Fort Collins, Colorado, May 08, 2024 (GLOBE NEWSWIRE) --
The equity management software industry is poised to grow significantly in the forecast period.
The equity management software market is experiencing significant growth, primarily fueled by the expanding adoption of Employee Stock Ownership Plans (ESOPs) among organizations. ESOPs are increasingly recognized as valuable for attracting and retaining top talent, aligning employee interests with company objectives, and nurturing a sense of ownership. As companies embrace ESOPs, there's a heightened demand for sophisticated software solutions to effectively manage equity compensation programs, monitor employee stock options, and ensure compliance with regulatory mandates. According to ESOP.org, the number of participants in employee stock ownership plans in the United States alone reached 14.7 million in 2024, collectively holding assets valued at approximately USD 2.1 trillion.
Complying with continually evolving regulatory frameworks and accounting standards is a crucial driver for the equity management software market. Companies must adhere to intricate regulations governing equity compensation, as stipulated by entities like the Financial Accounting Standards Board (FASB) and the International Financial Reporting Standards (IFRS). Non-compliance can result in severe penalties and legal ramifications. Consequently, organizations increasingly turn to specialized equity management software solutions to streamline compliance processes, maintain precise records, and ensure transparency in equity-related transactions.
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Segmentation Overview:
The equity management software market has been segmented into type, deployment, enterprise size, application, and region.
Standard type is the prominent segment in 2023
- The market is segmented by type into basic (under USD 50/month), standard (USD 50-100/month), and senior (above USD 100/month). The standard (USD 50-100/Month) category holds a substantial share of the equity management software market's type segment.
Listed companies accounted as a leading application in the forecast period.
Based on the application, the market segmentation includes private corporations, start-ups, and listed companies. Listed companies hold a significant share of the application segment of the equity management software market. This is because listed companies have stringent regulatory requirements and need robust equity management solutions to comply with reporting standards, manage employee stock ownership plans, and handle complex equity-related transactions. Additionally, listed companies often have larger budgets for enterprise-level software solutions.
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Equity Management Software Market Report Highlights:
- The equity management software market growth is anticipated at a CAGR of 11.9% by 2032.
- The growing need for efficient management of employee stock ownership plans, stringent compliance requirements, and regulatory landscape drive market growth.
- North America holds a significant share in the equity management software market, with the United States having a substantial share in this region.
- Some prominent players in the equity management software market report include Capshare, Carta, Certent Equity Management, Computershare, EquityEffect, Global Shares, Imagine Capital Management LLC, Koger, Solium, Shareworks by Morgan Stanley, and Vertalo.
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