by The assessment services market continues to witness increasing demand due to growing needs of various sectors to assess performance, skills and qualifications of individuals through standardized tests and evaluation procedures. Assessment services help organizations in measuring abilities, knowledge, skills, attitudes and talent of employees and candidates for recruitment or training purposes through psychometric assessments and online tools. Assessments help in evaluating suitability of candidates for particular job roles, identifying training needs of employees, and recognizing high-potential individuals.
The global assessment services market is estimated to be valued at US$ 7.2 Billion in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023-2027.
Wide range of assessments are conducted covering academic skills, personality, aptitude, psychometric and job skill areas. Automated online assessments are gaining popularity as they eliminate human errors, provide flexibility to candidates and deliver quick results to organizations. Automated tools use artificial intelligence for various tasks like proctoring, analyzing responses and generating reports. The convenience and cost-effectiveness of online assessments is boosting their adoption across industries for functions like recruitment, learning and development.
Market key trends:
The growing popularity of competency-based assessments is one of the key trends in the assessment services market. Competency-based assessments focus on evaluating skills, knowledge and attributes required for success in specific jobs. They involve scenario-based and situational judgement questions to assess soft skills and work-based competencies of candidates. Another major trend is the increasing use of game-based and gamified assessments to evaluate candidates in a fun and engaging manner. Game elements like scores, levels, challenges and rewards are integrated with assessments to simulate real-world job scenarios. This approach helps assess multitasking ability, cognitive skills and decision-making of individuals in an immersive environment. The adoption of such new-age assessment methods is expected to further accelerate growth of the market over the coming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the assessment services market requires significant capital investments and technological expertise. However, barriers are low in developing economies.
Bargaining power of buyers: The bargaining power of buyers is high given the presence of numerous assessment service providers and options. Buyers can negotiate on price, quality of papers, and timelines.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key players rely on third-party vendors and freelancers for assessment development. Suppliers enjoy bargaining power for popular subjects and fields.
Threat of new substitutes: The threat of substitutes is low as there are no close substitutes for customized assessment and certification. However, online courses pose a slight threat.
Competitive rivalry: The competitive rivalry is high among key global and regional players. Players compete based on innovation, quality, and service.
Key Takeaways
The Global Assessment Services Market Size is expected to witness steady growth. The growing demand for knowledge and skill assessment in educational institutions and corporations will drive demand.
Regional analysis – North America dominates the market currently due to higher education spending and presence of leading assessment providers. Asia Pacific is poised to grow at the fastest pace owing to the expanding education industry in countries like India and China.
Key players – Key players operating in the assessment services market are Knewton, ASA, Edutech, IOTA Solutions, Pearson Education, and Scantron. Players are investing in AI and analytics to introduce personalized and adaptive assessments.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
