Global Rewards and Incentives Service Market Growth (Status and Outlook) 2025-2031

The global Rewards and Incentives Service market size is predicted to grow from US$ 4894 million in 2025 to US$ 8314 million in 2031; it is expected to grow at a CAGR of 9.2% from 2025 to 2031.

Rewards and incentives services providers typically have partnerships with a variety of online retailers, restaurant chains, travel agencies, or other entertainment companies, and resell or manage the distribution of corresponding credits. Operations teams utilize reward and incentive services to boost team morale, show appreciation for hard work, and provide gifts for holidays and special occasions. Customer accounts are often tracked and managed through online portals, where incentives can be purchased and delivered using a simple interface. Businesses can use performance management software to help identify standout employees and work performance situations that demand special attention.

Rewards and Incentives Service is mainly classified into the following types: Digital Rewards and Rewards in Kind. Digital Rewards is the most widely used type which take up about 92% of the sales share. Rewards and Incentives Service has wide range of applications, like For Employees and For Customers. And For Employees is the most widely used area which take up about 66.1% of the sales colume. North America is the largest region of Rewards and Incentives Service in the world in the past few years and it will keep increasing in the next few years. Europe market took up about 26% the global market, while APAC is about 15.8%. Blackhawk Network, InComm, Square, Online Rewards, Xoxoday, etc. are the key providers in the global Rewards and Incentives Service market. Top 5 providers took up more than 34% of the global market size.

Rewards and Incentives Service Market Drivers

1. Increasing Focus on Customer Retention

Acquiring new customers is more expensive than retaining existing ones. Rewards and incentives services help businesses build customer loyalty by offering points, discounts, and exclusive perks, encouraging repeat purchases and long-term engagement.

2. Rising Demand for Personalized Customer Experiences

Modern consumers expect personalized experiences tailored to their preferences. Rewards and incentives services leverage data analytics to deliver customized offers and rewards, enhancing customer satisfaction and driving brand loyalty.

3. Growth of E-Commerce and Digital Payments

The rapid expansion of e-commerce and digital payment platforms has created opportunities for rewards programs. Businesses are integrating rewards and incentives into online shopping experiences to attract and retain digital-savvy customers.

4. Employee Engagement and Retention

Companies are increasingly using rewards and incentives to boost employee morale, productivity, and retention. Employee recognition programs, performance-based bonuses, and wellness incentives are becoming essential tools for fostering a positive workplace culture.

5. Adoption of Gamification Strategies

Gamification, which incorporates game-like elements into non-game contexts, is being widely adopted in rewards and incentives programs. This approach makes engagement more interactive and enjoyable, driving higher participation rates among customers, employees, and partners.

LPI (LP Information)' newest research report, the “Rewards and Incentives Service Industry Forecast” looks at past sales and reviews total world Rewards and Incentives Service sales in 2024, providing a comprehensive analysis by region and market sector of projected Rewards and Incentives Service sales for 2025 through 2031. With Rewards and Incentives Service sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Rewards and Incentives Service industry.

This Insight Report provides a comprehensive analysis of the global Rewards and Incentives Service landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyses the strategies of leading global companies with a focus on Rewards and Incentives Service portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Rewards and Incentives Service market.

This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Rewards and Incentives Service and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Rewards and Incentives Service.

This report presents a comprehensive overview, market shares, and growth opportunities of Rewards and Incentives Service market by product type, application, key players and key regions and countries.

Segmentation by Type:
Digital Rewards
Rewards in Kind

Segmentation by Application:
For Employees
For Customers

This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries

The below companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the company's coverage, product portfolio, its market penetration.
BHN Rewards (formerly Rybbon)
Tremendous
BHN (Tango Card)
Xoxoday
Giftbit
BHN (Blackhawk Network)
First Data (Gyft)
eGifter
Global Reward Solutions
Gravy Gifts
Square
Giftogram
Knowband
Self-Service Networks
360insights

Please note: The report will take approximately 2 business days to prepare and deliver.