Candidate Skills Assessment Market Overview
As per MRFR analysis, the Candidate Skills Assessment Market Size was estimated at 4.41 (USD Billion) in 2022. The Candidate Skills Assessment Market is expected to grow from 4.96 (USD Billion) in 2023 to 14.3 (USD Billion) by 2032. The Candidate Skills Assessment Market CAGR (growth rate) is expected to be around 12.48% during the forecast period (2024 - 2032).
Key Candidate Skills Assessment Market Trends Highlighted
The Candidate Skills Assessment Market is gaining momentum due to the burgeoning demand for skilled professionals and the need to mitigate talent gaps.Organizations are increasingly recognizing the importance of assessing candidates' skills to make informed hiring decisions, enhance productivity, and reduce employee turnover.Technological advancements are driving the market forward, with the rise of artificial intelligence (AI) and machine learning (ML) enabling more objective and efficient assessment tools. Cloud-based platforms are also facilitating the widespread adoption of candidate skills assessments. Another key trend in the market is the growing emphasis on diversity and inclusion. Employers are seeking to create more equitable and inclusive work environments, and skills assessments can play a crucial role in identifying and attracting candidates from underrepresented groups.
Figure1: Candidate Skills Assessment Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Candidate Skills Assessment Market Drivers
Advancements in Artificial Intelligence (AI) and Machine Learning (ML)
A major market driver is the increasing adoption of AI and ML technologies in the Candidate Skills Assessment Market. These technologies are being used to automate and streamline the candidate assessment process, making it more efficient and effective.For instance, AI-powered chatbots can be used to screen candidates and schedule interviews, while ML algorithms can be used to analyze candidate data and identify top performers. There is little doubt that these technologies will continue their development and take an even larger role in the candidate assessment process, further driving the growth of the Candidate Skills Assessment Market.
Growing Demand for Data-Driven Talent Acquisition
With the growing dynamics of the job market, organizations are seeking data-driven insights into formulating and executing their talent acquisition strategies.Given that the need for data-driven insights is on the rise, the demand for solutions that assess candidates’ skills, knowledge, and competencies has also heightened.Data obtained from such solutions help organizations in determining the most suitable skills that the best candidates for a given job should have, the candidates to hire, and what types of intervention programs they should give their employees.Thus, the Candidate Skills Assessment Market is likely to grow due to the increasing demand for data-driven insights into talent acquisition.
Increased Focus on Employee Development and Retention
There has been a growing trend of organizations that aim to develop and retain their employees. The increased demand for candidate assessment solutions that focus on hiring and employee development can be used by organizations to identify and develop their current workforce.These solutions are typically used to assess the skills of employees, identify areas for development and design tailored employee development plans. Therefore, the Candidate Skills Assessment Market will benefit as a result of this growing trend of developing and retaining employees.
Candidate Skills Assessment Market Segment Insights
Candidate Skills Assessment Market Deployment Model Insights
The deployment model segment of the Candidate Skills Assessment Market is categorized into Cloud, On-premises, and Hybrid.Among these, the Cloud segment is anticipated to dominate the market over the forecast period due to its scalability, cost-effectiveness, and accessibility from any location with an internet connection.The Cloud deployment model eliminates the need for organizations to invest in and maintain on-premises infrastructure, making it an attractive option for businesses of all sizes.Additionally, the increasing adoption of cloud-based HR and talent management solutions is driving the growth of the Cloud segment in the Candidate Skills Assessment Market.
The On-premises deployment model, on the other hand, is expected to hold a significant market share due to the need for organizations to maintain complete control over their data and security.This deployment model is preferred by organizations that handle sensitive candidate information and require high levels of data security. However, the high cost of infrastructure and maintenance associated with the On-premises deployment model may limit its adoption in some cases.The Hybrid deployment model, which combines elements of both Cloud and On-premises models, is gaining traction as organizations seek to balance flexibility and control.This model allows organizations to deploy their Candidate Skills Assessment solutions on a mix of Cloud and On-premises infrastructure, enabling them to optimize costs and data security based on their specific requirements.
Figure2: Candidate Skills Assessment Market, By Deployment Model, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Candidate Skills Assessment Market Organization Size Insights
The Candidate Skills Assessment Market is segmented by organization size into small and medium-sized enterprises (SMEs) and large enterprises.SMEs are expected to hold a larger market share in 2023 due to their increasing adoption of cloud-based candidate skills assessment solutions to streamline their hiring processes and reduce costs.However, large enterprises are expected to witness a higher growth rate during the forecast period as they invest in more comprehensive and sophisticated candidate skills assessment tools to improve the accuracy and efficiency of their hiring decisions. By 2032, the Candidate Skills Assessment Market for large enterprises is expected to reach a valuation of 8.23 billion USD, growing at a CAGR of 13.2%.
Candidate Skills Assessment Market Vertical Insights
The Industry Vertical segment plays a crucial role in shaping the Candidate Skills Assessment Market landscape.Information Technology: With the rapid advancements in technology, the IT sector heavily relies on skilled professionals.The Candidate Skills Assessment Market in IT is projected to reach USD 2.1 billion by 2024, driven by the need for specialized skills in areas like cloud computing, artificial intelligence, and data analytics.Healthcare: The healthcare industry faces challenges in finding qualified candidates due to the shortage of skilled professionals.The Candidate Skills Assessment Market in healthcare is expected to reach USD 1.7 billion by 2024, fueled by the demand for skilled nurses, doctors, and medical technicians.
Manufacturing: The manufacturing sector requires a workforce with specific technical skills to operate machinery and maintain production lines.The Candidate Skills Assessment Market in manufacturing is projected to reach USD 1.3 billion by 2024, driven by the need for skilled workers in automation, robotics, and quality control.Retail: The retail sector is undergoing a digital transformation, leading to a demand for skilled professionals in e-commerce, customer service, and supply chain management.The Candidate Skills Assessment Market in retail is expected to reach USD 1.1 billion by 2024, driven by the need for skilled workers in these areas.
Education: The education sector is facing challenges in finding qualified teachers and administrators. The Candidate Skills Assessment Market in education is projected to reach USD 1.0 billion by 2024, driven by the need for skilled professionals in curriculum development, educational technology, and student assessment.Overall, the Industry Vertical segment offers significant growth opportunities for the Candidate Skills Assessment Market due to the increasing demand for skilled professionals across various industries.
Candidate Skills Assessment Market Assessment Type Insights
The Candidate Skills Assessment Market is segmented by Assessment Type into Cognitive Abilities, Behavioral Traits, and Technical Skills. Cognitive Abilities assessment evaluates an individual's cognitive abilities such as problem-solving, critical thinking, and decision-making.This segment is driven by the increasing demand for skilled professionals across various industries, as employers seek to ensure that candidates possess the necessary cognitive abilities to perform their job effectively.The Candidate Skills Assessment Market revenue for Cognitive Abilities assessment is projected to reach $1.5 billion by 2024, growing at a CAGR of 10.5%.Behavioral Traits assessment evaluates an individual's behavioral traits such as personality, values, and motivations. This segment is witnessing growth due to the increasing focus on workplace culture and employee engagement.
Employers are keen on identifying candidates who align with the company's values and have the behavioral traits necessary to contribute to a positive work environment.The Candidate Skills Assessment Market revenue for Behavioral Traits assessment is expected to reach $0.8 billion by 2024, growing at a CAGR of 9.8%.Technical Skills assessment evaluates an individual's technical skills and knowledge in specific areas such as software development, data analysis, or project management.This segment is driven by rapid technological advancements and the need for organizations to stay ahead of the innovation curve. The Candidate Skills Assessment Market revenue for Technical Skills assessment is projected to reach $2.2 billion by 2024, growing at a CAGR of 12.2%.
Candidate Skills Assessment Market Delivery Format Insights
Driven by the increasing adoption of remote and hybrid work models, the Online Tests delivery format is projected to account for a significant share of the Candidate Skills Assessment Market revenue by 2024.Its convenience, cost-effectiveness, and accessibility make it the preferred choice for organizations seeking efficient and scalable assessment solutions.Video Interviews are also gaining traction as they offer a more personalized and interactive assessment experience, allowing recruiters to evaluate candidates' communication skills, body language, and problem-solving abilities. The In-person Assessments segment, while still important in certain industries, is expected to experience slower growth as organizations prioritize remote and virtual assessment methods.
Candidate Skills Assessment Market Regional Insights
North America dominanted region in the Candidate Skills Assessment Market, accounting for a market share of around 38.5% in 2023.The increasing adoption of candidate skills assessment solutions by organizations in this region to improve their hiring processes and identify the most suitable candidates for various roles is driving market growth.The presence of a large number of technology companies and startups in the region is also contributing to the growth of the market. Europe is expected to be the second-largest region in the Candidate Skills Assessment Market, with a market share of around 30.2% in 2023.
The increasing demand for candidate skills assessment solutions from various industries, including healthcare, manufacturing, and IT, is driving the market growth in this region. Additionally, government initiatives to promote the adoption of digital technologies in the workplace are also contributing to the growth of the market.APAC is expected to be the fastest-growing region in the Candidate Skills Assessment Market, with a CAGR of around 15.2% during the forecast period.The increasing adoption of candidate skills assessment solutions by organizations in this region to improve their hiring efficiency and reduce costs is driving market growth.
The presence of a large number of emerging economies in the region, such as China and India, is also contributing to the growth of the market.South America and MEA are expected to be the smallest regions in the Candidate Skills Assessment Market, with a combined market share of around 11.3% in 2023.The limited adoption of candidate skills assessment solutions in these regions is hindering market growth. However, the increasing awareness of the benefits of candidate skills assessment solutions among organizations in these regions is expected to drive market growth in the coming years.
Figure3: Candidate Skills Assessment Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Candidate Skills Assessment Market Key Players and Competitive Insights
Major players in the Candidate Skills Assessment Market are continuously developing and launching innovative solutions to cater to the evolving needs of their customers.Leading Candidate Skills Assessment Market players are focusing on strategic partnerships, acquisitions, and collaborations to expand their market reach and gain a competitive advantage.The Candidate Skills Assessment Market development is driven by growing adoption of AI and ML technologies, increasing demand for remote hiring and assessment, and the need for organizations to identify and hire skilled candidates efficiently.
The Candidate Skills Assessment Market Competitive Landscape is expected to remain highly competitive in the coming years, with new entrants and established players vying for market share.A leading company in the Candidate Skills Assessment Market, SkillSurvey, offers a comprehensive suite of assessment solutions that help organizations measure and evaluate candidate skills, knowledge, and abilities.SkillSurvey's platform uses AI and ML technologies to provide personalized and accurate assessments, enabling organizations to make informed hiring decisions.
The company's focus on innovation and customer satisfaction has positioned it as a leader in the Candidate Skills Assessment Market.Another prominent player in the Candidate Skills Assessment Market, HireVue, provides video interviewing and assessment solutions to help organizations streamline their hiring process.HireVue's platform allows organizations to conduct remote interviews, record candidate responses, and utilize AI to analyze candidate performance. The company's commitment to providing a seamless and efficient hiring experience has made it a preferred choice for many organizations. HireVue's strong brand recognition and global presence contribute to its competitive advantage in the Candidate Skills Assessment Market.
Key Companies in the Candidate Skills Assessment Market Include
- Criteria Corporation
- Mettl
- TestGorilla
- Pymetrics
- Codility
- Vervoe (formerly Ideal)
- Mercer
- TalentQ
- Wonderlic
- HireVue (formerly Montage)
- PeopleFluent
- Aon Hewitt
- SHL
- Harver
- HackerRank
Candidate Skills Assessment Market Developments
The increasing demand for skilled professionals, the rise of remote work, and the adoption of AI-powered assessment tools are driving the market growth.Recent news developments include the acquisition of Pymetrics by Eightfold AI in 2023, which strengthens Eightfold's position in the candidate assessment space. Additionally, the launch of new assessment platforms, such as Vervoe's Skills Graph, highlights the growing focus on data-driven and personalized assessments.
Candidate Skills Assessment Market Segmentation Insights
Candidate Skills Assessment Market Deployment Model Outlook
Candidate Skills Assessment Market Organization Size Outlook
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
Candidate Skills Assessment Market Vertical Outlook
- Information Technology
- Healthcare
- Manufacturing
- Retail
- Education
Candidate Skills Assessment Market Assessment Type Outlook
- Cognitive Abilities
- Behavioral Traits
- Technical Skills
Candidate Skills Assessment Market Delivery Format Outlook
- Online Tests
- Video Interviews
- In-person Assessments
Candidate Skills Assessment Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
4.41(USD Billion) |
| Market Size 2023 |
4.96(USD Billion) |
| Market Size 2032 |
14.3(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
12.48% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Criteria Corporation, Mettl, TestGorilla, Pymetrics, Codility, Vervoe (formerly Ideal), Mercer, TalentQ, Wonderlic, HireVue (formerly Montage), PeopleFluent, Aon Hewitt, SHL, Harver, HackerRank |
| Segments Covered |
Deployment Model, Organization Size, Industry Vertical, Assessment Type, Delivery Format, Regional |
| Key Market Opportunities |
AI-driven assessments Virtual reality simulations Gamified assessments Remote proctoring Mobile first assessments |
| Key Market Dynamics |
Increased automation, AI integration, remote work adoption, growing need for personalized assessments, and demand for real-time feedback |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Candidate Skills Assessment Market is expected to reach USD 14.3 billion by 2032, exhibiting a CAGR of 12.48% during the forecast period (2024-2032).
North America is expected to hold the largest market share in the Candidate Skills Assessment Market, primarily driven by the high adoption of advanced technologies and the presence of key players in the region.
The key growth drivers of the Candidate Skills Assessment Market include the increasing demand for skilled professionals, the need for efficient and accurate candidate assessment, and the adoption of AI and machine learning technologies.
Major applications of Candidate Skills Assessment in the market include recruitment and selection, employee development, and talent management.
Key competitors in the Candidate Skills Assessment Market include IBM, Oracle, SAP, Pearson VUE, and SHL.
The COVID-19 pandemic has accelerated the adoption of remote and virtual assessment methods, leading to increased demand for online candidate skills assessment platforms.
Challenges faced by the Candidate Skills Assessment Market include concerns over data privacy and security, the need for continuous innovation to keep up with evolving technologies, and the potential for bias in AI-based assessment tools.
Emerging trends in the Candidate Skills Assessment Market include the use of gamification to enhance engagement, the integration of virtual and augmented reality for immersive assessment experiences, and the adoption of blockchain technology for secure and transparent assessments.
The future outlook for the Candidate Skills Assessment Market is positive, driven by the increasing adoption of digital technologies in the workplace and the rising demand for skilled professionals.
Key opportunities in the Candidate Skills Assessment Market include the development of AI-powered assessment tools, the expansion into new markets, and the integration with other HR technologies.
