by The global Assessment Services Market is estimated to be valued at US$ 14.83 billion in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Assessment services refer to evaluating an individual’s knowledge, skills, abilities, and other characteristics that are relevant for education, training, guidance or career planning purposes. Assessment services include entry assessments, promotional assessments, certification and licensing examinations, evaluations for employee development, skill gap assessments and more. They help organizations identify the right candidates for various roles and guide employees on development paths aligned to their strengths. With the growing need for talent assessment and development across industries, the assessment services market is growing substantially.
Market key trends:
One of the major trends driving growth in the assessment services market is the rising adoption of online assessment models. The COVID-19 pandemic accelerated the shift to online assessments as physical proctoring became difficult. Many assessment service providers have enhanced their online proctoring and remote invigilation capabilities. Online assessments offer benefits such as flexibility, cost savings, quick result turnarounds and scalability. They also eliminate the need for candidates and invigilators to travel, making the assessment process more sustainable. The market players are investing in advanced technologies like artificial intelligence, machine learning and analytics to develop secure, user-friendly online assessment platforms. This is expected to boost the online share of the overall assessment services market over the forecast period.
Porter’s Analysis
Content: Threat of new entrants: The assessment services market requires significant investment in developing psychometric tests and evaluations. The market also has high switching costs which discourages new entrants.
Bargaining power of buyers: Individual buyers have low bargaining power due to the specialized nature of services offered. However, large organizations can negotiate better prices and contracts based on volume.
Bargaining power of suppliers: A few large companies dominate the market, giving them significant bargaining power over suppliers. Suppliers also have low bargaining power due to availability of alternative suppliers.
Threat of new substitutes: While virtual/online assessments have increased, there are limited alternatives to comprehensive evaluation services offered by major players.
Competitive rivalry: The market is highly competitive with top players competing on parameters like technologically advanced solutions, scalability, and global presence.
Key Takeaways:
The global Assessment Services Market Insights is expected to witness high growth, exhibiting CAGR of 9.7% over the forecast period 2023-2030, due to increasing demand for candidate screening and increasing focus on training and development of employees. North America dominates the market currently due to large number of enterprises in the region and early adoption of assessment solutions for recruitment and training. Asia Pacific is expected to be the fastest growing market due to growing youth population and emerging markets like India and China rapidly adopting e-assessment methods.
Regional analysis related content comprises Regional analysis: The North America region currently has the largest market share due to progressive organizations that invest heavily in training and assessment of potential candidates. Moreover, availability of advanced digital infrastructure has boosted adoption of online assessment solutions in this region. Asia Pacific is poised to be the fastest growing market owing to rising youth population and improving technical expertise in countries like India and China.
Key players related content comprises Key players: Key players operating in the assessment services market are CEB, now part of Gartner, SHL, Hogan Assessments, Talent Q, a part of Korn Ferry, Cognizant, IBM Corporation, Pearson PLC, Mercer LLC, Deloitte, Korn Ferry, PwC, Prometric, DDI (Development Dimensions International), Mettl, Cubiks.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
