1. Global Technical and Vocational Education and Training Market Insights
The TVET market is a pivotal sector in the global education industry, focusing on equipping individuals with specific occupational skills. TVET plays a crucial role in skill development and employment generation, making it an essential component of economic growth.
In 2024, the global TVET market revenue is projected to reach $821.06 billion, with a CAGR of 10.03% from 2024 to 2029. This growth can be attributed to the increasing demand for skilled professionals, the rising importance of technical education in developing countries, and the adoption of advanced technologies in vocational training.
Technical and Vocational Education and Training (TVET) encompasses education, training, and skills development related to a wide range of occupational fields, production, services, and livelihoods. It is a part of lifelong learning that can occur at secondary, post-secondary, and tertiary levels, including work-based learning and continuing training and professional development leading to qualifications. TVET also involves a broad range of skills development opportunities tailored to national and local contexts. It is not just about learning a specific trade but also about developing literacy, numeracy, transversal skills, and citizenship skills. The report particularly focuses on the income generated by educational institutions providing technical and vocational education and training.
Global TVET Market Revenue (B USD) in 2024
2. Driving Factors of TVET Market Growth
The growth of the TVET market is propelled by several key factors. Firstly, the advantages of vocational education and training are widely recognized, as they contribute significantly to a nation’s economy by fostering skill development and employment rates. TVET programs offer focused training on specific occupations, enabling individuals to find skill-related jobs or start their businesses. Secondly, the increasing demand for skills and qualifications required for job hunting is driving the market. With rapid technological changes, there is a continuous need for workers to update their knowledge and skills, making TVET a flexible pathway for adapting to new technologies and vocational demands.
3. Limiting Factors of TVET Market Growth
Despite the promising outlook, the TVET market faces certain challenges that could limit its growth. One of the primary constraints is the limitation of the TVET system itself. The capacity of industries to absorb TVET graduates has not increased proportionally, especially in labor-intensive sectors affected by economic crises. Additionally, there is a mismatch between the skills taught by TVET programs and the requirements of the industry, highlighting the need for stronger coordination between the TVET market and providers.
Another challenge is the traditional focus of TVET market on specific vocational skills, which may limit the adaptability of graduates to new technologies and strategies in the workplace. This narrow focus can make it difficult for students to transition and adopt new methods, potentially hindering their employability in a rapidly changing job market.
The global TVET market is set to witness considerable growth in the coming years, driven by the need for skilled labor and the adaptability of TVET to meet the demands of technological advancements. However, the market must also address the challenges posed by the limitations of the TVET system and the need for broader educational opportunities to ensure the long-term success and employability of its graduates. As the market evolves, stakeholders must focus on research and development, introduce new products, and innovate services to gain a competitive edge and expand TVET market share.
4. TVET Market Segment Analysis
Product Types of the TVET Market
The TVET market is a dynamic sector that plays a crucial role in skill development and employment generation globally. The TVET market is segmented into two primary product types: Technical and Non-Technical. Each type caters to distinct occupational fields and serves different segments of the labor market.
Technical Education and Training encompasses programs that focus on specific technical skills required in industries such as aviation, telecommunications, and IT. These programs are designed to equip individuals with the knowledge and expertise needed for high-technical-demand roles, contributing significantly to the advancement of technology and innovation. The market revenue for Technical education and training is projected to reach $513.86 billion in 2024.
Non-Technical Education and Training, on the other hand, includes programs that are less technically intensive and often focus on soft skills and general vocational training. This category covers a wide range of sectors, including tourism, hospitality, beauty and wellness, and public administration. Non-technical education and training is expected to generate $307.19 billion. These figures indicate a substantial growth from their respective values in previous years, reflecting the increasing demand for skilled professionals across various industries.
When it comes to market share, Technical education and training is predicted to hold the largest share of the TVET market in 2024, with a 62.47% share. This dominance can be attributed to the rapid technological advancements and the growing need for a workforce that can keep pace with these changes.
However, in terms of growth rate, Non-Technical education and training are expected to exhibit a faster growth rate. This can be linked to the expanding service sector and the increasing demand for skilled labor in areas such as hospitality and tourism, which are less dependent on technological skills but rather on interpersonal and service-oriented abilities.
Applications of the TVET Market
The TVET market is a critical component of the global education system, focusing on equipping individuals with practical skills for various industries.
Healthcare involves TVET courses that prepare individuals to support health professionals and work in various healthcare settings, including allied health assistance and health services assistance. Hospitality covers a range of qualifications that lead to jobs in travel, tourism, hotel management, and other related fields. Information Technology (IT) includes programs that provide skills for various IT roles, from general qualifications to specialized careers in areas such as software development, networking, and systems analysis.
Advanced Manufacturing focuses on training students in the field of advanced manufacturing, including skills like mathematical and scientific principles of manufacturing and operation of CNC equipment. Engineering prepares individuals for the oil and gas industry, covering aspects like oil exploration, production, refining, and petrochemicals. Logistics & Transportation aims to prepare students with skills to become proficient logisticians, meeting the demands of the logistics industry.
The IT application is projected to have the highest market production value in 2024, with an estimated $174.59 billion. This is followed by Hospitality at $87.66 billion and Advanced Manufacturing at $95.70 million. These figures highlight the significant investment in these sectors, reflecting the digital transformation and the need for skilled professionals in the technology and service industries.
In terms of market share, IT is expected to hold the largest share of the TVET market applications in 2024, with a 21.26% share. This dominance is due to the rapid digitalization across all industries and the increasing demand for tech-savvy professionals.
However, when it comes to growth rate, Logistics & Transportation is anticipated to exhibit the fastest growth rate. This can be attributed to the global supply chain disruptions caused by the COVID-19 pandemic, which have emphasized the need for a robust and skilled logistics workforce.
The TVET market applications are diverse, with IT leading in market share due to the pervasive nature of technology in modern business. Logistics & Transportation, on the other hand, is set to grow rapidly as the world grapples with the complexities of global trade and the need for efficient supply chain management. As the global economy continues to evolve, the TVET market will play a crucial role in shaping the skills and capabilities of the future workforce, ensuring that individuals are equipped to meet the demands of a changing world.
Market Revenue and Share by Segment
| Market Revenue (M USD) in 2024 | Market Share in 2024 | ||
| By Type | Technical | 513862.3 | 62.59% |
| Non-Technical | 307198.6 | 37.41% | |
| By Application | Healthcare | 33953.2 | 4.14% |
| Hospitality | 87669.3 | 10.68% | |
| IT | 174598.0 | 21.26% | |
| Advanced Manufacturing | 95700.9 | 11.66% | |
| Engineering | 102580.7 | 12.49% | |
| Logistics & Transportation | 90541.6 | 11.03% |
5. Global TVET Market Revenue by Region
United States: The United States has historically been the largest revenue market for TVET, with a market share of 30.69% in 2022. Despite this slight decrease, the US market is expected to remain the largest regional market by revenue with $240.83 billion in 2024, driven by its strong economy and the demand for technical skills in various industries.
Europe: Europe follows as the second-largest market, with a market share of 26.74% in 2022. The region is expected to maintain its position as the second-largest contributor to the global TVET market revenue in 2024 with $212.63 billion. The European TVET market’s growth can be attributed to the emphasis on technical education and the need for a skilled workforce to support its advanced manufacturing and technology sectors.
China: China is anticipated to be the fastest-growing region in the TVET market. With a market share of 18.92% in 2022, China’s focus on economic development and technological advancement has created a surge in the demand for vocational education and training with a market revenue of $167.82 billion in 2024. The Chinese government’s initiatives to enhance the country’s TVET system have contributed to this growth, making China a key player in the global TVET landscape.
Other Regions: While the US, Europe, and China dominate the TVET market, other regions like Southeast Asia, Latin America, the Middle East, and Africa are also expected to show significant growth. These regions are undergoing economic transformations, which necessitate the development of skilled labor forces, thus driving the demand for TVET.
The growth in the TVET market is not just about revenue but also about the impact on employment and economic development. As countries strive to meet the challenges of the future workforce, the TVET market will play a crucial role in bridging the skills gap and preparing individuals for the jobs of tomorrow.
Global TVET Market Revenue (B USD) by Regions in 2024
6. Analysis of the Top Five Companies in the TVET Market
Introduction and Business Overview: SGS is a Swiss multinational company that provides inspection, verification, testing, and certification services. With over 96,000 employees and a global network of offices and laboratories, SGS is a leader in the TVET market.
Products Offered: SGS offers a comprehensive range of certification and business enhancement solutions, including knowledge solutions that enhance personal competence and skills for sustainable business development.
Sales Revenue in the Latest Year: In 2022, SGS reported a value of $798.4 million.
Introduction and Business Overview: The British Standards Institution (BSI) is the UK’s national standards body, producing technical standards and supplying certification and standards-related services globally.
Products Offered: BSI provides training academies, ISO training, and business improvement courses, along with on-demand training and a comprehensive training schedule.
Sales Revenue in the Latest Year: BSI reported a value of $753.6 million.
China East Education Holdings Limited
Introduction and Business Overview: China East Education Holdings Limited is a Chinese investment holding company primarily involved in vocational education institutions, offering a variety of training programs.
Products Offered: The company operates through six segments, including culinary training, IT-related training, auto repair skill training, and more.
Sales Revenue in the Latest Year: In 2022, the company reported a value of $747.2 million.
Introduction and Business Overview: GP Strategies Corporation is a provider of sales and technical training, E-learning, management consulting, and engineering services headquartered in the USA.
Products Offered: GP Strategies Corporation offers customized training solutions focused on performance improvement initiatives and consulting.
Sales Revenue in the Latest Year: The company reported a value of $574.3 million in 2022.
Introduction and Business Overview: TEDU is an educational institution for the IT Internet industry, training software development engineers, test engineers, intelligent hardware engineers, UI designers, and network marketers.
Products Offered: TEDU provides Java training courses, covering language basics, Java SE core, WEB full stack, and database technology, among other topics.
Sales Revenue in the Latest Year: In 2022, TEDU reported a value of $456.4 million.
Major Players
| SGS |
| BSI |
| China East Education Holdings Limited |
| GP Strategies Corporation |
| TEDU |
| City & Guilds Group |
| NTUC LearningHub |
| Wagons Learning |
| TasTAFE |
| New Horizons |
| ExecuTrain |
| IPDC Training Institute |
| Training Vision Institute (TVI) |
| Astra Manufacturing Polytechnics |
| Dcolearning |
| PT Tranceformasi Indonesia Kreatif |
| Opus Kinetic |
| IDC Training House Sdn Bhd |
| Foster & Bridge Indonesia |