User Experience (UX) Research Software Market Size, Share & Industry Analysis, By Deployment (On-premises and Cloud), By Enterprise Type (Large Enterprises and Small and Medium Enterprise (SMEs)), By Industry (Financial Services, Retail and Consumer Goods, Healthcare and Pharmaceuticals, Automotive, Travel and Hospitality, Others), and Regional Forecast, 2024 – 2032

The global User Experience (UX) research software market size was valued at USD 390.6 million in 2023. The market is projected to grow from USD 427.3 million in 2024 to USD 1,030.6 million by 2032, exhibiting a CAGR of 11.6% during the forecast period.

A User Experience (UX) research software is a set of digital tools designed to help businesses and designers understand how users interact with a product, website, or an application. These tools enable companies to gather qualitative and quantitative data about user behavior, preferences, pain points, and overall experience. The primary goal of this software is to optimize the design, functionality, and usability of digital products based on data-driven insights. The software helps financial institutions optimize their digital banking platforms, ensuring secure and seamless user experiences for online transactions, account management, and financial planning.

• For instance, in August 2023, UserTesting launched its innovative technology platform- ConnectTech. The platform will help designers, builders, and creators create a unified workflow for integrating direct customer feedback into their developments.

Similarly, growing emphasis on customer engagement to deliver seamless user experience and increasing integration of digital technologies to deliver enhanced product design experience are the key factors which will drive the growth of the market over the forecast period.

The COVID-19 pandemic had a significant impact on the User Experience (UX) research software market growth as it changed the working environment of various enterprises. Companies' sudden shift toward remote work culture, growing implementation of online tools to reduce workload, and increasing use of internet-connected devices generated lucrative opportunities to drive the growth of the market.

IMPACT OF GENERATIVE AI

Gen AI-Integrated PaaS Solutions Boost Efficiency of Supply Chain Management Processes and Help Make Data-Driven Decisions

Generative AI is transforming user experience as customers now expect digital products to produce meaningful and useful results from natural language prompts. The impact of generative AI on the User Experience (UX) research software industry is transformative, enabling more efficient workflows, deeper insights, and innovative product designs. UX professionals, including designers and researchers, are increasingly integrating Generative Artificial Intelligence (GenAI) tools into their workflows.

• According to a research survey in 2023, 51% of UX researchers were already using AI tools in their user research, and 91% were open to adopting them in the future. UX companies worldwide are incorporating GenAI into their portfolios to gain a competitive advantage. For instance,


• AI-powered user research tools, such as Looppanel can transcribe interviews with over 95% accuracy and automatically tag key points.


• Tools, such as Maze and Sprig conduct studies autonomously, leveraging AI to evaluate user interactions, generate heatmaps, and detect sentiments.

By leveraging GenAI responsibly, addressing ethical concerns, and maintaining a human-centered approach, the UX field can continue to innovate, creating more engaging, personalized, and inclusive user experiences, while driving digital success and business growth.

• 3D Prototyping and Interaction:


• AR and VR systems integrated with UX research software can track hand movements, gaze direction, and body postures, providing detailed insights into how users physically interact with various interface elements. This significantly improves usability testing by incorporating motion and gesture tracking.


• Moreover, these technologies enable the simulation of real-world interactions with 3D products or interfaces, allowing UX researchers to observe natural user behavior. This helps optimize product designs and improve business conversion rates by engaging potential users more effectively.

MARKET DYNAMICS

User Experience (UX) Research Software Market Trends

Integration of AR and VR Tools in UX Research to Deliver Immersive User Experience

The integration of Augmented Reality (AR) and Virtual Reality (VR) tools with User Experience (UX) research platforms enhances the effectiveness of UX research by creating realistic Virtual Environments (VEs) that offer greater environmental control. These technologies are also instrumental in improving the design and testing processes for user experiences. AR and VR integrated with User Experience (UX) research software are particularly useful for:

• Immersive Testing:

• By incorporating VR technology into UX research, businesses can create immersive virtual environments where users can interact with products, spaces, or services within a completely virtual world. This is particularly beneficial for testing user experiences in environments, such as homes, retail stores, and various industrial settings.

Similarly, AR allows users to engage with digital objects in real-world settings, making it easier to observe how digital interfaces integrate with physical environments. This is especially useful in industries, such as retail, healthcare, automotive, and others where digital data and physical objects must interact seamlessly.

Market Drivers

Growing Integration of AI and Automation Tools with UX Research Software to Analyze Customer Experience Will Drive Market Growth

The integration of Artificial Intelligence (AI) with User Experience (UX) research is transforming traditional business operations. By automating data analysis, AI significantly enhances the efficiency and effectiveness, driving substantial growth in the market over the forecast period.

AI-powered UX research software streamlines labor-intensive tasks and provides deep insights from user data. It automates the analysis of user feedback from surveys and social media, allowing the recognition of emotions and underlying themes without manual effort.

The application of AI in UX research is revolutionizing how companies approach user-centric designs. Staying abreast of the latest developments in AI-powered UX research allows designers to better understand user behavior, customize experiences to individual needs, and drive innovation in the field.

• According to The Future of User Research Report 2024, which surveyed 1,200 professionals, 37% of companies are experiencing faster research processes with AI tools, 50% are optimizing their workflows, 56% are improving team efficiency, and 35% are freeing up time for strategic projects.

As AI continues to be integrated into UX research, it is essential to harness its capabilities ethically to fully realize its potential in advancing UX design.

As per The Future of User Research Report 2024, the above graph shows how companies plan to boost research by adopting new strategies in the next 12 months. Among these, 31% of respondents aim to enhance research by leveraging AI-integrated tools and boosting the performance of research studies to promote research democratization.

Market Challenge

Increasing Data Breach and Security Issues to Hamper Market Growth

Businesses are becoming increasingly concerned about the risks associated with data leaks, regulatory non-compliance, and reputational damage as UX research involves the collection and analysis of sensitive user information. The threat of identity theft and data breaches is expected to rise due to the growing integration of multiple user data sources.

Moreover, the increasing use of remote UX research platforms by multiple users heightens the risk of data breaches and data loss across various industries.

• According to IBM's 2023 Cost of a Data Breach Report, the average cost of a data breach reached USD 4.45 million, marking a 2.3% increase from USD 4.35 million in 2022. Additionally, IBM's 2022 report revealed that 83% of the 550 companies surveyed experienced more than one data breach, while 17% faced their first breach due to factors, such as supply chain attacks, ransomware, IT failures, human error, and other malicious software incidents.

The rise in cyber threats and increasing sophistication of hackers have intensified concerns over data security. As a result, businesses may be hesitant to invest in UX research software if they perceive it as a potential risk to data privacy and security.

Market Opportunities

Increasing Requests for Procurement and Demand Management Services by Corporate end-users to Drive Market Growth

The shift toward remote work is significantly accelerating the adoption of User Experience (UX) research software, helping companies deliver more immersive and efficient user experiences. Cloud-based UX research tools, such as Maze and Lookback enable remote usability testing, making it easy for distributed teams to conduct research from anywhere in the world. These tools help optimize workflows with greater precision and quality.

As more websites, mobile apps, and e-commerce platforms integrate UX research software to meet customers' growing digital demands, businesses have witnessed increased customer engagement, improved user satisfaction, and enhanced operational performance.

• According to the State of User Research Report 2023, 87% of organizations conducted remote research, regardless of whether their teams were working remotely. This approach saves both time and money, enabling companies to make data-driven design decisions.

As digitalization continues to expand, the importance of User Experience (UX) research software in driving the development and improvement of digital products has increased. Therefore, the rising trend of digitalization in product development is expected to drive the demand for UX research software throughout the forecast period.

SEGMENTATION ANALYSIS

By Deployment Analysis

Growing Adoption of Cloud-based Infrastructure by Different Industry Verticals to Propel Market Growth

By deployment, the market is divided into on-premises and cloud.

The cloud segment is estimated to record the highest growth rate during the forecast period. This growth is primarily due to an increased focus on customer engagement and adoption of cloud-based infrastructure by different industries to enhance product design and deliver better user experience. The growing demand for cost-effective cloud UX research software across small companies will boost the growth of the segment during the forecast period.

The on-premises segment held the largest market share in 2023. On-premises UX research software aims to address the growing data security and privacy concerns due to the rise in the number of cyberattacks. This factor will drive the segment’s growth over the forecast period.

By Enterprise Type Analysis

Growing Adoption of UX Research Software in SMEs to Improve Digital Interfaces

By enterprise type, the market is divided into Small and Medium Enterprises (SMEs) and large enterprises.

The Small and Medium Enterprises (SMEs) segment is projected to record the highest CAGR during the forecast period. The UX research software supports SMEs across different regions by encouraging adaptability and innovation, helping them ensure that their products or services evolve with changing user expectations and technological advancements.

Similarly, the adoption of UX research software helps improve the small and medium business digital interfaces, avoid costly redesigns, and ensure efficient resource use. These factors will help SMEs grow at the highest CAGR in the coming years.

Furthermore, the large enterprises segment held the largest market share and is expected to dominate the market over the forecast period. Companies are increasingly recognizing the importance of placing the customer at the core of their digital strategies. UX research software enables these organizations to analyze products and services to better align with user needs and preferences.

By Industry Analysis

Product Demand Increased Among Financial Service Providers to Make Informed Decisions and Improve Business Performance

By industry, the market is divided into financial services, retail and consumer goods, healthcare and pharmaceuticals, automotive, travel and hospitality, others.

The financial services segment held the largest market share due to rising customer expectations. As customer demands for personalized and seamless digital interactions grow, financial institutions are increasingly recognizing the importance of continuous UX research to make informed decisions and enhance business performance. This is expected to boost the demand for UX research software among financial institutions, banks, and other financial service providers over the forecast period.

• According to a research survey in 2023, a significant portion of banking customers were willing to switch providers if their digital experiences were unsatisfactory. In the past year, 25% of banking customers, 35% of insurance customers, and 34% of wealth management customers switched providers due to poor digital experiences.

Healthcare and pharmaceutical companies have made significant investments in cutting-edge UX research tools due to the growing popularity of telemedicine and remote healthcare services. These tools simplify complex operational processes and focus on fulfilling the patients' needs. Similarly, the growing integration of technologies in the healthcare sector will have a positive impact on the UX research software market.

USER EXPERIENCE (UX) RESEARCH SOFTWARE MARKET REGIONAL OUTOOK

Regionally, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America

North America held the largest User Experience (UX) research software market share in 2023, with key contributions from major players, such as UserTesting, Qualtrics, and Userlytics. The regional market's growth is driven by the increasing integration of AI and automation technologies, along with the rising consumer demand for engaging online content, such as short films and TV series. These factors will enhance the application of UX research across various industries.

• By 2023, over 21 million Canadians were active e-commerce users, representing more than 93% of the country's internet users, further boosting the demand for these tools.

Furthermore, in Canada, the rise in online shopping and digital engagement has increased the need for businesses to understand consumer behavior through UX research. This has spurred the demand for User Experience (UX) research software solutions across the country.

North America held the largest User Experience (UX) research software market share in 2023 as tech companies in the region have been pioneers in adopting UX research principles, setting an example for other sectors to prioritize user-centered designs. Thus, to remain competitive, businesses are investing heavily in UX research software to meet and surpass these expectations, thereby fostering greater customer loyalty.

The U.S. is expected to hold the largest share in the North American market over the forecast period. The UX research software is being widely adopted in various industries present across the U.S. The software aims to deliver real-time user insights and feedback to improve digital experiences of users.

With over 90% internet penetration, the U.S. boasts a tech-savvy population, creating an environment ripe for the early adoption of advanced UX practices and tools. These factors will drive the growth of the market in the U.S. over the forecast period.

South America

South America is set for substantial growth, driven by technological advancements, stringent data protection laws in Brazil and Argentina, and increasing adoption in multiple industries. Rising internet penetration and growing website traffic and data usage will further contribute to the market's expansion in the region.

Technological progress in the region, including the increasing use of 5G technology, is enhancing the capabilities of UX research software by enabling faster data transmission and improved network reliability. This is particularly impactful in urban areas where smart city initiatives are underway.

• In June 2023, GSMA projected that 5G usage in South America would reach 57% by 2030, representing approximately 463 million connections. It is expected that the adoption of 5G will surpass that of 2G by 2024, 3G by 2026, and 4G by 2029.

Brazil, the largest economy in South America, plays a key role in the adoption of cloud technologies across sectors, such as healthcare, travel, and automotive. Argentina is also seeing a growing inclination toward automation and operational efficiency, with UX research software being integrated into various sectors. This reflects the country's emphasis on leveraging technology to enhance user experiences and streamline business processes.

Europe

The UX research software market in Europe is expected to witness significant growth, driven by the rising adoption of cloud-based platforms, increased data generation across industries, such as travel, healthcare, financial services, and retail, and growing government investments in advanced digital technologies to enhance business operations. For example,

• European organizations report that around 70% of them are migrating their workloads to the cloud, primarily to optimize costs. Additionally, approximately 50% of these organizations have adopted a cloud-first strategy to improve operational efficiency.

These trends are creating diverse opportunities for leading market players to expand their UX research software solutions in countries, such as Germany, the U.K., Spain, France, Italy, and beyond.

Middle East & Africa

The Middle East & Africa (MEA) market is set for growth due to rising demand for consumer electronics, increasing urbanization, and lifestyle changes fueled by higher disposable incomes. UX research software plays a key role in supporting digital transformation, offering new opportunities for the UX industry in this region. The integration of AI and Machine Learning (ML) into UX research software will further enhance these platforms, making them more responsive and effective for real-time applications.

Technological transformation is also a key focus in the Middle East as countries seek to diversify their economies and reduce dependence on oil. Initiatives, such as Saudi Vision 2030 aim to boost social and economic development, increase investments in technology, and promote digitalization, creating more localized supply chains.

Asia Pacific

Asia Pacific is projected to experience the highest CAGR in the global market during the forecast period, driven by the presence of major players and software developers India, China, Japan, and South Korea.

Governments in the region are also playing a role in promoting the development of UX software. For example, India's UX4G initiative focuses on creating design guidelines and research systems to enhance the user experience for government websites and mobile applications. In China, the digital transformation boom has resulted in the launch of numerous digital products and services, further driving the need for well-designed interfaces, which UX research software helps to achieve.

With a high mobile device usage rate, UX research plays a crucial role in designing mobile-friendly interfaces for smartphones and tablets.

• In 2023, the smartphone adoption rate in Asia Pacific surged to 78%, up from 64% in 2019, reflecting the growing demand for optimized digital experiences on mobile platforms.

Additionally, early investment in UX research software can prevent costly redesigns and updates by addressing usability issues during the development process. This proactive approach saves time and resources, contributing to the region's strong growth potential in the global UX research software market.

KEY INDUSTRY PLAYERS

Companies to Focus on Partnerships and New Product Launches to Enhance their Product Portfolio

Companies operating in the market include UserTesting, Qualtrics, Hotjar Ltd., Lookback, Userlytics, Lyssna (UsabilityHub), TryMyUI, Inc. (Trymata), and Maze. These firms are focusing on bringing innovations in User Experience (UX) research software. To enhance their operations throughout the world, they are using various strategic methods, such as partnerships, product launches, investments, acquisitions, and mergers.

The market is consolidated, with the top 5 players accounting for around 60% of the market share. These companies dominate with strong market presence, comprehensive feature sets, and robust client bases. They lead due to their consistent innovation and enterprise-level solutions.

List of Key User Experience (UX) Research Software Companies Profiled:

• UserTesting (U.S.)


• Qualtrics (U.S.)


• Hotjar Ltd. (Malta)


• Lookback (U.S.)


• Userlytics (U.S.)


• Lyssna (UsabilityHub) (Australia)


• TryMyUI, Inc. (Trymata) (U.S.)


• Maze (U.S.)


• UserInterviews Inc. (U.S.)


• Loop11 (Australia)


• Typeform (U.S.)


• Jotform (U.S.)


• Ethnio (U.S.)


• Optimal Workshop (New Zealand)


• Eleken (Ukraine)


• Great Question, Inc. (U.S.)


• dscout (U.S.)


• UXarmy (Singapore)


• Ribbon Communications (U.S.)


• Indeemo (Ireland)

KEY INDUSTRY DEVELOPMENTS:

• June 2024: Maze announced the launch of Interview Studies to update moderated research solutions for design, research, and product teams. This new offering supplements the company’s unmoderated research capabilities, positioning it as the go-to enterprise platform for building accurate user insights at the center.


• August 2023: UserTesting, an experience research firm, announced the launch of UserTesting AI, a group of AI-powered capabilities aimed to help users drive more customer-centric decision-making across the enterprise. The platform will aid consumers in increasing their speed time to key insights, thereby emphasizing areas for improvement by permitting them to optimize their revenue-critical digital experiences proactively.


• April 2023: Userlytics launched AI-based user experience analysis tools by introducing the latest valuable insights from qualitative video-based UX studies, permitting massive scaling of consumer experience research for businesses.


• November 2022: Hotjar Ltd. acquired the PingPong- UX research platform to take user research competencies for its clients. The acquisition allows product groups to add value by finding openings, sorting the information, and acting upon it immediately.


• March 2022: Qualtrics launched the Digital Experience Metrics (DX Metrics) to measure a customer’s digital experience through an organization’s mobile app, website and digital marketing & social media channels.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and leading applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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 11.6% from 2024 to 2032
Unit	Value (USD Million)
Segmentation	By Deployment On-premises Cloud  By Enterprise Type Large Enterprises Small and Medium Enterprises (SMEs) By Industry Financial Services Retail and Consumer Goods Healthcare and Pharmaceuticals Automotive Travel and Hospitality Others (Education, Government, etc.) By Region North America (By Deployment, Enterprise Type, Industry, and Country) U.S. Canada Mexico South America (By Deployment, Enterprise Type, Industry, and Country) Brazil Argentina Rest of South America Europe (By Deployment, Enterprise Type, Industry, and Country) UK Germany France Italy Spain Russia Benelux Nordics Rest of Europe Middle East & Africa (By Deployment, Enterprise Type, Industry, and Country) Turkey Israel GCC North Africa South Africa Rest of Middle East & Africa Asia Pacific (By Deployment, Enterprise Type, Industry, and Country) China Japan India South Korea ASEAN Oceania Rest of Asia Pacific
Companies Profiled in the Report	UserTesting (U.S.) Qualtrics (U.S.) Hotjar Ltd. (Malta) Lookback (U.S.) Userlytics (U.S.) Lyssna (UsabilityHub) (Australia) TryMyUI, Inc. (Trymata) (U.S.) Maze (U.S.) UserInterviews Inc. (U.S.) Loop11 (Australia)