User Research Software Market

Market Overview

The global user research software market size was valued at USD 217.80 million in 2023. It is estimated to reach USD 638.67 million by 2032, growing at a CAGR of 12.7% during the forecast period (2024–2032). In recent years, the world has transitioned towards digitization owing to the rapid proliferation of the internet and smartphones, which has led to increased demand for digital products and services amongst customers. Thus, businesses are increasingly expanding their digital platform offerings, driving the global user research software market. Moreover, the prominent stakeholders in the market are involved in several strategic initiatives, which are estimated to create opportunities for market growth.

User research software encompasses tools and platforms designed to streamline collecting, analyzing, and interpreting user behavior and preferences data. These software solutions provide a range of features, including surveys, user testing, interviews, and data analysis capabilities. By leveraging these tools, researchers, designers, and product managers can obtain valuable insights into user needs and experiences, informing the development of products, services, or digital experiences.

User research software also facilitates collaboration among team members, enabling them to gather, analyze, and share research findings. Ultimately, user research software plays a crucial role in helping organizations better understand their target audience, improve the usability and effectiveness of their offerings, and ultimately enhance the overall user experience.

Highlight

• North America is estimated to be the largest shareholder in the market

Market Dynamics

Global User Research Software Market Drivers

Rising Demand for Digital Products and Services

One of the primary factors propelling the market for user research software is the growing demand for digital goods and services. According to Statista, it is anticipated that global investments in digital transformation will almost double between 2022 and 2025, from 1.80 trillion to 2.80 trillion dollars. This will lead to a quick growth in digitization and can be ascribed to the rise in internet and smartphone penetration. Therefore, as consumers increasingly rely on digital platforms and applications for various activities, businesses are pressured to deliver user-friendly and intuitive digital experiences.

User research software plays a crucial role in this process. It enables organizations to gather insights directly from users, understand their behaviors and preferences, and iteratively improve digital products and services. Whether mobile apps, websites, e-commerce platforms, or software applications, user research software helps businesses ensure that their digital offerings meet user needs, resulting in higher user satisfaction, increased engagement, and improved business outcomes. User research software is becoming increasingly necessary to support the creation and improvement of digital products and services as the market expands.

Shift Towards Remote Work and Collaboration 

The shift towards remote work and collaboration has accelerated the demand for user research software as businesses adapt to new working methods. According to AALPHA, at least 74% of business owners are shifting a portion of their workforce to start working remotely. It also states that approximately 54% of young professionals aged 25 to 34 will choose to work remotely. These young talents favor remote work due to its flexibility and potential to advance their professions. With teams distributed across different locations, there is a surging need for tools that facilitate remote collaboration and virtual user testing.

User research software enables teams to conduct research activities remotely, such as surveys, interviews, and usability testing, allowing for greater flexibility and efficiency in data collection and analysis. These tools also support real-time collaboration, enabling team members to collaborate on research projects, share insights, and coordinate activities seamlessly, regardless of physical location. By empowering remote teams to conduct user research and collaborate on insights, user research software enhances productivity, accelerates decision-making, and fosters innovation in product development processes.

Global User Research Software Market Restraint

Data Privacy and Security Concerns

Data privacy and security concerns represent significant restraints for the User Research Software market. Organizations are growing more cautious of the risks related to data breaches, non-compliance with regulations, and reputational harm as user research entails gathering and evaluating sensitive user data. With the implementation of strict data protection regulations like GDPR and CCPA, companies must ensure that user research software complies with these requirements to safeguard user information. Moreover, the proliferation of cybersecurity threats and the increasing sophistication of malicious actors further heighten concerns about data security. Consequently, organizations may hesitate to invest in user research software if they perceive it as a data privacy and security risk.

Global User Research Software Market Opportunities

Strategic Initiatives by the Key Players

The key players in the global user research software market are involved in several strategic initiatives like mergers and acquisitions, partnerships, product launches, and expansion. For instance, in January 2024, UserTesting, a prominent experience research and insights company, introduced new improvements to its UserTesting? Human Insight Platform today. UserTesting has introduced new product features designed to enhance the process of capturing human insights throughout the customer journey. These include mobile camera testing templates for various industries and product integration with Rally, a user research CRM platform.

Furthermore, in November 2022, Hotjar, a prominent Product Experience Insights platform, purchased the UX research platform PingPong to enhance user research services for its customers. Hotjar creates tools for product teams to develop empathy and gain insights into their users that go beyond the capabilities of conventional analytics. The Product Experience Insights program is utilized on over a million websites, and its distinctive combination of quantitative and qualitative data influences product decisions in over 180 countries. These factors present an opportunity for market expansion.

Regional Analysis

North America Dominates the Global Market

Based on region, the global user research software market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global user research software market shareholder and is expected to expand substantially during the forecast period. North America leads the user research software market due to its tech-savvy population, innovation hubs, and early adoption of UX practices. According to Statista, the United States is the third-largest online market in the world, with more than 307 million internet users nationwide. The United States, known for its technological innovation and leading internet companies, has grown its digital population for over twenty years. Currently, more than 90% of Americans can use the internet, with many unable to imagine living without it. Similarly, according to remote work statistics, the pandemic led to a permanent increase in remote work in the U.S., equivalent to nearly 40 years of growth before the outbreak. Remote work accounted for 7% of paid workdays in 2019 and increased to 28% by September 2023. This is anticipated to drive the user research software market in North America.

Furthermore, governmental and private sector entities, such as large enterprises and SMEs in the region, are implementing user research software. For instance, Amazon, the Internet retail titan, succeeded by using user research software. Companies like Google, Microsoft, and Amazon drive demand for user research tools. Moreover, several regional companies are introducing new and advanced user research tools to help end-users gain insights into their business. For instance, in September 2023, WEVO launched WEVO Pulse, an AI-powered UX analysis tool transforming the UX research industry. WEVO Pulse utilizes generative artificial intelligence and data from over 1 million user research participants to provide immediate and comprehensive insights into user demands and emotions. Consequently, all these factors drive the regional market growth.

The Asia-Pacific region presents immense growth potential, fueled by rising digitalization and expanding e-commerce markets. For instance, according to Statista, India has significant potential in the e-commerce industry due to the growing internet user base and favorable market circumstances. In 2018, the e-commerce business's market value in India was 22 billion U.S. dollars and was increasing rapidly. The projected amount is expected to reach 350 billion U.S. dollars by 2030. Therefore, companies require user research tools tailored to diverse languages, cultures, and user behaviors owing to the presence of an audience with vast cultural diversity. Moreover, Asian enterprises increasingly recognize UX research's value for global competitiveness, thereby boosting the Asia-Pacific user research software market.

Segmental Analysis

The global user research software market is segmented by type and application.

Based on type, the global user research software market is divided into cloud-based and web-based.

Cloud-based user research software is a type of user research platform that operates on cloud infrastructure, allowing user access and use of the software through web browsers or dedicated applications without needing on-premises installation or maintenance. This software enables researchers, designers, and product teams to conduct various user research activities remotely and collaboratively, leveraging cloud computing resources for data storage, processing, and analysis. Moreover, the benefits of cloud-based user research software include accessibility, scalability, security, and cost-effectiveness. Cloud-based user research software enables organizations to streamline their user research processes, improve collaboration among team members, and gain valuable insights to inform product development decisions.

Based on application, the global user research software market is segmented into large enterprises and SMEs.

Large enterprises utilize user research software to enhance their products, services, and customer experiences. Large enterprises use user research software to gather insights from target audiences during development. This helps them understand user needs, preferences, and pain points, enabling them to design products that better meet customer expectations. The software helps enterprises generate more revenue by analyzing existing customers, stabilizing finances, reducing customer acquisition costs, and identifying new and potential revenue pockets.

User research software helps enterprises conduct market research to understand industry trends, competitor offerings, and customer preferences. This enables them to make informed decisions about product positioning, marketing strategies, and business expansion opportunities. Moreover, large enterprises leverage user research software to gather user behavior, preferences, and demographic data. This information lets them personalize marketing campaigns, tailor product recommendations, and target specific customer segments more effectively.

Recent Developments

• January 2024- NWO and ZonMw inked the Amsterdam Declaration on Funding Research Software Sustainability. By doing so, the research funders confirm their commitment to incorporate research software in their open science policy and to strengthen cooperation with other organisations in this field.
• January 2024- The latest product from Tobii, UX Explore, lets user experience (UX) researchers harness the power of eye tracking and quantify user attention using only a smartphone. The new software-based technology combines deep learning eye-tracking techniques and allows research to be done remotely, reaching individuals in their natural context.