Competency-based Education Spending

Competency-based Education Spending

Global Competency-based Education Spending Market to Reach US$65.1 Billion by 2030

The global market for Competency-based Education Spending estimated at US$23.6 Billion in the year 2024, is expected to reach US$65.1 Billion by 2030, growing at a CAGR of 18.4% over the analysis period 2024-2030. Competency-based Education Hardware, one of the segments analyzed in the report, is expected to record a 20.0% CAGR and reach US$31.7 Billion by the end of the analysis period. Growth in the Competency-based Education Content segment is estimated at 17.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$6.3 Billion While China is Forecast to Grow at 17.2% CAGR

The Competency-based Education Spending market in the U.S. is estimated at US$6.3 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$9.8 Billion by the year 2030 trailing a CAGR of 17.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 17.1% and 15.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.3% CAGR.

Global Competency-based Education Spending Market - Key Trends and Drivers Summarized

What Is Competency-Based Education, and Why Is Spending on It Increasing?

Competency-based education (CBE) is an innovative approach to learning that focuses on students mastering specific skills and knowledge at their own pace, rather than following traditional grade-based or time-based progression. But what is driving the surge in spending on CBE? Unlike conventional educational models, CBE allows students to advance once they demonstrate competence in a subject, offering a personalized path that is particularly effective for diverse student populations with varying learning speeds and styles. This approach emphasizes measurable outcomes, where assessments and projects are tailored to evaluate practical skills rather than merely theoretical knowledge. Spending on CBE has increased as educational institutions, governments, and businesses recognize its potential to improve student engagement, retention, and job readiness. With its focus on applied skills, CBE aligns well with workforce demands, equipping students with relevant abilities for high-demand fields like technology, healthcare, and business. As a result, investments in competency-based education are seen as crucial for preparing students for today’s rapidly evolving job market, and funding is being directed toward creating CBE programs, developing technology platforms, and training educators to implement competency-based methodologies effectively.

What Areas Are Attracting the Most Investment in Competency-Based Education?

The increased spending on competency-based education is directed toward a range of areas critical to its successful implementation and scalability. But which areas are seeing the most investment? One of the primary focuses is on digital learning platforms that support the CBE model by enabling individualized learning paths, tracking competencies, and providing real-time data on student progress. These platforms are often equipped with adaptive learning technologies that adjust content and assessments to meet each learner’s needs, offering a more tailored educational experience. Additionally, there is significant spending on developing competency frameworks and assessment tools that allow educators to clearly define and measure learning outcomes. These frameworks help ensure that CBE programs maintain high standards, providing clarity on the skills and knowledge students are expected to master. Another critical area of investment is faculty training and professional development. Transitioning to a CBE model requires a shift in teaching methods, with a greater emphasis on mentorship, project-based learning, and skills assessment. Schools and institutions are investing in training educators to design and deliver competency-based programs effectively. Finally, many CBE initiatives are exploring partnerships with industries to create work-based learning opportunities and certifications aligned with workforce requirements, ensuring students acquire competencies that are directly relevant to in-demand careers. These areas of investment reflect a comprehensive approach to scaling competency-based education, aiming to create a robust infrastructure that supports student-centered learning and skill development.

How Are Changing Workforce Demands Influencing Spending on Competency-Based Education?

The rapidly evolving workforce landscape is a major factor driving increased investment in competency-based education. But what specific workforce trends are shaping this spending? With the growing demand for practical skills in areas such as digital technology, data analysis, and healthcare, employers are increasingly seeking candidates who possess real-world competencies rather than just formal qualifications. Competency-based education aligns with this shift by emphasizing applied skills and job readiness, making it an attractive model for training students to meet the requirements of high-demand fields. Additionally, the rise of automation and artificial intelligence has created a need for workers who can continuously update their skills to stay relevant, and CBE’s flexible, self-paced structure supports this lifelong learning approach. As traditional education models struggle to keep pace with the speed of technological advancement, competency-based programs are filling the gap by focusing on skills that directly correlate with employment opportunities. Many industries are now partnering with educational institutions to create CBE programs tailored to specific occupational needs, leading to increased spending on developing curriculum frameworks, certifications, and hands-on learning modules. Furthermore, as the gig economy expands, individuals are seeking short, targeted CBE programs that allow them to acquire specific competencies quickly. These changing workforce demands underscore the value of competency-based education in preparing students for dynamic career paths, driving the growth in spending on CBE initiatives that focus on career-aligned skills and adaptability.

What’s Driving the Growth in Competency-Based Education Spending?

The growth in spending on competency-based education is fueled by multiple factors, including educational reform, technological advancements, and the need for equitable access to education. First, as education systems shift towards more personalized learning models, policymakers and institutions are investing in CBE as an effective approach for addressing diverse learning needs and improving educational outcomes. Research shows that competency-based education can reduce dropout rates and enhance student engagement by providing a more relevant and flexible learning experience. This has led to increased funding from government agencies, non-profits, and educational organizations that are committed to making education more inclusive and responsive to individual students’ needs. Technological advancements also play a significant role in driving CBE spending, as digital platforms and AI-powered tools make it possible to implement competency-based learning at scale. These technologies enable real-time feedback, competency tracking, and adaptive content delivery, facilitating a more customized educational experience that traditional models often lack. Additionally, the focus on equitable access to education has made CBE appealing, as it allows students to learn at their own pace without the constraints of a rigid timeline, making it accessible to non-traditional learners, including working adults, military personnel, and underserved populations. Finally, as industries increasingly seek job-ready candidates, there is a strong demand for education programs that align with workforce skills. This alignment drives spending on CBE programs that foster career-relevant competencies, positioning competency-based education as a key component of future educational models focused on flexibility, accessibility, and relevance.

SCOPE OF STUDY:

The report analyzes the Competency-based Education Spending market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Hardware, Content, Other Components)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Rest of Europe; Asia-Pacific; Rest of World.

Select Competitors (Total 42 Featured) -

• Anthology International Private Limited
• BNED LoudCloud, LLC
• Capella University
• Cengage Learning, Inc.
• Colorado State University
• Creatrix Campus
• D2L Corporation
• Epiphany Learning
• Instructure, Inc.
• Northern Arizona University

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