The Global Soft Skills Training Market Size accounted USD 24,142 million in 2021 and is estimated to achieve a market size of USD 66,075 million by 2030; growing at a CAGR of 12.2%.
The soft skills training industry is evolving rapidly owing to the rising demand and customization requests from academic and corporate sectors. The growing requirement in end-user firms to boost productivity, fill talent gaps, and increase ROI is driving the global soft skill training market share. According to an MIT Sloan survey, a yearly trail of soft skills training among five different manufacturers provided a 250% ROI in just eight months. Several businesses are investing in these training programmes in order to get the most out of their personnel. As per the Stanford Research Institute (SRI) International, 75% of long-term employment success is driven by mastery of soft skills, while only 25% of that success is determined by technical training and skills. As a result, rapidly growing investments by the private and public sectors in these programmes are boosting the soft skills training market revenue.
Increasing adoption of digital platforms, swiftly growing social media, and growing competition among youths are some of the leading trends in the soft skills training market that will spur the industry demand during the forthcoming period 2022 to 2030. The importance of developing excellent communication skills among students and employees is also fueling the demand for the soft skill training industry.
COVID-19 Impact on the Global Soft Skills Training Market Value
The COVID-19 pandemic has had a positive and negative impact on the revenue of the soft skills training industry. Offline schools and workplaces were shuttered during the pandemic to prevent the spread of coronavirus. This element had a significant impact on the revenue of important players and other outsourced firms operating in the industry. Companies changed their training focus to online platforms, often known as e-learning platforms, in response to worsening sales conditions. The leading players capitalized on the pandemic by publicizing their availability of online courses through various social media platforms. Online platforms assisted stakeholders in maintaining revenue. Because practically every learning or working individual was online during the pandemic, the market for soft skills training grew considerably. As a result, despite the fact that traditional classes were interrupted, online courses performed admirably during the pandemic.
Soft Skills Training Market Dynamics
The lack of communication skills among individuals worldwide is a significant reason driving the expansion of the soft skills training market. In early 2018, LinkedIn conducted research across 100 metropolitan cities throughout the United States and revealed a deficit of 1.4 million workers with communication skills. Because soft skills, such as communication, can contribute to an organization’s success, training workers in these critical qualities makes sense.
The rising adoption of video-based micro-learning is another aspect fueling the soft skills training courses growth. Video-based learning and online interactive learning have proven to be effective ways to acquire complicated skills. This makes online learning highly efficient and cost-effective for subjects like communication, presenting, business etiquette, ethics, time management, and more.
The growing support from the government and rising funding from various private and public sectors are the factors that are also skyrocketing the soft skills training courses. For example, the National Skill Development Corporation (NSDC) aimed to sponsor for-profit vocational training efforts in India to skill / up-skill 400 million people by 2022, mostly by boosting private sector activities in skill development programmes. This comprises long skill-oriented training for both soft and hard, to school/college dropouts or unemployed people at government-affiliated and recognized training centers. Moreover, the increasing initiatives from numerous governments to promote soft skill training are expected to open up new growth possibilities for the market in the coming years. However, the lack of expert trainers and budget constraints in emerging economies may hamper the market from growing.
Soft Skills Training Market Segmentation
Soft skill type, sourcing, delivery mode, channel provider, end-use industry, and geography are the six segments of the global market.
Administration and secretarial, communication and productivity, management and leadership, personal development, teamwork, and others are the six categories of soft skills. According to our soft skills training market projection, the communication and productivity sub-segment will account for a sizable market share over the forecast period.
The sourcing component is divided into two categories: in-house and outsourced. According to our research, outsourcing would dominate the market from 2022 to 2030.
By delivery mode, the segmentation includes offline and online (synchronous online courses, asynchronous online courses, and hybrid courses). Offline is expected to be a dominant delivery model, although the offline soft skill training courses are spamming rapidly all over the world.
Channel provider segments include academic/education, corporate/enterprise, and government. The corporate/enterprise sub-segment generated a sizable market share in 2021. However, academic/education is expected to expand quickly between 2022 and 2030.
Furthermore, by enterprise size, the market is split into BFSI, energy & power, healthcare & pharmaceuticals, hospitality, IT & telecom, manufacturing, media & entertainment, retail, and others. According to our soft skills training industry analysis, BFSI will have a considerable market share in 2021, while media and entertainment will grow rapidly between 2022 and 2030.
Soft Skills Training Market Regional Outlook
North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa account for the majority of the worldwide soft skills training market. North America accounted for the majority of the share in 2021 and is expected to continue to do so in the future years. The absence of soft skills such as communication skills among most software engineers in the United States is supporting the expansion of the North American soft skills training market. Furthermore, the presence of modern infrastructure, as well as the incorporation of AI, ML, and virtual and augmented reality in soft skills training programmes, all helps to support the regional market.
Asia-Pacific, on the other hand, is expected to have the fastest CAGR between 2022 and 2030. The Asia-Pacific soft skills training market is developing due to a growing youth population, rising government investments, and increased public and private sector support. Furthermore, governments in various countries, including India and Singapore, are currently promoting soft skills training, and in many Asian countries, soft skills training are a required subject in the curriculum. This aspect will also increase the market value in the future.