By 2032, Sales Compensation Software Market at $5,628.73 Million (9.7% CAGR)

Sales Compensation Software Market Size Worth $5,628.73 Million By 2032 | CAGR: 9.7%

The global sales compensation software market size is expected to reach USD 5,628.73 million by 2032, according to a new study by Polaris Market Research. The report “Sales Compensation Software Market Share, Size, Trends, Industry Analysis Report, By Deployment Type (Cloud, On-premise); By End Use; By Enterprise Size; By Region; Segment Forecast, 2023 - 2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Sales compensation is becoming crucial for organizations to manage efficient sales employees in the workplace. Compensation software enables the precise calculation and diffusion of salaries based on employee performance. This minimizes the errors in salary received by employees and ensures compensation based on their work performance. Payscale, a compensation data software provider, released the results of its Compensation Best Practices Report. Based on the report, 55% of organizations believe that managing compensation will be more difficult in 2023, suggesting a growing demand for cutting-edge solutions to manage complex compensation arrangements.

Additionally, a greater emphasis on transparency and fairness in compensation practices in various domains like sales is driving demand for this software. The number of employees listing compensation on job postings has more than doubled to 45% compared to the previous year. This is creating new issues among enterprises in determining the sales compensation for their employees, driving demand soon.

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The market for sales compensation software is expanding as a result of several factors, including the changing nature of compensation management and the demand for accuracy when handling intricate compensation plans. Employers are giving employees larger wage raises in 2023 than they did in earlier years, according to recent Mercer research. The average salary raise for workers in 2022 was roughly 3.4 percent, while the overall increase in all forms of pay was about 3.8 percent.

The need for sophisticated sales compensation software solutions is growing as organizations manage these complicated pay adjustments with more caution. In order to compute and distribute various compensation aspects, the program offers a streamlined platform fairly and transparently. Enterprises are looking forward to building effective strategies in managing sales compensation, as there has been a rapid hike in compensation since the 2008 financial crisis.

Sales Compensation Software Market Report Highlights

  • Cloud segment will grow at the rapid pace, due to the remote accessibility to the software.
  • IT & telecom segment held the largest share, owing to the rising emphasis on personalized sales incentives.
  • Large enterprises segment dominated the market, primarily due to the complex sales workforce.
  • North America held the largest share, primarily due to rising employee expectation of a salary hike.
  • The global players include SAP, Oracle, Performio, Iconic Sales Compensation Software, Optymyze, ZS Associates, IBM, CellarStone, Anaplan & Quota Path.


Polaris Market Research has segmented the sales compensation software market report based on deployment type, end use, enterprise size and region:

Sales Compensation Software, Deployment Type Outlook (Revenue - USD Million, 2019 - 2032)

  • Cloud
  • On-premise

Sales Compensation Software, End Use Outlook (Revenue - USD Million, 2019 - 2032)

  • BFSI
  • Energy & Utilities
  • Manufacturing
  • Healthcare
  • Retail
  • Education
  • Government
  • Information Technology (IT) & Telecom

Sales Compensation Software, Enterprise Size Outlook (Revenue - USD Million, 2019 - 2032)

  • SMEs
  • Large Enterprises

Sales Compensation Software, Regional Outlook (Revenue - USD Million, 2019 - 2032)

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Russia
    • Netherlands
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
    • Malaysia
  • Latin America
    • Argentina
    • Brazil
    • Mexico
  • Middle East & Africa
    • UAE
    • Saudi Arabia
    • Israel
    • South Africa

Sales Compensation Software Market Report Scope

Report Attributes


Market size value in 2023

USD 2,456.10 million

Revenue forecast in 2032

USD 5,628.73 million


9.7% from 2023 - 2032

Base year


Historical data

2019 - 2021

Forecast period

2023 - 2032

Quantitative units

Revenue in USD million and CAGR from 2023 to 2032

Segments covered

By Deployment Type, By End Use, By Enterprise Size, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa


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