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The alternative credentials market for higher education market size is forecast to increase by USD 2.92 billion, at a CAGR of 18.11% between 2023 and 2028. The Alternative Credentials Market in higher education is gaining significant traction due to several factors. Firstly, the widening skills gap in various industries necessitates continuous learning and upskilling. Traditional degree programs, despite their value, are often inefficient in addressing the specific skill requirements of the workforce. Secondly, the availability of open educational resources has made learning more accessible and affordable for individuals. Alternative credentials, such as microcredentials and badges, offer flexible and competency-based learning opportunities that cater to the evolving needs of the labor market. These digital credentials can be earned through various means, including online courses, bootcamps, and professional certifications. By bridging the gap between education and employment, the alternative credentials market is transforming the higher education landscape and providing learners with valuable and recognized credentials for their professional growth.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
2U Inc. - The company offers alternative credentials that help companies to create skills pathways with verifiable and stackable credentials to upskill and train employees with high-quality educational experience in the most job-relevant subjects.
The alternative credentials market for higher education market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
North America is estimated to contribute 56% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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The higher education institutions in this region are largely experimenting with numerous ed-tech products and services. These institutes are emphasizing the introduction of new forms of teaching and learning in the wake of online platforms penetrating the education industry in North America. Numerous universities and colleges are focused on incorporating products and tools that can enhance the quality of education. In this direction, they are procuring solutions from various ed-tech companies and other education service-providing companies. The deployment of ed-tech products and solutions will not lead to improvements in the quality of education. Realizing this, institutions are accompanying such deployment with learning and assessment changes. This can be reflected in the large-scale adoption of experiential learning, flipped classrooms, blended learning, and active learning in classrooms.
However, all these steps are taken to make learning more student-centric, where students have the flexibility to choose their own methods and pace of learning. The focus of educational institutions toward personalizing the learning process for students in higher education by analyzing their individual learning patterns and career goals is gaining momentum in North America. Such factors are expected to drive the regional market growth during the market growth.
The market share growth by the non-credit training courses segment will be significant during the forecast period. Non-credit training courses are educational programs or courses offered by educational institutions, training centres, or organizations that do not offer academic credit upon completion. These courses are designed to provide specific skills, knowledge, or training in a particular field or subject area without leading to a degree or academic credential.
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The non-credit training courses segment was the largest and was valued at USD 348.36 million in 2018. Students are increasingly required to attain a certain level of expertise in the latest tools and technologies prior to being recruited by any organization. Courses on coding languages (Python, JavaScript, etc.), web development, data science, cybersecurity, cloud computing, and artificial intelligence/machine learning are highly sought after due to the increasing reliance on technology across industries. Participants receive a certificate upon completion while passing open or more assessment tests by a standard-setting organization or third party. Further, courses covering entrepreneurship, business development, finance fundamentals, and strategic planning cater to individuals aiming to start their own businesses or enhance their career prospects within organizations. Therefore, the abovementioned factors are likely to propel the growth of the segment during the forecast period.
The landscape of education and skill acquisition is evolving, with a shift towards non-degree credentials and micro-credentials alongside traditional degrees. These credentials offer targeted validation of skills acquired through various avenues such as workshops, bootcamps, and industry certifications provided by diverse training providers. The emergence of online learning models and digital platforms facilitates reskilling and upskilling, enabling individuals to adapt to changing industries and technologies. Hybrid learning approaches blend traditional methods with digital tools, fostering e-commerce expansion and direct-to-consumer education models, including subscription services. This reflects the broader trend of digital transformation in education, catering to niche areas of expertise and addressing the dynamic demands of the workforce. As individuals seek to enhance their skills in response to market needs, the landscape of education continues to diversify, offering flexible and accessible pathways to career advancement.
The availability of open educational resources is notably driving the market growth. Providers of massive open online courses (MOOCs) play a crucial role in the design, development, and delivery of alternative credentials. Alternative credentials offered by degree-granting institutions are known as non-degree credentials and MOOC providers. MOOCs, such as Udacity Inc. and Coursera Inc., which offer alternative credentials, award completion certificates to students. Further, institutions that offer open online courses include the University of Michigan, Temple University College of Education, and others.
Moreover, these universities offer free access to a range of introductory courses to learners. Also, learners can avail themselves of advanced levels of alternative credential course certification by paying a nominal fee. For instance, the University of Illinois, along with Coursera Inc., offers iMBA and an unbundled master's degree in computer science. MOOCs and other open-source resources are expected to drive market growth during the forecast period.
Rising acceptance of digital badges is an emerging trend shaping the market growth. The increased acceptance of digital badges has been observed by higher education institutions on a global scale but largely in developed economies, such as the US and Germany. There has been increased competition in the education sector, and students are looking for ways to acquire proficiency and skills that are employment-oriented. In this direction, among various alternative credentials, digital badges have come to the fore that provide a platform wherein students can showcase the additional skills they attain apart from academic degrees. This way, students can present their skill sets in an exhaustive manner, highlighting the additional online courses they pursued and their participation in extracurricular activities.
However, institutions, while realizing the importance of digital badges, have started investing in their own badging systems. This is to ensure that students have a wide range of opportunities to augment their portfolios, existing degrees, and personal achievements. The digital badges awarded to students who complete a particular course can be easily accessed by anyone. This yields additional benefits for students. Thus, the increase in demand for digital badges is driving the market growth during the forecast period.
Threat from traditional degree program providers is a significant challenge hindering the market growth. The market for these credential courses is still unstable, with the growing nexus of education service providers and institutions that offer hybrid programs and courses. The option for the students to carry out only those courses that they deem important or adequate to enter the job market has also helped in managing their budget and expenses. However, despite these advantages, this market faces an inherent threat from the formal education segment comprising traditional degree programs. Evolving learning methodologies and digitization of the overall learning process are helping universities enhance the quality of course offerings.
Furthermore, the evolved learning landscape has reduced the rigidity of teaching and assessment methodologies. As a result, universities and colleges are able to groom graduates as per the specific industry employers' requirements. These developments can gradually reduce the dependency on alternative credentials, which may negatively impact the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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In response to the evolving demands of the workplace, non-degree credentials and micro-credentials have gained prominence, offering targeted education in specialized fields such as AI and blockchain technology. These credentials, often obtained through non-credit training courses and certificate programs, reflect the shift towards competency-based education and lifelong learning to address the skills gap in the digital economy. Skills-based hiring practices are increasingly valued by employers, who seek candidates with industry-validated credentials in areas like information technology and digital marketing. Online learning platforms and the expansion of e-commerce channels enable direct-to-consumer access to educational resources, bridging the digital skills gap and enhancing employability. As HR professionals recognize the value of professional certificates and graduate/undergraduate certificates, the demand for expertise in blockchain, artificial intelligence, and machine learning continues to grow, shaping job roles and workplace dynamics. In this context, maintaining a strong online presence and investing in continuous learning are essential for staying competitive in today's evolving economy.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.11% |
Market Growth 2024-2028 |
USD 2.92 Billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
17.48 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 56% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
2U Inc., Bisk Ventures, Carroll Community College Foundation Inc., City and Guilds Group, Coursera Inc., Credly, Inc., JPMorgan Chase and Co., New York State Education Department, NIIT Ltd., NorthEastern University, Pearson Plc, Purdue University Global, Simplilearn, Strategic Education Inc., Udacity Inc., Udemy Inc., XuetangX, Temple University, University of Michigan, and University Professional and Continuing Education Association |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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