Corporate Training Services Market

Corporate Training Services Market Outlook (2023 to 2033)

The global corporate training services market is expected to reach a valuation of US$ 361.7 billion in 2023 and accelerate at a CAGR of 6.4% to top US$ 672.7 billion by 2033.

It is anticipated that mid-sized and large businesses will allocate between two and five percent of their wage budget to workplace training. And globally about 44.0% of small businesses like instructor-led training. This is resulting in the potential demand for corporate training services worldwide.

Report Attributes	Details
Market Size (2022A)	US$ 340.0 Billion
Estimated Market Value (2023E)	US$ 361.7 Billion
Forecasted Market Value (2033F)	US$ 672.7 Billion
Global Market Growth Rate (2023-2033)	~6.4% CAGR
North America Market Share (2022)	~41.0%
East Asia Market Growth Rate (2023-2033)	~7.4% CAGR
United States Market Growth Rate (2023-2033)	~6.3% CAGR
Key Companies Profiled	10Bits Algonquin College Corporate Training Berlitz Corporation Beyondz Consulting Celemi Centum Learning Corporate Training Services Ever Better myTectra Navigate Coaching LLC People Business Smartico Spoon Success Coaching The digital Group The Squadron TrainSmart Other Key Players

The growing skill gap due to hybrid working will escalate the corporate training services demand

The corporate sector these days are witnessed with skill gaps in employees due to the adoption of a hybrid working model. The employee training is hampered by the inconsistency of their availability in the office. In order to full fill the skill gap, corporate training services are gaining significant demand worldwide from different industry verticals and are projected to have potential growth in the forthcoming period with the adoption of advanced technologies.

Webinars, video conferences, virtual learning, and others offer flexible blended learning to employees working in a hybrid work model. Advanced technologies like AI and machine learning is escalating smart learning among employees working in a hybrid model.

• Short Term (2023 Q1-2026): The market is expected to rise with a moderate growth rate during the short-term period. COVID-19 has positively impacted the demand for corporate training services, however, geopolitical issues worldwide impacting the overall GDP growth of economies as well as customer spending power.
• Medium Term (2026-2029): During Mid-term, the market is likely to grow at a significant growth rate with the resumption of global economic growth, business operation, and resolution of geopolitical conflicts. Work-from-home and hybrid work models are expected to gain immense popularity in developed economies, resulting in corporate training services demand.
• Long Term (2029-2033): During 2029-2033, the corporate training service market will gain lucrative demand with the adoption of advanced technologies. The developing corporate sector and substantial growth in the labor force worldwide are anticipating the demand for corporate training services during the long term.

As per Fact.MR, a market research and competitive intelligence provider, the corporate training services market registered a CAGR of 4.8% during the historic period 2018-2022. The market was valued at US$ 340.0 billion in 2022 and is expected to rise with a CAGR of 6.4% during 2023-2033.

The above given image depict the expected total addressable market value of corporate training services market in 2023 which is US$ 361.7 billion. Online mode of deployment are expected to hold leading share of 68.0% in global corporate training services market.

Key factors stimulating the corporate training services market

“Technological advancement in corporate training services”

Corporate training services are essential to every organization. It has gained immense popularity with businesses moving to hybrid or remote work cultures. The adoption of digital platforms with growing internet penetration and smart device procurement has made it easy for organizations to provide training services to employees remotely and efficiently.

The utility of virtual platforms is found as a cost-effective approach by mitigating excessive expenses related to trainers’ lodging and travel to offline training programs for businesses.

Vendors are offering cost-effective, technologically advanced solutions & courses to the companies at an affordable rate to train their client is a major factor attributing to the demand for the market. Also, employees' preference toward virtual-based learning and automation (Artificial intelligence) based learning programs is projected to create lucrative opportunities for market growth in the forthcoming period.

“Growing business expenditure toward employee training”

Global economies and businesses are going through multiple uncertainties due to geopolitical issues, inflation, and a shortage of labor forces among others. Owing to these factors, companies are focusing on the enhancement of workforce capabilities and quicker development of new skills among employees. In such matter concern, companies are witnessing substantial spending on employee training programs which are expected to drive market growth during the forecast period.

In the United States, Mid-size organizations observed with increase in expenditure regarding employee training by more than 50% during 2020-2021. Whereas mid and large-size companies have raised employee training budgets between 6%-15%, and small-size companies have increased it by about 25% during the same period. With the increasing expenditure towards employee training by organizations, the demand for corporate training services is expected to grow in the forthcoming period.

What factor can hamper the development of the corporate training services market?

“High cost and time-consuming”

The major factor restraining the demand for workplace learning services is high cost. Inviting a trainer from outside the city, state, or country for corporate training may result in excessive costs relevant to their travel and lodging. Also, proper infrastructure and equipment are needed to be prepared to provide training to employees could be another factor that may impact the service fare.

Globally large companies invest millions of dollars in employee training which varies between ~4%-8% of the total company’s revenue. To mitigate this issue, the utility of internal training solutions will limit external corporate operations and therefore create a challenging scenario for the organizations.

Employees generally spend time on training while their working hours. It is impossible to support a large amount of non-work hours of an employee on training and therefore, training programs scheduled during working hours might impact the productivity of the employees. Owing to these factors, the demand for corporate training services is expected to get hampered during the assessment year.

Country-wise Insights

Why is the United States a huge market for corporate training services?

The US is the biggest market for corporate training service providers and will continue to dominate with the presence of various large and mid-sized organizations in the country. More than 700 MNCs have headquarters in the United States, accounting for over 30% of all MNCs in the world.

Currently, the majority of US-based large companies like Meta, Cisco, Amazon, and others are anticipating mass employee layoffs due to the economic crises and other economic slowdowns in the country. In long run, the resumption of employee engagement and the company’s expansion will escalate the demand for corporate training tremendously. Therefore, future projections of the company’s focus on expanding its global footprint and enhancing the employment rate drive the demand for corporate training services in the economy.

How is China’s corporate training services market faring?

China accounts for the most number of working people in the world. China's labor force accounts for 780.2 million people in 2021. With the presence of significant labor forces in China, demand for these services will be exceptionally high during the forthcoming period.

China possesses headquarters, manufacturing units, and plants of large companies due to its cheap labour force, easily available raw materials, and other factors. This factor may significantly result in demand for a large labor force and is attributed to the demand for corporate training services in the economy.

Category-wise Insights

Advanced technology integration exhibits ICT-based training program demand

The continuously growing penetration of the internet worldwide along with the adoption of the internet of things (IoT), is accelerating the demand for information & communication technologies training programs. Easy access to IoT and the internet has helped corporates to record training lectures and distribute them to the employee. Despite giving much time to training over and over, this has become an absolute solution for the employer to train employees and preserve time.

The ICT-based training program has also gained popularity with the introduction of COVID-19 Worldwide. The business moved to a remote working approach and the WFH trend has gained immense growth globally, which leads to the adoption of corporate training services online platform, where training is provided with webinars, virtual classrooms, learning management systems, and others. This type of training platform will gain immense popularity during the assessment years due to its cost efficiency over physical training programs.

BFSI to manifest corporate training services demand the most

The BFSI sector is witnessed with huge adoption of technology worldwide to improve customer service and tackle stiff competition in the industry. This results in prominent demand for corporate training services in the BFSI sector in the current scenario.

BFSI is a sensitive sector with complicated financial processes which increases the necessity of employment training programs to avoid errors and losses to the customer. Moreover, consistent training of employees helps in enhancing overall employee engagement along with promoting an empathic culture.

Also, soft skills are essential to banks, therefore, corporate training services are largely in demand in the BFSI sector for having sustainable customer engagement and improving client experience.

Competitive Landscape

Key market players in the corporate training services market are 10Bits, Algonquin College Corporate Training, Berlitz Corporation, Beyondz Consulting, Celemi , Centum Learning, Corporate Training Services, Ever Better, myTectra, Navigate Coaching LLC, People Business, Smartico, Spoon, Success Coaching, The digital Group, The Squadron, TrainSmart and other key market players.

The corporate training service market has witnessed a large number of market players offering these services worldwide. There is stiff competition among market players is observed, where strategic moves like new service launches and M&A activity has been adopted by market players in the industry. For instance,

• In January 2021, Amplifier announced that it would work with WestJet, a Canadian airline, to create a B737 MAX return to service course. The business has stated that this course will be included in the instruction to inform and assist pilots with the MAX's return to Canadian skies.
• In August 2022, Francisco Partners acquired SAP Litmos which is one of the leading service providers of corporate training solutions. The acquisition will raise the technological expertise, service portfolio, and client base of the company.

Fact.MR has provided detailed information about the provider of corporate training services market positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of the Corporate Training Services Market

• By Type :

  • Certification Programs
  • Information and Communication Technologies Training
  • Management Development

• By Mode of Deployment :

  • Online
  • Offline

• By End-use Industry :

  • BFSI
  • Education
  • Healthcare
  • Manufacturing
  • Retails & Consumer Goods
  • Energy & Utility
  • Media & Entertainment
  • Hospitality
  • Government

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa