Increasing adoption of assessment services from educational institutes such as K – 12 and higher education and government and corporate sectors is driving market growth
Market Size – USD 7.05 Billion in 2020, Market Growth – at a CAGR of 7.1%, Market Trends – Increasing number of certification courses globally
The assessment services market size is expected to reach USD 12.26 Billion in 2028 and register a revenue CAGR of 7.1% over the forecast period, according to the latest report by Reports and Data. Increasing demand for online assessment services from competition-conducting authorities to enroll in specialist exam-conducting companies and rising preference among governments and corporates to opt for online exams are major factors driving market revenue growth.
Shifting preference for using online platform among the global education industry, particularly for test preparations, due to ease of use of these platforms and to reduce paper use for tests and education are factors driving revenue growth of the market. E-books, online content, and interactive study material are gaining popularity due to increasing number of various competitive exams such as CAT and GRE, among others being conducted on online platforms.
Majority of corporate assessment services include exercises and lessons for employees for their professional development. Focusing on professional development through assessment services help employees to develop their skills and improving performance. These services are used as training modules to accommodate new employees, educate current employees with new skills required for work, and to promote employees into positions requiring different skill sets. Assessment service ensures that employees are up to date with evolving job requirements and changes in both outside and inside conditions of the market. It allows employees to know how their performance impacts the organization-wide goals positively.
One of the key factors hampering revenue growth of the global assessment services market is budget concerns, due to which, many organizations are not able to own the necessary hardware and software systems or solutions. These systems are required to implement the latest corporate training, with which it is easy to invite employees who are willing to learn in a digitally advanced learning atmosphere. However, companies with a restricted budget may result in continuing with the traditional training methodologies, without investment in purchasing new tools with advanced technologies. Additionally, implementation of new systems in existing infrastructure is costly, and companies with limited budgets will not be willing to invest in such high-cost options.
Some Key Highlights From the Report
- Psychometric test is generally used as part of the recruitment process and is a way for employers to assess candidate’s skills, intelligence, and personality. The test results are used by the recruiters to determine whether the candidate will be a suitable fit for the company or not. These tests are structured to evaluate the candidate’s capacity to work with team, process information, and capability to cope with work pressure.
- Most companies use personality profiling (a type of psychometric test) as the steppingstone for the recruitment process. It may also be carried out after the analysis of specific abilities. Companies such as Hewlett Packard and Microsoft Corporation often focus on asking personality test questions during telephonic interviews and are administered verbally. The “Competency Tests” that most of the companies conduct as a part of their recruitment process are nothing but personality tests.
- Offline tests means organizations can run computer-based or pen and paper-based tests in remote areas where there is no reliable Internet connection available. In various locations across the world, Internet connectivity is strong and stable enough to support online exams. In order to guarantee that users do not get separated or experience a degeneration of system speed during tests, offline mode of assessment can be used.
- Government organizations are continuously focusing on recruitment of highly talented candidates for high-skilled roles. However, there has been a drastic hike in the number of applications for public sector positions, which is exceeding the number of vacancies. In India for instance, UPSC is one of the most coveted exams, and all the aspirants want to secure a seat for themselves. The process of elimination in this assessment test weed out thousands of the less qualified applicants to select approximately 1000 best candidates for the job.
- Assessment services market in North America accounted for largest revenue share in the global market in 2020, attributed to increasing adoption of tests and custom-made assessment services to support selection and staffing services for educational institutions and professional organizations. Assessing people as part of the recruitment process is a vital step in determining whether the prospective candidate best fits the role and organization. These assessments services enable service providers to source the right workforce for a company’s human resources requirements as well as candidates in educational institutes and organizations.
- Companies profiled in the global market report include Korn Ferry, AON PLC, IBM Corporation, Pearson Vue, TeamLease, Aspiring Minds, PSI Services LLC, Hogan Assessments, Talent Plus Inc., and Cubiks.
For the purpose of this report, Reports and Data has segmented the assessment services market based on product type, assessment service type, medium, sector, and region:
Product Type Outlook (Revenue, USD Billion; 2018-2028)
- Psychometric Tests
- Aptitude Tests
- Coding Tests
Assessment Service Type Outlook (Revenue, USD Billion; 2018-2028)
- Entrance Assessment Services
- Recruitment & Promotion Assessment Services
- Certification Assessment Services
- Pre-employment Assessment Services
- Development Assessment Services
Medium Outlook (Revenue, USD Billion; 2018-2028)
Sector Outlook (Revenue, USD Billion; 2018-2028)
- Higher Education
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Regional Outlook (Revenue, USD Billion; 2018–2028)
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of APAC
- Latin America
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest Of MEA