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What is the global market size, in U.S. dollars, for corporate training?
Hi! Thanks for your question about the size of the global market for corporate training. Here's the short answer: the global corporate training market is worth over $130 billion US, with the United States accounting for more than half of that spending. Read on for my deep dive!
OVERVIEW
I found a few reports that addressed global and US-specific market sizing for corporate training; 2015 seems to be the most recently-analyzed year for this market. To add some context, I looked at more recent sources for market trends and disruption, as well as some market sizing for other countries around the world.
GLOBAL MARKET SIZE
The global corporate training market was valued at $130 billion US in 2015. The US was responsible for $70 billion of that spending, a 14% increase over 2014. Outsourced training products made up $8 billion of that spending, while "travel, facilities, and equipment" made up $28.7 billion. Payroll for in-house training personnel was the biggest chunk of the spending at $33.9 billion, but that segment saw a 20% decrease from 2014 to 2015.
2015 also saw an increase in average training spending and time per employee -- companies spent $1,252 per employee for 33.5 hours in 2015 and $1,229 for 32.4 hours in 2014.
MARKET TRENDS
Online learning is the biggest trend disrupting corporate training. In 2015, 28% of corporate training was outsourced, and in 2016, "only 16 percent of learning and development spending" went to in-person instruction, down from "21 percent in 2011 and 33 percent in 2006." The global market for online learning is expected to reach $325 billion by 2025, and the online corporate training segment of that market has a predicted 13% annual growth rate.
Companies are taking advantage of MOOCs (massive open online courses) to simplify training and better engage employees, abandoning LMS-based models. Several startups are streamlining this process by launching "tools for external content curation, tools to build MOOCs internally, tools to deliver adaptive, micro-learning content, and intelligent tools to help recommend content, assess learning, practice and identify skills gaps." Companies like IBM are introducing AI to the mix as well. To manage all of this, Deloitte suggests a new role: the Chief Learning Officer.
The corporate training market is in good shape around the world as well. Europe's market is expected to grow by 9% annually between 2016 and 2020, and India's market is expected to hit INR 32 billion ($496 million US), driven by rapid growth in the country's startups and SMEs.
CONCLUSION
The global corporate training market was worth over $130 billion in 2015, with the US accounting for $70 million of that spending. Online learning through MOOCs and other methods is the biggest trend in the market, driving a greater percentage of training funds to outsourcing and external training products and reducing spending on in-house training personnel. Worldwide, the market is expected to remain strong -- Europe's market has a predicted 9% annual growth rate and India's market is predicted to hit $496 million by 2020.
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