The benefit management platform market is expected to reach US$ 2,786.89 million by 2028 from US$ 1,663.06 million in 2021; it is estimated to grow at a CAGR of 7.7% from 2021 to 2028.

The overall market has been segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa, and South America. North America led the global benefit management platform market with a revenue share of 45.6% in 2020. Due to the large presence of diverse industries with organizations of all sizes, North America is considered a mature market for benefit management platforms. The adoption of a benefit management platform is worthwhile to boost employee morale and encourage involvement in the work environment. Because of their technological innovation, benefit management platforms are widely used in all sizes of businesses. The rapid advancements in the IT industry are likely to provide major growth opportunities for benefit management platforms in Europe. Integration of technologies like the internet of things (IoT), machine learning (ML), and artificial intelligence (AI) is anticipated to improve the capabilities and performance of benefit management platforms. Employees in APAC demand enhanced benefits from their employers, especially health insurance, which includes their parents. Organizations, particularly those in these industries, must map out the employee journey and identify crucial touchpoints, such as the physical environment or digital tools, to customize the benefits offered and meet the employees' requirements and motivations.

The rising uptake of cloud technology is transforming the working pattern across diverse industry verticals by augmenting security, IT, and DevOps solutions, thereby boosting the development of innovative and interactive solutions for improved user experience. Due to the potential benefits of cloud technology, the adoption of cloud-based solutions among enterprises has increased drastically over the past few years.

Cloud-based solutions enable enterprises to have easy scalability and operational flexibility along with reduced costs and operational risks. The constant development in the cloud architectures, algorithms, and integration of advanced features in cloud solutions are fueling the uptake of these solutions in diverse industry verticals such as BFSI, IT & telecom, retail, and several others.

A cloud-based benefit management platform is an attractive option for companies due to several benefits such as extracting real-time feedbacks from the customers, regular data backup, high security, comparatively low operations costs, and instant provisioning features provided by these solutions. Therefore, scalability, high level of security, operational flexibility, easy deployment, and affordability are some of the key advantages expected to boost the uptake of cloud-based benefit management platforms among enterprises in the coming years.

The benefit management platform market is segmented based on deployment, application, and geography. Based on deployment, the market is segmented into on-premise and cloud-based. In terms of application, the market is bifurcated into SME and large enterprise.

With the increasing global competition, businesses ensure their digital presence and efficiently utilize digital technologies to sustain themselves in the market. Regardless of their size, organizations are exploiting digital technologies for effective functioning and cost reduction in the present era. Although digitalization is taking place on a vast scale, several SMEs are still skeptical about adopting it. Fear of risks, lack of proper understanding, and expenditures incurred on new technologies limit the uptake. However, there are several open opportunities for SMEs prevailing in the digital world. They can help SMEs to efficiently compete with larger enterprises as technology is greatly scalable and flexible. Additionally, the uptake of benefit management platforms offers an opportunity to automate tasks by integrating the software. This helps the SMEs in cost and time saving and error management, thereby improving the work quality.

Benefitfocus.Com, Inc; BSwift LLC; Empyrean; Employee Navigator; Ease; ADP, Inc; Paycom; Paycor, Inc; Workday, Inc.; and Businessolver.Com, Inc. are among the key players operating in the benefit management platform market.