Technical And Vocational Education Market Size, Share & Trends Analysis Report By Course Type (STEM, Non-STEM), By Learning Mode (Offline, Online), By End-user, By Organization, And Segment Forecasts, 2022 - 2030

Report Overview

The global technical and vocational education market size was valued at USD 622.4 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.8% from 2022 to 2030. Factors, such as rapid technological advancements, increased AI-based education, and easy accessibility of technical & vocational education, are driving the demand for the market. In addition, technical and vocational education encourages skill-based learning and contributes to a better literacy rate globally. The COVID-19 pandemic affected the industry in 2020 owing to the stagnation in the world due to rising COVID-19 cases. The education providers in the industry quickly adapted to the situation, which caused a huge spike in the demand for online learning and distance learning. In August 2020, CfPA announced a launch of a new professional online certification program for enhancing their career and skill in life sciences. The first course under the series was GMP laboratory control certification to train individuals in R&D developments effectively and offer control operation training with key tools, techniques, knowledge, etc.

Technical and vocational education and training help individuals, students, teachers, and corporate organizations/workers in learning new skills, upskilling, or brush up on basics. In recent years, there has been high growth in the demand for this type of education due to market requirements and supply shortage of skilled labor in industries. The industry has great potential to grow in developing economies, such as India, China, Brazil, and other Asia Pacific countries. Major global players like SAP are introducing programs/courses and joining hands with other firms to expand their scope in countries like India. For instance, in August 2021, SAP partnered with Microsoft to launch a program name ‘TechSaksham’ to empower 62,000 women with skills required in the field of technology.  However, the industry growth is constrained by the issue of a lack of awareness regarding skill-based education and training. There is a lack of information available about this education industry compared to the traditional education approach followed by the majority.

Course Type Insights

On the basis of course types, the global industry has been further categorized into STEM education and non-STEM education. The STEM course type segment dominated the global industry in 2021 and accounted for the largest share of more than 77.00% of the overall revenue. Many countries have adopted STEM education because of its unique characteristics to drive the social and economic development of the population. There are numerous companies providing STEM learning courses globally. Some of the major players in the industry include Microsoft, Google, AT&T, Intel, CfPA, City & Guilds, and The TTE Technical Training Group, among others.

On the other hand, the non-STEM education course type segment is estimated to register the highest growth rate during the forecast period. Non-STEM comprises courses like finance, accounting, fashion, management, etc. It is a highly vast field compared to the STEM field and courses. Pearson, learndirect, Acorn learning and development, ACT training, First4 Skills, GP Strategies, and Pitman Training are a few of the companies providing non-STEM vocational training to both students as well as corporate workers opting to upskill.

End-user Insights

On the basis of end-users, the industry has been further bifurcated into academic institutions & individuals, and corporate workers. The academic institutions & individuals end-user segment dominated the global industry in 2021 and accounted for the largest share of more than 53.00% of the overall revenue. The high share of this segment can be attributed to the availability of these courses in academic institutions. In addition, students also enroll such courses through academic institutions to get a better job. The segment is projected to expand further at a steady CAGR remaining dominant throughout the forecast period.

Individuals who attend vocation-based courses may also be eligible for a range of additional economic rewards as a result of the training and practical experience that they gain before graduating. The corporate workers segment is expected to witness a steady CAGR over the forecast period. Companies invest in technical and vocational education for their employees, to provide a flexible, adaptive workplace that shows the agility of the organization. Effective communication, time management, project management, leadership training, and diversity training are a few of the basic vocational training courses used by employers.

Learning Mode Insights

Based on the learning mode, the industry is bifurcated into online mode and offline mode. The offline mode segment dominated the industry and accounted for 58.0% of the global revenue share in 2021. Technical and vocational education is mostly skill-based education that requires the physical presence of the students. Courses, such as welding technology, interior designing, and printing technology, among others, require the physical presence of students. Such courses are non-effective without offline or physical learning. It is necessary to either have physical/offline learning or blended learning to provide a dynamic classroom experience and achieve results of technical and vocational education and training.

Therefore, many companies have shifted to the blended mode of learning, such as Pitman Training Group Ltd., CEGOS, Articulate Global, LLC, TUV Rheinland, etc. The online mode segment is likely to grow at the highest CAGR over the forecast period. The growth of this segment can be attributed to the growing demand for digitalization, accessibility, better-developed information and communication technology, and enhanced security for sensitive data. Also, flexibility in choosing the place, schedule, and pace of learning for both learners and teachers is one of the key benefits that online learning may provide in comparison to traditional learning.

Organization Insights

Based on organizations, the industry is further divided into public institutions and private institutions. The public institutions segment accounted for the largest revenue share of more than 60% in 2021. Technical and vocational education is largely provided by public institutions. Germany and France, among several other countries, have free public institutions for vocational education. Countries, such as the U.S. and Canada, have a high penetration of vocational education in public schools. Public institutions have fewer fees compared to private institutions. Thus, these institutions play important role in providing access to skills for underprivileged, rural areas and bridging the skill gap themselves. Several countries have associations for vocational education.

For example, India has an advisory body for vocational education i.e., The National Council for Vocational Training. Industrial Training Institute (ITI) is one of India’s renowned technical and vocational education institutes. The private institutions segment is expected to register the highest CAGR over the forecast period. Private institutes provide good skills and better jobs through vocational education courses. However, the fees for vocational education in private institutes are quite high compared to public institutions. Thus, people try to get admission to public schools for vocational education. Some of the private vocational education institutes are Don Bosco Private Industrial Training Institute (India), American Northwest College (U.S.), Bates Technical College (U.S.), and Bellingham Technical College (U.S.), among others.

Regional Insights

Europe dominated the industry in 2021 with the highest share of 33.0% of the overall revenue. This is due to the higher adoption and availability of vocational education in the region. In addition, the European government is taking effective steps in spreading awareness throughout the region. On November 24, 2020, the European Council approved a recommendation on vocational education and training for long-term competitiveness, social justice, and resilience. The recommendation outlines are important guidelines for making sure that vocational education and training are adaptable, which means it can quickly change to meet the needs of the labor market and offer both adults and young people alike high-quality learning opportunities.

Asia Pacific is expected to be the fastest-growing region over the forecast period. Factors, such as cutting-edge innovations including the hybrid model, rapidly growing technological advancements, rising awareness about vocational training, and peer-to-peer learning to bridge the gap between education and job requirements are propelling the industry growth. For instance, in July 2022, AI Singapore introduced the AI Outreach Students Program to help students become fluent in and knowledgeable about Artificial Intelligence (AI), to prepare 15,000 students for STEM jobs. The countries are taking initiatives to create job and quality education facilities to meet the needs of the present and future markets.

Key Companies & Market Share Insights

The competitive landscape of the industry is fragmented in nature. The world’s leading companies are using partnerships, collaborations, acquisitions, mergers, and agreements as tactics to withstand the intense competition and increase their industry share to expand their business and survive the highly competitive environment. Moreover, technical and vocational education providers are benefitted from the extensive research and development activities to incorporate new technologies in their offerings and develop advanced products to gain a competitive advantage over other players.

The Namseoul University in Korea collaborated with Cotopaxi Technical Institute to create virtual reality simulators that let students control a motor engine to become skilled at fixing it. Other education providers may also use this technology to deliver a better product to people. This collaboration with Cotopaxi Technical Institute will help students in gaining practical experience at institutions themselves through the virtual simulator and avoid mistakes in the practical workplace.

Some prominent players in the global technical and vocational education market are:

• Acumatica, Inc.

• Amazon Web Services, Inc.

• Adobe Inc.

• Articulate Global LLC

• City & Guilds Group

• TUV Rheinland

• Babcock International Group PLC

• Pitman Training Group

• CEGOS

• learndirect

• The Center for Professional Advancement (CfPA)

• International Business Machine Corp. (IBM)

Technical And Vocational Education Market Report Scope

Global Technical And Vocational Education Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global technical and vocational educationmarket report based on course type, end-user, learning mode, organization, and region:

• Course Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • STEM Education

  • Non-STEM Education

• End-user Outlook (Revenue, USD Billion, 2017 - 2030)

  • Academic Institutions and Individuals

  • Corporate workers

• Learning Mode Outlook (Revenue, USD Billion, 2017 - 2030)

  • Online

  • Offline

• Organization Outlook (Revenue, USD Billion, 2017 - 2030)

  • Public Institution

  • Private Institution

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Turkey

    • Saudi Arabia

    • UAE