by The global Assessment Services Market is estimated to be valued at US$ 14.83 Bn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview
Assessment services help companies evaluate job applicant’s skills, qualifications, personality and work culture fit through structured processes like aptitude tests, psychometric tests, and interviews. They are crucial for objective hiring and developing high-performing teams which is driving their increased adoption across industries.
Market key trends
One of the key trends in the assessment services market is the rise of online remote assessments. With the COVID-19 pandemic accelerating digital transformation, companies are increasingly using online platforms to conduct assessments virtually which has increased accessibility and reduced costs compared to traditional in-person assessments. Video conferencing tools, 360-degree assessments and games-based assessments are some popular online remote assessment formats seeing higher adoption. They are expected to dominate the market over the forecast period with preferences for virtual modes of hiring and assessment only growing stronger.
SWOT Analysis
Strength: Assessment services help organizations evaluate potential candidates qualities and skills which helps in hiring the right fit. It also evaluates current employees performance which assists in career development plans.
Weakness: Assessment processes can be time-consuming and expensive. They also require qualified assessors to analyze results which increases costs. Subjective biases can also creep in assessments.
Opportunity: With growth of HR analytics, more organizations are relying on data-driven insights for talent decisions. This is increasing demand for advanced online assessment tools. Remote working trends are also propelling demand for virtual assessment solutions.
Threats: Stringent data privacy laws pose challenges for assessment companies to store and transfer sensitive assessment data. Economic slowdowns can impact organizations talent budgets restricting spending on assessments.
Key Takeaways
The global Assessment Services Market Demand is expected to witness high growth, exhibiting a CAGR of 9.7% over the forecast period, due to the increasing need for comprehensive talent evaluation processes.
Regional Analysis
North America dominates the global assessment services market currently. Growing emphasis on skills-based hiring and performance evaluation in large enterprises is driving higher adoption of assessment solutions. Asia Pacific is expected to be the fastest-growing market owing to rapid talent assessment needs of companies expanding in developing countries like India and China.
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. These players are focusing on product innovation and mergers to increase their market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
