Digital Badge Market Size, Share & COVID-19 Impact Analysis, By Type (Achievement and Contribution, Participation and Recognition, and Certification), By End-User (Associations, Training Providers, Universities/Education, Corporations, and Nonprofit Organizations), and Regional Forecast, 2023 – 2030

The global digital badge market size was valued at USD 193.0 million in 2022. The market is projected to grow from USD 225.5 million in 2023 to USD 748.2 million by 2030, exhibiting a CAGR of 18.7% during the forecast period.

A digital badge is a digital representation of skills, achievements, or competencies acquired by an individual. It is a simple, flexible, and cost-effective way for learners to showcase their achievements or validation of the skills they have acquired in front of potential employers.

The digital badge market growth is driven by several factors, such as increasing adoption of online certification in various sectors and rising focus on enhancing an employee’s technical knowledge and skills. In addition, the evolution of technology has increased the demand for these badges. Due to the availability of enhanced tools and platforms, it is now easier than ever to create and offer these badges, thus driving the global market share. As stated in the World Economic Forum's Future Jobs Report, by 2025, 50% of all employees will require reskilling due to increased adoption of technology at workplaces.

COVID-19 IMPACT

Increased Demand for Online Learning during COVID-19 Pandemic Fueled Market Development

The spread of the novel Coronavirus boosted the adoption of these badges as employees and HR personnel were dedicated to bridging the skills gap created by the remote work culture. While digital recruitment methods had largely replaced the traditional methods of hiring, important skills acquired through these badges could distinguish candidates from other applicants. As the use of online learning platforms increased and businesses invested in the development of their staff’s skills, this market observed a significant potential for expansion.

Moreover, the increasing adoption of digital learning systems by end-users drove the market during the post-COVID-19 period. During the pandemic, Unnati issued digital certificates and badges via CertifID in January 2021. This helped them better manage their students' experience and data.

LATEST TRENDS

Growing Adoption of Blockchain Technology in Digital Badges to Propel Market Growth

The use of blockchain-based stackable digital badges in professional training has increased learner engagement and become a verifiable, trustworthy credentialing portfolio unique to each employee. These badges contain cryptographically secured metadata that shows who earned them, how they were issued, and duration of the journey that the learners have to complete.

Receiving a digital badge as a credit for achievements enhances employee engagement. According to the Voice of the Learner in 2022, nine out of ten learners give importance to a learning record throughout their career journeys. This is achieved through these badges that are stored on the Blockchain, which help teachers develop and enhance their skills.

DRIVING FACTORS

Rising Focus on Employee’s Professional Development to Aid Market Growth

Digital badges can be an incentive for employees by recognizing their successes and giving them a sense of accomplishment. Companies can achieve a favorable working environment where employees are valued and encouraged to strive for excellence through the recognition and celebration of their hard work and achievements. Consequently, there has been an increased level of involvement by employees, leading to greater job satisfaction, improved productivity, and reduced turnover.

These advantages are driving the growth of this market. As a result, several companies are taking advantage of it, which is leading to the market’s growth. For instance,

• In February 2021, Openpath, a company specializing in touchless access control and security automation for the built environment, reimagined digital badging capabilities with custom designs, two-way communication, and enterprise-grade security features to close the gap between physical and digital security.

RESTRAINING FACTORS

Technical Integration and Privacy Concerns to Hinder Market Expansion

Complex integrations and security issues can hinder the market’s expansion over the coming years. Moreover, the adoption of these badges can get hampered by its resistance to change capability from traditional methods. Traditional methods were used earlier wherein advanced technologies such as automation, digitalization, and so on were not involved. To address these challenges, organizations should identify a digital badging system that is compatible with their existing systems and can provide excellent integration capabilities.

SEGMENTATION

By Type Analysis

Achievement & Contribution Segment Dominates Owing to Rising Need to Recognize Learning Achievements

Based on type, the market is segmented into achievement & contribution, participation & recognition, and certification. The achievement and contribution segment dominated the digital badge market share in 2022. A digital type of badge offers a more complete and dynamic representation of each person's skills and expertise, enabling recognition of their learning achievements. Organizations use these badges to help individuals share their educational achievements. For instance, in May 2021, Specified Technologies, Inc., a player in the firestop sector, announced that it had introduced digital badges for the accomplishment of its distance learning and online educational courses.

The certification segment is expected to record the highest CAGR during the forecast period. Certifications aid employers' understanding of the specific skills and abilities acquired by prospective candidates. They also help validate the skills gained by employees, which can be used to enhance their career growth. A digital wallet can be created by certificate holders to store and display their certificates easily.

By End-User Analysis

Associations Segment Leads Due to Increasing Interest of Employers in Competency Learning Provided by Associations

Based on end-user, the market is categorized into associations, training providers, universities/education, corporations, and nonprofit organizations. The associations segment dominated the market in 2022. Associations are well placed to take advantage of the increased interest of employers and learners in competency-based learning. Innovations in these badges and introduction of new products and services are factors helping associations increase their value and support their growth. To accelerate the program’s growth and increase its income, associations can decrease time in the recognition process, reduce the costs of issuing a certification, and obtain powerful marketing tools.

The universities/education segment is expected to record a higher CAGR during the forecast period. These badges can be applicable for all areas and levels of learning, including objectives and targets. Virtual credentialing systems allow students to demonstrate new skills and competencies gained from the introduction of new content. This is one of the main uses for badges in higher education institutes and universities. According to UPCEA and Modern Campus research in April 2022, 71% of university administrators agree that the development of new credentials is a key element in meeting revenue and enrollment targets for their institutions.

REGIONAL INSIGHTS

Regionally, the market is fragmented into North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

North America held a major market share in 2022. Key market players across the region are increasing their investments and collaborations in digital badging. The growth of the regional market is attributed to the rising adoption of digital authentication and increasing partnerships of educational institutions with different programs. The market is also growing due to the region's strong online education and internet infrastructure.

Asia Pacific is anticipated to record the highest growth rate during the forecast period. The regional market’s growth is fueled by the innovation of digital badges and new solutions offered by the key market players. In addition, the region has seen a sharp increase in its higher education levels and several Asian countries are launching pilot programs to increase the use of these badges.

The Middle East & Africa is expected to register the second-highest growth rate in the global market during the forecast period. Advancements in blockchain technologies used for digital badging have boosted the market’s growth in the region.

KEY INDUSTRY PLAYERS

Market Players to Enter Mergers, Partnerships, Product Development Strategies, and Acquisitions to Increase Reach

Key players operating in the global market are focusing on increasing participation, building their brand, and finding new customers across social media. These companies are trying to acquire local and small-scale organizations to increase their business operations. Moreover, mergers, strategic partnerships, acquisitions, and high investments will also help them boost their market presence.

List of Key Companies Profiled:  

• Pearson (U.K.)


• PeopleCert (U.K.)


• Accredible (U.S.)


• Skillsoft (U.S.)


• Instructure, Inc. (U.S.)


• Certif-ID International GmbH. (Germany)


• Sertifier Inc. (U.S.)


• BadgeCert (U.S.)


• Digitary Australia Pty Ltd. (Australia)


• BadgeList (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2023: Cengage collaborated with Accredible to bridge the skills gap by offering digital badging and micro credentials. When students finish assessments and prove proficiency in Microsoft Office 365 skills, they can easily earn achievement badges by taking introductory computing courses and using Cengage's online learning platform, MindTap. For no additional fee, students can add badges to their digital resumes, online portfolios, or LinkedIn profiles.


• February 2023: Isograd, the maker of Tosa certifications - a digital skills certification company with global accreditation, launched a new digital badging program for its Tosa-certified users. A corresponding Tosa digital badge is now awarded to those who have passed the Tosa certification test.


• February 2023: NSDC International Ltd., a subordinate of the National Skill Development Corporation (NSDC) under the government of India selected Certif-ID GmbH, to enable the deployment of its digital credentials and future work platform to support India's talent in gaining employment and recognition opportunities around the world.


• September 2022: PeopleCert acquired Quality Assurance Institute (QAI) certifications in software testing, business analysis, and software quality. This acquisition reinforced PeopleCert's commitment to further improving the lives of people utilizing internationally recognized certifications.


• April 2022: Instructure Inc. acquired Concentric Sky, the inventor of Badgr. The micro-credential tool under Canvas Learning Management System (LMS), Badgr was rebranded to ‘Canvas Badges’ as it participated in the Instructure learning platform. The agreement showed Instructure's assurance to build a platform for unified training and teaching in the education sector and support lifelong learning.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies and key end-users of the product. Besides, it offers insights into the latest market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

REPORT SCOPE & SEGMENTATION