July 15, 2024
Assessment Services Market
Ict

The Growth Of Remote Working Models Is Anticipated To Open Up The New Avenue For Assessment Services Market

The global Assessment Services Market is estimated to be valued at US$ 14.83 Bn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview

Assessment services help organizations evaluate and measure the skills, knowledge, abilities, and other characteristics of job candidates or employees with the help of various assessment tools such as aptitude tests, personality tests, skills tests, and others. Assessment services can be implemented in employee recruitment, promotion, team building, and development exercises. They help identify skill gaps and development needs to enhance the overall performance and productivity of organizations.

Market Dynamics

The rising adoption of cloud-based assessment solutions is driving the growth of the assessment services market. Cloud-based assessment solutions allow remote administration of tests and evaluation of responses in real-time. This has boosted their adoption amid work from remote models. Additionally, growing demand for candidate screening and development of competency models among organizations is also fueling the market growth. Candidate screening helps shortlist candidates based on pre-defined competencies required for specific job roles. Competency models help enhance organizational performance by articulating core behavioral markers associated with superior performance.

Segment Analysis

The assessment services market is dominated by the online assessment subsegment. With the growing adoption of digital technologies across industries, many organizations have shifted from traditional paper-based assessment methods to online and digital assessment tools to evaluate potential candidates for jobs or programs. The online assessment subsegment offers advantages like seamless administration, instant analysis of responses, and reduced costs. It allows organizations to assess large volumes of candidates quickly and cost-effectively.

PEST Analysis

Political: Regulations around data privacy and security have increased with strict laws like GDPR. This affects how assessment service providers store and use sensitive candidate information.
Economic: The global economy recovered strongly post-pandemic which increased corporate spending and demand for talent assessment and development services to support business growth.
Social: With rising talent mobility, emphasis on skills over degrees, and importance given to lifelong learning and employability, assessment services help organizations make optimal hiring and talent development decisions.
Technological: Advancements in AI, machine learning, analytics are helping automate complex skills-based assessments and generating deeper insights. Virtual assessment centers and simulations also allow for realistic yet remote candidate evaluations.

Key Takeaways

The global Assessment Services Market Demand is expected to witness high growth, exhibiting CAGR of 9.7% over the forecast period 2023 to 2030, due to increasing demand from organizations to identify best-fit candidates and build competitive talent pools.

The North American region currently dominates the market due to extensive adoption by large enterprises and the presence of major providers like CEB, now part of Gartner, Hogan Assessments,Talent Q, a part of Korn Ferry, Cognizant, IBM Corporation, Pearson PLC, Mercer LLC, Deloitte, Korn Ferry, PwC, Prometric, DDI (Development Dimensions International), Mettl.

The Asia Pacific region is expected to grow at the fastest pace during the forecast period. This is attributed to factors such as rapid economic development, expansion of corporate sectors, growing youth population, and increased focus on talent assessment programs aligned with skills/proficiency-based hiring in major developing countries such as China, India.

Key players operating in the assessment services market include CEB, now part of Gartner, SHL, Hogan Assessments, Talent Q, a part of Korn Ferry, Cognizant, IBM Corporation, Pearson PLC, Mercer LLC, Deloitte, Korn Ferry, PwC, Prometric, DDI (Development Dimensions International), Mettl. These players are focusing on expansions, partnerships, and service innovations to cater to evolving client demands.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it