Market Overview

The corporate training service market for FY2023 has grown by 4.3% from the preceding fiscal year to 560 billion yen, based on the sales at the businesses. Degradation of COVID-19 viruses to class 5 under the infectious diseases control act has accelerated the seizing of returning demand for face-to-face group sessions. Furthermore, stable growth of online training services that had been a successful alternative to group sessions amid the pandemic and had drawn out the latent demand from SMEs without any experience of having introduced training services, has become the driving force for the market expansion.

From the viewpoint of training method, classroom training (open programs and customized programs), the main offering of this market, has kept being in demand, after the lift of pandemic-caused behavioral restrictions. Steadfast sales are also observed in new hire training and rank-based trainings, such as training specifically for young employees, mid-level employees, next generation leaders, middle managers, and executive candidates. Rising momentum to train employees in response to human capital management that have become mandatory for disclosure since FY2022 (fiscal year ending in March 2023) has stimulated the educational investment to next-generation leaders who can be the candidates for management or board of director members, boosting the demand for training services that cater to succession planning.

Noteworthy Topics

Intentions for Educational Investments on the Rise Together with Increasing Numbers of Companies Striving for Human Capital Management

In recent years, the corporate training service market is rising, increasing the needs to train new employees, fueled by corporate robust eagerness to hire. The waning working population has also worked as the driving force (reason) for using the service, stimulating companies’ willingness to upgrade the skills of existing staff and to prevent employees from leaving the company.
Both training services for new and existing employees have incremented the budgets for recruitment and training especially among companies with good performance. An increasing number of companies addressing human capital management that the government has pressed ahead with in recent years has also boosted the market expansion.
As the moves by companies are likely to continue such as to improve productivity and work efficiency by means of leveling up of employee abilities as well as augmentation of organizational capabilities, training services to upgrade each skill are projected to be in steady demand, no matter how the economy may be sluggish.

Future Outlook

In accordance with an increasing number of companies tackling human capital management, demand for training services is expected to continue rising, which causes the estimated market size for FY2024 to reach 580 billion yen, 3.6% of the size of the previous fiscal year.

Research Outline