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Study Shows People Analytics Tech Market Grows to $12.2 Billion<\/strong><\/p>\n WOODSIDE, Calif., June 30, 2026<\/strong> \u2013 A recent study by RedThread Research reveals that the people analytics technology (PAT) market has reached approximately $12.2 billion by the end of 2025, a notable increase from $9.7 billion in 2024. However, the market’s growth rate of 26% year over year indicates a shift towards a more stable phase, moving away from the rapid growth seen in 2022, which peaked at 50%.<\/p>\n The report titled \u201cPeople Analytics Tech Market Trends 2026: Old Market, New Pressures\u201d<\/em> sheds light on several important trends. It highlights a movement towards unbundled contracts, a notable increase in mergers and acquisitions (M&A), widespread adoption of AI that typically remains in \u201cassist\u201d mode, and growing disparities between how vendors handle their own data compared to the support offered to customers.<\/p>\n Market Dynamics and Vendor Sentiments<\/strong><\/p>\n In its seventh iteration, the annual study includes survey data from 47 vendor solutions and expands to cover 163 PAT solutions. The study monitors the year-on-year changes in market size, pricing strategies, vendor approaches, AI investments, and data ethics.<\/p>\n One major finding is that the market’s growth is stabilizing and diversifying. The percentage of vendors anticipating high growth (more than 31%) has decreased from 56% in 2022 to 37% in 2026. Meanwhile, those predicting only a 1-10% increase in revenue grew from 3% to 17%. Although the financial services industry remains the leading sector, healthcare and manufacturing sectors are quickly expanding.<\/p>\n Stacia Garr, Co-founder and Principal Analyst at RedThread Research, commented, \u201cThe PAT market isn\u2019t shrinking\u2014it’s maturing, and that changes the rules for buyers. Customers now need to be more thoughtful about what they are purchasing and what additional resources they might require to make the technology effective.\u201d<\/p>\n Changes in Contracts and Pricing<\/strong><\/p>\n Contracts for PAT solutions look different than they did two years ago. Previously, 53% of vendors bundled consulting services with their technology subscriptions, but now, only about a quarter include these services. Similarly, the availability of bundled implementation services has dropped from 69% to roughly a third. This reflects a broader trend where nearly 90% of vendors revised their pricing models in 2026, with new AI agent services being priced separately.<\/p>\n Mergers and Acquisitions on the Rise<\/strong><\/p>\n After a four-year decline, M&A activity surged in 2025. The percentage of vendors involved in M&A rose from 9% in 2024 to 36% in 2025, even as overall external investment fell to a record low. The focus of these activities is primarily among vendors in human capital management (HCM), HR information systems (HRIS), and talent management, indicating a trend of standalone solutions becoming part of larger platforms.<\/p>\n AI Adoption and Support Shifts<\/strong><\/p>\n While almost all vendors (94%) now have a code of conduct on AI ethics, customer support appears to be declining. Support from vendors on data ethics education dropped significantly from 62% to 26%, indicating a shift in focus. Priyanka Mehrotra, Senior Analyst at RedThread, noted, \u201cVendors are working on their internal ethics, but they are reducing guidance to customers, which is risky as the market becomes more transactional.\u201d<\/p>\n Upcoming Webinar<\/strong><\/p>\n On July 29, 2026, RedThread Research will host a free webinar discussing the report’s findings. Attendees can reserve their spot by visiting RedThread’s site.<\/p>\n About RedThread Research<\/strong><\/p>\n RedThread Research aims to provide clear insights into people analytics and related technologies. The organization emphasizes quality research and collaboration among industry members committed to advancing analytics technology.<\/p>\n For more information, visit RedThread Research.<\/p>\n\n","protected":false},"excerpt":{"rendered":" Study Shows People Analytics Tech Market Grows to $12.2 Billion WOODSIDE, Calif., June 30, 2026 \u2013 A recent study by RedThread Research reveals that the people analytics technology (PAT) market has reached approximately $12.2 billion by the end of 2025, a notable increase from $9.7 billion in 2024. However, the market’s growth rate of 26%<\/p>\n","protected":false},"author":1,"featured_media":36113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[34],"tags":[47549,47548,47547],"class_list":["post-36112","post","type-post","status-publish","format-standard","has-post-thumbnail","category-technology","tag-pat-solutions","tag-people-analytics","tag-redthread-research"],"_links":{"self":[{"href":"https:\/\/indiabulletinusa.com\/wordpress\/wp-json\/wp\/v2\/posts\/36112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/indiabulletinusa.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/indiabulletinusa.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/indiabulletinusa.com\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/indiabulletinusa.com\/wordpress\/wp-json\/wp\/v2\/comments?post=36112"}],"version-history":[{"count":0,"href":"https:\/\/indiabulletinusa.com\/wordpress\/wp-json\/wp\/v2\/posts\/36112\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/indiabulletinusa.com\/wordpress\/wp-json\/wp\/v2\/media\/36113"}],"wp:attachment":[{"href":"https:\/\/indiabulletinusa.com\/wordpress\/wp-json\/wp\/v2\/media?parent=36112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/indiabulletinusa.com\/wordpress\/wp-json\/wp\/v2\/categories?post=36112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/indiabulletinusa.com\/wordpress\/wp-json\/wp\/v2\/tags?post=36112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}