by The Assessment Services Market is estimated to be valued at US$ 14.83 billion in 2022 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The assessment services market consists of various assessment and psychometric testing tools that help organizations evaluate candidates for recruitment, promotions, leadership development and training purposes. Tools such as aptitude tests, personality tests, situational judgement tests, and cognitive ability tests are widely used. Assessment services are offered both through in-house assessment centers as well as via third party online platforms. The assessments help evaluate candidates on different core and soft skills required for particular roles.
Market Dynamics:
The key driver of the assessment services market is the growing focus of organizations on selecting the right candidates for jobs as there is a high cost associated with wrong hires. Assessments help recruit the most suitable individuals and evaluate employees for developmental purposes as well. Additionally, the increasing availability of online and virtual assessment tools is also fueling market growth. These tools provide convenience and flexibility to candidates and assessors to take and administer tests remotely. The rising adoption of competency based assessments and simulations by organizations to evaluate employee soft skills and job-specific competencies is another major factor driving market expansion. Competency-based assessments better identify whether candidates have the actual capabilities required to perform well in roles.
Segment Analysis
The assessment services market can be segmented by service type into non-cognitive ability tests, cognitive ability tests and personality tests. The cognitive ability tests segment dominated the market in 2022 due to the increasing popularity of cognitive aptitude tests during the recruitment process to evaluate candidates’ problem-solving, analytical, mental and logical skills.
PEST Analysis
Political: The regulatory landscape related to assessment services has been evolving in various countries, aimed at ensuring fair and bias-free testing procedures.
Economic: The growth of the global economy and strong job markets in major regions have boosted organizations’ spending on candidate assessment and talent selection processes.
Social: Assessments and testing have become an integral part of today’s social culture with a focus on competence and skills. Talent assessment is viewed positively across society.
Technological: Advancements in AI, machine learning and data analytics are transforming assessment delivery methods and enabling more precise, objective and quick evaluation of skills and competencies. Technology enhances candidate and hiring manager experience.
Key Takeaways
The global Assessment Services Market Insights is expected to witness high growth, exhibiting CAGR of 9.7% over the forecast period, due to increasing demand for proficiency in determining job competency.
Regional analysis: North America dominated the global assessment services market in 2022 with a share of over 35%, due to increased adoption of assessment processes by organizations to hire skilled workforce. Asia Pacific is expected to be the fastest growing regional market till 2030, supported by growing young population and rapid industrialization in various APAC countries.
Key players: Key players operating in the assessment services market are 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, Cubiks. CEB and SHL are prominent global players known for cognitive ability and personality assessment solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
