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The higher education testing and assessment market is estimated to grow by USD 4.82 billion at a CAGR of 4.66% between 2023 and 2028. The expansion of the market hinges on multiple factors, notably the shift of educational institutions towards formative assessment, stringent admission procedures, and the surging need for tailored learning. As universities and colleges increasingly prioritize formative assessment methods, demand grows for innovative testing and evaluation solutions. Simultaneously, the emphasis on rigorous admission processes drives the adoption of advanced assessment tools to evaluate student aptitude accurately. Furthermore, the rising demand for personalized learning experiences propels the development and adoption of specialized testing and assessment technologies within the higher education sector.
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Online assessment tools play a crucial role in higher education institutions by offering standardized assessment solutions for international students across various aptitudes in tertiary education. Students showcase their skills through portfolios, evaluated by educators for learning outcomes assessment. These tools provide higher customization while implementing fraud procedures to maintain integrity, especially in distance learning courses. Leveraging open-source software and cloud-based assessment service platforms, institutions integrate social media platforms and mobile assessment tools for personalized assessment solutions. This dynamic market caters to diverse educational needs, ensuring comprehensive evaluation and learning facilitation. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The transition of educational institutions to formative assessments is notably driving market growth. Several educational institutions have shifted from traditional summative assessments to formative assessments in the past few years. Formative assessments assess students based on strategic questioning, projects, questionnaires, quizzes, and other techniques. The use of formative assessments improves the performance of students and the interaction between students and faculty. Hence, it is considered an integral part of effective learning.
Several initiatives, such as the Re-Engineering Assessment Practices (REAP) in the UK, encourage the adoption of formative assessments. For instance, the University of Edinburgh devised the principle of good formative assessment under the REAP program. The project supports the use of formative assessment techniques in higher education. It enables students to monitor, self-direct, and manage their learning. Hence, the transition of educational institutions from summative assessment to formative assessment, supported by recommendation engines that personalize learning paths and feedback, will drive the growth of the market during the forecast period. Recommendation engines in educational settings analyze student performance data and learning behaviors to provide tailored recommendations for formative assessment activities, enhancing engagement and learning outcomes. As institutions prioritize personalized learning experiences, the integration of recommendation engines facilitates adaptive learning environments, aligning with educational reforms promoting effective formative assessment practices.
The evolving role of educational technologies is the primary trend driving market growth. Advances in technology have resulted in the evolution of its role in education. Educational institutions are introducing assessments that include elements such as digital badging and micro-credentials, and several companies offer such advanced technologies. For instance, in June 2021, McGraw Hill Education Inc. upgraded to the digital architecture and integrated with widely used learning management systems (LMS) such as Blackboard Learn and Ultra, Instructure Canvas, D2L Brightspace, Moodle, and more.
The addition of elements in education technologies such as LMS and CMS balances the assessment of students. Balanced assessments involve both the academic and non-academic assessment of students. Several companies, such as Pearson and educational institutions, promote the balanced assessment of students. Pearson has also introduced the concept of balanced assessments in higher education. Such assessments will enable the overall development of students by engaging them in quizzes and riddles related to their general knowledge.
The weak assessment mechanism of online testing may impede the market growth. Universities, corporate organizations, and governments across the world are adopting software solutions and online platforms for testing and assessments. However, the assessment mechanism of online tests is weak.
Several end-users in many developing countries consider online assessment unreliable due to the probability of answer manipulation. Therefore, they prefer offline testing and assessment. For instance, in India, the answer scripts of competitive examinations such as the Civil Services Examination (CSE) and the Provincial Civil Services (PCS) Examination are checked manually. Hence, the weak assessment mechanism of online tests affects the growth of the global higher education learning and assessment market.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
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.
Pearson Plc - The company's key offerings include higher education testing and assessment services, such as SAT and ACT preparation, SSAT preparation, and ELL.
The 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.
The market share growth by the academic segment will be significant during the forecast period. The academic segment comprises tests and assessments in subjects such as science, technology, engineering, and mathematics (STEM), which are considered a part of the core curriculum. Traditionally, pen and paper-based testing were commonly used for such tests. However, the advent of technologies such as learning management systems (LMS) and content management systems (CMS) and the rising demand for innovative personalized technologies such as adaptive learning has increased the adoption of digital technologies for academic testing and assessment in higher educational institutions. The increasing use of technology in classrooms is also augmented by the rising use of smartphones, tablets, and e-libraries by students. The transition from traditional pen and paper-based testing and assessment to online testing and assessment and the increasing use of technology by students will drive the growth of the segment during the forecast period.
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The academic segment showed a gradual increase in market share from USD 8.02 billion in 2018. The digitization of classrooms in higher educational institutions has made them interactive. Hence, they are equipped to conduct online tests and use technologies such as learning analytics to evaluate and assess students. Several universities deploy interactive whiteboards and use Skype sessions to educate students. They are also replacing traditional methods of conducting entrance examinations with online tests. The rising number of student enrollments and the challenges associated with managing the logistics of pen and paper-based tests and assessments have encouraged several universities and educational institutions to conduct entrance examinations online.
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North America is projected to contribute 31% by 2028. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The governments of several countries in North America have also adopted assessment technologies. For instance, in the US, the National Assessment of Educational Progress (NAEP) conducts a periodic assessment to test the educational progress of students in grades four, eight, and 12 in mathematics, science, the history of the US, and technology. The NAEP is a mandatory project that is administered by the National Center for Education Statistics (NCES), which works under the Institute of Education Sciences (IES) of the Department of Education (DoED). The NAEP started offering digital assessments for different subjects such as mathematics, reading, and others. The digital assessments are administered through tablets, laptops, and computers. The assessments use dynamic and innovative technologies that provide an engaging assessment experience to students. Also, regional players have been adopting various strategies that will propel the growth of the regional market during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The English language holds significant importance in both academic and non-academic segments, emphasizing the development of skills and personality traits essential for career readiness and employability. Within academic and professional spheres, the cognitive abilities of individuals are assessed through standardized tests and online assessment platforms, including adaptive testing systems and assessment software utilized in online courses and distance learning programs to enhance the quality of education. Customized tests address specific needs, although concerns persist regarding data security. Real-time feedback and adaptive learning algorithms offer personalized recommendations, aligning with student-centered pedagogies and competency-based education.
Furthermore, Lifelong learning initiatives emphasize abilities, placement, and certification, supported by program evaluation and accreditation through testing platforms and accreditation criteria. Virtual reality and augmented reality experiences enhance learning engagement, while data-driven decision-making facilitated by data analytics tools ensures accountability. Online testing platforms enable flexibility and accessibility, utilizing adaptive testing and big data for predictive analytics while addressing concerns regarding data breaches and the limitations of traditional assessment methods. The scope extends to remote learning, student enrollment, and the corporate training sector, covering certification exams, skill assessments, and reporting and analytics. Collaboration-based learning emphasizes teamwork and critical thinking, integrating with blended learning approaches for precise evaluation supported by open-source software and analytical applications.
Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.66% |
Market Growth 2024-2028 |
USD 4.82 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.38 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 31% |
Key countries |
US, Germany, China, Canada, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Apperson Inc., Aptech Ltd., Coursera Inc., Educational Testing Service, Gradeup Assignment, Harver B.V., LearningRx Inc., McGraw Hill LLC, Mercer LLC, Mindlogicx, Ntalents, Oxford Learning Centers Inc., Pearson Plc, Scantron Inc., The Training Box Ltd., Think and Learn Pvt. Ltd., Turning Technologies LLC., Wheebox, and ZandaX |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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