This year’s report shows a significant increase in the market size for skills tech, identifying 83 providers in 2024, up from 55 in 2022.
Today, RedThread Research, human capital analysts, released their updated assessment of the skills technology landscape: Skills Tech 2024: Expansion & Evolution. This comprehensive analysis reveals rapid growth and advancements in skills technology, underscoring organizations’ increasing demand for and adoption of skills-based strategies.
This year’s report shows a significant increase in the market size for skills tech, identifying 83 providers in 2024, up from 55 in 2022. These skills tech companies are also scaling quickly, with 75% of providers expecting more than 21% revenue growth in 2024.
In addition to rapid growth, skills tech companies are also honing their offerings — with improvements enabled by AI, data, and integrations aimed at making skills tech easier, faster, simpler, and more actionable in decision-making. These enhancements are enabling a shift from merely identifying current skills to validating them, anticipating future skills needs, and acting on that information effectively.
“Skills tech is growing not just in size but in sophistication and impact,” said Dani Johnson, co-founder of RedThread Research and report co-author. “The advancements we’re seeing are bringing us closer to a place where organizations can use skills and skills data to make more aligned, transparent, effective decisions.”
The report identifies areas of improvement in structuring, verifying, analyzing, acting on, and integrating skills more easily and effectively, and dives into those 5 areas in detail.
“This report charts a fast ramp towards more integrated, personalized, and actionable skills tech solutions,” said report co-author and senior analyst Heather Gilmartin Adams. “What’s interesting is that many of the functionalities we saw in this study—creating skills frameworks, assessing skills, career pathing, recommendations, etc.—aren’t particularly new. What’s different is how skills tech enables them. Providers are elevating their offerings in ways that weren’t possible—at least with such scale, speed, and ease—until recently.”
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Other Key Findings in the Report Include:
- Skills tech has traditionally focused heavily on identifying skills, but this year’s study sees tech more focused on skills verification & analysis — enabling organizations to identify future skill needs and act on that information.
- Skills tech has become more personalized—with recommendations tailored not just by skills, but also by things like industry, geography, role, personal preferences, personal availability, and more.
- Skills tech offerings are beginning to be more easily organized into skills tech ecosystems, as providers appear increasingly committed to technical integrations and data sharing.
To further discuss the findings and implications of the “Skills Tech 2024” report, RedThread Research will host a complimentary webinar on March 14, 2024, at 11 am PT. The session, led by Gilmartin and Johnson, will offer attendees a deeper understanding of the current skills tech market, the multitude of tech solutions available, and insights into how skills tech is advancing.
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