Mentoring Software Market

Market Analysis in Brief

• The global mentoring software market size will observe a significant CAGR of 17% during the period of assessment, 2023 - 2030
• Global adoption of mentoring software will reach a market value of around US$1.6 Bn by the end of 2030

Market Analysis in Brief

Software that facilitates the provision of mentoring services is known as mentoring software. In a professional relationship known as mentoring, a person with greater knowledge or experience helps someone with less knowledge or experience develop certain abilities. Users of mentoring software can start, manage, and evaluate the success of mentoring programs. Mentoring software frequently includes numerous features and functions that help with various aspects of the mentoring process. Mentoring software typically includes algorithms or methods for matching mentors and mentees based on specified criteria like talents, interests, or aims. The global mentoring software market is anticipated to advance due to the rising number of corporate applications.

The number of business applications increased by 3.7% in July 2022 compared to June 2022, reaching 425,698 in total, according to the US Census Bureau. Emotional intelligence makes understanding one's own emotions, and those of others easier. As a result, the global mentorship software market is anticipated to grow. More than 55% of work success is attributed to emotional intelligence. Employee turnover is rising for several factors, including improved compensation and career prospects. As a result, employee turnover must be avoided at all costs, which will likely fuel the expansion of the global mentoring software market. Issues including system compatibility, software updates, security worries, and user training may make adoption more difficult.

Key Report Findings

• The mentoring software market is likely to exhibit substantial expansion in revenue over the forecast period.
• The development of cloud-based solutions, the desire for enhanced employee productivity and engagement, and fast digitisation are among the primary drivers driving the growth of the mentorship software industry.
• Demand for cloud-based mentoring software remains higher in the mentoring software market.
• The large enterprise category held the highest mentoring software market revenue share in 2022.
• North America will continue to lead its way, whereas Asia Pacific mentoring software market will experience significant growth till 2030.

Growth Drivers

Massive Digital Transformation of Businesses

By 2020, it was predicted that up to 66% of firms would be digital. The same year, it was found that digital technology significantly aided businesses in achieving their objectives for workforce diversity, financial returns, and environmental criteria.

More than 50% of the effort made by businesses to convert to the digital age is motivated by growth potential. More than 50% of businesses agree that tools, such as AI-assisted procedures, should be used by digital businesses to increase worker productivity.

Other factors influencing an organisation's decision to adopt a digital business model include increased operational effectiveness, shifting customer experience expectations, and better management of business performance.

In a digital workplace, mentoring software plays a crucial role in enabling the virtual mentoring of mentees by allowing them to interact with the appropriate mentors using virtual media, such as video and phone calls.

Considerable Significance Placed on Business Automation

According to estimates, over 95% of businesses consider business automation a must for digital transformation. Additionally, over 65% of organisations have started automating certain business procedures. The mentoring software industry will expand beyond COVID-19 as more businesses worldwide prepare to move their IT infrastructure to the cloud, improve business continuity, and modernise corporate operations.

The demand for mentoring software solutions to maintain business operations during the COVID-19 crisis is one factor propelling the growth of mentoring software globally. The advantages of automated IT systems, the growing requirement for optimised resource utilisation through automated business processes, and the growing desire for efficient communication across diverse business units in organisations are further considerations.

The introduction of 5G wireless technology, and Industry 4.0's expanding acceptance drive demand for mentoring software across industries. It is anticipated to be significantly influenced by augmented reality (AR), digital twin, digitalisation, and industrial IoT developments. For instance, in July 2021, Rockwell Automation Inc. partnered with Kezzler AS, a cloud-based platform for product digitisation and traceability. In the prediction for the global market for mentoring software, it is thought that growing automation will create new opportunities.

Growth in Online Education Propel Market Growth

Growing interest among young people in online e-learning modules, increased use of e-learning software to manage learning content, a need for an engaging and dynamic learning environment, and increased emphasis on human capital development by businesses are some of the key factors driving the growth of mentoring software sector. Since they offer customised content based on each student's needs, Artificial Intelligence (AI), and machine learning have significantly increased in e-learning services.

The COVID-19 pandemic, has greatly accelerated the market expansion because the pandemic is has widely affect visiting educational institutions. The spread of novel coronaviruses halted offline education and paved the way for online and e-learning programs. Therefore, the pandemic has prompted the commercialisation of e-learning and is anticipated to fuel the growth of the mentoring software market significantly.

Growth Challenges

Growing Cultural Barrier to Adoption of Advanced Solutions

Corporate procedures used in various corporate operations have undergone significant change and adapted to new technological developments. To streamline workflows for better and more effective operational procedures, mentoring software is rapidly gaining acceptance across sectors.

However, due to a lack of awareness of newly available automated solutions, some businesses plan their processes manually. Examples include responding to inquiries from prospective customers, engaging in marketing and sales to generate leads, tracking packages, calculating payroll, and outsourcing the tactical recruitment process.

Organisations do not widely adopt mentoring software technologies because many companies still view advanced solutions as hazardous, complicated, and expensive. Some businesses are still unsure of the advantages of mentoring software solutions and services and are hesitant to include mentoring software technology in their regular workflow.

Overview of Key Segments

Demand for Cloud-based Mentoring Software Higher

The cloud-based mentoring software dominates the market. A cloud-based mentoring software can be accessible from any device with an internet connection. This kind of software is stored on the seller's servers and is accessible by users through a mobile app or a web browser. The cost of cloud-based mentoring software is often determined by the number of users or active mentors and is provided as a subscription service.

With their affordable costs and adaptable teaching methods for students, cloud-based solutions are acquiring remarkable traction in schools, and colleges. Thanks to the integration of cloud technologies in digital learning, students have access to the material at any time and from any location. Educational institutions can also create a virtual environment for students and teachers using cloud computing-based e-learning technologies. Cloud computing is thus widely used in the educational sector and other sector, which is predicted to experience strong segmental growth.

According to estimates, the web-based segment will continue to grow steadily, maintaining its position for the forecast duration. It is in high demand because of web-based simple deployment, variable pricing, and simple maintenance. Remote working is causing a rise in demand for web-based services. As a result, previously centralised data can now be accessed by collaborative teams. Since web-based products will have an identical total cost of ownership (TCO) to on-premises solutions in the coming years, they are expected to experience rapid growth.

Large Enterprises Major Revenue Contributors

In the forecast period, large enterprises to acquire major market share. Large businesses have the financial resources to invest in foreign markets. As a result, businesses can establish subsidiaries abroad and develop their market share without relying on the domestic market to support their expansion plans. Due to cloud computing, many businesses are large and well-known enough to have a strong brand reputation and brand image.

Large businesses also invest significantly in cutting-edge technologies to boost overall productivity and efficiency. Due to the ever-growing data, large businesses must continuously invest in their IT infrastructure and technical competence. As major corporations grow in both developed and emerging nations, there will be a growth in the need for cloud computing services.

The forecast term is predicted to see the fastest growth rate for SMEs. This is because SMEs are constantly searching for fresh and inventive approaches to enhance their organisational operations. Mentoring software can also help them save time and money by automating some procedures.

Software for mentoring can be used for several things, including skill development, performance management, succession planning, and staff training. It is anticipated that SMEs will want mentoring software market to improve workflows and save operational costs. Costs are decreased, repetitive chores are stopped, teamwork is improved, and priorities are determined using mentoring software.

Growth Opportunities Across Regions

Significant Investments Uphold North America

The US, and Canada are primary markets for the growth of the mentoring software business in North America. Cloud-based solutions are currently very popular in the area due to their adaptability and scalability. Another element boosting the expansion of the mentoring software market in the region is the significant investments made by North American businesses in their employees' personal growth.

Widespread use of new automation solutions and services, rising cloud-based workflow usage, and important corporate workflow automation businesses are the other factors that could propel market expansion. As automation becomes more prevalent in the healthcare sector, the developed healthcare infrastructure of the nation is anticipated to be a particularly attractive market for mentoring software.

Asia Pacific to Demonstrate Fastest Market Growth

Throughout the projection period, Asia Pacific is anticipated to have the quickest CAGR because of its advanced and rapid adoption of new technologies. Additionally, regional businesses are steadily increasing their IT spending, which is anticipated to cause a spike in the adoption of mentoring software. Regarding implementing mentoring software and services in the area, China, India, Japan, and ANZ are the top four nations.

Many companies in Asia Pacific are deploying mentoring software systems due to the business functions offered by mentoring software that automate the creation, monitoring, and analysis of marketing campaigns and the assignment and administration of quotas.

Organisations in this region are encouraged to invest in sophisticated mentoring software by the resource waste caused by the manual management of administrative chores, the lack of insight into incentive compensations, and the rise in attrition. These reasons make the region predicted to grow at the greatest growth rate during the predicted period.

Mentoring Software Market: Competitive Landscape

Some of the leading players at the forefront in the mentoring software market space include Chronus, MentorcliQ, Qooper, Everwise, Oracle Work Life Solutions Cloud, Mentor, eMentorConnect, MicroMentor, Achiiva, Birdly, and Builda.

Recent Notable Developments

In October 2021, Chronus, the market leader in mentoring software, launched Chronus Institute to house its industry-leading thought leadership, a mentoring program with best practices, and mentorship skill-building resources. While some content will be available on the Chronus website, most of what Chronus Institute offers will be exclusive to Chronus clients.  Chronus Courses, a new product feature introduced in conjunction with the launch of Chronus Institute, allows customers to deliver self-paced, guided learning centered on mentorship to program participants in an industry first.

Similarly, in November 2020, Emergent Software, a custom software development firm based in Minneapolis, Minnesota, announced that they had earned triple-Gold partner status with Microsoft, demonstrating their dedication to addressing their customers' increasing demands in a cloud-first future. Emergent Software is a Microsoft Gold Partner with deep expertise in application development, cloud platform, and data platforms.

Global Mentoring Software Market is Segmented as Below:

By Type

• Cloud-based
• Web-based

By Application

• Large Enterprises
• SMEs

By Geographic Coverage

• North America 
  • U.S. 
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Turkey
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Argentina
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Egypt
  • Nigeria
  • Rest of Middle East & Africa