Corporate Leadership Training Market Size, Share & COVID-19 Impact Analysis, By End-user (Large Scale Enterprise and Small and Midsize Enterprise), Application (Online Training, Instructor-Led Training, and Blended Training), and Regional Forecast, 2023-2030

The global corporate leadership training market size was valued at USD 32.96 billion in 2022 and is projected to grow from USD 35.52 billion in 2023 to USD 63.19 billion by 2030, exhibiting a CAGR of 8.58% over the forecast period.

Increasing awareness about the impact of great leadership on an organization’s financial health is expected to drive market growth. Changing business landscape, along with rapid technological advancements and globalization, has altered the business environment. In such times, companies seek leaders who can adopt and navigate these changes effectively. Also, leadership training can enhance employee engagement, productivity, and retention, making it a strategic investment for talent development, which will further impel the corporate leadership training market growth.

Companies need to implement such training programs for leadership succession as when experienced leaders retire, the next generation of leaders need to be groomed to fulfill critical roles. Effective leadership can differentiate a company in a crowded market, making corporate leadership training a means to gain competitive advantage.

COVID-19 IMPACT

COVID-19 Pandemic Escalated Demand for Learning and Development Programs, Boosted Market Growth

The uncertainty created by the COVID-19 pandemic imposed challenges and introduced changes in all aspects of life, and the Learning and Development (L&D) process was not an exception. The mandate to move employees to a work-from-home business model made it impossible to provide in-person, classroom-based training, which ultimately strengthened the demand for online training programs. The Institute for Corporate Productivity (i4cp) did a survey on the effects of COVID-19 outbreak on corporate leadership training programs. The survey showed that the most common effect was either the rescheduling or delay of programs (70%), or the conversion of some programs to virtual delivery (73%). Only 30% respondents reported that their organization had canceled corporate leadership training programs, while 60% stated that they were inspiring leaders to leverage self-paced e-learning and other leadership development content as and when possible.

The design of some leadership development programs was also adjusted on account of the unexpected scenarios created by the outbreak. Many companies reported that the pandemic period offered new examples of leadership adaptability and agility, and other good qualities that they can integrate into formal training programs. According to the Training magazine, the training and development expenditure per employee showed a significant jump in 2020 as compared to previous year. In 2019, companies spent USD 147 per employee, on average, while in 2020 this figure was USD 176. Nevertheless, this increase in overall training investment did not translate to greater investment in leadership development owing to the impact of the COVID-19 pandemic. According to the 2021 Annual Leadership Development Survey Report for Training magazine, almost half of the respondents (48%) stated that their spending decreased considerably, while only 13% said that they spent more than they had planned to.

LATEST TRENDS

Inclusion of New-Gen Technologies Including AI, AR, VR to Enhance Quality of Training Programs

The business world is constantly changing and evolving, and that creates multiple trends in the industry. One such trend is an increased focus on collaborative leadership, where successful leaders are learning how to get the job done from a distance and lead by example, allowing their employees to draw energy from them. Use of mobile learning in corporate leadership training is trending as it provides portability that can’t be replicated in a scheduled classroom training. Its constant state of availability and ability to bridge the distance between mentors and subordinates allows companies to conduct training anywhere, anytime. The wide acceptance of gamification techniques in learning applications has opened up the market for e-learning companies. Leadership development training via gamification is generating greater interest when used in conjunction with a leadership competency model. Gamified trainees are more motivated, less bored, and less likely to feel unproductive when compared to non-gamefied trainees.

Furthermore, blended training for corporate leadership training programs is emerging as one of the most sought-after methods. Blended training is flexible and can accommodate busy schedules to ensure that development continues despite potential impediments, as sometimes it really challenges managers to fit regular leadership training into their timetables. Some of the other trends include Virtual Reality (VR) and Augmented Reality (AR) for soft skills training, AI and predictive analytics for assessments, behavioral nudging to encourage leadership development, and other modern techniques.

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DRIVING FACTORS

Growing Need for Upskilling Present Generation of Employees to Drive Market Progress

An organization’s success hinges on effective leadership that is capable of directing its co-workers toward a common goal, which makes it imperative for companies to invest in and facilitate leadership development and training programs. This equips future leaders with requisite skills to sustain and improve their competencies and trains them to scrutinize expected challenges, handle difficult situations, resolve conflicts, prepare a plan of action, and influence the manner in which activities are conducted at a workplace. These aspects are predicted to drive market growth. Furthermore, benefits of leadership training programs include increase in learning capacity, improved corporate culture, creation of effective work teams, and better decision-making capabilities, among others.

An internet survey revealed that about 69% of managers are often uncomfortable communicating with their employees. According to a research from Gallup, 50% of employees leave their organization due to their boss. While another statistics indicates 60% of the new managers underperform or fail in the first two years of their job role. This factor will drive the demand for upskilling and refining their leadership qualities which will work in favor of both the organization and employee, thus boosting the need for leadership training programs.

Role of Leadership Training Programs in Shaping Company’s Future to Fuel Their Adoption

Companies are recognizing the importance of diverse leadership teams. Leadership training often includes diversity and inclusion-related programs. There has been an increasing emphasis on ethical leadership as consumers and employees value companies with responsible leadership. Furthermore, the shift toward digital transformation demands those leaders who can harness technology and data for business growth. All of these goals can be achieved by providing training, such as leadership development programs, which will fuel the market expansion. Additionally, emotional intelligence, strong communication, and other interpersonal skills are crucial to a leader’s identity, which can be developed through training. The shift to remote work has created a need for leaders who can manage remote teams effectively. On the other hand, industries with strict regulations require leaders who understand and can ensure compliance. Moreover, new leadership programs, such as servant leadership or agile leadership require training for leaders to adopt these approaches. All of these aspects, in turn, are expected to positively influence market growth.

RESTRAINING FACTORS

Shortcomings of Corporate Leadership Training Program May Hinder Market Growth

Leadership and management training programs are often seen as a waste of money or extra cost in many organizations as a lot of money needs to be invested in them. Many times, organizations choose the wrong people for these programs, where they are selected for their technical skills rather than their people skills. Consequently, when such people attend the training program, they lack motivation and interest to do the work needed to learn how to lead a high-performing team. Thus, oftentimes, these programs fail to produce the desired outcome and therefore, companies try to avoid this added investment, which can hinder market growth.

In order for a corporate leadership training program to be effective, it must be tailor-made to the individual participants, meaning that the program cannot be delivered in the same way to different people. It must be modified based on the participants’ needs and goals. Thus, leadership training programs with the “one size fits all” approach to learning do not work for everyone, thereby further restricting the growth of the market.

SEGMENTATION

By End-user Analysis

Large Scale Enterprise Segment Led Market Growth On Account of Huge Spending on Employee Skill Development Program

Based on end-user, the market is segmented into large-scale enterprise and small and midsize enterprise. The large-scale enterprise segment accounted for a majority of the corporate leadership training market share and is expected to record a considerable CAGR over the forecast period of 2023-2030. Large enterprises are organizations with a vast workforce, high revenue pockets with a wide variety of products/services, and operations across multiple locations. Such workplaces need efficient leaders at different levels as they often have complex organizational structures and hierarchies. Thus, investments in leadership development programs to upgrade the skills and competences of their managers and executives is high in large enterprises, further boosting the segment’s growth.

Small and midsize enterprises are projected to record significant CAGR over the forecast period from 2023-2030. These entities are recognizing the importance of grooming aspiring leaders and ensuring a smooth experience for them while working in key positions within the organization. This factor has increased the demand for leadership training programs across these enterprises too. Also, companies have come to an understanding that implementing these programs is beneficial for their employees and can act in the company’s favor in terms of financial health. This will boost the growth of the segment. Moreover, these programs play an important role in helping employees upskill and learn continuously to stay competitive in a rapidly evolving business landscape, which will further accelerate the segment’s growth.

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By Application Analysis

Instructor Led Training Segment Dominates Due to Increasing Use of E-Learning Technologies Offering an Immersive Experience

Based on application, the market is segmented into online training, instructor led-training, and blended training.  The Instructor-Led Training (ILT) segment captured a majority of the market share and recorded the highest revenue in 2022. ILT is a formal and traditional way of learning and training that typically occurs in offices, classrooms, or during conference halls. The factors contributing to the segment’s dominance include its multiple benefits, such as real-time questions & feedback, adaptability, use of interactive techniques, and opportunity for open dialogue.

However, blended training and online corporate leadership training programs are gaining more traction in the market due to their ease of use and flexibility. The segment is expected to grow at the highest CAGR over the next few years. Blended training is a virtual instructor-led training program and conducted via online platforms. On the other hand, online training solutions can include videos, tests, activities, and images. The online training segment is poised to record the fastest CAGR of 9.52%. This growth will likely be supplemented by the use of upcoming e-learning technologies, such as Augmented Reality (AR), mobile learning, gamification, personalized learning paths, interactive videos, and Virtual Reality (VR) simulations, among many others.

REGIONAL INSIGHTS

Introduction of Novel Leadership Training Programs to Amplify Product Demand in Asia Pacific

Geographically the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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North America is dominating the global training market by capturing more than 50% of the global market share and is forecasted to grow at a consistent rate in the coming years. One of the primary drivers of the regional market’s growth is the rising spending by MNCs on leadership training programs. Organizations in the region are known to put their leaders through intense training, especially in the current business environment, and invest heavily in training programs by increasing their budgets by as much as 80% this year. Companies in the U.S. are sensing the need to equip their leaders with enhanced capabilities to handle adverse situations and manage ambiguity. According to an article published by Zippa.com, the U.S. businesses spend USD 166 billion on leadership development programs every year, which is nearly half of the global spending.

North America, especially the U.S., is an early adopter of cutting-edge technologies. The emergence of online training programs without any human intervention in innovative formats, such as simulation learning and gamification is expected to improve the online training segment’s growth. The COVID-19 pandemic-induced lockdowns severely impacted the employment rate and overall GDP of the region in 2020. Consequently, companies reduced their spending on such leadership development programs. However, the implementation of large-scale vaccination drives stabilized the regional market growth again. Additionally, companies, such as Microsoft, Google, Goldman Sachs, and JPMorgan Chase, among others, are expected to provide online training to existing and new employees. These factors are projected to lead the regional market’s growth.  

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Asia Pacific is projected to record a significant growth rate in the next few years. On account of growing complexities in the corporate world & businesses, and rising presence of multinational giants in the region, spending on skill development and leadership training programs is likely to increase during the forecast period. Moreover, several companies are offering free or discounted training programs to improve employee standards, nurture future managers, and upscale their productivity. This, in turn, will improve the company’s financial health, thereby augmenting the product demand in the Asia Pacific market.

Europe is poised to grow at the second highest growth rate after Asia Pacific due to increased attention garnered by these employee skill development programs. According to the EU Labour Force Survey, the percentage of employed persons who participated in education and training on average accounted for 11.4%. The companies in the region are emphasizing on educating and training their employees, so the individuals can have better opportunities, increased wages, job satisfaction, and reduce risk of unemployment. For instance, Swedish enterprises in the hospitality, transportation, trade, industrial and technology sectors provide access to free digital training through the Kompetens.nu learning portal, run by the Swedish Agency for Economic and Regional Growth. The portal offers more than 5,000 short and in-depth courses on computer science, digital transformation, leadership, new ways of working, technological skills, and personal development.

KEY INDUSTRY PLAYERS

Implementation of Multiple Strategies to Help Key Market Players Expand Consumer Base

Companies specializing in corporate training services are facing stiff competition in the corporate leadership training market, with so many options available for organizations. It is challenging for them to attract new clients while retaining the existing ones. Thus, creating long-term and high-quality training packages with affordable pricing is a great way to earn customer loyalty, increase referrals, and ultimately garner more sales. To sell training packages to large-scale corporations, service providers are opting for various strategies. These include identifying the right decision-makers, thoroughly understanding their needs, designing tailor-made training packages, underlining their benefits for the company, presenting use-case studies & testimonials, and attending industry events & conferences.

Furthermore, recognizing their target audience, offering a variety of training options, using effective marketing strategies, providing value-added services, leveraging social media platforms, using word-of-mouth promotions effectively, and providing continuous support are some of the other approaches training service providers are undertaking to establish a strong foothold within the market.

LIST OF KEY COMPANIES PROFILED:

• Skillsoft Corp. (U.S.)


• Franklin Covey Co. (U.S.)


• Wilson Learning Worldwide Inc. (Japan)


• NIIT Ltd. (India)


• Computer Generated Solutions Inc. (U.S.)


• Global Training Solutions Inc. (Canada)


• Future London Academy Ltd. (U.K.)


• GBS Corporate Training Ltd. (U.K.)


• D2L Corp. (Canada)


• Articulate Global Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2023: Franklin Covey Co., one of the largest and most trusted leadership companies, launched its newest course, “Inclusive Leadership: Practical Ways to Cultivate Inclusion & Build a Better Team™”. The course is designed to help leaders create a workplace environment where every team member feels valued and sees an opportunity to thrive.


• June 2023: D2L Corp., a global learning technology company, expanded its operations in India by making significant investments in the development, support operations, and cloud solutions of the country. The company’s expansion across the corporate industry is aided by future investments in development & support, talent acquisition, local cloud infrastructure, and plans for Indian companies.


• November 2022: D2L Corp. announced the launch of its D2L Brightspace Creator + Package that assists anyone in making engaging content for digital courses using workflows integrated into Brightspace, thereby saving course creators’ effort, money, and time.


• November 2022: iFuture Technologies Pvt. Ltd., a global learning services provider based in India, launched a series of corporate training programs. These programs are designed in such a manner that participants can gain exceptional leadership qualities and implement their learnings in their respective roles in the office.


• July 2021: Articulate Global, LLC, a market-leading Software as a service (SaaS) provider of online training tools and e-learning solutions, raised USD 1.5 billion in a Series A funding round led by General Atlantic, a leading global growth equity firm. With this new partnership, the company aimed to further accelerate its growth and scale its business internationally.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as competitive landscape and delivers in-depth information on services and leading product types. Besides this, it offers market insights and highlights key industry developments. In addition to the aforementioned factors, the market report encompasses several factors that have contributed to the growth of the market in recent years.

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