Vocational Education and Training Market (2022-2029)

The rising number of students adopting vocational education at an early age, growing demand for e-learning and digital skills, and higher dropout rates among college students are driving the growth of this market. However, the lack of a skilled workforce specializing in AI and IoT technologies is expected to restrain the growth of this market to some extent. Moreover, the increasing adoption/penetration of VET across the key geographic markets is expected to create lucrative opportunities for key players operating in this market.

The COVID-19 pandemic has adversely affected many economies. The market for technology in the education sector has not been affected to a great extent, due to which the VET market is projected to recover at a faster rate post-COVID-19. During the COVID-19 pandemic, complete lockdowns and quarantine stopped the learners from physically accessing educational institutions. Technology helped bridge the gap between learners and learning. Students were provided with remote access to lectures and classes, giving rise to online learning.

The concept of e-learning/online learning was not unknown to the VET sector, though it received global popularity during the pandemic. In Europe, the number of students learning either fully or mostly online increased to 92% in 2020. VET & apprenticeship providers in Germany, Greece, Portugal, Romania, Spain, Turkey, and the U.K. are incorporating online platforms for learning and assessment. Hence, the increasing demand for online learning is a key trend supporting the growth of the VET market.

Furthermore, the COVID-19 pandemic increased the reliance on digital skills. This phenomenon is expected to boost the market's demand for a workforce with technical knowledge. According to a recent report by Microsoft Data Science, the global workforce is expected to grow as 190 million new technology-oriented jobs will be created over the next five years. Software development role accounts for a large part of this prediction, but roles in related fields like data analysis, cybersecurity, and privacy protection are also slated to grow substantially. Hence, the rising need for a technologically skilled workforce is expected to lead to a high demand in the VET market.

The national standards at vocational schools demand an early orientation of the studies toward professional requirements for continued competence development. Students are systematically confronted with problems for their future professional practice to promote problem-solving thinking and action. Students enrolling in VET at an early age play an important role in the growth of the market. For instance, in 2020, 21.7% of the Australian population aged 15–64 participated in nationally-recognized training programs. The participation was highest among those aged 15–19 (41.2%), followed by those aged 20–24 (30.6%) (Source: National Centre for Vocational Education Research). Vocational courses provide students on-site training, which helps them develop specific skill sets to get better jobs.

At an early stage of career, vocational learning plays a critical role in skill development and employability. The importance of vocational development bridges the gap between theoretical knowledge and practical skills. In non-vocational studies, students have significantly fewer opportunities to put their acquired knowledge to work. However, this situation gets corrected for students in a vocational education setting. Students spend hours in the classroom each week, learning hands-on practical skills related to their chosen field.

According to the Organisation for Economic Co-operation and Development, in 2020, the enrolment rate in the 15–19-year age group in VET programs was high in the Czech Republic (70%), followed by Austria (69%), Switzerland (60%), and Luxembourg (58%). Hence, the largest enrolment rate in 15–19-year-old students in VET programs drives the demand for this market.

According to Eurostat, in 2019, 21.4 million pupils were studying at the upper secondary level in the European Union (EU), of which more than 10.2 million (48%) were enrolled in vocational education. Students adopting vocational education at an early age to prepare for tertiary education or learn skills relevant to employment is the key trend in the VET market.