How is Executive Education Programs Positioned in the US?
The executive education provides a platform to the working professionals who can enhance their skills according to the industry trends and demand. The executive education programmes are very much different from regular courses in their approach and time frame. Regular courses give comprehensive and a broad idea about the subject matter while the executive education programmes due to the limitation of the time frame are able to target only the specific points of a subject or field of study. Executive education programs came into existence during 1940s with the entry of Harvard University as the first mover in this industry during 1945 with a group of 60 executives and veterans. As the market has evolved, the demand for executive education in the country has surged over the years. Many new institutions and universities have been established in the country and these institutes have been catering to the needs of the audience using open, customized and online programs.
Executive education is often a relatively inexpensive, small time commitment for an employee to get exposure to the latest trends, research, and business thinking. Moreover, executive education acts positively for both company and employee as these programs are more of ‘on the job training’ that enables employees to not only benefit personally, but also allows employees to bring that knowledge back to the office where it can have better influence on work. US executive education market grew at a healthy growth rate with the favorable outlook of the government towards the higher education and skill development. In terms of revenue, the executive education market of US witnessed positive growth rate increasing from USD ~ million during 2014 to USD ~ million during 2017 at a CAGR of ~% during 2014-2017. US executive education market showcased that number of enrollments in the country increased over the years from ~ during 2014 to ~ during 2017 at a CAGR of ~% during 2014-2017.
US Executive Education Programs Market Segmentation
By Open and Customized Program: Open programs include varied teaching methods such as case studies, simulations, role plays, closed group analyses, and applied learning projects, interspersed with lecture sessions on theory and practice. During 2017 open program segment accounted for ~% (USD ~ Million) of the overall executive education market share. Under customized format, courses are designed in collaboration with the client organization, and scheduled at a mutually convenient date and venue. In terms of revenue, the customized programs segment augmented positively from USD ~ million during 2014 to USD ~ million during 2017 at a CAGR of ~% during 2014-2017.
By Type of Courses: Finance and strategy dominated the open executive education market, accounting for ~% (~) of the total programs during 2017. Finance and strategy programs include measuring, analyzing, and driving corporate performance, linking strategy to finance and the new role of a CFO, and others. Women and Leadership programs accounted for ~% (~) of the total programs in the US open executive education market. Marketing and SCM followed Women and Leadership courses in the open executive education market in US, accounting for ~% (~) of the total share during 2017.
By Universities: It has been witnessed that during 2017 the private institutions and players contributed ~% (USD ~ million) to the total revenue generated by customized executive education market. The Executive Education Programs Market is a brand driven market and for this reason customers have preferred the branded certifications which would aid them in the career development. In terms of revenue from customized executive programs, State universities in US followed private universities during 2017, accounting for ~% (USD ~ million) of the overall market revenue.
By Mode of Delivery: Business schools and universities have dominated the US open executive education market on the basis of number of courses, accounting for ~% (~) of the total number of courses during 2017. Management schools and the universities have contributed as major source of the revenue of the executive education market. In terms of mode of delivery, online executive programs incorporated ~% (~) of the overall market share during 2017. Online executive education has a limitation of being less user friendly as the programs are conducted for multiple enrollees at a time. Foreign collaboration followed online as mode of delivery in terms of number of programs, accounting for ~% (~) of the total number of programs during 2017.
Trends & Developments
With huge market, vast economy and globalization beckoning it, US witnessed an increase in the demand for business education to overcome the challenges and explore all potential opportunities in the country. Executive education courses provide the employees with the accreditation of the qualification that can be valued and trusted by the potential employers. It adds a special status and leads to significant career development. One of the primary reasons for increasing popularity for executive courses is the institutes’ brand name globally.
The service sector has become more globalized and diversified over the years. The tasks have become more interconnected without any physical boundaries and time lags. Providing such skills to the employees is of utmost importance for the employers. Such skills are provided by customized development programmes which are designed in such a way so that they can cater to the specific needs of the companies.
Issues and Challenges
Most of the executive education programmes are designed for the middle level and the senior level management professionals. The entry level and the fresher professionals don’t have a variety of the options of such programmes. Open programs are majorly organized in-campus or at the venues decided by the institutions. In this way there is a limit on the number of the registrations for the certain programmes. Sometimes the long travel becomes a big issue for the working professionals and this makes the enrollees less comfortable. The enrollees in the industry need personalized attention which is not possible in online executive courses. As the cost of programs is high and the enrollees feel unsatisfied if proper attention is not provided to each candidate.
Competitive Landscape of US Executive Education Programs Market
Harvard Business School launched its first executive education program, the Advanced Management Program to a group of 60 executives and veterans during 1945. In terms of revenue, HBS is the market leader in the US executive education market which accounted for ~% of the overall market revenue during 2017.
Wharton School of Business followed HBS in terms of revenue from open executive education programs accounting for ~% of the overall market share. Wharton School of Business conducted ~ open executive education programs for around ~ enrollees.
MIT Sloan accounted for ~% of the overall revenues from open enrollment programs during 2017. MIT Sloan conducted ~ executive education programs during 2017. MIT campus has expanded online and distance-learning opportunities to address the evolving demands of executives. MIT Sloan has a vast portfolio of executive education courses with more than 50 courses for executive education.
The Bernard M. Baruch College of the City University of New York, commonly known as Baruch College, is a constituent college of the City University of New York system. Baruch College dominated the open enrollment segment in terms of number of programs and number of enrollments during 2017 by ~% and ~% of the overall market share respectively. Other leading players in the US executive education market are Stanford Graduate School of Business, Kellogg School of Management, Columbia Business School, UCLA Anderson School of Business, Stephen M. Ross School of Management and Baruch College.
How is The US Online Executive Education Programs Program Positioned?
The online executive education segment has been trending in the US in recent years. In the online market, the companies and private players act as intermediaries that tie-up with institutions and B-schools who provide online executive education. These intermediaries provide facilities and access for online programs such as flexible schedules, accommodation if needed, class rooms and others. The online segment of the executive education sector in the US is poised to grow with high growth rates in the coming future with the growing technological advancements in the ICT technology and its increased use in the education sector. Online education is advantageous as subscribers can take repeated lectures on the request which is not possible in the case of the in-campus or the offline courses. Over the years, foreign players have increased their presence in the US market with increasing alliances with institutions and universities.
There has been a consistent increase in the demand for customized programmes rather than open enrollment programmes. Domestic companies always aspire to achieve global status, so many professionals have been preferring e-learning from premier institutes to have an access to global industry experts. The other reasons for deriving growth in the industry include 24×7 accesses to lectures and courses, best faculties at student place of convenience, interactive virtual classroom using modern technology and recognized degree and accreditations.
Major Trends in US Online Executive Education Programs Market
The online executive education market in the US has witnessed a considerable growth in the past few years. With the advancements in the technology, cost saving and easy access, the executive education sector has also experienced a shift which has resulted in increase in the value of the overall online segment in the US.
Increasing number of the private players and consultants in the executive education industry has resulted in hike in the demand of the online segment. Virtual class platform has offered greater convenience to the subscribers. The online courses are cheaper as the subscriber doesn’t have to pay the cost of accommodation and the travelling costs for the program which resulted in positive market growth.
Major Institutions and Courses
Major institutions which provide online executive education include University of North Carolina, University of Iowa, University of The Pacific, and USC Marshall School of Business, Michigan State University, Gatton School of Business and Economics and others.
Online executive education segment majorly covers courses such as creative strategy, globalization, digital media, corporate entrepreneurship, emerging leadership, Internet of Things and others.
Future Outlook of US Executive Education Programs Market
The changing pattern of the higher education is going to increase the demand of the executive education programmes in the country as the executives already working in the industry will face stiff competition from the new graduates who will join the industry in future. The US executive education market is anticipated to grow from USD ~ million during 2017 to USD ~ million during 2022 at a CAGR of ~% during 2017-2022. The degree programs in the US are very costly which will result in shift from masters’ degree to executive education programs. It has been anticipated that population of graduates in the US will increase from ~ million during 2017 to ~ million during 2022 which will increase the number of candidates eligible and interested for executive education programs in the US. It is expected that institutions and B-schools will come up with more programs for freshers and entry level professionals, which will result in rising number of courses and enrollees in the market.
Institutions Cited in the Report
List of Companies Institutions Covered in the Report
Harvard Business School
The Wharton School
MIT Sloan School of Management
Stanford Graduate School of Business Major Players in the US Executive
Education Programs Market UCLA Anderson School of Business
Columbia Business School
Northwestern Kellogg School of Management
University of Chicago booth School of Business
Stephen Michigan Ross School of Business
Key Factors Considered in the Report
Executive Education Programs MIT Sloan
Major Universities in Executive Education US
Top Executive Education in US
Enrollment Executive Education USA
Best B-Schools Executive Education US
American B-Schools Executive Education
United States Executive Education Schools
Corporate Learning Market US
Executive Education USA Programs
For more information on the research report, refer to below link:
Related Reports by Ken Research
Ankur Gupta, Head Marketing & Communications