Learning & Development

Global L&D Industry Outlook

• The market is forecasted to grow at a CAGR of 2–3 percent to $377 (E) billion and $393 billion between 2023 and 2026, respectively

• Onset of the pandemic has had a significant impact on the technology-enabled training services market

• Regions, such as North America, Western Europe, and some parts of APAC, such as Australia, Japan, Hong Kong, and Singapore, have a high market maturity. APAC and parts of LATAM are expected to be the future growth-driving markets for L&D services

Global L&D Industry Trends

• In developed regions like the US and Europe, e-learning services are expected to increase mainly due to consistent increase in demand for gamification, increase in applications providing LMS platforms and rapid e-learning tools. In the US and Europe, self-paced learning is growing exponentially, with an increasing urge to learn more, new topics based on the convenience of the employees.

• The top buyers of the mobile learning market were the US, Brazil, Indonesia, China, and India

• China, the US, Indonesia, India, and Brazil are expected to be the top buyers

• In developing markets, currently, very few service providers are technically equipped to integrate the VR in e-learningfew service providers are technically equipped to integrate the VR in e-learning

Global L&D Market Maturity

• Europe and North America are well-matured markets. Globally, top MNCs are outsourcing their L&D activities to global and regional suppliers

• APAC and LATAM are witnessing higher adoption due to the efforts by large global buyers to consolidate the supply base

Global L&D Drivers and Constraints

• The learning and development industry is expected to grow at a CAGR of 2–3 percent

• The corporate e-learning market is expected to grow at a CAGR of 9–10 percent during 2023–2025

• Training directly effects revenue growth, and hence, organizations have increased their investment in training and development

• The key drivers are transforming traditional training to effective, measurable and technology-enabled training solutions by outsourcing to global/regional suppliers

Drivers

Technology-enabled Training Solutions

• RethinkCare expands Neurodiversity resources to foster more inclusive workplace cultures – RethinkCare, the leading global behavioral and mental health platform for employers from RethinkFirst has come up with new and updated neurodiversity resources to help companies better attract and retain neurodiverse talent 

• Schoox and Cognota partner to help organizations to maximize the business value of training – Learning management and talent development software provider, Schoox, announced a new partnership with Cognota, the leading provider of operations software built specifically for learning and development teams

• Chekhub Partners with Nomad Futurist Foundation to launch the Nomad Futurist Academy

• The partnership resulted in the Learning Management Systems (LMS) platform to enable robust educational and training initiatives for the Nomad Futurist Academy

Operational Benefits

• Outsourcing to a single global L&D supplier would allow buyers to standardize the level of services across various locations. Productivity and efficiency could be enhanced through the introduction of various critical performance indicators and compliance clauses in the contract

• Centralized procurement through a regional model will help buyers re-examine their budgets on a regional scale

Constraints

Budget/Funding

• Budget constraint is a major problem with some mid-sized organizations, which leads to a compromise in training delivery platforms such as digital aids

• Creating or fitting existing content into the e-learning platform would be difficult for companies with budget constraints

Change Management

• Internal (SMEs, content designers and training experts), as well as external stakeholders should be communicated with effectively about their roles and responsibilities before implementing e-learning

Cost Structure Analysis : Learning & Development 

Cost Drivers

Amidst of pandemic, the cost involved in learning technology has significantly increased. Major cost drivers of corporate training services are:

• Trainer rates influence the overall training cost, as it is the key cost factor in virtual classroom-based training

• Instructional design for content curation and module design

• Advancements in learning technology: Buyers are more focused on learner engagement and learning retention, hence, the buyers are opting for technology-enabled delivery methods, such as gamification, simulation-based training, virtual reality training

Why You Should Buy This Report

• This analysis report by Beroe provides information about the worldwide training and development industry statistics, industry trends, drivers and constraints.
• It gives the regional market outlook of APAC, Australia, and Europe, among others, and provides Porter’s five force analysis of the developed and emerging markets.
• It gives insight into supplier trends and key supplier profiles, cost structure breakdown, key spend categories and price forecast.
• Furthermore, the study on global training and development trends lists out the best sourcing and pricing models.