Global Vocational Training Market - 2020-2027
発行: DataM Intelligence
Vocational training is referred to the skills and knowledge required for a particular job function or trade. It is useful for developing the necessary skills for employment. Vocational training is usually limited to teaching the processes and knowledge required to perform on the job. Vocational training is provided either as a student seeking employment or as employees on the job. Vocational training is available for the diverse number of jobs including welding, cooking, medical transcription, and auto repair. Few of the vocational trainings provide the certifications or licenses demonstrating the competence upon the completion of the training program. The global vocational training market valued USD XX million in 2019 and it is expected to grow at a CAGR of XX% to reach USD XX million by 2020-2027.
The market is driven by the increasing demand for the vocational training due to its benefits such as better chances of employment, higher earnings levels, and increased job satisfaction. Vocational training is the low-priced alternative for individuals who do not want to take up a loan to go to a university. Vocational training is less expensive than attending a college or university. It trains a person with the skills and abilities compulsory to do a specific job. Vocational training is essential for providing the Improved flexibility and mobility, and Lifelong learning. It offers the mental, health, and societal benefits.
There is increase in the launch of the several training centres. For instance, in March 2019, Adobe had launched the training centre at Cochin in association with academy of Media & Design (AMD). In January 2013, IndiaCan, a joint venture of Educomp Solutions Ltd., India's largest education company and Pearson had launched its Second Vocational Training Centre in Kolkata at Salt Lake.
There is growing initiatives by the government for providing the vocational training. Several companies are entering into the collaboration with the government for providing the vocational training. For instance, in November 2019, India and Germany had entered into an agreement to collaborate in the areas of skill development and vocational education. The formal agreements would facilitate mutual consultations, systematic exchange of policies at various levels and also technical support between the two nations. While one declaration of intent (DoI) has been signed with the Federal Ministry of Education and Research for cooperation in skill development and vocational education and training, the second was signed for Dual VET initiative, marking sustainable growth of skills, with Siemens, India.
In March 2019, The Odisha Skill Development Authority (OSDA) had signed two Memorandums of Understanding (MoU) with Tata Community Initiative Trust and Cisco to strengthen the skill ecosystem in the state. the OSDA pact with Tata Community Initiative Trust was to scale up the Nano Unicorn programme, the MoU with Cisco entails. Nano Unicorn is an OSDA programme where skilled youths are nurtured to become small entrepreneurs and future employers. Tata Community Initiative Trust would help OSDA to identify the youth with entrepreneurship potential and devise structured training programmes.
The National Skill Development Corporation (NSDC) and Business Sweden (Swedish Trade & Investment Council) had signed an overarching MoU to augment the creation of skilled workforce in line with the requirements of Swedish corporations operating in India intending to establish manufacturing in India. Under the agreement, Swedish companies who are committed to 'Make in India' may collaborate with relevant stakeholders. Business Sweden is a network of 150 member organizations including the SAAB Group, Ericsson, Kenya Grange Vehicle Industries Ltd. (Scania), Volvo Group, ASSA Abloy, Ikea, Save the Children and Tetra Pak, Eastern Africa, and others. This MoU shall be valid for a period of five years and shall focus on setting up Skill Academies of Excellence in the hub. These skill academies would work in close coordination with the corresponding SSCs and function as their delivery arm to create a pool of trainers and assessors through Master Trainers and Assessors from Industry.
The global vocational training market is segmented based on the type as the technical and non-technical training. The technical segment accounts for the significant market share of XX% in 2019. The technical training includes the training related to the hard skills and soft skills to manage the daily activities. The technical training aims at learning and developing work related skills and underlying knowledge and scientific principles. It is useful for the workers to update their knowledge and skills with the rapid technological changes. This training is beneficial for facilating the economic growth by increasing the productivity of workers. The strong technical training drives business success, regional economic development and individual job satisfaction.
The non-technical training segment is expected to have the positive market growth. The non-technical training includes the training related to communication, team-work skills, leadership skills, decision-making skills, situation-awareness skills, and other skills. The non-technical training also complements the technical training to make them more efficient and effective. The non-technical training ensures the efficient and effective operations. The non-technical training aims at developing the effective communication and effective interpersonal relations. This training closes the gap between available and required practical skills at the workplace
By region, the global vocational training market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America dominated the global vocational training market and expected to grow at the highest CAGR during the forecasted period due to the increasing awareness regarding the skill gaps. Several public and private players are raising the investment and funding for providing the vocational training. There is higher adoption of the advanced technologies for content creation and delivery methods for providing the vocational training. The growing internet penetration has led to the use of the online training methods like mobile learning, gamification, and blended learning. Several vocational training providers have developed the mobile applications that can be used for self-paced learning. The vocational training providers are using the simulations and online collaboration tools to deliver vocational skilling courses to students through e-learning platforms.
Asia-Pacific is expected to have the positive market growth due to the increase in the providing the vocational training to the office workers and students. Vocational trainings are essential to acquire specialized skills and knowledge. There is increasing vocational training across the aeronautics, automotive, HVAC, and electronics sectors. There is growing government initiatives regarding providing the vocational training. For instance, the Indian government has launched an initiative to train 500 million people by the year 2022. The National Skill Development Corporation (NSDC) was created in order to streamline the identification and mapping of skills requirements, facilitate private participation through grants, gap funding, etc.
The global vocational training market is highly competitive with the presence of several international and local markets. Market expansion, revenue generation, and opportunities intensify the market competition. Adobe Systems, Articulate, Blackboard, Career Education, Cegos, Cisco Systems, City & Guilds Kineo, and Desire2Learn are the leading market players with significant market share.
The major players are using collaborations, acquisitions, mergers, and licensing strategies for holding their position in the market. For instance, in November 2019, Siemens Limited had signed the Joint Declaration of Intent with Ministry of Skill Development and Entrepreneurship (MSDE), Federal Ministry for Economic Cooperation and Development of the Federal Republic of Germany (BMZ) to create framework conditions for high-quality training in India based on Dual Vocational Education and Training (Dual VET).
In September 2019, Cisco Systems had entered into the collaboration with the directorate General of Training (DGT) to provide digital technology support to government-run National Skill Training Institutes (NSTIs) and Industrial Training Institutes (ITIs). Under the terms of agreement, Cisco would equip six NSTIs with its connected classroom solution, a digital education platform. This partnership would provide digital learning solutions to students and faculty of the NSTIs in Bengaluru, Chennai, Kolkata, Mumbai, Noida and Kanpur.
In September 2017, Adobe Systems had entered into the collaboration with the IT-ITeS Sector Skills Council NASSCOM (SSC NASSCOM) to catalyze the skills landscape in India. Adobe and SSC NASSCOM had signed a Memorandum of Understanding (MoU) to jointly develop and implement a sustainable as well as scalable skill-based program for schools and higher education institutions in India.
In October 2017, The City & Guilds Group had acquired Adelaide-based e3Learning one of Australia's largest dedicated corporate e-learning and compliance providers. This acquisition would help the company to expand the City & Guilds Group's corporate learning solutions.
In December 2012, City & Guilds had acquired learning and technology provider Kineo. This acquisition would help the company to bringing together of Kineo's learning technology and City & Guilds' quality assurance and qualifications. Under the terms of agreement, Kineo would operate under the same brand, as part of the City & Guilds Group.