Objectives & Key Results (OKR) Software Market Size, Share & COVID-19 Impact Analysis, By Type (Web-based and Cloud-based), By Enterprise Type (Startup (1-30 Users), Department (30-100 Users), and Enterprise (>100 Users)), By End-user (Retail, BFSI, Manufacturing, Healthcare, IT & Telecom, Education, and Others), and Regional Forecast, 2023-2030

The global Objectives & Key Results (OKR) software market size was valued at USD 1 billion in 2022. The market is projected to grow from USD 1.15 billion in 2023 to USD 2.98 billion by 2030, exhibiting a CAGR of 14.6% during the forecast period.

OKRs (Objectives & Key Results) is a performance management framework used by companies to identify and manage business objectives, such as maintaining sales revenue and adequate cash flow to deliver better customer experience. The Objectives & Key Results method is different from balanced scorecard and KPI methods. OKR helps companies rectify their targets and track their performance to improve business productivity. This method has many applications and can be effortlessly used in any field, including healthcare, human resources, manufacturing, customer service, marketing, and finance.

Using OKR software helps companies align their goals to enhance business transparency and employee engagement. It helps them prioritize high-impact goals and also aligns team goals to boost their performance. Thus, the software can help firms measure employee productivity, track customer satisfaction, and set goals for their business growth.

COVID-19 IMPACT

Usage of OKR Software in Startups and Mid-Sized Companies Propelled Market Growth During COVID-19

The COVID-19 pandemic had put immense pressure on all sectors of business, and disrupted the organizations’ operational processes. The pandemic forced many industries to remotely manage their organizational architecture and operational processes, which propelled the demand for OKR software.

According to the U.S. Census Bureau, during the COVID-19 pandemic, approximately 5.2% of the American population (about 8 million people) were working from home. Thus, to increase employee communication and the company’s performance using proper tools, the demand for this software increased. Hence, the usage of objectives and key results software in startups and mid-sized companies boosted the market growth during COVID-19. 

Nowadays, post-COVID-19, many startups and mid-sized companies are adopting software to keep their employees focused, motivated, and productive. It helps align the employees with the company’s goals and enables organizations to achieve key results.

LATEST TRENDS

Integration of AI for Enhancing Corporate Transparency to Boost Market Growth

Integrating Artificial Intelligence (AI) with objectives & key results software provides real-time tracking of an organization's goals and strategic development. This integration will help companies identify market trends, define growth patterns, and provide recommendations to boost business productivity and transparency by making data-driven decisions.

AI-enabled objectives and key result software can be used for predictive analysis to achieve organizational goals, based on historical data and the current growth of the organization. Using AI in different-sized companies automates tasks and adds value to the organizational strategy. Hence, integrating artificial intelligence enhances corporate transparency, thereby driving the OKR software market growth.

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DRIVING FACTORS

Increasing Usage of Objectives and Key Results Software for Strategy Execution to Propel Market Growth

The OKR framework is implemented by companies of all sizes. These businesses, ranging from startups to large enterprises, are investing in the software for goal management and strategy implementation. OKRs support prioritization, transparency, and strategic alignment between employees and teams. Adopting the OKR framework aids in defining, planning, and executing the business strategy to deliver a better customer experience.

According to an analyst survey in 2022, 87% of the surveyed companies stated that OKRs met or exceeded their expectations. 75% of companies rated corporate strategy as an essential point for adopting OKR to increase the company revenue by defining their goals and setting business strategies. Hence, strategy execution is the key factor that is driving the product demand to enhance the consistent achievements of the company and help achieve its goals.

RESTRAINING FACTORS

Lack of Understanding of Software May Restrict Market Progress

Even though the popularity of the OKR methodology is growing at an appreciable pace, some organizations still need more awareness and understanding of OKRs. Many businesses may not be fully aware about the usage and potential of the objectives and key results software in improving organizational performance. This can lead to a decline in cross-functional alignments and have a massive impact on the company’s growth.

Thus, this factor may lower the adoption of OKRs among different companies and will likely have huge impact on the market growth.

SEGMENTATION 

By Type Analysis

Prioritization of Company Objectives to Boost Demand for Cloud-based Software

On the basis of type, the market is segregated into cloud-based and web-based software.

The cloud-based objectives & key results software segment is likely to record the highest growth rate as it helps in monitoring the company's performance by prioritizing its primary objectives. The usage of cloud-based OKRs has increased among public and private enterprises due to their user-friendly interface and to enhance the customer experience.

By Enterprise Type Analysis

Growing Need for Robust Corporate Growth Strategies to Boost Software Demand among Startups (1-30 Users)

Based on enterprise type, the market is divided into startup (1-30 users), department (30-100 users), and enterprise (>100 users).

The startup (1-30 users) segment is set to register the highest growth rate due to the rising demand for corporate growth strategies among startups. OKR helps improve the performance of these businesses and increases their focus on driving sustainable business growth.

The enterprise (>100 users) segment holds the largest market share due to the growing implementation of the software by the top management and decision-makers to align with the company’s goals. As large enterprises have multiple goals across channels, it is likely to propel the software demand. Thus, enterprises with more than 100 users use OKRs as a framework to maintain business operations.

By End-user Analysis

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Increasing Demand for Aligning Operational and Strategic Objectives to Boost Software Use in Retail Sector

Based on end-user, the market is segmented into retail, BFSI, manufacturing, healthcare, IT & telecom, education, and others.

The retail segment is estimated to capture the maximum OKR software market share and likely to record a rapid CAGR in the coming years. The retail sector has shown great interest in adopting objectives and key results software to align its operational and strategic goals. The software will help retail businesses foster business growth and ensure market leadership to boost their sales revenue.

The IT and telecom sector holds the second-largest market share due to the increasing need to keep the employees motivated to achieve various company goals. The usage of OKR in IT & telecom companies can help reduce strategic risks by tracking operational activities.

The healthcare segment is expected to register a prominent growth rate owing to the rising demand for improved patient outcomes, reduction in wait time, and enhancing patient satisfaction.

REGIONAL INSIGHTS

The global market scope is classified across five regions - North America, South America, Asia Pacific, Europe, and the Middle East & Africa.

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North America is projected to capture the biggest market share, considering the presence of prominent OKR software providers in the region. Rising demand for OKR software in companies, such as Google and Netflix has prompted market players to develop new capabilities to help these firms achieve their objectives. The implementation of this software has pushed companies to provide clear direction to their employees to achieve the organization's objectives. Various multinational companies have their headquarters in countries, such as Canada and the U.S., which is expected to boost the adoption of the software in the region.

Asia Pacific is estimated to record the fastest CAGR due to the growing number of startups in the region. The demand for this software is increasing as it collects data to track and monitor a company’s insights. Similarly, increasing investment by companies of various sizes in countries, such as China, India, and Japan to develop their strategic operations will propel the regional market growth.

Europe is projected to record a significant CAGR during the forecast period due to the growing demand for improved performance tracking and analytics processes among various organizations. According to a survey, 18% of organizations in the U.K. and 20% in Europe (excluding the U.K.) are using OKR software to bring agility and innovation across different industries present in countries, such as the U.K., Germany, and France. This factor is expected to drive the demand for the software in Europe during the forecast period.

The market in South America and the Middle East & Africa is still in its nascent phase due to the rising investment in advanced performance management software by startups and mid-sized companies.

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KEY INDUSTRY PLAYERS

Key Players to Invest in Partnerships to Develop Advanced OKR Software

The leading market players are entering partnership agreements to develop advanced objectives and key results software to bring transparency in company operations. Advancements in this software are helping key players gain a strong competitive advantage. They are also focusing on entering strategic acquisitions, partnerships, mergers, and collaborations to increase their business operations and expand their distribution networks and strengthen their growth in the market.

• March 2023 - Quantive, a key provider of objectives & key results software, completed the acquisition of AuxinOKR, a U.K.-based consulting company that helps companies execute various strategic initiatives using the OKR method.

List of Key Companies Profiled:

• Quantive (U.S.)


• Asana (U.S.)


• BetterWorks (U.S.)


• Weekdone OU (Estonia)


• WorkBoard Inc. (U.S.)


• Mooncamp GmbH. (Denmark)


• ESM Software, LLC. (U.S.) 


• Lattice (U.S.)


• Profit.co.  (U.S.)


• Synergita Software Private Limited. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2023 – Oboard LTD. launched a new OKR management software for Atlassian's project tracking platform, Jira, and was named as 'OKR Board for Jira.'  This software enables businesses to improve productivity, team engagement, and workplace efficiency.


• August 2023 - Profit.co, an OKR software provider, signed a partnership agreement with Seed Group to improve organizational growth and enhance the work culture experience of different industries present across the U.A.E. and the GCC countries with cutting-edge technologies.


• February 2023 – JOP, an OKR SAAS provider, launched an OKR software tool designed to help organizations get freedom from old rules and have distributed goal management systems to help them grow.


• January 2023 – Profit.co, a key provider of OKRs, raised USD 11 million in funding from Elevation Capital to enhance its sales and customer satisfaction in North America, Europe, MEA, and APAC regions.


• March 2022 – Lattice launched a new product, named OKR and Goals, to create strategic alignment between a company and its employees and gather real-time feedback to help manage the company's performance.

REPORT COVERAGE

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The global Objectives & Key Results software market research report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and key applications of the product. Besides this, it offers insights into the latest market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over the years.

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