Equity Management Software Market Expected to Reach $1.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Equity Management Software Market," The equity management software market was valued at $517.75 million in 2022, and is estimated to reach $1.9 billion by 2032, growing at a CAGR of 14.3% from 2023 to 2032.

The market for equity management software is expanding significantly as a result of rise in demand for streamlined and effective equity management procedures. Organizations may ensure regulatory compliance and stakeholder transparency by using equity management software to handle equity plans, grants, and transactions in an efficient and candid approach. The increasing adoption of equity-based compensation schemes by corporations is one of the main factors propelling the market expansion. Equity compensation is a crucial part of every company's overall compensation plan as it helps motivate and maintain large numbers of people.

With the use of equity management software, businesses can effectively oversee and manage equity awards, guaranteeing that employee shares are distributed in a timely and accurate manner. This encourages workers to contribute to the success of the company and helps organizations match employee interests with business performance. The growing necessity of complying with government regulations is another factor propelling the market growth. Companies may guarantee compliance with a range of regulations, including tax laws, accounting standards, and Securities and Exchange Commission (SEC) rules and regulations, by utilizing equity management software. By automating intricate computations and reporting procedures, the program lowers the possibility of mistakes and non-compliance. For publicly traded organizations in particular, this is very important as non-compliance can result in serious penalties and harm their brand.

On the basis of enterprise size, the large enterprises segment dominated the equity management software market size in 2022 and is expected to continue this trend during the forecast period. Large enterprises typically have more extensive communication networks, a higher volume of sensitive information to protect, and greater resources to invest in robust cybersecurity solutions like equity management platform. These factors further drive the demand for this segment in the global equity management software market. However, the cloud segment is expected to exhibit the highest growth during the forecast period. SMEs might have become more aware of the importance of email encryption for protecting sensitive information due to rising cyber threats and regulatory requirements, which further expected to propel the growth of the segment.

By region, North America dominated the market share in 2022 for the equity management software market. Businesses in this area are embracing security solutions at an increasing rate, which in turn are expected to propel global market growth. However, Asia-Pacific is expected to exhibit the highest growth during the forecast period. The presence of strong government policies regarding privacy and security in this region has been driving the growth of the global equity management software market trends.

Technological Trends

Several technology trends are influencing the equity management software industry, a field that is continually growing. The merging of financial platforms with equities management software is one significant trend. Users can obtain specific details about their equity grants and awards owing to this integration, which enables smooth data synchronization and real-time updates. Equity management software provides a more comprehensive view of an organization's equity compensation schemes by integrating with financial systems, which helps with regulatory compliance and better decision-making. In addition, the market for equity management software is experiencing significant technical trends, with automation and artificial intelligence (AI) emerging more prevalent. Processes including employee communications, compliance reporting, and equity grant computations are getting streamlined by the usage of these technology.

Equity management software may boost productivity, lower errors, and improve user experience by using AI algorithms to automate repetitive processes. Furthermore, businesses are gaining important insights into their equity programs through AI-powered analytics solutions, which helps them improve employee outcomes and optimize their pay plans. Further, another important technological development in equity management software is mobile accessibility. Software suppliers are concentrating on making their systems mobile-friendly due to the growing trend of remote work and the requirement for flexibility in handling equity compensation. No matter where they are, employees are able to utilize their mobile devices to view their equity holdings, take part in equity initiatives, and get essential notifications. In addition to increasing worker engagement, this improved mobile accessibility gives users the flexibility to manage their equity compensation when they are out.

Key Findings of The Study

• By type, the basic ($under 50/month) segment accounted for the largest equity management software market share in 2022.
• By enterprise size, the large enterpses segment accounted for the largest equity management software market in 2022.
• By application, the private corporation segment accounted for the largest equity management software market share in 2022.
• Region wise, North America generated the highest revenue in 2022.

The market players operating in the equity management software market analysis  are Carta, Certent, Capdesk, Altvia Solutions, LLC, Preqin Solutions, Gust, Ledgy, Eqvista, Euronext, and Deep Pool Financial Solutions Limited. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the equity management software market growth globally.