The Global Equity Management Software Market size is expected to reach $1.5 billion by 2031, rising at a market growth of 13.8% CAGR during the forecast period.
Mobile and cloud solutions enable equity management software to be accessed anytime, anywhere, using various devices such as smartphones, tablets, and laptops in Mexico. This accessibility and flexibility empower users in Mexico to manage equity-related tasks on the go, regardless of location or device, enhancing convenience and productivity. Consequently, the North America region would generate a revenue of USD 191.5 million in 2023. Companies in North America are increasingly leveraging equity compensation as part of their employee benefits packages, driving the need for software to manage these programs effectively.
Real-time analytics provide immediate insights into equity compensation data, allowing companies to make informed decisions promptly. Instead of waiting for batch processing or manual data analysis, companies can access up-to-date information on equity grants, ownership percentages, and performance metrics in real time. Thus, because of the growing necessity of real-time analytics, the market is anticipated to increase significantly.
Additionally, large and medium-sized enterprises typically have a larger workforce and more equity plan participants than small businesses. Managing equity grants, tracking vesting schedules, and ensuring compliance with regulatory requirements for many employees can be challenging without dedicated software solutions. Therefore, the market is expanding significantly due to the increased usage in large and medium-sized enterprises.
However, regulatory compliance requirements related to equity compensation are often complex and subject to frequent changes. Developing and maintaining equity management software solutions that can adapt to these evolving regulations requires significant investment in research, development, and ongoing updates. The high costs of ensuring compliance can deter software providers from entering the market or lead to higher customer prices. Thus, regulatory compliance burden can slow down the growth of the market.
By Type Analysis
On the basis of type, the market is segmented into basic (Under $50/Month), standard ($50-100/Month), and senior (Above 100/Month). The standard ($50-100/Month) segment covered a 31.1% revenue share in the market in 2023. Equity management software in the standard ($50-100/month) segment allows advanced analytics and reporting capabilities to help businesses gain insights into their equity compensation programs. This may include tools for performance tracking, scenario modeling, and trend analysis, allowing businesses to make data-driven decisions to optimize their equity plans and drive shareholder value.
By Application Analysis
Based on application, the market is categorized into private corporations, start-ups, listed companies, and others. In 2023, the private corporation segment dominated the market with 33% revenue share. Private corporations are subject to different regulatory requirements than public companies, particularly in financial reporting and governance. Equity management software assist private corporations in complying with applicable regulations, such as IRS rules for equity compensation taxation, SEC regulations for private placements, and state securities laws. Private corporations often rely on accounting and financial systems to manage their financial operations and reporting.
By Enterprise Analysis
By enterprise size, the market is bifurcated into large enterprises and small & medium-sized enterprises. In 2023, the large enterprises segment witnessed a 64.5% revenue share in the market. Software for equity management that is scalable to accommodate the growing needs of large organizations and process massive volumes of equity transactions and data is essential. Software providers guarantee that their platforms are built to maintain a high level of efficiency and reliability despite extensive usage.
By Regional Analysis
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Asia Pacific region acquired a 27.2% revenue share in the market. The region is undergoing tremendous economic expansion and is attracting major investment, particularly in technology, finance, and other industries. It has a burgeoning start-up ecosystem, with a growing number of technology start-ups and innovative companies. The region is also experiencing rapid technology adoption, including cloud computing, AI, and data analytics.
Recent Strategies Deployed in the Market
- Nov-2023: Eqvista Inc. came into partnership with Cheqly Inc., the full-stack neobank for startups and SMEs in the US. Under this partnership, the companies will offer startups and SMEs a single solution for all their financial needs, from cap table management to valuation banking services and financing.
- Mar-2023: JPMorgan Chase & Co. signed a definitive agreement to acquire Alumni, Inc., a provider of analytics software to the venture capital industry. Through this acquisition, J.P. Morgan will deliver an industry-leading suite of innovative solutions to the private markets. Additionally, Alumni will complement the Capital Connect platform by J.P. Morgan.
- Dec-2022: Euronext N.V. completed the acquisition of the technology business from Nexi S.p.A., a financial technology company. With this acquisition, the company aims to bolster the essential functions of MTS and Euronext Securities Milan, in line with Euronext's strategy to enhance value by leveraging its integrated value chain and technological expertise.
- Aug-2022: JPMorgan Chase & Co. took over Global Shares Ireland Limited, a provider of cloud-based software for managing share plans. With this acquisition, JPMorgan Chase aims to become a top provider in the industry, offering cutting-edge solutions for employee ownership to both private and public companies. Furthermore, companies and employees stand to gain from Global Shares' expertise in share plan services, complemented by J.P. Morgan's extensive range of wealth management, executive financial services, and banking products.
- Aug-2022: eShares, Inc., doing business as Carta took over Capdesk, an equity management platform. Through this acquisition, Carta will enhance its position in the equity management market by utilizing Capdesk.
List of Key Companies Profiled
- JPMorgan Chase & Co.
- Preqin Ltd. (Dynamo Software)
- Eqvista Inc.
- Altvia Solutions, LLC
- Euronext N.V.
- Ledgy AG
- DEEP POOL Financial Solutions Limited
- eShares, Inc. (Carta, Inc.)
- Gust, Inc.
- Qapita Fintech Pte. Ltd.
Market Report Segmentation
By Enterprise Size
- Large Enterprises
- Small & Medium-sized Enterprises
By Type
- Basic (Under $50/Month)
- Standard ($50-100/Month)
- Senior (Above $100/Month)
By Application
- Private Corporation
- Listed Companies
- Start-ups
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Companies Mentioned
- JPMorgan Chase & Co.
- Preqin Ltd. (Dynamo Software)
- Eqvista Inc.
- Altvia Solutions, LLC
- Euronext N.V.
- Ledgy AG
- DEEP POOL Financial Solutions Limited
- eShares, Inc. (Carta, Inc.)
- Gust, Inc.
- Qapita Fintech Pte. Ltd.
Methodology
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