Contents

  1. Size of the Training Industry

Size of the Training Industry

OVERVIEW

Several organizations within the training industry estimate the size of the market by comparing internal research to economic data. TrainingIndustry.com uses data from the U.S. Bureau of Economic Analysis along with data collected from our segment analyses derived from annual Top Training Company studies. Training Industry’s estimates of the global spend compared to the North American spend is below. Note that data related to spend includes all dollars spent by companies for training activities, including insourced and outsourced spend.

This data does not include expenditures related to consumers’ spend for training programs (individuals taking training courses for personal or non-work related development); revenues of educational institutions (universities and for-profit educational companies) or revenues of community colleges from students paying tuition. It does include dollars paid by corporations to educational institutions for corporate training initiatives.

Global Spend (USD)

North America (USD)

Rest of World (USD)

Annual Growth Rate

2016

$359.3B

$161.7B

$197.6B

1.0%

2015

$355.6B

$160.0B

$195.6B

10.4%

2014

$322.2B

$150.2B

$172.0B

4.9%

2013

$306.9B

$141.7B

$165.2B

5.2%

2012

$291.7B

$131.3B

$160.4B

2.0%

2011

$286.0B

$128.7B

$157.3B

5.5%

2010

$271.1B

$122.0B

$149.1B

10.9%

2009

$244.4B

$110.0B

$134.4B

-17.3%

2008

$295.6B

$133.0B

$162.6B

-2.2%

SOURCING BREAKDOWN

Training Industry estimates that companies spend an average of 39% of their training budget on external (outsourced) suppliers, while approximately 61% of their budgets is spent on internal resources.  The breakdown of the external spending is approximately 12% for tuition reimbursement,  21% for employee courses and courseware, 2% for customer education, and 4% learning services and technologies.

It is estimated that the outsourced market for training services and tuition reimbursed by corporations in North America was approximately $63.7B in 2016, while the insourced spend for training activities was approximately $98.6B in 2016.

Of the outsourced spend in North America in 2016, training BPO (business process outsourcing) deals comprise an estimated 5.8% of the market. The training BPO market consists of comprehensive and selective outsourcing engagements, of which selective outsourcing engagements are growing the fastest.

For more information about market sizing, contact editor@trainingindustry.com.

SOURCES

  • Training Industry research
  • U.S. Bureau of Economic Analysis
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