“The Vocational Training Market is expected to develop at a 9.5% CAGR from 2024 to 2031, reaching USD 1.2 trillion by 2031. Asia-Pacific dominates the market, with 40% of the global share. Key metrics include rising demand for skilled workers, a greater emphasis on practical education, and increased use of online learning platforms.”
The vocational training industry is expanding rapidly, owing to a widening skills gap in numerous industries and an increased emphasis on job readiness. The market landscape is changing as a result of the shift to industry-aligned curricula and the incorporation of modern technology into training delivery.
Market Trend: Integration of Virtual Reality (VR) and Augmented Reality (AR) in vocational training programs
The vocational training sector is seeing a substantial movement towards the integration of Virtual Reality (VR) and Augmented Reality (AR) technology. The need for immersive, hands-on learning experiences that may mirror real-world work contexts is driving this trend. VR and AR technologies allow students to practise complicated activities in a safe, controlled environment, which improves skill retention and reduces training expenses.
In 2023, VR/AR-enabled vocational training programs accounted for 15% of the market, with a predicted CAGR of 22% from 2024 to 2031. This expansion is being driven by the increased usage of these technologies in a variety of industries, including manufacturing, healthcare, and automotive.
Recent industry breakthroughs include the introduction of powerful VR-based teaching platforms. For example, in 2023, a top EdTech business launched a comprehensive VR training suite that included modules for welding, HVAC maintenance, and industrial machinery operation, in response to the increased need for immersive technical instruction.
Market Driver: Government initiatives to address skills shortages and reduce unemployment
Government programs targeted at addressing skills shortages and lowering unemployment rates are significant drivers of the vocational training market. Many countries are enacting laws and providing finances to encourage vocational education and training (VET) as a way to stimulate economic growth and workforce competitiveness.
For example, in 2020, the European Union released the "Skills Agenda for Europe," which includes a €1.89 billion budget for vocational education and training programs. This effort aims to ensure that 60% of adults engage in learning activities each year by 2030.
Similarly, in India, the Skill India Mission aims to teach over 400 million individuals in diverse vocational skills by 2022. This program has resulted in a 25% year-on-year rise in vocational training enrolment across the country.
These government initiatives not only make vocational training more accessible, but also improve its quality and relevance to industry demands, which drives market growth.
Market Restraint: Perception issues and lack of standardization in vocational education
Despite increased acknowledgement of vocational training's value, perception concerns and a lack of standardisation represent substantial barriers to industry expansion. Many countries still regard vocational education as a less prestigious alternative to traditional academic courses, resulting in lower enrolment rates and social stigma.
According to a 2023 study, 40% of high school students in wealthy countries consider vocational training to be a "second-choice" option, preferring university education despite the possibility for higher employment opportunities in skilled trades.
Furthermore, the lack of consistency in vocational qualifications across areas and industries makes it difficult for employers to judge the abilities and competencies of vocational graduates. This unpredictability can make companies hesitant to recruit vocational training graduates, reducing the perceived value of these programs.
To address these difficulties, some countries are establishing national qualification frameworks and collaborating with industry leaders to create standardised curricula. However, overcoming long-held views and establishing globally recognised standards continue to be significant hurdles for the vocational training industry.
Technical training dominates the market, accounting for 65% of the global market share.
Technical training has emerged as the main segment in the vocational training market, accounting for over 65% of the global market share. This dominance is due to increased need for trained technicians in a variety of industries, including manufacturing, construction, information technology, and healthcare.
Technical training programs provide hands-on, practical skills that are immediately transferable to specific employment tasks, making them appealing to both students and employers. These programs encompass a wide range of disciplines, from classic professions like plumbing and electrical work to newer technology like robotics and renewable energy systems.
In the manufacturing sector, technical vocational training enrolment has increased by 30% in the last two years. The industry's rapid technical improvements and the demand for individuals proficient in operating and maintaining advanced machinery are driving this expansion.
The information technology sector has also embraced technical vocational training, with short-term certification programs increasing by 25% year on year. This increase is due to a growing need for individuals with expertise in cybersecurity, cloud computing, and data analytics.
Recent advances in technical training delivery have centred on bringing industry-standard equipment and simulations into the learning process. A renowned vocational training provider has created a set of "smart laboratories" outfitted with IoT-enabled gadgets and industry 4.0 technology, giving students firsthand experience with cutting-edge industrial systems.
Asia-Pacific leads the vocational training market, driven by large youth populations and government-led skill development initiatives.
Asia-Pacific dominates the global vocational training market, with over 40% of the market share. The region's leadership position is partly due to its huge youth population, growing industrialisation, and substantial government investments in skill development programs.
China and India are the region's top consumers of vocational training. The Chinese vocational training market will be worth USD YY billion in 2023, with a YY% CAGR forecast through 2031. The country's "Made in China 2025" plan, which emphasizes the development of a trained workforce in high-tech industries, is driving this rise.
In a recent development, the Indian government announced the implementation of a new National Education Policy, with the goal of increasing the Gross Enrolment Ratio in vocational education to 50% by 2035. This policy is projected to greatly increase the adoption of vocational training programs throughout the country. The Asia-Pacific vocational training market is expected to reach USD YY billion by 2031, rising at a YY% CAGR between 2024 and 2031. The technical training category accounts for 70% of total market revenue in the region, with IT and manufacturing being the fastest-growing industries.
Japan has experienced a substantial increase in the use of vocational training programs for elderly people. The country's emphasis on "recurrent education" to handle its aging workforce has resulted in a 20% increase in vocational training enrolments among workers aged 45 and older over the last year.
The vocational training market is characterized by a combination of governmental institutions, private training providers, and EdTech firms striving to provide relevant and effective training programs. Key firms such as Adecco Group, City & Guilds Group, and Udacity account for roughly 15% of the global market, with the remainder coming from a long tail of regional and specialized suppliers.
Adecco Group has maintained a solid market position by using its global reach and employer connections. The company's recent acquisition of a digital skilling platform has improved its offering in the online vocational training area.
The City & Guilds Group has concentrated on creating industry-recognized credentials and examinations. In 2023, the organization introduced a series of "digital badges" for vocational abilities, which will improve the authenticity and portability of vocational degrees in the digital age.
With its "Nanodegree" programs, Udacity has disrupted the traditional vocational training environment by providing tailored, industry-cocreated courses in emerging technologies. The company's recent collaborations with large tech companies to develop AI and data science programs have been very fruitful.
Emerging players like Coursera and edX are gaining steam for their massive open online course (MOOC) platforms, which increasingly offer vocational and technical training. These companies are making significant investments in building stackable, micro-credential programs that are closely aligned with industry requirements.
Looking ahead, the competitive landscape is projected to shift, with a greater emphasis on personalised learning paths, the incorporation of emerging technology into training delivery, and stronger industry-education alliances to assure the relevance of vocational programs.
The vocational training market is at an important point, poised for considerable upheaval as it meets the changing needs of both learners and industries in a fast changing global economy. As traditional educational paradigms fail to keep up with technological breakthroughs and changing job market needs, vocational training is emerging as a critical solution for closing the skills gap.
One unique trend gaining traction is the creation of "hybrid" vocational programs that combine traditional hands-on training with digital abilities. This approach acknowledges that technology is transforming even traditional trades, necessitating the acquisition of both practical skills and digital literacy among workers. Early users of these hybrid programs report improved employment rates and better graduate salary outcomes.
Another notable change is the increased interest in "micro-credentialing" in vocational education. These bite-sized, skill-specific certifications enable learners to gradually create a personalised portfolio of competences, meeting the growing demand for flexible, lifelong learning alternatives. This trend is especially relevant in rapidly expanding industries such as IT and digital marketing, where skills must be constantly updated.
The transition to "green skills" training is also spurring innovation in the vocational education industry. As countries around the world commit to sustainability targets, there is an increase in demand for workers trained in renewable energy technology, sustainable construction practices, and environmentally friendly manufacturing processes. Vocational training providers that can quickly develop and deliver programs in these areas are likely to experience significant development.
As the market develops, we anticipate a confluence of vocational training with emerging technologies such as AI-powered personalised learning systems and blockchain-based certification verification. This integration has the potential to result in more efficient, focused training programs, as well as increased global trust in vocational certifications.
Adecco Group
City & Guilds Group
Udacity
Coursera
edX
GP Strategies Corporation
Pearson PLC
Skillsoft
Udemy, Inc.
Simplilearn Solutions
UpGrad Education Private Limited
Cisco Systems, Inc.
Adecco Group launches a global digital platform for vocational skills evaluation and training in August 2024, using artificial intelligence to match learners with personalised training programs and job prospects.
June 2024: City & Guilds Group collaborated with a top VR technology business to create immersive training modules for high-risk construction and manufacturing jobs.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Adecco Group
5.2. City & Guilds Group
5.3. Udacity
5.4. Coursera
5.5. edX
5.6. GP Strategies Corporation
5.7. Pearson PLC
5.8. Skillsoft
5.9. Udemy, Inc.
5.10. Simplilearn Solutions
5.11. UpGrad Education Private Limited
5.12. Cisco Systems, Inc. (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Integration of Virtual Reality (VR) and Augmented Reality (AR) in vocational training programs
6.1.2. Development of "hybrid" vocational programs blending traditional and digital skills
6.1.3. Growing interest in "micro-credentialing" within vocational education
6.2. Market Drivers
6.2.1. Government initiatives to address skills shortages and reduce unemployment
6.2.2. Increasing demand for skilled workforce across industries
6.2.3. Technological advancements in training delivery methods
6.3. Market Restraints
6.3.1. Perception issues and lack of standardization in vocational education
6.3.2. Rapid changes in skill requirements due to technological advancements
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TRAINING TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Technical
7.2. Non-Technical
8. BY PROVIDER (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Public
8.2. Private
9. BY MODE OF DELIVERY (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Offline
9.2. Online
10. BY END-USER (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. Students
10.2. Working Professionals
10.3. Employers
11. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
11.1. North America
11.1.1. United States
11.1.2. Canada
11.1.3. Mexico
11.2. South America
11.2.1. Brazil
11.2.2. Argentina
11.2.3. Rest of South America
11.3. Europe
11.3.1. Germany
11.3.2. United Kingdom
11.3.3. France
11.3.4. Italy
11.3.5. Spain
11.3.6. Russia
11.3.7. Rest of Europe
11.4. Asia-Pacific
11.4.1. China
11.4.2. Japan
11.4.3. India
11.4.4. Australia
11.4.5. South Korea
11.4.6. Rest of Asia-Pacific
11.5. Middle-East
11.5.1. UAE
11.5.2. Saudi Arabia
11.5.3. Turkey
11.5.4. Rest of Middle East
11.6. Africa
11.6.1. South Africa
11.6.2. Egypt
11.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Training Type:
Technical
Non-Technical
By Provider:
Public
Private
By Mode of Delivery:
Offline
Online
By End-User:
Students
Working Professionals
Employers
By Region:
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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