Competency-based Education Spending Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Competency-based Education Spending is estimated to be valued at USD 7.8 billion in 2025 and is expected to reach USD 16.5 billion by 2032, growing at a compound annual growth rate (CAGR) of 11.9% from 2024 to 2031. This significant market expansion reflects increasing adoption of personalized and skills-focused learning approaches across educational institutions and corporate training programs, driven by the demand for flexible, outcome-oriented education systems.

A key market trend is the rising integration of technology-enabled platforms that facilitate competency-based learning, such as adaptive learning software and AI-driven assessment tools. Additionally, there is a growing emphasis on lifelong learning and workforce reskilling, which is propelling investments in competency-based education models. Educational institutions and employers are increasingly prioritizing measurable skill acquisition and mastery, influencing broader acceptance and fueling sustained market growth in this sector.

Segmental Analysis:

By Solution Type: Dominance of Learning Management Systems Driving Competency-based Education Spending

In terms of By Solution Type, Learning Management Systems (LMS) contribute the highest share of the competency-based education spending market owing to their integral role in delivering personalized and flexible learning experiences. LMS platforms facilitate seamless access to diverse educational content tailored to individual learner competencies, enabling real-time progress tracking and adaptive learning paths. The rising need for scalable solutions that support competency mapping and mastery-based progression drives the adoption of LMS in educational institutions and corporate environments alike. Moreover, LMS often integrate with other tools like assessment software and analytics platforms, creating a centralized ecosystem for curriculum delivery and evaluation. This interoperability enhances the efficiency and effectiveness of competency-based education programs. The demand for user-friendly interfaces, robust content management features, and mobile accessibility further underlines LMS's market leadership. Rapid technological advancements within LMS, including AI-driven personalization and automated feedback mechanisms, empower educators and learners to optimize learning outcomes based on competencies rather than traditional grading. Additionally, the flexibility of LMS to cater to synchronous and asynchronous learning models aligns with modern educational needs, reinforcing its prominence within the competency-based education landscape. These factors together solidify LMS as the preferred solution type, dominating the spend while enabling institutions to implement competency-based frameworks more holistically.

By End User: K-12 Educational Institutions as Primary Spend Drivers in Competency-Based Education

In terms of By End User, K-12 Educational Institutions hold the largest share of competency-based education spending, driven by growing emphasis on personalized learning and standardized competency frameworks in early education. The K-12 segment is witnessing increased mandates from policy bodies to adopt competency-based models that foster foundational skills, critical thinking, and mastery in core subjects from an early stage. The shift from traditional time-bound grading to competency attainment aligns with educators' goals to reduce achievement gaps and cater to diverse student needs. Investments by K-12 institutions prioritize scalable solutions such as LMS and assessment tools tailored to younger learners, supporting interactive content and formative assessments that drive competency mastery at individual paces. The growing integration of technology in classrooms, accelerated by digital transformation initiatives, enables greater expenditure in software and training services that support competency-based approaches. Furthermore, the involvement of parents and community stakeholders in individualized education plans and progress monitoring necessitates sophisticated reporting and analytics capabilities, prompting higher spending on such solutions. Sustainability of competency-based education models in K-12 is also being bolstered by grants and government programs that encourage innovation in teaching methods and evaluation standards. This increased focus on competency alignment with college readiness and workforce skills further solidifies the K-12 sector's dominant role in driving market investment in competency-based education.

By Deployment Mode: Preference for On-Premise Solutions Reflecting Control and Customization Needs

In terms of By Deployment Mode, the On-Premise segment commands the highest share of competency-based education spending, largely due to educational institutions' and organizations' preference for greater control, data security, and customization flexibility. Many K-12 schools and higher education institutions, particularly in regions with sensitive data governance regulations, favor on-premise deployments to safeguard learner information and intellectual property while ensuring compliance with local privacy standards. On-premise solutions offer institutions the ability to tailor platforms extensively to fit their specific competency frameworks, instructional approaches, and reporting requirements without the restrictions sometimes encountered in cloud environments. Additionally, the integration of existing legacy systems with competency-based education tools is often more streamlined with on-premise setups, which is critical for institutions managing complex tech ecosystems. While cloud-based deployments offer scalability and reduced upfront costs, concerns regarding internet reliability, data sovereignty, and vendor dependency guide many decision-makers towards on-premise models. Furthermore, on-premise solutions enable institutions to implement robust security protocols and conduct internal audits, which is paramount for public sector organizations and government-funded education programs emphasizing competency-based models. This preference reflects a broader trend in competency-based education spending where control over content delivery, assessment integrity, and learner data drives demand for on-premise deployments as the foundational infrastructure supporting personalized and competency-driven learning experiences.

Regional Insights:

Dominating Region: North America

In North America, the dominance in Competency-based Education (CBE) Spending is driven by a mature market ecosystem characterized by widespread adoption of digital learning technologies and well-established higher education institutions. Government initiatives promoting personalized learning and workforce development have accelerated funding towards CBE programs. The presence of leading edtech companies such as Coursera, Udacity, and Pearson, alongside major universities integrating competency frameworks, strengthens the region's position. The collaboration between industry and academia aids in aligning curricula with job market demands, fostering robust employment pathways. Trade dynamics favor North America due to strong international partnerships and availability of investment for innovation in educational technologies, further supporting the CBE spending landscape.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific exhibits the fastest growth in Competency-based Education Spending fueled by rising demand for skill-based education to support rapidly expanding economies and a youthful population seeking employable skills. Governments in countries like India, China, and Australia are actively promoting competency education through policy reforms aimed at modernizing curricula and encouraging public-private partnerships in education technology. The evolving market ecosystem includes a vibrant edtech startup scene such as Byju's and TAL Education, supported by increasing internet penetration and mobile device usage. Trade dynamics involve cross-border collaborations and investments in the region, enabling innovative CBE platforms and learning models that tap into diverse linguistic and cultural learner bases.

Competency-based Education Market Outlook for Key Countries

United States

The United States' market for Competency-based Education benefits from strong federal and state policy support emphasizing lifelong learning and workforce readiness. Major providers including Western Governors University and Southern New Hampshire University have pioneered CBE models, demonstrating scalable frameworks that many institutions adopt. Furthermore, substantial collaborations with corporations ensure alignment of competencies taught with industry demands, positioning the U.S. as a leader in high-quality competency-based learning solutions.

India

India's CBE market is advancing rapidly, powered by government schemes like Skill India and Digital India promoting skill-based learning and digital education infrastructure. Notable companies such as Byju's and UpGrad are leveraging technology to deliver competency-aligned courses to a large and diverse learner population. Additionally, partnerships between education providers and industry players enhance employment outcomes, driving increased investment in CBE-focused programs across vocational and higher education sectors.

United Kingdom

The United Kingdom continues to lead in embedding competency frameworks within professional and higher education institutions. Government initiatives focused on employability and apprenticeship reforms complement a strong ecosystem of private training providers and universities offering competency-aligned qualifications. Firms like FutureLearn and QA Ltd. are significant contributors, providing digital learning platforms that integrate practical skill assessments, enhancing learners' job market readiness.

China

China's market for Competency-based Education is evolving with support from government policies aiming to develop a knowledge economy, emphasizing technical and vocational education reforms. Leading players such as TAL Education and Yuanfudao are incorporating adaptive learning technologies designed to measure competencies effectively. Increased investments by both public and private sectors, alongside collaborations with international edtech entities, bolster China's capacity to expand CBE adoption across urban and rural areas.

Australia

Australia's competency-based education landscape benefits from structured vocational education and training (VET) systems supported by government policies emphasizing skills recognition and lifelong learning. Key companies like Open Colleges and Navitas play pivotal roles by offering competency-aligned courses accessible via digital platforms, serving both domestic and international students. The country's strong regulatory framework ensures quality and consistency in CBE, facilitating innovation and market maturation.

Market Report Scope

Market Segmentation

Solution Type Insights (Revenue, USD, 2020 - 2032)

• Learning Management Systems (LMS)
• Assessment Tools
• Curriculum Development Software
• Reporting & Analytics Solutions
• Others

End User Insights (Revenue, USD, 2020 - 2032)

• K-12 Educational Institutions
• Higher Education
• Corporate Training
• Government & Public Sector
• Others

Deployment Mode Insights (Revenue, USD, 2020 - 2032)

• On-Premise
• Cloud-Based
• Hybrid
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Cornerstone OnDemand
• Blackboard Inc.
• D2L Corporation (Desire2Learn)
• Instructure, Inc.
• Skillsoft Corporation
• McGraw Hill Education
• Pearson Education
• Wiley Education Services
• SAP SE
• Adobe Inc.
• Knewton
• Civitas Learning
• Pluralsight
• Coursera Inc.
• 2U, Inc.
• Moodle Pty Ltd
• EdX (2U subsidiary)
• Workday, Inc.
• Udemy, Inc.