Professional Education

Global Market Overview on Professional Education

• The global demand of professional education supply, such as model-based simulation, web-based simulation, and simulation training service, is expected to grow at approx. 14.6 percent CAGR through 2020–2024

• Majority of suppliers lease training space on need basis from external suppliers. Leasing is done through long standing partnerships to regulate demand and offer within quick timeframe

• Adoption of training approach is majorly dependent on therapeutic area. For example, rare disease health care providers showed inclination toward face-to-face meetings, given the presence of minority of experts and high need for exchange of information

Professional Education Market Trend

• HCP education service offering is primarily executed through partnerships with academia, maintaining a wide network through agencies and digital engagement platforms

• Training space is typically leased out by 60–70 percent of suppliers. Increased focus on maintaining in-house experts on diverse therapeutic areas has been one of the key service differentiators in the industry

Cost and Pricing Analysis : Professional Education

Sponsors can achieve cost saving by having direct collaboration with academia or long-term contracts (6 months to one year) with HCP education suppliers to support with meetings and education modules.

Price Impact Factors

• Skilled experts account for a major price impact factor, given the in-depth expertise mandated by regulatory bodies. Suppliers with in-house experts would be cost-effective in the long term and help in improving compliance.

• Given the increase in hybrid programs, technology impact remains the same, on an average, for face-to-face, as well as virtual trainings.

• Technology cost also accounts for data analysis services, which includes engagement strategies, traffic generation, and impact analysis in web-based modules.

Procurement-Centric Five Forces Analysis : Professional Education

Supplier Power

• The supply market for professional education is consolidated. 10–15 players hold greater than 70 percent of the market share. There is diversification among suppliers with each of them specializing in a different service category

• For example, CROs provide HCP training services at every trial phase in various therapeutic area

Barriers to New Entrants

• With an increase in the number of trials globally, the number of HCP training needed have surged

• This rise in demand has resulted in new suppliers in regional markets to expand globally and suppliers from other industries to penetrate into the market

Intensity of Rivalry

• Companies compete among each other for the market share by winning MSP deals with huge hiring across industries

Threat of Substitutes

• With temporary staffs and interns being recruited for trial sites and at home visits, training of these professionals to maintain standard procedure is a must

• Trials are conducted across multiple therapeutic areas, there is a need for clinical staff who are experts in that area

Buyer Power

• Pharmaceutical companies have various types of suppliers to choose from to outsource HCP training service ranging from HCP training providers, academia, and CROs