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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,
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,
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,
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.