Learning Management System (LMS) Market Size, Share & COVID-19 Impact Analysis, By Component (Solutions and Services), By Deployment (On-Premise and Cloud), By End-user (Academic and Corporate), By Enterprise Type (Small and Medium Enterprises (SMEs)) and Large Enterprises), and Regional Forecast, 2023-2030

The global Learning Management System (LMS) market size was valued at USD 16.19 billion in 2022 and is projected to grow from USD 18.26 billion in 2023 to USD 47.47 billion by 2030, exhibiting a CAGR of 14.6% during the forecast period.

The demand for interactive and smart learning platforms, such as mobile education, open online courses, online tutorials, and electronic learning (e-learning) is escalating notably with the rising preference for learning and training sessions. Educational institutions implement solutions to enhance and support teaching and learning efficacies. This factor will likely fuel the need for a Learning Management System (LMS). In addition, major companies in the market are also exclusively catering to the growing demand for secured, customized, and interactive learning solutions. For instance, 

• In August 2020, Prepaze introduced Unik, a customizable LMS, to provide an interactive experience to students during online learning.

COVID-19 IMPACT

Rapid Adoption of E-learning Amid COVID-19 Pandemic to Drive Market Growth

The global novel coronavirus pandemic caused the temporary closure of schools, colleges, and other educational institutions. According to the World Economic Forum (WEF) publicized report, in April 2020, more than 1.2 million students across 186 countries were affected by school closures due to the COVID-19 pandemic. The crisis has dramatically changed the education ecosystem, escalating the demand for online learning platforms. Strict lockdown regulations forced the faculty and trainers to adopt proactive online teaching and learning solutions. For instance, to continue the students' learning process, in February 2020, the government of China instructed education providers to power online learning platforms. These actions have expanded the Learning Management System market share.

Additionally, the pandemic pushes businesses to adopt work-from-home or remote working policies. For instance, in April 2020, the U.S.-based Training Industry, Inc., saw 8.6% increase in web traffic. Thus, the COVID-19 impact is expected to fuel the market.

LATEST TRENDS

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Growing Trend of Multichannel Learning to Augment Market Expansion

Millennials makes up for the main workforce population globally. As per PWC Millennials at Work report, 50% of millennials makes up for global workforce. There has been a change in the approach to employee training with the arrival of millennials. Keeping this in mind, a noteworthy change has been witnessed in terms of learning and training to use e-learning tools.

The employees’ ability to offer quicker, application-oriented, and advanced skills are anticipated to drive the market growth. The platform has flexibility to access training or learning anytime. It has become an appropriate learning tool in the corporate sector. Cutting-edge multichannel learning management platforms offer flexible, inclusive, and user-friendly eco-system which is increasing the traction in the industry. Multichannel learning enhances flexibility by offering independence in the channel and custom-made training sessions. It helps in the adoption of the fast moving, shifting work culture, which is expected to drive its demand in the forecast period.

DRIVING FACTORS

Popularity of Online Learning and Training in Higher Education to Escalate Market Growth

Institutions are prominently adopting online interactive learning methods to gain a competitive edge. With the growing internet penetration and cloud adoption, the learning management model offers user-friendly content creation and distribution solutions across websites, mobiles, and social platforms. The platform also helps to administer, report, track, and automate the process of online learning courses. Thus, numerous educational organizations are shifting toward collaborative online learning methods. 

• In January 2020, Khawarizmi International College (KIC) in the United Arab Emirates adopted Blackboard's open-source code to improve the learning experience between teachers and students. Its customizable, versatile, and intuitive tools focus on improving the user experience.

The acceptance of online teaching and learning methods has increased in the education industry. Thus, the rising popularity in higher educational institutes is set to drive the Learning Management System market growth.

RESTRAINING FACTORS

Strong Impact of Traditional Training to Hamper Market Growth

A Learning Management System supports teachers and educators during the learning session. It supplements the classroom and helps in delivering and recording content. Many organizations are using tools for instruction delivery in the traditional classroom. However, as per various surveys, the impact and the end result of traditional teaching are observed to be more impactful. As industry experts, the Learning Management System cannot be applied for hands-on training and practical learning sessions. It can only be used to enhance the learning experience and not to replace the traditional system. These factors may challenge market growth in the coming years.

SEGMENTATION

By Component Analysis 

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High Demand for E-learning Solutions to Drive Solution Segment

The market is bifurcated into solutions and services based on component.The solutions segment is expected to dominate in revenue share due to increasing demand for e-learning solutions catering to different needs in corporate and academic institutes.

The services segment is expected to demonstrate high growth during the forecast period. This segment is further classified as implementation, consulting, and support services. The advanced system offers integration-as-a-service that reduces the implementation time and complexity. Similarly, to establish better collaboration and communication between the trainer and learners, the consulting services sub-segment is expected to lead the LMS market.

By Deployment Analysis

Flexible Pricing to Propel Cloud Segment in the Near Future

Based on deployment, the market is segmented into on-premise and cloud. The on-premise segment dominated the market earlier due to its in-house safety and security capabilities. However, due to its flexible pricing options, small organizations and educational institutes are inclining toward cloud-based deployment models. The ease of operation while connecting various applications and services escalates the demand for the Software as a Service (SaaS) model. Cloud deployment establishes a robust, flexible, scalable, and secure infrastructure, which is anticipated to upsurge the market growth.

By End-user Analysis

Increasing Demand for Effective Learning Tools to Fuel Growth of Academic Segment

In terms of end-user, the market is categorized into academic and corporate. The academic segment is expected to account for major market share during the forecast period due to the growing need for effective learning tools for training students. The segment is further segregated into K-12, and higher education, wherein the K-12 sub-segment dominates the higher education sub-segment. According to the 2020 Capterra report, 64% of k-12 schools and 36% of higher education colleges or universities are using Learning Management System in 2020. Such rapid surge in the adoption of LMS across K-12 is projected to drive the market.

Its increasing adoption in the corporate segment is anticipated to gain rapid growth as it offers flexibility to enterprises to conduct meetings, training, and entrepreneurship programs efficiently despite the distance. Flexible environments for online training are becoming popular across the healthcare, BFSI, IT, and telecom industries. The retail industry is adopting e-learning to offer sales training and provide product insights to their employees. For instance, Gekko launched a digital learning solution for the retail industry to enhance staff, brand, and product knowledge. Such initiatives are expected to surge the demand for Learning Management System.

By Enterprise Type Analysis

Large Enterprise Segment to Lead Supported by Escalating Product Demand

As per our study, LMS solutions are used by large enterprises and small & medium enterprises. The large enterprises segment will dominate the market during the anticipated period due to the early adoption of the solutions. Furthermore, the small & medium enterprises segment is predicted to witness an average growth rate during the forecast period owing to the increasing demand for Learning Management System for SMEs in developing regions such as the Middle East & Africa, South America, and Asia Pacific.

REGIONAL INSIGHTS

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The market is geographically fragmented into five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

North America is likely to dominate the LMS market, due to growing number of ed-tech activities across the region. The U.S. has a large number of colleges and universities. Such large number of educational institutions would create a huge prospect for the players to enlarge their businesses in this country. In 2020, according to EdSurge ed-tech funding database, the U.S. education technology startups private equity funding in 130 deals and invested USD 2.2 million in venture. In 2019, the investment was about USD 1.7 million and in 2020, the investments increased by 30%. Therefore, North America is the primary provider to market growth.

Similarly, the implementation of open-source Learning Management System (LMS) has been extended in Europe. As per the report in 2021 by European Ed-Tech Funding Report published by Brighteye Advisors, the Ed-Tech funding in Europe was USD 651 million in 2019 and it increased to USD 711 million in 2020. Online learning has a mounting demand across corporate sector and European education.

Asia Pacific is likely to experience robust growth over the forecast period. Australia, China, Japan, India, Singapore, Malaysia, and other developing countries of Asia Pacific has been focusing on financing in platforms to promote online training, education, and courses. For instance, in February 2020, TAL Education Group and GSX Techedu who are Chinese e-learning leaders raised about USD 3.2 million to support e-learning technology nationwide. In Australian economy, the ed-tech industry is the second-largest start-up community which is helping in the development of significant market opportunities. Thus, the market will likely witness high growth in the Asia Pacific.

Over the last two decades, Latin America’s government focused on developing the education sector. For instance, in April 2021, the University of New Mexico selected Canvas to extend its academic LMS. With growing internet penetration and smartphone adoption, the Middle East & Africa is also expected to exhibit a healthy growth rate. The demand for e-learning is growing in Saudi Arabia, the UAE, and Qatar.

KEY INDUSTRY PLAYERS

Key Players Offer Strong Product Portfolios to Expand Market Opportunity

Major players are focusing on continuous development of their product portfolio with advanced technologies. They are expanding their product portfolio to meet the demand for industry specific and customized offerings.

LIST OF KEY COMPANIES PROFILED:

• McGraw Hill (U.S.)


• D2L Corporation (Canada)


• SAP SE (Germany)


• Saba Software (U.S.)


• Absorb LMS Software Inc. (Canada)


• Blackboard Inc. (U.S.)


• Cornerstone OnDemand, Inc. (U.S.)


• Oracle Corporation (U.S.)


• IBM Corporation (U.S.)


• Paradiso Solutions LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2022: D2L Corporation released the D2L Brightspace Creator+ package, which allows users to build engaging digital course content by combining workflows into Brightspace, helping course creators save effort, time, and money.


• October 2022: Cornerstone launched its new Talent Experience Platform (TXP), built to aid talent leaders in unlocking their workforce's potential and streamlining the processes.


• September 2022: Cornerstone OnDemand Inc., an HR solutions provider, partnered with BBVA, a banking institution. With this partnership, BBVA utilizes Cornerstone's competencies to advance employee growth strategies and manage multiple talent areas of learning, assessment, recruitment, and mobility.


• September 2022: Instructure, an educational technology organization, partnered with Google. The company provides a robust and comprehensive solution that bridges the integration gap for users of Google Classroom. This integration allows educational institutions to store course data and schedules synchronized between their Google Classroom and student information systems.


• July 2022: Anthology launched Anthology Intelligent Experiences (iX), which uses data for meaningful communication in the classroom and beyond. Anthology iX's approach creates interactive moments by breaking down information silos and connecting knowledge from critical systems to increase engagement in staff, faculty, and students.

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An Infographic Representation of Learning Management System Market

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The report highlights the key regions across the globe for better user understanding. In addition, it provides an overview of the latest industry and market trends and analyzes the technologies being rapidly adopted worldwide. Further, it highpoints growth-stimulating factors and constraints, aiding the reader in obtaining in-depth knowledge of the market.

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