The US Corporate Training Market: Trends, Drivers, and Key Insights (2024-2028)

The US corporate training market is set to experience significant growth between 2024 and 2028, with an estimated increase of USD 14.43 billion, growing at a compound annual growth rate (CAGR) of 6.78%. As businesses continue to focus on upskilling and reskilling their workforce, the demand for innovative and cost-effective training solutions is rapidly increasing. This article explores the key trends, drivers, market segments, and notable players in the corporate training space in the United States.

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Market Overview: Growth Drivers and Trends

The growing emphasis on employee productivity, motivation, and performance is a major driver behind the corporate training market’s expansion. As organizations focus on digital transformation, there is a growing need for continuous learning to help employees adapt to new technologies. This trend has been amplified by the shift towards remote work, which has made virtual training and digital learning solutions more prominent.

Key trends shaping the market include:

• Cost-Effective E-Learning Modules: E-learning offers a flexible, affordable, and scalable alternative to traditional classroom-based training, making it easier for organizations to provide ongoing learning opportunities.
• IoT and Wearable Devices: The integration of smart devices like wearables in corporate training is enhancing the interactivity and effectiveness of learning experiences, particularly in industries like healthcare and technology.
• Massive Open Online Courses (MOOCs): MOOCs are increasingly popular due to their flexibility, enabling employees to learn at their own pace and convenience, often covering a wide array of subjects, from software programming to data analytics.

Market Segmentation: In-Depth Analysis

The US corporate training market can be broken down into various segments, each contributing to the overall growth.

By Product

1. Technical Courses: This segment is expected to grow significantly during the forecast period. As the need for digital transformation and technological adoption continues, companies are prioritizing technical training to equip employees with the necessary skills. Topics include operational training, risk management, troubleshooting, compliance, and safe work practices. Technical courses are commonly offered in blended learning formats, which combine offline and online components. The technical training segment was valued at USD 20.11 billion in 2018 and is expected to show steady growth.

2. Non-Technical Courses: These courses focus on developing soft skills such as communication, leadership, diversity training, and emotional intelligence. As organizations strive to foster inclusive workplaces, non-technical training has become a key component of corporate learning strategies.

By Method

1. Blended Learning: Blended learning, combining online and offline methods, is becoming a standard approach. It allows organizations to deliver content both virtually and in person, meeting diverse learning preferences.
2. Offline Learning: Traditional classroom learning continues to play a role, especially in hands-on technical training where physical interaction is necessary.
3. Online Learning: The rise of e-learning platforms has made online learning the most flexible and scalable training method, contributing significantly to market growth.

By End-User

1. Manufacturing: The manufacturing sector is a key adopter of corporate training, focusing on technical courses related to operations, maintenance, and safety.
2. Healthcare: Training for healthcare professionals is critical, particularly with new technologies and patient care procedures.
3. BFSI (Banking, Financial Services, and Insurance): This sector places a strong emphasis on training related to compliance, risk management, and financial systems.
4. IT (Information Technology): Given the rapid technological advancements, IT companies invest heavily in training programs to upskill their workforce in areas like software development, data analytics, and cybersecurity.
5. Others: Other sectors such as retail, government, and professional services also contribute to the corporate training market, requiring a wide range of training modules to support their employees.

By Geography

1. US

While the US corporate training market primarily focuses on domestic trends, global markets are also adopting similar training solutions. Notably, the Arab states are investing in workforce development through training programs that enhance technical and soft skills, contributing to regional economic growth.

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Key Drivers of Market Growth

Several factors are fueling the growth of the corporate training market in the US:

1. Cost-Effective E-Learning: Digital learning platforms have emerged as a cost-efficient alternative to traditional classroom-based training, eliminating costs associated with travel, facility rentals, and in-person instructors.
2. Remote Work and Virtual Learning: With the widespread adoption of remote work, companies are turning to virtual training solutions that allow employees to learn from anywhere, fostering a culture of continuous development.
3. Workplace Diversity and Inclusivity: Corporate training programs are increasingly integrating diversity and inclusion initiatives, helping organizations create more inclusive work environments.

Challenges in the Market

Despite the rapid growth, there are challenges to the US corporate training market’s expansion:

1. Competition from MOOCs: Massive Open Online Courses (MOOCs) have introduced competition for traditional training providers, offering highly flexible learning options for a range of subjects. The increasing adoption of MOOCs poses a challenge to traditional corporate training models, particularly for employees seeking cost-effective learning solutions.

2. Technology Adoption: While new training technologies such as IoT and wearables offer advanced features, there is still a need for companies to invest in the infrastructure necessary to fully integrate these technologies into their training programs.

Key Players in the US Corporate Training Market

Several notable companies are shaping the corporate training market in the US, providing diverse learning solutions across industries:

• 2U Inc.
• Adobe Inc.
• Benesse Holdings Inc.
• BYLD Group.
• Cisco Systems Inc.
• City and Guilds Group
• D2L Inc.
• DEMOS
• Development Dimensions International Inc.
• Franklin Covey Co.
• Interaction Associates Inc.
• John Wiley and Sons Inc.
• Learning Technologies Group Plc
• Learning Tree International Inc.
• Mind Gym Plc
• NIIT Ltd.
• Skillsoft Corp.
• Stride Inc.
• Udemy Inc.
• Wilson Learning Worldwide Inc.