Corporate Training Market - US

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Corporate Training Market - US Market Size

Corporate training is a system of professional development that is used to bridge the gap between technical and non-technical abilities of employees. It is an essential aspect of an organization which aims to help employees improve their overall efficiency. The corporate training market in the United States is estimated to grow at a CAGR of 9.54% during the period 2016-2020. It has been estimated that the total United States corporate training market size for the year 2017 was $90.6 billion, which includes both in-sourced and outsourced expenditure.
After an extensive search through various industry reports, market studies, and other trusted media sites, we were able to find an estimated market size of the corporate training industry in the United States in terms of the expenditure made on training initiatives by employers for their employees. Specific information on offline and/or online training was not readily available, however, data on the overall in-sourced and outsourced spend was found. We have included relevant information on the corporate training market for the United States and expanded the scope to include the overall market in North America as well.

United States — market size

According to a report published by Technavio, the United States corporate training market is predicted to grow at a CAGR of 9.54% during the forecast period of 2016-2020. The main drivers for the market’s growth are the increase in popularity of corporate training through “social collaboration tools”, increased competition in the corporate sector, and new methods of instruction like corporate m-learning and e-learning. The growth of the sector has provided numerous opportunities for corporate training companies to expand their business by providing training services and products. The key players in the United States training market are listed below according to their revenue,
Skillsoft = $685.52 million in revenue
Computer Generated Solutions = $524.58 million in revenue
GP Strategies = $389.4 million in revenue
Aptara = $316.62 million in revenue
Desire2Learn = $126.09 million in revenue
Articulate = $19.2 million in revenue
Centerpoint = $17.9 million in revenue
Miller Heiman = $12.52 million in revenue
Allen Interactions = $11.09 million in revenue
Interaction Associate = $7.23 million in revenue
Training Magazine conducts a market study of the corporate training sector in the United States every year. In the year 2016, their report consisted of 644 respondents with 30% small companies, 40% mid-sized companies, and 30% large companies. The breakdown of the training expenditure over the past three years is as follows,
2014: Total training expenditure = $61.8 billion
Training Staff Payroll = $42.4 billion
Expenditure on external providers = $6.1 billion
Other training expenditures (facilities, equipment, travel, etc.) = $13.3 billion
2015: Total training expenditure = $70.6 billion
Training Staff Payroll = $33.9 billion
Expenditure on external providers = $8 billion
Other training expenditures (facilities, equipment, travel, etc.) = $28.7 billion
2016: Total training expenditure = $70.6 billion
Training Staff Payroll = $37 billion
Expenditure on external providers = $7.5 billion
Other training expenditures (facilities, equipment, travel, etc.) = $26.1 billion
According to their 2017 Training Industry Report, the total training expenditure in the United States was estimated to be $90.6 billion, with training staff payroll accounting for $41.6 billion and the amount spent on external providers was estimated to be the same as the previous year, $7.5 billion.

North America — market size

The following is the total expenditure made by organizations for corporate training initiatives in North America from 2008 to 2016,
2008: Total training spend was estimated to be $133 billion
2009: Total training spend was estimated to be $110 billion
2010: Total training spend was estimated to be $122 billion
2011: Total training spend was estimated to be $128.7 billion
2012: Total training spend was estimated to be $131.3 billion
2013: Total training spend was estimated to be $141.7 billion
2014: Total training spend was estimated to be $150.2 billion
2015: Total training spend was estimated to be $160 billion
2016: Total training spend was estimated to be $161.7 billion
On average, organizations spend 39% of their total training budget on external providers (outsourcing) and 61% of their training budget on internal programs. It was found that in the year 2016 the total in-sourced corporate training expenditure made by organizations in North America was estimated to be $98.6 billion and the outsourced training services market accounted to be approximately $63.7 billion.

Conclusion

To wrap up, the United States market size for corporate training in terms of overall expenditure made by employers for their employees is estimated to have been $90.6 billion in 2017 and $70.6 billion in 2016. The total training expenditure in North America for the year 2016 is estimated to be $161.7 billion.

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Part
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Corporate Training Market - Top Training Types

The top corporate training program types in the US, in terms of corporate spend according to Bersin are 1) management/supervisory training, 2) industry-specific training, 3) sales training, 4) product training and 5) regulatory/compliance training.

Below, you will find a deep dive of my findings and methodology.

METHODOLOGY

To complete your request, we searched for industry reports and market analysis about the top corporate training program types in the US. We narrowed our findings to 4 industry reports that contain information about this topic. However, no report results are the same as they tackle different aspects of corporate training: Technavio segments this industry into 2 product types; Training Industry focuses on corporate training products and services in demand this 2018; Bersin focuses on top programs by corporate spend; and LinkedIn focuses on desired skills from corporate training. We used Bersin's findings as our main response as it identifies the top types of content in corporate learning programs by company spend. Please continue below to see the results of our research.

TECHNAVIO REPORT - US CORPORATE TRAINING 2016-2020

According to the "Corporate Training Market in the US 2016-2020" report by Technavio, corporate training products are segmented into technical and non-technical types. Though the report did not give a breakdown of the top program types in its preview version, it noted that technical training programs represented a significant market share across various industries. The report identified reporting and analytics as some of the highly valued technical skills. Lastly, Technavio reported that US companies are assessing technical skills gaps to improve productivity and efficiency in operations.

2017 TRAINING INDUSTRY REPORT

The 2017 Training Industry Report showed the types of corporate training products and services US companies intended to buy in 2018. The top seven corporate training program products and services US companies intended to purchase this 2018 are:

• Online learning tools & systems (40%)
• Learning management systems (39%)
• Certification (29%)
• Authoring tools and systems (28%)
• Classroom tools and systems (28%)
• Content development (28%)
• Consulting (23%)

The report also added that US companies dedicated most of their training expenditures on non-executive employees (42%) and executives' share was the least at (10%). This agrees with Technavio's findings that technical, non-leadership skills represent a significant market share of corporate training programs in the US.

BERSIN 2016 REPORT

Deloitte's Bersin published the "Corporate Learning Benchmarks and Trends 2016" report with relevant information about the top corporate training program types. The report is the most recent available version that has this information.

On page 21, Bersin shows that the top corporate training program types by company spend in 2014. This is the most recent available information from Bersin in this area. According to the report, the top 10 corporate learning program types in 2014 by allocation of spending were:

• Management or supervisory training (11%)
• Profession- or industry-specific training (11%)
• Sales training (10%)
• Product training (10%)
• Regulatory or compliance training (8%)
• Other training (8%)
• Executive development (7%)
• Process training (7%)
• Soft skills (7%)
• Other leadership development (6%)

The bottom 3 program types were customer service training (6%), IT and systems training (6%), and desktop application training (3%). There were no further segmentation into specific program types such as Excel, AdWords, etc. given in the report. Bersin's findings show that non-technical training was valued as highly as technical training during this period.

LINKEDIN 2017 REPORT

Lastly, we found LinkedIn's "2017 Workplace Learning Trends" report highlighting the top priorities of companies when it comes to corporate training programs. Though the report covers a global scope of responses, we believe it provides a fair representation of US companies. This is because LinkedIn membership is dominated by the US with 128 million LinkedIn users as of 2016. The rest of the majority of LinkedIn users come from India (35 million), Brazil (25 million) and the UK (20 million).

LinkedIn's report identified the following skills that companies want their employees to learn from corporate training and development programs:

Leadership - 74% of surveyed Talent Developers, 66% of People Managers and 65% of Executives

Communication - 66% of surveyed Talent Developers, 66% of People Managers and 65% of Executives

Collaboration - 50% of surveyed Talent Developers, 50% of People Managers and 55% of Executives

Role Specific Skills - 50% of surveyed Talent Developers, 49% of People Managers and 42% of Executives

Interestingly, all respondent groups in LinkedIn's survey agreed that "soft skills" are their number one priority for talent development this 2018. While technical fluency (such as role specific skills) is perceived to be indispensable in the age of automation, soft skills such as leadership and communication are valued more due to the fast pace of change in the workplace.

DISRUPTION IN CORPORATE TRAINING

Forbes warned in 2017 that the corporate training industry is ripe for disruption. Innovative breakthroughs such as artificial intelligence (AI) can upend the traditional corporate training structure as it incorporates different types of content for each individual employee. For example, IBM personalizes training materials based on an employee's job description, experience, and previous learning. Axonify and Qstream incorporate nutshell lessons (sales training, management coaching, technical skills) based on an employee's workload and present need. This means that linear, compartmentalized learning embodied by present programs will have to change to adapt to an employee's needs, and not the other way around.

CONCLUSION

To wrap it up, Bersin identifies the top US corporate training program types by company spend as 1) management/supervisory training, 2) industry-specific training, 3) sales training, 4) product training and 5) regulatory/compliance training. However, Technavio and Training Industry report that technical, non-leadership skills are prioritized over executive training. Lastly, LinkedIn reports that learning "soft skills" from corporate training programs are valued more than role-specific and technical skills. However, linear corporate training programs may soon change to adapt to employees' needs, blurring the line between technical and non-technical training.
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