Learning and Development Sourcing Intelligence Is Expected To Expand At A CAGR Of 3% Till 2030

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The global learning and development category is expected to grow at a CAGR of 3% from 2023 to 2030.

Learning and Development Procurement Intelligence

In this learning and development procurement intelligence report, we have estimated the pricing of the key cost components. Trainers’ salaries, IT costs, facility rental, staff training, marketing and advertising, and othersare some of the key cost components of the category. IT costs include developing learning software and learning management system (LMS) platforms for conducting learning sessions and providing other online services.

Training staff with advancements in technological learning solutions also adds up to the overall costs. The components integrated into the program will impact the expenditure associated with delivering the service. Costs may emerge from tangible items like printed materials such as handouts, manuals, or workbooks. Moreover, the venue of the training session is also a crucial factor in influencing the service cost. For instance, if the training sessions are held offsite, the service provider must bear extra costs for team travel, accommodation, and meals.

The service providers incur the cost of developing an LMS platform, which may cost around USD 30,000 to USD 500,000. The cost of hosting a custom LMS can range from USD 1,000 to USD 10,000 per year. The cost of hosting on-premises installed LMS can range from USD 500 to USD 10,000 per year. However, the cost of LMS varies depending on the complexity of desired features and functionalities. 

Order your copy of the Learning and Development category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities - Learning and Development

  • Years in Service - 25%
  • Geographical Service Provisions - 20%
  • Certifications - 15%
  • Industries Served - 15%
  • Revenue Generated - 15%
  • Employee Strength - 5%
  • Key Clients - 5%

Functional Capabilities - Learning and Development

  • Online/in-Person Training - 20%
  • Blended Learning - 20%
  • Digital Learning - 20%
  • On-Demand Learning - 20%
  • Others - 20%

Rate Benchmarking

In the evaluation of rate benchmarking for learning and development, key factors such as the expertise and experience of trainers, the nature of services offered, and the geographical location of the firm play a pivotal role. The U.S., China, India, and Japan emerge as optimal destinations for service providers, owing to their well-established corporate sectors, developed work cultures, and substantial workforce.

The determination of trainers' salaries varies significantly across these regions. In the U.S., where the cost of living and labor rates are comparatively higher, the annual salary range for learning and development trainers typically falls between USD 55,000 and USD 80,000. In contrast, China and India, with lower labor costs, a more economical standard of living, and abundant manpower, witness a lower salary range for similar roles. Learning and development trainers in India, for example, earn between USD 3,000 and USD 10,000 annually, while their counterparts in China may receive an annual salary ranging from USD 7,000 to USD 21,000.

Similarly, in Japan, the annual compensation for a Learning and Development trainer spans from USD 30,000 to USD 40,000 per year. These salary differentials can be attributed to various factors, including regional economic conditions, the availability of skilled manpower, and the level of expertise and experience held by trainers in each respective market.

Supplier Newsletter

In December 2022, 360Training acquired AdvanceOnline, an online and in-person training solution provider. The acquisition would help 360Training to expand its OSHA online outreach program and grow its library of courses through DOT transportation safety training courses.

In May 2022, The American Fork, a learning content and design services provider, acquired CoreAxis, a design, training, and development provider. Following the acquisition, the company was rebranded as ELB Learning. The acquisition will add more training services to ELB Learning’s custom-based content and learning development services-based portfolios.

In February 2022, Deakin University's division dedicated to corporate learning and development, DeakinCo., partnered with Tata Consultancy Services (TCS). The deal is expected to address the digital skills gap in Australia and collaboratively create a corporate learning program tailored for business leaders, senior management, and executives. The focus areas of learning include emerging technologies such as AI, ML, data analytics, and robotics.

List of Key Suppliers

  • Korn Ferry
  • Wildsparq
  • Dale Carnegie
  • FranklinCovey
  • Cognician
  • The Mintable
  • AllenComm
  • 360Training
  • Hone
  • Aptimore 

Browse through Grand View Research’s collection of procurement intelligence studies: 

Learning and Development Procurement Intelligence Report Scope 

  • Learning and Development Category Growth Rate : CAGR of 3.0% from 2023 to 2030 
  • Pricing Growth Outlook : 5% - 7% (Annually) 
  • Pricing Models : Service-based pricing, competition-based pricing 
  • Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence

 

  • Supplier Selection Criteria : Services provided, end-to-end services, project timeline, customization, technology used, global reach, regulatory compliance, operational capabilities, quality measures, certifications, data privacy regulations, and others 
  • Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to): 

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
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