Assessment Services Market Trends

Growth Drivers

• Technological developments in digital tools - The growing technological advancements in digital tools such as mobile phones and computers have facilitated the use of assessment services. To help in assessing the performance and skills in any organization by conducting online tests and automated scoring contribute to enhancing the efficiency of assessment services.
  
  In addition, rapid urbanization and industrialization have increased the demand for digital devices, especially in developing and developed countries which further help assessment service vendors to operate effectively and remotely. According to a recent report, as of the fourth quarter of 2022, nearly 97% of internet users aged 16 to 64 owned a mobile phone.
• Increasing need for assessment services for employability -Due to the rising population, there is a huge demand for jobs and employment. According to a source, the population in the world is growing at a rate of around 0.91% per year in 2024. The assessment services help select the right candidate for companies by training and testing them for professional growth.
  
  Moreover, the assessment of employee and existing staff is crucial to improving their overall performance and developing their skills for diverse work or positions. These services are also helpful in measuring the performance of staff with the goal of the company to further enhance productivity. Furthermore, assessment services are becoming an important need of companies in the hiring process which expands its assessment services market size.
• Growing popularity of game-based assessment - Several organizations are now focusing on game-based assessment over traditional assessment such as verbal reasoning and logical questions. Game-based assessments are interactive and innovative approaches to evaluating the skills and performance of individuals.
  
  Furthermore, game-based assessment services include rewards, levels, and badges which help boost the motivation of individuals and provide feedback. The benefit of providing feedback is that the individuals may improve their performance at each level. Additionally, the large adoption of game-based assessment solutions in organizations stimulates the assessment services market growth.

Challenges

• High chances of bias - There are high chances of discrimination in assessment tests based on age, gender, and other factors which lead to unequal outcomes that may restrict the adoption of assessment services. Lack of transparency in the evaluation and assessment process loses confidence and trust in assessment services which hamper its market growth.
• Lack of Cooperation - The lack of contribution of staff in the assessment process and the unwillingness of individuals to take an interest in the assessment tests pose a challenge. This further leads to the wastage of the organization’s resources, money, and time spent on assessment services which hinders market growth.