplifying access to health benefits and wellness resources. It enables employees to manage their benefits independently while providing employers with data to customize programs for improved well-being and satisfaction. For example, in March 2025, the Society for Human Resource Management, a US-based human resources organization, reported that in 2024, 33% of employers offered paid leave to care for immediate family members, up from 31% in 2022, and 44% offered paid parental leave in 2024, an increase from 33% in 2022. Thus, the growing emphasis on employee wellness and engagement is fueling the growth of the benefits management software market.

Leading companies in the benefits management software industry are concentrating on developing advanced solutions, such as employee benefits enrollment software, to boost employee satisfaction and engagement. Employee benefits enrollment software is designed to simplify the selection and management of benefits packages, streamline enrollment processes, ensure compliance, minimize administrative burdens, and enhance the employee experience through a user-friendly, self-service platform. For instance, in June 2023, BambooHR, a US-based HR software provider, introduced a new benefits administration solution aimed at simplifying employee enrollment and benefits management. Its key features include self-service benefits elections, automated enrollment periods for new hires and life events, integrated reporting tools, direct connections to insurance providers, and seamless integration with payroll systems. This solution improves HR efficiency, reduces manual data entry errors, and elevates the employee experience with an intuitive interface and centralized access to data.

In September 2024, Zellis Group, a UK-based provider of payroll and human capital management (HCM) software, announced the acquisition of Benify AB for an undisclosed sum. This strategic move enhances Zellis Group’s leadership in the HCM software sector by incorporating Benify’s expertise in benefits, rewards, and engagement. It broadens Zellis' product offerings and strengthens its ability to help businesses streamline operations and improve the employee experience globally. Benify AB is a Sweden-based company specializing in employee benefits administration software.

Major players in the benefits management software market are SAP SE, Insperity Inc., Workday Inc., TriNet Group Inc., WEX Inc., The Sage Group plc, Paycom Software Inc., Dayforce Inc., Rippling Inc., Gusto Inc., Paycor HCM Inc., Benefitfocus Inc., BambooHR LLC, Empyrean Benefit Solutions Inc., PlanSource Benefits Administration Inc., Deel Inc., Asure Software Inc. (PeopleStrategy Inc. is a part of Asure), GoCo.io Inc., Namely Inc., bswift LLC.

North America was the largest region in the benefits management software market in 2024. The regions covered in benefits management software report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the benefits management software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Benefits management software is a digital tool that streamlines and automates the administration of employee benefits. It reduces manual tasks, minimizes the risk of errors, and ensures better regulatory compliance. This software allows human resources teams and employees to easily access, manage, and update benefits, improving transparency, simplifying enrollment processes, and supporting data-driven decision-making.

The main components of benefits management software are the software itself and associated services. Cloud-based benefits management software offers scalable, on-demand tools over the internet, which simplifies administration, boosts compliance, and enhances the user experience. The software can be deployed either in the cloud or on-premises, and it caters to organizations of various sizes, including small and medium enterprises as well as large enterprises. It is used by end-users in industries such as healthcare, information technology and telecommunications, government and public sectors, retail and e-commerce, and manufacturing.

The benefits management software market research report is one of a series of new reports that provides benefits management software market statistics, including the benefits management software industry global market size, regional shares, competitors with the benefits management software market share, detailed benefits management software market segments, market trends, and opportunities, and any further data you may need to thrive in the benefits management software industry. This benefits management software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The benefits management software market consists of revenues earned by entities by providing services such as enrollment management, communication management, and compliance management. The market value includes the value of related goods sold by the service provider or included within the service offering. The benefits management software market includes sales of HR workstations, servers, network infrastructure, and biometric devices. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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