Candidate Skills Assessment Market Thumbnail Image

2023

Candidate Skills Assessment Market

Candidate Skills Assessment Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component, by Deployment Mode, by Product Type, by End User, by Process : Global Opportunity Analysis and Industry Forecast, 2023-2032

IC : Software and Services

Select an option
Author's: Amogh Thulgharia | Onkar Sumant
Publish Date:

Get Sample to Email

Candidate Skills Assessment Market Research, 2032

The global candidate skills assessment market size was valued at $2.3 billion in 2022, and is projected to reach $7.4 billion by 2032, growing at a CAGR of 12.6% from 2023 to 2032.

Candidate skills assessment is a testing tool that helps in evaluating an applicants skills, personality and cognitive strengths. The tool is an excellent predictor of future job performance. In addition, candidate skill assessment are also stated as pre-employment, pre-hiring, or candidate assessment tests. Furthermore, candidate skill assessment helps in finding a right match for the right job. Moreover, by using skill assessment test, employers can determine cultural fit such as good communication skills and other interpersonal skills other than technical. For instance, Hire Quotient website has stated that more than 78% resumes are misleading and 46% are actual lies. In addition, 75% of HR professionals face difficulties in recruitment due to skill gaps between applicants. Hence, candidate skills assessment measure plays an important role in selecting efficient workforce for the organization.

Candidate Skills Assessment Market

The key factors such as rise in need for efficiency and transparency in hiring process, surge in adoption of pre-employment screening test and increase in internet users are driving the growth of candidate skills assessment market. Furthermore, lack of security standards and high cost are key factors hampering the growth of candidate skills assessment market. Moreover, technological advancement in pre-employment assessment services is providing an opportunity for growth of candidate skills assessment market share during the forecast period.

The report focuses on growth prospects, restraints, and trends of the candidate skills assessment market analysis. The study provides Porter's five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the candidate skills assessment market.

Segment Review

The candidate skills assessment market is segmented based on component, deployment mode, product type, end-user, process and region. In terms of component, the market is divided into software and service. By deployment mode the market is divided into on-premise and cloud. By product type, the market is divided into aptitude/psychometric test, personality test, leadership assessments/testing (including 360 assessments) and others. By end-user, the market is divided into corporate and education. By process, the market is divided into diagnosis and assessment. By region-wise the market is divided into North America, Europe, Asia-Pacific and LAMEA.

Candidate Skills Assessment Market by Deployment Mode

Based on deployment type, the cloud segment is dominating the global candidate skills assessment market in the year 2022. This is attributed to the different features provided by cloud such as no capital investment, high scalability, flexibility, and reduced requirement for IT expertise. However, the on-premise segment is expected to grow in the future. This can be attributed to the fact that this model is suitable for highly regulated companies and organizations such as technology companies, government organizations and others.

Candidate Skills Assessment Market by Region

Based on the region North America dominated the global candidate skills assessment market in the year 2022. This is attributed to the rapid technological advancements such as cloud computing, AI, ML, sentiment analytics and others that driving the growth of global candidate skills assessment market in the North America region. However, the Asia-Pacific region is expected to grow during the forecast period. This is attributed to the increasing amount of IT companies investing and operating in the Asia-Pacific region. In addition, the growing start-ups in the region are also adding fuel to the increasing demand for manpower, thus driving the growth of the candidate skills assessment market.

The report analyzes the profiles of key players operating in the candidate skills assessment market such as The Predictive Index., HighMatch, Mercer Mettl Assessments, eSkill, Devskiller, HackerRank, iMocha, Kandio, Athena Assessment Inc., and HireVue. These players have adopted various strategies to increase their market penetration and strengthen their position in the candidate skills assessment market.

Top Impacting Factors

Rise in Need for Efficiency and Transparency in Hiring Process

Efficient skills assessments streamline the hiring process, reducing the time and resources spent on identifying qualified candidates. Automated assessments, especially those integrated with Applicant Tracking Systems (ATS), help in quick candidate evaluation, allowing recruiters to focus on the most promising candidates. Furthermore, skills assessments provide an objective and standardized way to evaluate candidates based on their abilities and qualifications. This helps in reducing bias in the hiring process and ensures that candidates are assessed fairly on their skills and competencies.

Moreover, skills assessment tools generate data and analytics that can be used for informed decision-making. Recruiters and hiring managers can analyze the results to identify trends, assess the effectiveness of assessment strategies, and make data-driven decisions to improve the overall hiring process.

In addition, transparency in the hiring process is crucial for a positive candidate experience. Clearly communicated skill requirements and assessment processes help candidates understand what is expected of them, leading to a more positive and transparent experience. For instance, in November 2021, Coursera launched LevelSets, a new assessment tool designed to motivate learners to enroll in recommended courses and enable them to develop job-relevant skills faster. These assessments determine where training should begin and create a clear development path for learners featuring high-quality content that aligns with their skill goals. Therefore, all these factors are expected to drive the growth of the candidate skills assessment market during the forecast period.

Surge in Adoption of Pre-employment Screening Test

Employers are increasingly recognizing the importance of hiring candidates who not only possess the required skills but also fit well with the company culture. Pre-employment screening tests, including skills assessments, help organizations evaluate candidates more comprehensively, leading to higher-quality hires. Furthermore, pre-employment screening tests allow employers to assess candidate skills and competencies accurately. This reduces the risk of hiring individuals who may not possess the necessary qualifications or abilities, ultimately minimizing turnover and related costs.

In addition, screening tests, including skills assessments, streamline the candidate evaluation process. Automated assessment tools can rapidly and objectively evaluate candidates, saving time for recruiters and hiring managers and allowing them to focus on the most qualified candidates. Moreover, pre-employment screening tests provide an objective basis for decision-making. By using standardized assessments, employers can minimize biases in the hiring process, ensuring that candidates are evaluated fairly based on their skills and qualifications. Therefore, all these factors are expected to escalate the growth of the candidate skills assessment market during the forecast period.

Increase in Internet Users

The growing number of internet users is facilitating the adoption of online assessment platforms. These platforms enable organizations to conduct skills assessments remotely, making it convenient for both employers and candidates. The accessibility provided by the internet is contributing to the widespread use of digital assessments. Furthermore, with the increasing Internet-connected people worldwide, organizations can now access a global talent pool. For instance, Statista stated that in 2023 the number of internet users stood at $5.18 billion. Skills assessments conducted online allow employers to evaluate candidates from different geographic locations, contributing to a more diverse and expansive hiring process.

Moreover, the rise of remote work, accelerated by the COVID-19 pandemic, is increasing the demand for online tools, including skills assessments. As more people are working from different locations, the ability to assess candidate skills is remotely becoming crucial, and the internet is playing a key role in facilitating this process. Therefore, all these factors are expected to propel the growth of candidate skills assessment industry during the forecast period.

Lack of Security Standards

Candidate skills assessments often involve the collection and processing of sensitive personal and professional information. In the absence of robust security standards, there is an increased risk of data breaches, unauthorized access, and misuse of candidate data. This can reduce trust among both employers and candidates, hindering the adoption of skills assessment tools.

Furthermore, companies sometimes hesitate to adopt skills assessment platforms as they are concerned about the confidentiality of their proprietary assessment content. Hence, without established security standards, there is a risk that assessment content could be compromised, leading to reluctant use of external assessment services. Therefore, all these factors are expected to hamper the candidate skills assessment industry growth during the forecast period.

High Costs Associated with the Implementation of Candidate Skills Assessment Technology

Small and medium-sized enterprises, with limited financial resources, sometimes find the upfront costs of implementing candidate skills assessment technology prohibitive. The initial investment in technology, software licenses, and infrastructure act as a barrier to entry for smaller businesses. Furthermore, some organizations require customized skills assessments tailored to their specific industry and job roles. Customization often involves additional costs, making it challenging for companies with budget constraints to adopt tailored assessment solutions.

Moreover, implementing new skills assessment technology often requires training for HR professionals, hiring managers, and other stakeholders. Training costs, both in terms of time and resources, add up to the overall expense of technology implementation. Therefore, all these factors are expected to hold back the candidate skills assessment market growth during the forecast period.

Technological Advancement in Pre-employment Assessment Services

Integration of artificial intelligence (AI) and machine learning (ML) in skills assessments allows for a more sophisticated analysis of candidate performance. These technologies can evaluate not only technical skills but also soft skills, learning patterns, and adaptability, thus providing a more holistic view of a candidate's capabilities. Furthermore, advanced analytics enable the use of predictive models to assess a candidate's potential for success in a role. By analyzing historical data and performance metrics, predictive analytics can help organizations make more informed decisions about which candidates are likely to thrive in specific positions.

Moreover, the incorporation of game elements in assessments makes the process more engaging for candidates. Game assessments leverage technology to create interactive and immersive experiences, providing a more accurate reflection of a candidate's abilities dynamically and entertainingly. Therefore, all these factors are expected to provide a significant opportunity for the candidate skills assessment market growth during the forecast period.

Market Landscape and Trends

Due to increasing reliance on technology, many companies are turning to online platforms for candidate skills assessments. These platforms offer a range of features, from coding assessments to personality tests, making the hiring process more efficient. Furthermore, employers are placing greater emphasis on assessing specific skills relevant to the job. This trend is particularly notable in the tech industry, where coding assessments and technical skills evaluations are gaining prominence. Moreover, some companies are incorporating gamification elements into their assessments to make the process more engaging for candidates. This not only helps in evaluating skills but also provides insights into a candidate's problem-solving abilities and creativity.

Key Industry Developments in Candidate Skills Assessment Market

Recent Partnerships in the Market

In June 2023, Hacker Rank, the leading developer skills company partnered with Harver, the industry leading hiring solution helping organizations optimize their talent decisions to offer a thorough assessment of the hard and soft talents of prospective prospects. HR professionals can now more easily and concurrently forecast who will perform better and stay with the company by using assessment tools from both organizations.

Recent Product Launches in the Market

In February 2021, Mercer Mettl launched web-based examination platform to digitize exams. The solution helps in catering to the new examination cycle from enabling faculty and administrators to create question papers, schedule exams, invigilate using a mix of AI and human-led proctoring assign answer scripts to evaluators, and finally declare the results.

Key Benefits for Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the candidate skills assessment market forecast from 2022 to 2032 to identify the prevailing market opportunities.
  • Market research is offered along with information related to key drivers, restraints, and opportunities for candidate skills assessment market outlook.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the candidate skills assessment market segmentation assists in determining the prevailing candidate skills assessment market opportunity.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes an analysis of the regional as well as global candidate skills assessment market trends, key players, market segments, application areas, and market growth strategies.

Candidate Skills Assessment Market Report Highlights

Aspects Details
icon_1
Market Size By 2032

USD 7.4 billion

icon_2
Growth Rate

CAGR of 12.6%

icon_3
Forecast period

2022 - 2032

icon_4
Report Pages

463

icon_5
By Component
  • Software
  • Service
icon_6
By Deployment Mode
  • On-premise
  • Cloud
icon_7
By Product Type
  • Aptitude/Psychometric Test
  • Personality Test
  • Leadership Assessments/testing (including 360 Assessments)
  • Others
icon_8
By End User
  • Corporate
  • Education
icon_9
By Process
  • Diagnosis
  • Assesment
icon_10
By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
icon_11
Key Market Players

Athena Assessment Inc., iMocha, Devskiller, Kandio, HighMatch, eSkill Corporation, HireVue, Inc., Mercer Mettl Assessments, HackerRack Inc., The Predictive Index

Analyst Review

As per the insights of the top level CXOs, the candidate skills assessment market has witnessed a significant increase in the adoption of technology, with a growing emphasis on online and digital assessment tools. This includes the use of artificial intelligence (AI), machine learning (ML), and other advanced technologies to enhance the accuracy and efficiency of assessments. Furthermore, there has been an increase in the rate of awareness regarding the importance of diversity and inclusion in the hiring process. As a result, companies are seeking skills assessment solutions that are designed to minimize biases and promote a fair evaluation of candidates from diverse backgrounds. In addition, the COVID-19 pandemic had already accelerated the trend toward remote work, remote hiring and assessments. Companies have been increasingly relying on digital skills assessments to evaluate candidates regardless of their geographical location. Moreover, organizations are searching for more customizable and personalized skills assessments that align with the specific requirements of different roles and industries. Tailoring assessments to match the unique needs of a company or job position has become a key consideration. In addition, there is a growing demand for seamless integration between skills assessment platforms and broader talent management systems, including applicant tracking systems (ATS) and human resources information systems (HRIS). Integration streamlines the overall recruitment and talent management process.

The CXOs further added that market players are adopting strategies like product launch for enhancing their services in the market and improving customer satisfaction. For instance, in April 2023, HireVue, the global leader in video interviewing, assessments, and text-enabled recruiting tools launched HireVue Builder for Live. HireVue Builder for Live combines the company’s award-winning structured interview generator with the power of its live interview platform to bring consistency and fairness to every version of virtual interviews. Furthermore, HireVue Builder for Live provides hiring teams with well designed, pre-written and science-backed interview questions that evaluate job-relevant skills, all while capturing feedback within the interview experience. Moreover, Devskiller forms an alliance with Canadian online hiring company VidCruiter, to advance the limits of technical hiring. VidCruiter clients who use video interviewing will now be able to access DevSkiller coding tests directly from within the VidCruiter platform, and candidate data can now be sent automatically to DevSkiller from VidCruiter to help create profiles. Furthermore, TalentScore test results and evaluations will flow back into VidCruiter seamlessly and developer assessments can be proctored using recorded and live video. Therefore, such strategies are expected to boost the growth of the candidate skills assessment market in the upcoming years.

The report analyzes the profiles of key players operating in the candidate skills assessment market such as The Predictive Index., HighMatch, Mercer Mettl Assessments, eSkill, Devskiller, HackerRank, iMocha, Kandio, Athena Assessment Inc., and HireVue. These players have adopted various strategies to increase their market penetration and strengthen their position in the candidate skills assessment market.

Author Name(s) : Amogh Thulgharia | Onkar Sumant
Frequently Asked Questions?

Due to increasing reliance on technology, many companies are turning to online platforms for candidate skills assessments and employers are placing greater emphasis on assessing specific skills relevant to the job are the upcoming trends of Candidate Skills Assessment Market in the world.

Aptitude/psychometric test is the leading application of Candidate Skills Assessment Market.

North America is the largest regional market for Candidate Skills Assessment.

$2,312.4 million is the estimated industry size of Candidate Skills Assessment.

The Predictive Index, HighMatch, Mercer Mettl Assessments, eSkill, Devskiller, HackerRank, iMocha, Kandio, Athena Assessment Inc. and HireVue are the top companies to hold the market share in Candidate Skills Assessment.

Loading Table Of Content...

Loading Research Methodology...

Individual sections of the reports are available for purchase.
Would you like to see a breakdown of prices by section?

Candidate Skills Assessment Market

Global Opportunity Analysis and Industry Forecast, 2023-2032