Technology is being increasingly used across industries to improve efficiency and experience for stakeholders. In recent years, it is being adopted by organizations on a large scale through verticals; even within human resource departments to make the process of understanding and hiring employees a more efficient task. Artificial intelligence (AI) and machine learning, which are becoming increasingly popular, are already transforming the way data is collected and analyzed in talent acquisition, payroll management, workforce management, and more. AI has become a talent management necessity, bringing in a high degree of personalization, and enhancing employee productivity and user experience. It is also being used to evaluate performance and engagement to provide solutions to customize training and learning & development for employees. The corporate/enterprise sector has become a big end user of the personality assessment solutions market. In 2018, this sector occupied a significant share of ~50% of the total share by revenue, and by the end of the forecast period, it is likely to grow at a CAGR of ~13% in the personality assessment solutions market space.
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Manufacturing: Biggest End-use Industry
Personality assessment solutions are being widely adopted across industries, of which, in 2018, manufacturing held the largest share of ~US$ 312 Mn in the personality assessment solutions market. It is expected to hold this place during the forecast period and grow at a healthy CAGR of ~14%. This can be attributed to an increase in the adoption of personality assessment solutions in manufacturing to enable the creation of a pool of skilled employees that fit varied requirements. Pre-employment testing, which is a part of personality assessment, has become almost indispensable in identifying potential for reliability and productivity. Players in the manufacturing industry are also increasingly looking at training programs based on personality assessment as an effective way to reduce skills gap. This demand has led to providers in the personality assessment solutions market finding lucrative opportunities by focusing on tools to cater to the specific needs of the manufacturing industry.
High Maintenance Costs to Stunt Market Growth
Personality assessment solutions are highly beneficial across industries, and have quickly become a necessity. When designed specifically to fit the requirements of verticals and end-use industries, they result in improved efficiency and processes, which can have a positive impact on the growth of the industry. However, continual changes in the requirements of industries due to advances in technology lead to additional investments to keep up-to-date with them, which is likely to have a negative impact on the growth of the personality assessment solutions market. The high administration and maintenance costs of personality assessment solutions can also be a low impact factor restraining the growth of the market.
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Outsourced Delivery Mode Remains Preferred
According to this study on the global personality assessment solutions market by Transparency Market Research, in 2018, the outsourced delivery mode held the maximum share of ~62%. This outsourced delivery mode involves the practice of buying personality assessment solutions, either on a licensed or a subscription basis. The popularity of this method can be attributed to the fact that, it can be scaled according to the requirements of end users. It also offers the benefit of reduced day-to-day administration and operational costs. This is expected to remain the most preferred delivery mode during the forecast period. However, with companies looking to increase visibility and control over operations, the alternative in-house delivery model is also likely to witness steady growth at the rate of ~13%, over the forecast period.
Competitive Landscape
The personality assessment solutions market landscape is fairly fragmented, with key players in the market such as Aon plc., Development Dimensions International, Inc., and Hogan Assessment Systems Inc. accounting for ~6% of the total revenue share. These players are increasingly looking to focus on product innovation to help expand their portfolios and market share. For instance, Hogan Assessment Systems Inc. introduced a General Employability assessment tool designed to identify personality characteristics that predict employability across a wide range of jobs.
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