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The global learning management system (LMS) market size was USD 10.84 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with LMS witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 23.8% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 13.38 billion in 2021 to USD 44.49 billion in 2028 at a CAGR of 18.7% in the 2021-2028 period. The change in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The demand for smart and interactive learning platforms, such as electronic learning (e-learning), open online courses, mobile education, and online tutorials, is rising remarkably with the growing preference for training and learning sessions. Educational institutes are adopting tools to support and enhance the learning process and teaching efficacies. This is likely to fuel the demand for learning management systems. Key market players are also exclusively catering to the growing demand for customized, secured, and interactive learning tools. For instance, in August 2020, Prepaze launched Unik, a customizable LMS, to deliver an interactive experience to students during online learning.
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. As per the World Economic Forum (WEF) publicized report, in April 2020, more than 1.2 billion students across 186 countries were affected by school closure 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. For instance, to continue the learning process of students, in February 2020, the Government of China was instructed to adopt learning via online educational platforms. As the demand for online learning and e-learning platforms is growing, the learning management system (LMS) industry is also augmenting.
Additionally, the pandemic is pushing businesses to adopt work-from-home or remote working policies. For instance, in April 2020, the U.S.-based Training Industry, Inc., has seen an 8.6% increase in web based traffic. Thus, the COVID-19 impact is expected to fuel the demand for these learning type of management systems.
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Growing Trend of Multichannel Learning to Augment Market
Millennials account for the world’s largest workforce population. In 2017, Manpower Group predicted that out of the global workforce, 35% would be the millennial population by 2020. The industry is witnessing a change in the employee training approach with the arrival of millennials employees. Considering this, a remarkable shift has been observed in terms of training and learning using e-learning tools.
The capability to offer faster, upgraded, and application-oriented skills to the workforce are expected to drive the multichannel learning management system market. As the platform offers flexibility to access learning or training anytime and anywhere, it has become a convenient learning tool across the corporate sector. Advanced multichannel LMS platforms unlock an inclusive, flexible, and user-friendly eco-system, gaining traction across the industry. Multichannel learning augments flexibility by offering channel independence and personalized training sessions. It helps in adopting the fast-paced, changing work culture, which is expected to fuel its demand in the upcoming years.
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 solutions to content management/creation and distribution across websites, mobiles, and social platforms. The platform also helps to administer, report, track, and automate the process of online learning courses. Thus, many educational organizations are shifting towards interactive online learning methods.
The acceptance of online teaching and learning methods is increasing in the education industry. Thus, the rising popularity in higher educational institutes is set to drive the learning management system market growth.
Strong Impact of Traditional Training to Hamper Market Growth
A learning management system is a supporting tool for teachers and educators during the learning session. It supplements the classroom that 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 per industry experts, it cannot be applied for hands-on training and learning practical sessions. It can only be used to enhance the learning experience and not to replace the traditional system. This is expected to challenge the market growth.
High Demand for E-learning Solutions to Drive Solution Segment
Based on components, the global LMS market is bifurcated into solutions and services. The LMS solution segment is expected to dominate in terms of revenue share owing to the 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, for establishing better collaboration and communication amongst the trainer and learners, the consulting services sub-segment is expected to grow and lead the market.
Flexible Pricing to Propel Cloud Segment in the Near Future
Based on deployment, the market is segmented into on-premise and cloud. Earlier, the on-premises segment dominated the market in terms of share owing to its in-house safety and security capabilities. However, small organizations and educational institutes are inclining towards cloud-based deployment owing to its flexible pricing options. The ease of operation while connecting various applications and services is escalating the demand for the SaaS model. Cloud deployment models establishes a robust, flexible, scalable, and secure infrastructure, which is anticipated to upsurge the growth of this market.
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Increasing Demand for Effective Learning Tools to Fuel Growth of Academic Segment
In terms of end-users, the market is categorized into academic and corporate. Among these, the academic segment is expected to account for more than half of the market share during the forecast period owing to the growing need for effective learning tools for training students. The segment is further segregated into K-12 and higher education, wherein the higher education sub-segment is dominating over the K-12 sub-segment. As per the 2018 report of the Australian Trade and Investment Commission, 54% of higher education and 42% of K-12 are investing in the U.S. EdTech market.
Its increasing adoption in corporate 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 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, to enhance staff, brand, and product knowledge, Gekko launched a digital learning solution for the retail industry. Such initiatives are expected to surge the demand for learning management systems.
North America Learning Management System Market Size, 2020 (USD Billion)
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Geographically, the market is fragmented into five major regions, such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
North America is likely to dominate the learning management systems market owing to the rising EdTech activities across the region. The United States has a large number of colleges and universities. This would create a huge opportunity for the players to expand their businesses in this country. In 2017, the Australian Trade and Investment Commission (Austrade) stated that the U.S. had been a global Ed-tech fundraising leader, accounting for almost 58% of the worldwide Ed-tech contracts since 2013. Therefore, North America is a key contributor to market growth.
Similarly, the adoption of the open-source learning management system has expanded in Europe. According to the European Union, in 2018, the European government expenditure on the education industry amounted to EUR 624 billion (USD 699.97 billion) or 4.6% of the total gross domestic product (GDP). Online learning has an escalating demand across European education, as well as the corporate sector.
Asia Pacific is likely to showcase the strongest growth over the forecast period. China, Australia, India, Japan, Malaysia, Singapore, and other developing economies of Asia-pacific are focusing on investing in platforms to promote online education, training, and courses. For instance, in February 2020, Chinese e-learning leaders, such as TAL Education Group and GSX Techedu, raised around USD 3.2 billion to promote eLearning technology across the country. Similarly, the EdTech industry is the second-largest start-up community of the Australian economy, and it is developing significant opportunities for the market. Thus, the market is likely to witness high growth in the Asia Pacific region.
Over the last two decades, Latin America’s government directed its focus on the development of the education sector. For instance, in April 2021, the University of New Mexico selected Canvas to extend its Academic Learning Management System. With the growing internet penetration and smartphone adoption, the Middle East and Africa are also expected to exhibit a healthy growth rate. The demand for e-learning is growing in countries such as Saudi Arabia, U.A.E., and Qatar.
Dominant Players are Offering Strong Product Portfolios to Expand Market Opportunity
Key players are focusing on the continuous development of their product portfolios by leveraging advanced technologies. To meet the demand for industry-specific and custom offerings, they are expanding their product portfolios. For instance, in December 2019, Absorb Infuse enhanced its learning management system by adding machine learning capabilities to facilitate the intelligent search for users. Similarly, strategic partnerships, acquisitions, and collaborations would help key players to expand their market share.
March 2021 – Blackboard Inc. launched its remote learning solution suite “Blackboard Unite for K-12” for K-12 districts. The aim is to deliver a high-quality virtual teaching and learning experience for educators in the current COVID-19 pandemic situation.
February 2020 – Cornerstone OnDemand acquired Saba Software Inc. for USD 1.4 billion to offer learning management system solutions to its end-users. This acquisition allows the company to expand its product portfolio.
An Infographic Representation of Learning Management System Market
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The market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, it provides insights into the latest industry and LMS industry trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
Value (USD Billion)
Component; Deployment; End User; and Geography
The market is projected to reach USD 44.49 billion by 2028.
In 2020, the market stood at USD 10.84 billion.
The market is projected to grow at a CAGR of 18.7%.
By component, the solution segment is likely to lead the market.
McGraw Hill, D2L Corporation, SAP SE, Saba Software, Absorb LMS Software Inc., Blackboard Inc., Cornerstone OnDemand, Inc., Oracle Corporation, and IBM Corporation are the top players in the market.
North America is expected to hold the highest market share.
By end-users, the academic segment is expected to grow at a significant CAGR.
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