Global Technical Skills Screening Software Market Gaining Momentum—Projected to Reach Worth USD 482.5 Million in 2027
Published | June 2021
A study recently conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global technical skills screening software market was worth USD 302.2 million in 2020 and is further projected to reach USD 482.5 million by 2027, at a CAGR of 7.1% during the forecast period (2021-2027). The thriving IT industry, increasing focus on data analytics, and the need to recruit best-fit candidates at a fast frequency are some of the factors driving the growth of the global technical skills screening software market. Furthermore, the adoption of advanced technology such as artificial intelligence is contributing to market growth.
Growing IT Sector and Collaborations Driving Growth for Technical Skills Screening Software Market
The demand for technical skills screening software has been boosted by the global expansion of the IT industry. According to the U.S. government, there are more than 525,000 software and IT services companies in the United States (approximately 40,500 tech startups were established in 2018 alone). Software publishers, suppliers of custom computer programming services, computer systems design firms, and facilities management companies all contribute to this number. Moreover, the industry employs nearly two million highly educated and skilled people in the United States, a number that has risen steadily over the last decade.
This growth is also due to an increase in collaboration between IT organizations and technical skills screening software companies, which is fueling the technical skills screening sector. For instance, Pluralsight, Inc., and Microsoft announced a collaboration in February 2021, in which Microsoft customers with an active Pluralsight Skills license can now access Pluralsight's on-demand course content directly from Microsoft Teams as part of this integration. The global technical skills screening software market has grown due to the growing IT industry, the increasing number of SMEs globally, and increased collaboration between technical skills screening software companies and hiring companies.
Technological Advancements is Propelling the Demand for Technical Skills Screening Software
The market for technical skills screening software is growing in response to technological advancements. Assessments are currently gaining credibility due to the tracking of applicants from remote areas using technical skills screening software technology. Remote technical skills screening is entirely subject to the availability of a high-speed internet connection and a computer. The technical skills screening software companies can reach across geographies with the aid of integrated technologies, thereby preventing unfair practices with unconventional methods of invigilation.
For example, Artificial Intelligence (AI) is a technology that enables a robot to function and learn in a human-like way. AI is a new practice that has the potential to use facial and voice recognition to verify test participants and recognize suspicious activities on a much larger scale than a human proctor. AI is also capable of using audio detection to pick up background noise to recognize possible malpractice and match it with speech patterns. Additionally, by detecting eye movement, AI can also indicate the reading or use of illegal materials. What’s more, it is capable of detecting external objects entering the area, such as a phone or a person. Nowadays, software that uses AI to derive useful and realistic insights from existing data is available, allowing recruiters to fine-tune the screening and hiring process. It will benefit from the successes and failures that businesses have had with their employees in the past. It may also aid in the screening process by verifying information on resumes.
Large Enterprises to hold the Largest Share in the Market
The large enterprise's segment had a 68.48% share in 2020 in the global technical skills screening software market and is expected to have a 69.33% share by 2027. The definition of large enterprises varies from country to country. In the EU, having more than 250 employees qualifies as a large enterprise, whereas in the US, the limit is 500. Large enterprises generally have strong financials and a large workforce. These companies hire a large number of people, which is quite a time-consuming affair. Technical skills screening software can help to reduce the hiring time by filtering the suitable candidates with desired skill set. Companies like Google, Apple, Microsoft and others invest heavily in their recruitment process so that they can hire the best suitable candidate for the job. In order to do that, such companies use technical skills screening software to filter the candidates. While large enterprises can choose any type of software, be it cloud-based or web-based, a majority of companies these days prefer cloud-based software due to its fast computing power and ease of accessibility.
Impact of COVID-19
Following a dip in the early days of the lockdowns due to the COVID-19 outbreak, technology hiring began to recover by the end of 2020. In the United States alone, tech jobs increased by 391,000 in December 2020. According to Computing Technology Industry Association (CompTIA), software developer and application developer roles currently account for the majority of new job postings. The ongoing COVID-19 has, therefore, positively impacted the growth of the technical skills screening market.
Due to the ongoing COVID-19 pandemic, the talent market saw a shift. In a survey conducted by a talent assessment software company, recruiters reported improvements in several areas of hiring, including finding high-quality candidates and making the process more efficient and less difficult this year compared to last. As a result of such advanced software, companies are finding it easier to recruit these days.
Global Technical Skills Screening Software Market: Regional Insights
The global technical skills screening software market is segmented into five regions, North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. North America is leading the global technical skills screening software market as the region is home to some of the world's largest technology companies such as Google, Microsoft, Apple, Tesla, Amazon, Walmart, FedEx, and many more.
Additionally, Asia-Pacific technical skills screening software market is also catching up. The market for technical skills screening software was worth USD 72.5 million in 2020, registering a CAGR of 6.9% during 2017-2020. The market is further expected to reach USD 122.3 million by 2027 with a CAGR of 7.9% during the forecast period. Growing economies of South-Asian countries, investment from foreign companies, and the growing need of companies to hire suitable candidates at high efficiency & high pace are some of the factors driving the growth of the technical skills screening software market in the Asia-Pacific region.
Some of the key players in the global technical skills screening software market are TestDome, Codility, HackerRank, Devskiller, Criteria Corp, QuodeIT, VidCruiter, HireVue, iMocha, HackerEarth, VERVOE, TestGorilla, Coderbyte, CodinGame Inc., eSkill Corporation, Pluralsight, and other prominent players. Market participants are increasingly engaging in acquisitions, partnerships, and mergers to expand their production capacity and product portfolio. These strategies have been acting as a catalyst for market players to boost their sales and customer base.
In February 2021, HackerEarth released an enhanced version of FaceCode as a standalone solution for conducting technical interviews with developers. Enhanced automation would save time before or during interviews, as well as further HackerEarth's dedication to promoting diversity and inclusion in recruitment by reducing bias.
In July 2020, Criteria acquired Revelian, an Australian-based leader in emotional intelligence and game-based talent assessments. It is now offering Revelian’s Emotify assessment to its customers. This launch marks the first step in unifying the two organizations’ test portfolios. Emotify joined Criteria’s current portfolio of assessments across its multiple dimensions including aptitude, personality, and skills.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global technical skills screening software market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the global technical skills screening software market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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