Training Market is Estimated To Witness High Growth Owing To Upskilling And Reskilling Trends
The Training Market is estimated to be valued at US$ 132.2244 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The training market provides various forms of training to individuals and enterprises. Training programs help individuals gain skills and knowledge required for various job roles. They also help enterprises improve employee productivity, comply with regulatory norms, and implement new technologies. Training is delivered through online and offline modes using tools like e-learning, mobile apps, classroom training, and blended learning.
Market key trends:
One of the key trends driving growth in the training market is upskilling and reskilling of workforce. With changing job requirements due to advanced technologies, there is a growing need for continuous learning and development of new skills. Various industries are focusing on providing regular training programs to employees for competency development and career progression. Sectors like IT, manufacturing, and healthcare are increasingly investing in training to bridge the skill gaps. Furthermore, demand for regulatory and compliance training from industries like oil & gas, pharmaceuticals is also fueling market growth. Training providers are enhancing their offerings by launching customized online and blended courses to cater to changing customer needs.
Porter’s Analysis
Threat of new entrants: The training market has moderate barriers for new entrants due to high capital requirements and established relationships between enterprises and existing training vendors.
Bargaining power of buyers: Buyers in the training market have high bargaining power due to availability of many vendors providing similar services. This empowers buyers to negotiate on price and demand customized solutions.
Bargaining power of suppliers: Suppliers like content creators and subject matter experts have moderate bargaining power due to dependence of training vendors on them to develop customized training programs.
Threat of new substitutes: Threat of substitution is low as formalized training is necessary for developing job-specific skills and safety knowledge that informal sources may not provide.
Competitive rivalry: Intense due to presence of many global and regional vendors providing similar services.
SWOT Analysis
Strength: Established global presence and deep expertise in developing customized training programs for regulated industries like oil & gas.
Weakness: High employee training costs and potential loss of institutional knowledge with employee turnover.
Opportunity: Growing need for technical & safety training among new workforce and expanding into related services like process simulation, assessments and virtual/augmented reality training.
Threats: Economic slowdowns reducing customer spending on training and rise of low-cost regional players eroding profit margins.
Key Takeaways
The Global Training Market is expected to witness high growth, exhibiting CAGR of 8.0% over the forecast period, due to increasing need for reskilling and upskilling employees to adapt to new technologies and work processes. The training market size for 2023 is US$ 132.2244 Bn.
Regional analysis shows that North America currently dominates the training market, owing to stringent regulatory mandates and proactive corporate spends on technical & safety training programs by organizations. However, Asia Pacific is expected to grow at the fastest pace during the forecast period due to rapid industrialization and expanding skilled workforce requirements in countries like China and India.
Key players operating in the training market are Skillsoft Limited, Safety Media, GP Strategies Corp., UL EHS Sustainability, PRYOR Learning Solutions, Raytheon Company, DuPont Sustainable Solutions, 360training.com, Inc., SAP Litmos, Vector Solutions, Global Training Solutions, Inc., Cornerstone onDemand, Petroskills, Euro Petroleum Consultants Ltd . These companies have extensive offerings of technical, safety and compliance training content for industries like oil & gas, manufacturing, construction, etc.