Digital Adoption Platform Market Size, Share & Industry Analysis, By Deployment Model (Cloud and On-Premises), By Enterprise Type (Large Enterprises and SMEs), By Application (User Onboarding, Customer Support, Employee Onboarding, Product Training, Change Management, and Others), By End-User (BFSI, Retail & Consumer Goods, IT & Telecommunications, Healthcare, Government & Public Sector, Manufacturing, and Others), and Regional Forecast, 2024-2032

The global digital adoption platform market was valued at USD 702.0 million in 2023. The market is projected to be worth USD 943.6 million in 2024 and reach USD 3,660.4 million by 2032, exhibiting a CAGR of 18.5% during the forecast period.

The report covers key players, including WalkMe Ltd., WhatFix, AppLearn Ltd., Appcues, Inline Manual Ltd., Newired, Userlane, Toonimo, UserGuiding, and Pendo.io, Inc.

Due to the rise in digital transformation and technologies such as Artificial Intelligence (AI) and automation, it has become more important to ensure that the digital skills gap should not overcome the challenge in this market. A majority of businesses digitize their operations to improve quality and process efficiency. Digitization increases employee complexity and learning. This complexity and excess of information leads to poor user experiences and lower user adoption. A digital adoption platform offers the best learning experience for employees by making technology easier to generate primary business results.

Companies use digital onboarding platforms to facilitate employee onboarding. DAP removes common training and onboarding hurdles and improves employee engagement and retention. This reduces the time it takes for new employees to familiarize themselves with workplace applications and digital systems. It also proactively motivates employees by providing customized recommendations and using artificial intelligence to predict user behavior. DAP effectively bridges the skill gap between inexperienced and experienced workers, and maximizes the workforce.

Additionally, reduced training costs help in improving real-time training and on-demand assessments. Factors influencing the market include the need for regular investments and digital transformation, preference for digital technologies, and low awareness of digital adoption platforms.

In response to COVID-19, many organizations have shifted to remote working models. Remote working has helped companies move at a rapid pace to utilize new training methods and specialized remote expertise. The pandemic has made businesses more likely to become digital-first, highlighting the necessity of increasing productivity among remote workers to understand customer requirements better. Furthermore, it has forced organizations to adopt digital workplace models, which rely on the latest digital technologies such as enterprise social media channels, emails, instant messaging, and virtual meeting tools to continue operations.

Digital Adoption Platform Market Trends

Userization and Training Experience to Aid the Market Growth

With the increasing demand for big data and the use of smart tools to segment users based on their traits or roles, companies have implemented efficient digital adoption strategies. This helps companies create related adoption experiences personalized to various users with the concept called userization. Userization merges the trend of user experience with user segmentation, enabling organizations to unlock an individual’s full capacity to result in better training. It allows organizations for easier integration by providing faster task completion behavioural change and drives efficiency and productivity.

With teams exploring new strategies to make data easier to retain, capture, and access from anywhere, training experience has become a trend. This platform is transforming software training methods by making it easier for organizations and trainers to integrate the entire learning ecosystem into the application for robust performance and training support. Organizations could transform workplace training by streamlining the process propelling the deployment of digital adoption platform solutions.

Digital Adoption Platform Market Growth Factors

Committed Investments at Regular Intervals and Continuous Need for Digital Shift by Organizations to Drive Market Growth

Software applications are increasingly becoming complex, smooth, intelligent, and fast-paced. Due to this complexity, users find it difficult to implement software and look for solutions online or vent out to the support representatives.

Various organizations are investing in this platform to help employees efficiently run adoption initiatives. This adoption allows tracking different activities, such as organizational change management, user experience research, and user interface design, and tracking every aspect of the digital adoption process, from the kick-off meeting to the final product launch. For instance,

• In July 2021, Pendo.io received USD 150.0 million in funding to assist businesses in bridging the gap between how users use software and how they expect it to work.

Such increased adoption of digital transformation across organizations drives the growth of the digital adoption platform market.

RESTRAINING FACTORS

Lack of Technological Awareness of Digital Adoption Platforms by End-users May Hinder the Market Growth

Digital adoption is a transformation process, and many organizations embrace the changes to thrive in an increasingly digital world. Various business leaders face challenges in adopting digital technology to attain full employee practice and value from their investments in workplace technology, including software.

Moreover, a lack of organizational foresight and understanding of digital adoption impacts the business, processes, and employees. Many organizations are approaching conventional learning over software training courses. It led to poor knowledge retention and low employee resistance to change, making it difficult to drive digital adoption. For instance,

• According to the State of Digital Adoption survey by WalkMe, around 67% of enterprises are forced to adopt digital transformation by adding new services and applications and adapting to new demands from customers and employees.

Furthermore, businesses are investing heavily in digital transformation, and some decision-makers are concerned about whether the digital project will achieve its expected ROI, as end-users cannot adopt the solution immediately. 

Digital Adoption Platform Market Segmentation Analysis

By Deployment Model Analysis

Growing Usage of Cloud-based Platforms to Boost the Market

The cloud segment accounted for a larger market share and is projected to grow with a high CAGR during the forecast period. This is due to a major shift of traditional IT operations toward cloud technology.

Digital transformation and cloud computing create enormous opportunities for enterprise data adoption, data integration, and big data analytics. As a result, organizations adopt new technologies, migrate to cloud platforms, and deploy digital workplace models. For instance,

• In October 2022, WhatFix announced a partnership with SunTec, a pricing and billing solution provider. The collaboration was intended to integrate WhatFix’s platform for digital adoption into SunTec’s SaaS products by delivering a user-friendly onboarding experience.

Thus, the increasing demand for cloud-based solutions creates a growth opportunity for the market.

By Enterprise Type Analysis

Increase in Digital Uptake and Online Sales by SMEs to Propel the Market

By enterprise type, the market is categorized into large enterprises and SMEs. The SME segment is expected to show higher CAGR during the forecast period due to an increase in digital uptake and online sales by SMEs post the pandemic. Digital business transformation is considered an effective business strategy that appears to have gained attention since enterprises were challenged during the pandemic. This continuously improved their digital adoption practices and capabilities.

Moreover, governments and key players are focusing on collaboration to scale up SME capabilities by providing technical support and assistance through technology extension programs and self-assessment tools. Additionally, organizations are promoting their workplace training for SMEs by reducing training costs and strengthening management skills.

These key factors surge the product demand among SMEs.

By Application Analysis

Reduction in Customer Churn by High Adoption of User Onboarding to Aid the Market   

Based on application, the market is categorized into user onboarding, product training, customer support, change management, employee onboarding, and others. The user onboarding segment holds the largest share of the global market due to an increase in user acquisition and retention costs. Organizations have started realizing that retaining users is essential for revenue generation. They had adopted structured training programs, automation, and self-serve tools, which help users experience a value transformation journey.

Digital adoption contributed to a decrease in customer churn by ensuring that users can derive value from products. For instance,

• According to Precursive, 82% of enterprise organizations rate their onboarding approach as a key driver of value.

By End-User Analysis

BFSI to Dominate the Market Due to Rich User Experience

By end-user, the market is classified into BFSI, healthcare, retail & consumer goods, IT & telecommunications, manufacturing, government & public sector, and others. The BFSI segment accounted for a dominating share in the market and is anticipated to depict substantial growth throughout the forecast period. The shift to digital banking occurred rapidly due to trends such as better user experience and increasing use of digital platforms for diverse transactions. According to Accenture, 49% of customers say quick support is a factor in building loyalty.

The digital adoption in BFSI provides real-time assistance to diversify means of engaging customers and building better relationships. Also, the rise in the usage of digital banking services has helped the industry dominate. For instance,

• According to Abdalslam, in 2023, at least once a month, nearly 94% of mobile banking users have access to digital banking services.

Thus, digital adoption in BFSI has helped to deliver an enhanced user experience, propelling market growth.

REGIONAL INSIGHTS

The market is geographically studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific, and each region is further studied across countries.

North America dominated the global digital adoption platform market share in 2022, owing to technology shifts and changes in government services. Government agencies have adopted digital strategies to address the changing needs and expectations of the citizens.

In this region, the government and public sector are set to grow at a higher CAGR during the forecast period due to various digital adoption initiatives. Further, growth is driven by the presence of a large number of technology companies offering software solutions to an adoption platform.

Additionally, rising investments in digital adoption applications and collaborations by the government will increase digitization to support the growth of the regional market. For instance,

• In July 2022, OfBusiness, a building material-focused B2B e-commerce platform, invested USD 2.5 million in construction management startup Tracecost. The company claimed that the digital adoption of construction-focused firms in India, North America, and the Middle East would drive the investments.

Asia Pacific has the highest adoption rate due to a fast-growing base of digital consumers and applications and an increase in business expansions. The usage of digital health platforms also accelerated in the region by governments and other agencies, owing to higher mobile phone penetration resulting in the rise of digital adoption platforms across the region. For instance,

• In April 2022, WalkMe received a USD 10.0 million investment from the Singapore Economic Development Board for its platform of digital adoption to expand throughout the Asia Pacific region.

List of Key Companies in Digital Adoption Platform Market

Strategic Acquisitions and Increasing Investments to Boost Footprint Expansion of Key Players

The major players in the market are focusing on providing advanced solutions, increasing their investments in digitization and providing better user experience to introduce new products and update existing solutions to expand their presence and generate more revenue.

In addition, players are adopting partnerships and acquisition strategies to expand their businesses into new regions and enhance the offerings and customer experience.

• March 2023 – WalkMe and NTT Data announced a new partnership to address issues with digital adoption. Clients of NTT Data could utilize the WalkMe Digital Adoption Platform (DAP) to gain insight into issues related to digital adoption as a result of the new partnership. Productivity, usability, and compliance are all possible examples of these difficulties.


• April 2022 – Leap.is (previously Jiny.io) a customer support and onboarding platform that provides the value addition of digital adoption platforms to mobile apps. Whatfix acquired it. The acquisition was focused on mobile DAP products, the company's first and biggest M&A transaction to date.

List of Key Companies Profiled:

• WalkMe Ltd. (Israel)


• WhatFix (U.S.)


• AppLearn Ltd. (U.K.)


• Appcues (U.S.)


• Inline Manual Ltd. (U.K.)


• Newired (Italy)


• Userlane (Germany)


• Toonimo (U.S.)


• UserGuiding (U.S.)


• Pendo.io, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 – Generis and Userlane entered a strategic partnership. This collaboration aims to integrate their systems and enable CARA platform customers to accelerate user adoption and quickly achieve a higher return on investment.


• August 2023 – Ciklum announced a partnership with WalkMe, a digital adoption platform solutions provider, to accelerate the adoption of digital solutions in enterprises. Ciklum uses the WalkMe platform to support and analyze the implementation of digital solutions, and provide valuable insights for continuous improvement initiatives. This will enable customers across industries to maximize the success of their digital transformation programs.


• May 2023 – WhatFix launched its new product, Enterprise Insights. With this product, WhatFix is continuing its quick innovation and developing its product Analytics offering into new business-focused analytical capabilities and processes. Enterprise Insight provides organizations with an overview of the applications, processes across apps, and enterprise-level data on adoption and engagement.


• February 2023 – WhatFix launched a new Product Analytics product line. The solutions allow businesses to analyze, visualize, and track user engagement and behaviour data. Besides, the unified instrumentation ensures no-code event tracking and seamless data consistency.


• September 2022 – Pendo.io announced a partnership with Google Cloud regarding its availability on Google Cloud Marketplace. The deal provided product groups with fast access to Pendo’s in-app guidance, product analytics, and feedback abilities.


• August 2022 – WalkMe collaborated with Deloitte Canada. To make technology adoption solutions largely accessible to Canadian businesses, Deloitte invested in a dedicated team in Canada. Through the rapid, constant, and effective adoption of digital technologies, WalkMe and Deloitte assisted these businesses in realizing the fast results that digital transformation strategies can achieve.


• February 2022 – AppLearn announced the acquisition of YesElf, a DAP provider based in Slovakia. As a feature of the move, the organization takes responsibility for the current stage, which drives the market in computer-based intelligence and AI-fueled client experience capacities. With this, AppLearn tripled its development capacity and developed a leading-edge DAP for its global clientele.

REPORT COVERAGE

The research report highlights leading regions across the world to offer a better understanding to the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 18.5% from 2024 to 2032
Unit	Value (USD Million)
Segmentation	By Deployment Model Cloud On-premises By Enterprise Type Large Enterprises SME By Application User Onboarding Customer Support Employee Onboarding Product Training Change Management Others (Content Management, Website Navigation, In-app Guidance, and Others) By End-User BFSI Retail & Consumer Goods IT & Telecommunications Healthcare Government & Public Sector Manufacturing Others (Transportation & Logistics, Education, Media & Entertainment, and Others) By Region North America (By Deployment Model, By Enterprise Type, By Application, By End-User, and By Country) U.S. Canada Mexico South America (By Deployment Model, By Enterprise Type, By Application, By End-User, and By Country) Brazil Argentina Rest of South America Europe (By Deployment Model, By Enterprise Type, By Application, By End-User, and By Country) U.K. Germany France Italy Spain Russia Benelux Nordics Rest of Europe Asia Pacific (By Deployment Model, By Enterprise Type, By Application, By End-User, and By Country) China Japan India South Korea ASEAN Oceania Rest of Asia Pacific Middle East & Africa (By Deployment Model, By Enterprise Type, By Application, By End-User, and By Country) GCC Turkey Israel North Africa South Africa Rest of Middle East & Africa