RedThread Study Reveals People Analytics Tech Market Reached $12.2B in 2025 as Growth Cools, Contracts Unbundle, and Vendors Reconsider their Customer Support
Why this matters
The reported deceleration in the people analytics technology (PAT) market growth and the unbundling of contracts signal a maturing phase for this segment of enterprise software, with implications for commercial real estate investors focused on office and tech-enabled assets. As firms reassess vendor relationships and customer support models, there may be a shift in corporate IT spending patterns that could influence demand for office space configured to support evolving workplace technologies. The cooling growth suggests institutional capital should temper expectations for rapid expansion in tenant demand driven by aggressive tech adoption cycles. Instead, investors might anticipate more selective, efficiency-driven occupier behavior, potentially affecting leasing velocity and tenant improvement allowances in tech-centric office markets. Moreover, the unbundling trend could reflect broader cost-containment pressures within corporate budgets, which may translate into more cautious expansion or contraction decisions by occupiers. For lenders and capital providers, this signals a need to scrutinize underwriting assumptions around tenant creditworthiness and sector-specific demand resilience, particularly in markets where technology firms constitute a significant tenant base. Overall, the PAT market’s evolution underscores the nuanced interplay between technology adoption trends and commercial real estate fundamentals.
Editorial analysis · AI-assisted
WOODSIDE, Calif., June 30, 2026 /PRNewswire/ -- A new study from RedThread Research finds that the people analytics technology (PAT) market reached an estimated $12.2 billion at the end of 2025—up from $9.7 billion in…
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