Rewards and Incentives Service Market Size, Share, Growth, and Global Industry Growth by Type (Digital Rewards and Rewards in Kind), By Application (For Employees, For Customers), Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Insights, and Forecast From 2024 To 2031

Updated On: 08 July 2024

REWARDS AND INCENTIVES SERVICE MARKET REPORT OVERVIEW

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The global rewards and incentives service market size was USD 3910 million in 2021 and is projected to touch USD 9237.61 million by 2028, at a CAGR of 8.9% during the forecast period.

Rewards are given to employee and incentives act as a motiving factors. Rewards is a token of gift to the employee for their hard work. On the other hand, boosting employee’s hard work and those employees worked exceptional is known as incentive. Both rewards and incentives are effective motivators. They work as to boost employee’s workflow and encourage them to work better. The system helps to maximize employee’s performance and tap into full potential. Also, this system helps to increase company’s revenue and recognition. This operation boosts team morale, by showing appreciation for hard work.

Rewards and incentives service market growth is attributed to increasing demand from companies globally. Growing need to show appreciation for hard work is projected to drive market growth. Increasing need to build team morale is predicted to accelerate product demand. Also, providing friendly competition amongst employees is estimated to increase market growth. Group of employees required team collaboration may boost market growth during the forecast period. In addition, growing need to boost team’s morale is expected to fuel market growth.

COVID-19 Impact: Work from Home Culture to Hamper Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with rewards and incentives service experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The spike in CAGR is attributable to the rewards and incentives service market growth and demand returning to pre-pandemic levels once the pandemic is over.

An outbreak COVID 19 pandemic impacted rewards and incentives service market due to lockdown and shutdown of offices. Growing trend for working from home declined demand for the service. Lockdown restrictions impacted manufacturing and production activities. Import and export activities were halted due to closure of boundaries. Shortage of employee and unemployment are projected to restrict market growth during pandemic.

On the contrary, growing digitalization during the pandemic boosted digital reward ceremonies. Also, to boost employee while working from home and keeping the working sprit same like office is responsible to boost market growth during the forecast period.

LATEST TRENDS

"Increasing Restaurant Chains to Incite Market Expansion "

Increasing number of restaurants globally to accelerate market growth. Restaurant’s staff need positive environment to work and motivating factor will propel system adoption. Attendance is crucial factor and keeping less pressure on the staff may increase market growth. Also, calculating staff performance in every quarter helps to motive them and maintain regular attendance. Growing need to provide restaurants staff incentive loyalty and to reduced attrition rare are estimated to accelerate market rewards and incentives service growth during the forecast period.

REWARDS AND INCENTIVES SERVICE MARKET SEGMENTATION

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• By Type

Based on type, the market is divided into digital rewards and rewards in kind.

Digital rewards are the leading part of segmentation type.

• By Application

Based on the application, the market is divided into for employees, for customers.

 For employees are leading part of application segmentation.

DRIVING FACTORS

"Growing Preference for Friendly Workplace to Propel Market Growth "

Growing friendly workplace to support co-working system is expected to boost market growth. Need for friendly competition among teams of the workplace is projected to accelerate product adoption. Also, strong teams are able to challenge each other while having to receive rewards for their efforts. Further, friendly workplace helps to nourish employee work and to come out with new ideas and creativity is estimated to fuel market growth in the coming years. In addition, friendly culture and teammates are responsible to encourage each other and help to celebrate everyone’s accomplishments.

"Growing Need to Increase Productivity of Employees to Boost System Adoption "

Increasing need of productivity to meet goal of the work projects is expected to fuel market growth. Rewards and initiatives service motivates employee to push themselves a little more is projected to drive market growth. Also, hard work appreciation helps to motive employee and make their respective team leaders proud.  Further, job perks such as paid off, remote workday, catered lunch, gift cards, and other perks  helps to create a great opportunity for the rewards and incentives service market growth. 

"Need for Better Teamwork to Boost Market Growth "

Team work helps to reduce errors which benefits businesses. Working together leads to success together which boost company or business growth and revenue. Also, performing responsibility by employees to boost system adoption. Promotions and reward function in companies are estimated to fuel market growth. Better collaboration among teammates are expected to increase market growth during the forecast period.

RESTRAINING FACTORS

"High Costs and Pressure to Meet Expectations to Hamper Market Growth "

High costs associated with rewards and gifts are projected to restrict market growth. Setting an expectation in employee may hinder productivity.  Lack of long-term benefits are expected to minimize rewards and incentives service market growth during the forecast period

REWARDS AND INCENTIVES SERVICE MARKET REGIONAL INSIGHTS

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"Rising Industrialization to Drive Market Share in North America "

North America is expected to hold largest part in rewards and incentives service market share due to increasing industrialization. Increasing number of companies in the region of various industries such as IT, automotive, and aerospace. Such rising number of companies is expected to fuel market growth. Increasing number of companies leads to the growth in number of working professionals which requires the need for rewards and incentives. Growing number of restaurants and tourism are projected to drive market growth during the forecast period. Increasing entertainment companies in the region is expected to fuel product adoption. Also, presence of market players is estimated to drive market growth.

Europe is expected to show considerable market growth due to growing tourism. Increasing number of companies and industries to propel market growth. Rising need to satisfy employee is expected to fuel product demand.

KEY INDUSTRY PLAYERS

"  Market Players Adopted Partnership Strategies to Stay Competitive"

The report covers information about the list of market players and their latest development in the industry. The information includes mergers, partnerships, acquisitions, technological developments, and production lines. Other aspects examined for this market include complete research on companies producing and introducing the latest products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

List of Market Players Profiled

• Rybbon (U.S.)
• Tremendous (U.S.)
• Tango Card (U.S.)
• Xoxoday (India)
• Giftbit (U.S.)
• Blackhawk Network (U.S.)
• Gyft (First Data Corporation) (U.S.)
• eGifter (U.S.)
• Global Reward Solutions (U.S.)
• Gravy Gifts (U.S.)
• Square (U.S.)
• Giftogram (U.S.)
• Knowband (India)
• Self-Service Networks (U.S.)
• HMI Performance Incentives (U.S.)

INDUSTRIAL DEVELOPMENT

June 2022 -  Rybbon announced a partnership with Voxco. The new partnership is set to increase response rate by offering digital rewards such as Visa wards cards and E-gift cards.  Also, this collaboration is about to boost data collection of the companies and provide seamless reward experience to employees.

REPORT COVERAGE

This research profiles a report with general studies that explain the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, and others. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.