The report titled “US Corporate Training Market Outlook to 2025 – Driven by Growing Skill Gap with Disrupting Technology Stack and Penetration of Self-Paced, Live Instructor-Led Online Training Modes” provides a comprehensive analysis of the Corporate Training Market in the USA. The report also initiative by explaining the need and opportunity of the corporate training industry. Further, it proceeds with an explanation of current demand and demand by different segments. It also includes the trends, developments, challenges, technological stack, revenue streams, marketing strategies and government regulations driving the industry. It gives a detailed explanation of competitive scenarios including cross-comparison between major players, Porter’s Five Force analysis and detailed company profiles of major players. It concludes with future scope and analyst recommendations.
Market Overview and Demand Scenario
Low employee retention, growing skill gap, low college enrollment and the increasing cost of ineffective training were some of the important pain points of companies that lead to the introduction of the corporate training industry. The USA Corporate training industry is currently positioned to be at a late growth stage. The demand is increasing with a CAGR close to 5% during the period 2014-2019. There is an increasing trend in the use of Microlearning modules, experimental training and development of customized and specific training solutions.
Demand by End-User Industry (BFSI, IT and Telecom, Healthcare, Automotive, Manufacturing, and others)
The growing importance of cyber-security with increasing use of digital banking technologies including digital banking, Blockchain and others have led to increasing demand for training in the BFSI industry. Data Science & Analytics and Big Data Programs has revolutionized the IT and telecom Industry leading to quick outdating of skills among its employees. In the healthcare industry the training demand is driven during the need of disease prevention training such as training to deal with highly infectious diseases such as Coronavirus, Ebola, SARS, etc. Introduction of electric & automated vehicles and development in 3D Printing technology is driving the demand in the automotive and manufacturing industries respectively.
Demand By Delivery Mode (Classroom Training, Blended Training, Virtual Training, Online Training (no instructor) and others)
The demand is still dominated by classroom training methodology due to inertia caused by traditional mind-set. Blended training is increasing gaining pace as it has found to provide marginally higher ROIs for global setups as compared to the only classroom or only online modules. Channing workstyle and increasing need for flexibility will eventually lead to substitution of offline to online training.
By Type of Training Services (Technical, Leadership, Managerial, Sales, Customer Support and Others)
Technical training dominates the training demand due to increasing use of technology and growing digitalization of business operations. Dynamic business strategies, increasing organizational decentralization and growing millennial workforce drives the demand for leadership and managerial training.
By Deployment (On-Site and Off-Site)
Increasing demand for skill-based training for which resources are available within office premises to boost the demand for on-site training. Large and mid-size enterprises look for managed training services (multi-year contracts) which involves multiple training programs to be conducted within their offices.
The industry is highly fragmented with presence of various large public and private training companies as well as thousands of small training start-ups. Price, Course Content, Year of Experience, Faculty Qualification, Use of Experimental Training and Clientele are few of the important competition parameters. The major players include GP Strategies, Franklin Covey, Global Knowledge, Learning Tree International, Pluralsight, NIIT, Centre for Creative Leadership, Skillsoft, Udemy, Udacity, Coursera and Simplilearn.
Future Outlook and Projection
The demand is expected to grow with a CAGR of 6.9% during the period 2019-2025. The demand is expected to be driven by a growing interconnected society due to the advent of AI, Blockchain, IoT, 3D Printing and others. E-learning is gradually taking over because of low priced modules and flexibility in learning. The shift to remote workstyle and growing government support will further boost the demand in the industry.