"Smart Strategies, Giving Speed to your Growth Trajectory"
The global learning management system (LMS) market size was USD 8.76 billion in 2019 and is projected to reach USD 38.10 billion by 2027, exhibiting a CAGR of 19.7% during the forecast period.
In the last decade, the traditional learning system has been replaced by the smart and interactive learning platforms such as electronic learning (e-learning), online tutorials, massive open online courses (MOOC-courses), mobile education (M-education), and others. It is necessary to manage and collaborate the study materials and contents to drive efficient learning. Thus, the adoption of LMS systems has been escalating with the growing acceptance of such online learning platforms. Also, the novel coronavirus crisis has forced the global education systems to accept web-based online learning/ training systems, thereby driving the market growth.
Our findings suggest that the United States is aggressively following the e-learning and online learning ecosystem. The high demand for distance learning in the United States drives the growth of the market across North America. Additionally, employee training programs that cover cloud computing, security, data science, and others are in high demand in the region. These factors are flourishing the market growth across the corporate sector.
A Need to Develop Learning Ecosystem Will Augment Demand
Various countries across the world have directed their attention to the development of the learning ecosystem to offer a scalable, personalized, self-paced, and enjoyable education environment. This has resulted in an increasing demand for digital services in the education sector. The Australian Trade and Investment Commission has predicted in a report published in 2018, that the global digital education service market will be USD 130 billion by the year 2025. Although, since 2013, the U.S. alone has funded for almost 58% of global education technology (EdTech) deals. Therefore, the growing investments in the EdTech are supporting market growth across North America.
COVID-19: Shutdown of Educational Institutions to Surge Demand Rapidly
The global novel coronavirus pandemic is shutting down all the schools and colleges across the world. The World Economic Forum (WEF) has publicized in April 2020 that more than 1.2 billion students from 186 countries have been affected by school closings owing to the COVID-19 pandemic. The crisis situation has changed the education ecosystem dramatically, escalating the demand for online learning platforms. Strict lockdown regulation enforced the faculty and trainers to adopt proactive online teaching and learning solutions.
Several online learning platforms such as BYJU’S are offering free access to their education service platforms. These offerings led learners to utilize the interactive features of online learning which might be here to stay even after the crisis. Owing to the global crisis, since February 2020, the government of China has instructed students to continue their learning via online educational platforms. In April 2020, WEF cited in a publication that almost 81% of K-12 students (approximately 730,000) from Wuhan are attending online lectures. As the online learning and e-learning platforms are achieving success, the learning management system market is also augmenting day by day.
Additionally, the crisis is enforcing businesses to adopt work from home or bring your own device approaches. These approaches led organizations to conduct online training and learning programs for their employees. For instance, in April 2020, Cornerstone OnDemand, Inc. has publicized that almost 27.5 billion user hours were utilized by its learning platform during March 2020. The COVID-19 pandemic has enhanced the demand for virtual tutoring, video conferencing tools, language apps, online learning software, and is, in turn, flourishing the market growth.
Request a Free sample to learn more about this report.
Multichannel Learning is a Key Trend in Learning Management Market
Millennials are consuming the world’s largest workforce population. This generation is majorly in touch with multiple channel platforms. Thus, it is becoming necessary for organizations to prepare with tech-dependent and multichannel training facilities. In this situation, a remarkable shift has been observed in corporate training and learning methods. The systems that can offer faster, upgraded, and application-oriented skills to the workforce, are largely adopted by businesses. Advanced multi-channel learning management platforms unlock inclusive, flexible, and user-friendly eco-system that meet the corporate requirements. Multichannel learning augments flexibility by offering channel independence. The solution helps in improving the fast-paced work ecosystem along with the flexibility to access learning or training at any time and anywhere. Hence, it is becoming favorable across the corporate sector.
Increased Competition in Higher Education to Escalate Demand for Learning Management
The global technology revolution has encouraged the traditional educational landscape to transform by leveraging advanced learning technologies. Many countries including the U.K., U.S., China, Singapore, Australia, and others have started investing money for the development of the educational sector. The United States has been leading in fundraising for education technology since 2014. The growing competition between institutions to offer technology-centered education to their students is encouraging them to adopt several interactive learning methods.
Many higher education organizations are developing technology-focused learning platforms to boost their campus. The advanced educational methods like e-learning, video lectures, massive open online courses (MOOCs), and M-learning are enticing student’s curiosity. Also, these methods are reducing the workload of faculty by automating many educational processes. Hence, organizations are adopting such advanced learning approaches. For instance, in January 2020, UAE based Khawarizmi International College (KIC) deployed Blackboard Inc. patented open-source learning management platform to enhance its education landscape. In this manner, a need to administrate, report, track, and automate the process of online learning courses further increases demand for the system.
Investments by Venture Capital Firms to Accelerate Growth
Education-technology development is a trending business accelerated by many emerging companies. Venture capital firms in the developed countries are majorly supporting such EdTech startups, thereby driving the growth of the market. The United States is majorly seen to be investing money in the educational technology business for several years. Many firms are targeting the K-12 over higher education to invest, hence, injecting a remarkable growth in the market.
According to a report published in 2018 by the Australian Trade and Investment Commission, many U.S venture capital firms are enticingly supporting education technology. For instance, San Francisco-based New School Ventures Fund invested in more than 30 EdTech companies, to support education transformation. Also, Owl Ventures, Kapor Capital, and Exceed Capital has invested in many educational technology developing businesses. Such funding initiatives for transforming education can create opportunities for the market to grow.
Lack of Tailored Approaches to Limit Market Growth
Even though the developed educational institutes are trying every possible way to improve the engagement of learners, certain factors are limiting the market growth. The student-centered education system has expanded the learner’s expectations. Technology again pushed the expectations, thereby demanding a personalized learning experience. Teachers would have a greater impact if they adopt personalized teaching styles as per the learner’s requirements, which is quite difficult to implement. However, it is practically challenging to design the custom solution as per each individual’s requirement. The factor is somewhat confining the market growth.
Services Segment to Exhibit High CAGR Backed by Deployment of Software-as-a-service
Based on component, the global LMS market is segregated into solution and services. Among this, the services segment is expected to demonstrate high growth, while the solution segment will exhibit a moderate growth. The services segment is further classified as implementation, consulting, and support services. In the developed technological era, software-as-a-service (SaaS) platforms are supporting the infrastructure of learning management platforms.
Advanced learning management offers integration-as-a-service that reduces the implementation time and complexity. The support services sub-segment will be growing promptly as it includes the key functions such as administration, performance management, and, content management. For establishing a better collaboration and communication amongst the trainer and the learner, the consulting services sub-segment will also be showcasing a healthy CAGR during the forthcoming period.
Cloud Deployment Models will Dominate Owing to its Ability to Provide Better Flexibility
Based on deployment, the key market for learning management systems is segmented into on-premise and cloud deployment. Organizations that already have deployed the solution prefer the on-premise model of deployment to ensure their convenience. Despite this, the developing small organizations and educational institutes are inclining towards the cloud-based deployment owing to flexible pricing options.
Cloud infrastructure offers better flexibility to learners, as well as trainers with cost-effective service infrastructure. The SaaS model offered by cloud deployment provides simple service-based architecture, which is propelling its demand. The simplicity while connecting various applications and services is escalating the demand for the SaaS LMS model. Also, several key players such as MuleSoft are developing an integration-as-a-service (iSaaS) platform to simplify the integration process. Cloud deployment establishes a robust, flexible, scalable, and secure infrastructure which is anticipated to upsurge the growth of the market.
Small and Medium Organizations Segment to Grow Rapidly Stoked by High Demand for Learning Platforms
Based on enterprise size, the market is segmented into large enterprises and small & medium enterprises (SMEs). Many international universities, educational organizations, and businesses have already enriched by adopting a learning management system. With the growing penetration of broadband internet and remote devices, the adoption of learning platforms has now skyrocketed across the small and medium organizations also. Cloud infrastructure made the platforms affordable and convenient for purchasing, which again, is attracting too many small firms and start-up businesses. The capability to train multiple employees in a cost-effective way will drive the market growth across SMEs.
To know how our report can help streamline your business, Speak to Analyst
Academic Segment to Register a Higher Market Share during the Forecast Period
In terms of end-user, the market is categorized broadly into academic and corporate. Among this, the academic segment will account for more than half of the market share. The academic segment is further segregated into K-12 and higher education, wherein, the higher education sub-segment is dominating over the K-12 sub-segment. According to a report published in 2018 by the Australian Trade and Investment Commission, higher education accounts for about 54% and K-12 accounts for 42% of the U.S EdTech market.
Besides, the ongoing trend of bring your own device or remote workplaces encourages organizations to adopt a unique and collaborative platform to efficiently manage complex business operations. Corporate learning management systems offer flexibility to remote working organizations for conducting meetings, trainings, entrepreneurship programs efficiently despite the distance. Moreover, the advantageous features such as video-conferencing, discussion forums, email, and real-time messaging would drive the adoption of these systems across the corporate sector.
Flexible environments for online trainings are becoming popular across the BFSI, IT, and telecom industries. Increasing adoption of e-learning programs by the retail industry would target sales collateral and efficiently provide the product information. With low training costs, healthcare learning management solutions provide the tracking of learners’ progress, talent management, consistent-flexible learning and, and faster deployment of new learning material. Therefore, its adoption across the healthcare industry will showcase a healthy progress in the coming years.
The market size in North America stood at USD 3.97 billion in 2019. The region is dominating the market with rising EdTech activities across the United States. Growing capital investment for EdTech firms within California, New York, Washington DC, Massachusetts, Texas, and many more states raised the demand across the U.S. The presence of multiple colleges and universities and large spending on technology by the local government would escalate the market growth across the U.S. Therefore, North America is a key contributor in market growth.
Over the last two decades, Latin America’s government has directed its focus on the development of the education sector. Many Latin American countries such as Colombia search majorly for an online course for getting better job opportunities. The growing adoption of smartphone and broadband internet connectivity created opportunities for the market to grow across Latin America. Similarly, Europe is also showcasing a higher adoption of the educational management systems. A large number of e-learning companies are present across Europe which is further strengthening the market across the region.
Asia-Pacific (APAC) is becoming the most significant emerging spot for the leaning management market to develop. China and Australia already have made LMS an integral part of the student’s learning experience. The EdTech industry is the second largest start-up community of the Australian economy and it is developing significant opportunities for the market. But, the developing economies of APAC including India, Japan, and Malaysia have inclined their approaches for adopting online learning methods. Similar other increasing developments across the Asian countries are anticipated to flourish the market growth in future.
With the growing internet penetration and smartphone adoption, the Middle East and Africa is also expected to exhibit a healthy growth rate in the foremost period.
Strong Portfolio and Acquisition Strategy to Propel Absorb LMS Software Inc. to Lead
Absorb LMS Software, Inc. is providing its online learning technology worldwide. It has developed a learning management system named ‘Absorb LMS’ for higher education, government, non-profit agencies, and businesses across the globe.
The company is focusing on the continuous development of its product portfolio by leveraging on advanced technologies. For instance, in December 2019, the company enhanced its learning management platform named Absorb Infuse, by adding machine learning capabilities to facilitate intelligent search for users. Further, the acquisition strategy adopted by the company is positively impacting its business growth.
Major Companies to Follow Organic and Inorganic Growth Strategies to Stay Competitive
The global market for learning management system is illustrating a remarkable growth owing to the strong product portfolio and large distribution network of key companies. However, the growing financial support by venture capital firms is projected to lead the number of domestic players entering the competitive landscape. Product developments to meet the industry-specific and custom-offerings are helping key players to raise their market values.
For instance, in October 2019, Saba Software launched a personalized learning experience platform to provide better learner’s engagement. This is probable to lead to a slightly fragmented market by 2027. Also, strategic partnerships, acquisitions, and collaborations would help the key players to maintain their market lead. The COVID-19 pandemic has further created opportunities for the market players to augment their market values.
An Infographic Representation of Learning Management System Market
To get information on various segments, share your queries with us
The learning management system market research report provides a detailed analysis of the market and focuses on key aspects such as the leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the LMS Industry trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over the recent years.
Value (USD Billion)
By Enterprise Size
By End User
As per our (Fortune Business Insights) study, the global Learning Management market is predicted to reach USD 29.7 Bn by 2026 with a CAGR of 19.1% (2019 -2026).
As per our study, Learning Management has gained importance in recent years. Currently (in 2019), global Learning Management market value at USD 8.7 Bn, and it is anticipated to reach USD 29.7 Bn by 2026 at a CAGR of 19.1% during the forecast period (2019 -2026)
Globally, spending on Learning Management is increasing each year. Some of the regions such as in North America generated a revenue of USD 3.3 Bn in 2018 and is expected to generate a remarkable revenue share by 2026. Active initiatives for E-schools, Smart Education and to enhance education in rural areas have driven the focus of businesses to invest in learning management systems.
In the Learning Management market, learning management solutions and Academic industry end-users are the leading segments. Academic industry is more focused on learning management systems to provide enhanced education facilities to the learners. Also, learning management system provides several ways of learning including online courses, workshops, and others.
Some of the driving factors for the Learning Management market increasing adoption of E-Learning, the popularity of on-demand content, and an impulse towards BYOD (Bring your own device) policy and the cluster of connected devices in IoT, rapid adoption of Artificial intelligence, Machine learning and active government initiatives in the E-learning Industry
In the Learning Management market, some of the key players are McGraw-Hill Education, D2L Corporation, SAP SE, Oracle, IBM, and Cornerstone.These market players are focusing on agreements, acquisition, and developments in the Learning Management market.
North America is expected to hold the highest market share in the Learning Management market. Rising demand for online employee engagement programs and the rapid growth in the number of connected IoT devices is expected to drive the learning management system market growth in North America.
By end-user the Academic industry is expected to exhibit a remarkable growth rate in the learning management system during the foracast period. Deploying the learning management system in K-12 or higher education would offer the key benefits including real-time messaging, videoconferencing, e-mail, and discussion forums that would foster the communication between the parents, students, and the teacher.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry