Learning Management System (LMS) Market Size, Share & COVID-19 Impact Analysis, By Component (Solutions, Services), By Deployment (On-Premise, Cloud), By Enterprise Size (Large Enterprises, Small and Medium Enterprises), By End User (Academic, Corporate), and Regional Forecast, 2020-2027

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In the last decade, the traditional learning system has been replaced by the smart and interactive learning platforms such as electronic learning (e-learning), online tutorials, massive open online courses (MOOC-courses), mobile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.

LATEST TRENDS

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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.

DRIVING FACTORS

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.

RESTRAINING FACTORS

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.

SEGMENTATION

By Component Analysis

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.

By Deployment Analysis

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.

By Enterprise Size Analysis

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.

By End User Analysis

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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.

REGIONAL INSIGHTS

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.

KEY INDUSTRY PLAYERS

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.

LIST OF KEY COMPANIES PROFILED:

• McGraw Hill. (New York, United States)


• D2L Corporation. (Kitchener, Canada)


• SAP SE (Walldorf, Germany)


• Saba Software (Dublin, California, United States)


• Absorb LMS Software Inc. (Calgary, Alberta, Canada)


• Blackboard Inc. (Washington, D.C., United States)


• Cornerstone OnDemand, Inc. (Santa Monica, California, United States)


• Oracle Corporation (Redwood City, California, United States)


• IBM Corporation (Armonk, New York, United States)


• Paradiso Solutions LLC (Silicon Valley, California, United States)


• CrossKnowledge (John Wiley & Sons, Inc.) (Suresnes, France)


• JZero Solutions Ltd (Slough, Berkshire, United Kingdom)


• Edmodo (Mariners Island Blvd, San Mateo, CA, USA)


• UpsideLMS HR Tech Pvt. Ltd. (Pune, India)

KEY INDUSTRY DEVELOPMENTS:

• March 2020 – D2L Corporation and Bayfield Design Inc. teamed up to offer a free online course on science behind the COVID-19 pandemic to learners and educators.


• May 2019 – D2L Corporation launched the updated version of its cloud-based learning platform named ‘Indigo,’ for motivating employees to drive their own learning experiences.

REPORT COVERAGE

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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.

Report Scope & Segmentation