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), and Regional Forecast, 2022-2029

The global learning management system (LMS) market size was valued at USD 14.43 billion in 2021. The market is projected to grow from USD 16.19 billion in 2022 to USD 40.95 billion by 2029, exhibiting a CAGR of 14.2% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the learning management system experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 11.3% in 2020 as compared to 2019.

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 adopt tools to support and enhance the learning process and teaching efficacies. This factor is likely to fuel the demand for a learning management system. Key players in the market 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.

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 closure due to the COVID-19 pandemic. The crisis has dramatically changed the education ecosystem, 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 students' learning process, 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 grows, the LMS industry is also augmenting.

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 an 8.6% increase in web traffic. Thus, the COVID-19 impact is expected to fuel the learning management system demand.

LATEST TRENDS

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Growing Trend of Multichannel Learning to Augment Market

Millennials account for the world’s largest workforce population. According to PWC Millennials at Work report, there will be 50% millennials in the global workforce. The industry is witnessing a change in the employee training approach with millennials' arrival. Considering this, a remarkable shift has been observed in terms of training and learning using e-learning tools.

The workforce's capability to offer faster, upgraded, and application-oriented skills is expected to drive the multichannel learning management system market. 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 learning management 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 adopt the fast-paced, changing work culture, which is expected to fuel its demand in the coming years.

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, many educational organizations are shifting toward interactive online learning methods.

• In October 2019, the Trustees of Princeton University adopted Canvas LMS to offer interactive training, online material, and personalized support to its faculty and students. Hence, online learning and distance learning have escalated the product adoption in higher education institutes.


• In January 2020, UAE-based Khawarizmi International College (KIC) deployed Blackboard’s open-source to improve the teacher and student-connected learning experience. Its customizable, multiplatform, intuitive tools focus on enhancing the user experience.

The acceptance of online teaching and learning methods increases 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 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. These factors may challenge the market growth.

SEGMENTATION

By Component Analysis

High Demand for E-learning Solutions to Drive Solution Segment

Based on component, the global LMS market is bifurcated into solutions and services. 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 amongst the trainer and learners, the consulting services sub-segment is expected to lead this market.

By Deployment Analysis

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Flexible Pricing to Propel Cloud Segment in the Near Future

Based on deployment, the market is segmented into on-premises and cloud. Earlier, the on-premises segment dominated the market due to its in-house safety and security capabilities. However, small organizations and educational institutes are inclining toward cloud-based deployment models, owing to its flexible pricing options. The ease of operation while connecting various applications and services is escalating 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 for learning management system.

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 LMS in 2020. Such rapid surge in 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.

REGIONAL INSIGHTS

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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 market for learning management system, owing to rising ed-tech activities across the region. The U.S. has a large number of colleges and universities. This factor would create a huge opportunity for the players to expand their businesses in this country. In 2020, as per the EdSurge ed-tech funding database, the U.S. education technology startups invested USD 2.2 million in venture and private equity funding in 130 deals. The investment is approximately 30% higher than the previous year, which was USD 1.7 million in 2019. Therefore, North America is a key contributor to market growth.

Similarly, the adoption of open-source LMS has expanded in Europe. According to the European Ed-Tech Funding Report, 2021 report published by Brighteye Advisors, the Ed-Tech funding in Europe increased up to USD 711 million in 2020 from USD 651 million in 2019. Online learning has an escalating demand across European education and the corporate sector.

Asia Pacific is likely to showcase strongest growth over the forecast period. China, Australia, India, Japan, Malaysia, Singapore, and other developing economies of Asia Pacific focus 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 million to promote e-learning technology across the country. Similarly, the ed-tech 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 Asia Pacific.

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Over the last two decades, Latin America’s government directed its focus on developing the education sector. For instance, in April 2021, the University of New Mexico selected Canvas to extend its academic LMS. With the 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

Dominant Players Offer Strong Product Portfolios to Expand Market Opportunity

Key players are focusing on continuous development of their product portfolios by leveraging advanced technologies. To meet the demand for industry-specific and custom offerings, they expand their product portfolios. For instance, in December 2019, Absorb Infuse enhanced its LMS by adding machine learning capabilities to facilitate 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 million to offer end-user LMS solutions. This acquisition allows the company to expand its product portfolio.

List of the 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:

• March 2021 – Telania, LLC powered eLeaP announced the upgrade of its learning management solution with the additional on-the-job training (OJT) tracking feature. Through this feature, the user can select any OJT from various sessions, such as metrics, industry-based compliance, close skills gaps, and government regulations, among others, to achieve other crucial milestones.


• March 2020 – SAP SE started a new digital learning initiative to support professionals and students amid COVID-19. This will offer interactive and innovative educational content to continue the education virtually.

REPORT COVERAGE

An Infographic Representation of Learning Management System Market

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The 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.

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