The global e-learning market size was valued at USD 232.47 billion in 2022 and is expected to grow at a CAGR of 13.28% to reach USD 491.35 billion by 2028 during the forecast period. The rise in the penetration of the internet and smartphones is a key growth driver for the global market. The high penetration of smartphones and the internet has revolutionized the delivery of educational content by continuously improving bandwidths and reducing data prices. The U.S., China, and India are prominent ed-tech markets, especially e-learning ones. With the surge in the adoption of artificial intelligence (AI) and digitization, the online education business is undergoing a digital revolution. It is expected to witness a considerable surge in demand. The digital ecosystem has provided better access to advanced learning resources, enhanced the feedback system between instructors and students, and revamped traditional teaching methods to revolutionize the education industry. Moreover, the e-learning market is witnessing many mergers and acquisitions as companies try to expand their horizons and capture the market.
With new creative approaches to offering education, skills, and knowledge, the education ecosystem has shifted from traditional to digitalized, interactive, and personalized forms, favorably impacting the e-learning market. With the rise of artificial intelligence and digitization, the online education business is undergoing a digital revolution. The digital ecosystem has tremendously impacted the education industry by providing better access to advanced resources, enhancing feedback between instructors and students, and revamping traditional teaching methods. Primary, secondary, and business education have all benefited from technological advancements.
MARKET TRENDS & DRIVERS
Increasing Use of Mobile Applications in the E-learning Market
Development in mobile applications is becoming the core strategy of most businesses where older education models are being replaced with revolutionary E-learning applications that have changed the learning process. Mobile applications have introduced several features to offer ease and convenience to overcome various problems faced by students from different demographics and geographical backgrounds. With the help of mobile phones, learning has now become more interactive. The emergence of smartphones in the late 20th century changed the learning scenario.
Increasing Demand for Internet-Enabled Services
Growing internet, mobile, and smartphone penetration is one of the fundamental growth drivers of the e-learning market. This has revolutionized content delivery mode and evolved the method by continuously improving bandwidths and reducing data prices. Governments across the globe hold the key to developing internet infrastructure across countries and formulating the framework for E-learning as the primary and secondary mode for mass education. Primary and secondary education is predominantly funded and regulated by the state and constitutes a key end-user segment in the e-learning market.
Introduction of 5G Technology
The emergence of 5G technology is expected to witness heights by 2023, covering nearly 20% of the global population. The application of 5G will be similar to 4G but more reliable and faster. The bandwidth of connecting to more devices and executing tasks at greater speed without delay will have a huge influence on the e-learning market. The ability to connect more than a million devices per square km will bring out hassle-free advancements in smart classes, cloud technology, and gamification, thereby improving the adoption of a tech-based learning ecosystem. Adopting 5G technology in education has brought huge transformations in a high-quality learning experience with high video and audio quality and a seamless VR experience. The concept of adopting 5G technology is at a nascent stage. It is expected to grow as many companies in the e-learning market are expected to start developing applications compatible with 5G technology.
Inadequate Internet Bandwidth in Developing Countries
For economic and human development, broadband internet access is necessary in developing and developed countries. For delivering essential services such as education and healthcare, the internet is a powerful tool that provides increased opportunities for environmental sustainability and adds to improved government transparency and accountability.
While developed markets such as the U.S., the U.K., and the EU account for the majority demand for online learning solutions, developing countries are the major growth markets because of their rapidly evolving internet and mobile infrastructure. Despite the rise in mobile and internet penetration in these countries, bandwidth and streaming quality are major concerns, often limiting access to sophisticated and advanced learning and training applications. With blended learning gaining foreground and video becoming an integral part of the training-learning curriculum, the role of internet bandwidth becomes even more prominent. The adoption of E-learning products in most emerging economies is largely affected by insufficient bandwidth, hindering the delivery of audio and video content and hampering the e-learning market growth.
INSIGHTS BY DELIVERY MODE
E-learning encompasses various courseware and content delivery services for various end-user applications. Packaged content, LMS, and other emerging learning avenues, including serious games and gamified mobile applications, are the most prominent. Other important learning models increasingly gaining prominence include video-based learning, virtual classrooms, social learning, gamification, and simulations. Of all these, gamification and virtual classrooms stand out in the global e-learning market due to their high engagement level and perceived effectiveness.
Packaged content encompassing ready-to-share e-books, videos, and simulations has existed since the conception of online learning platforms. Packaged content dominated the global e-learning market with a share of over 55% in 2022, followed by the LMS system, which enables easy collaboration of content, testing material, and information exchange among peer groups in the academic and corporate worlds.
INSIGHTS BY LEARNING MODE
The global e-learning market by learning mode is categorized under self-paced and instructor-led. The self-paced learning mode is a preferred choice of learners as it allows them to learn at their schedule and time. Also, the method enables learners to control the amount of study material and time required. In 2022, the self-paced learning mode segment dominated the global industry. The segment is expected to grow at a comparatively higher CAGR than the instructor-led learning mode segment during the forecast period. Under the instructor-led learning mode, the course already has a pre-planned pace, which cannot be altered as per convenience.
INSIGHTS BY FUNCTION MODE
The training function facilitates the learners with lectures (live or recorded) along with necessary notes or other relevant content. In 2022, the global e-learning market was dominated by training functions. Training module packages include notes in PDF, video tutorials, word documents, and assessments to help students learn easier and quicker. Further, testing plays a vital role in measuring the grasping capacity of a learner. It also certifies how well a student has learned a particular subject or course.
INSIGHTS BY END USERS
The global e-learning market by end users is divided into five categories K-12, higher education, corporate, government, and vocational. E-learning is used by corporates to train, communicate, and enhance the value of employees across organizations. They are constantly looking to increase the effectiveness and efficiency of their workforce, and there is a constant requirement to upskill the existing personnel. Due to such factors, the corporate segment is projected to have the highest industry share in 2028. Furthermore, the rising internet penetration and awareness have enabled people to explore and pursue various interests or areas to make a career switch or gain knowledge. Hence vocational courses are in demand in the e-learning market and are expected to rise further in the forecasted period.
North America emerged as the largest e-learning market, accounting for the highest revenue share of over 41% in 2022, owing to efficient learning infrastructure and the development of innovative learning methodologies. High-speed internet, strong connectivity, and easy access allow attendees to provide useful real-time feedback, allowing improvements in interactive E-learning sessions. The surge in the adoption of 5G technology to improve the learning experience is expected to drive market growth. The U.S. and Canada are North America's two most prominent countries, as it hosts the world's highly advanced and largest economies.
Though North America has the strongest infrastructure, APAC is the fastest growing region in terms of infrastructure development and technology adoption as there is a rise in middle-income groups in these regions that are known to be ambitious and willing to spend money to get better experiences, especially for the children concerning all aspects of life. Further, the high growth rate of the e-learning market in APAC is attributable to a considerably large middle-income group in developing countries such as India, which is a preferred market for most vendors. About 1.6 billion of APAC's total population falls within the age bracket of 15 to 64 years, which is the population that can best use E-learning by making the most of it.
The availability of topic competence examinations and certificates propels the e-learning market in Europe to new heights. Assessments on E-learning courses aid in determining a learner's degree of topic competency. They also aid in raising awareness of students' progress in grasping a given concept. Further, the Middle East has proved to be a significant e-learning market as countries in the region have gender disparities, which creates a high scope for E-learning platforms, especially for women, as they usually show a keen interest in developments and upgrades.
Academic and business end users have distinct expectations, learning requirements, and marginal utilities for services supplied. While academic courseware should include highly configurable platforms that allow instructors to change content dynamically, corporate courseware often includes a set of courseware and content structure distributed online to a bigger audience regularly. Distinct forms of learning need different marketing and operational resources; thus, medium-sized providers should concentrate on only a few. Over the previous seven years, the Latin American e-learning market has seen significant mergers and acquisitions. Several companies that began focusing on one or two segments, such as K12 or secondary education, have expanded their offerings and portfolios by acquiring smaller start-ups in distance learning, on-campus post-secondary education, and corporate or government workforce skill training.
Some of the dominant players in the global e-learning market are Apollo Education Group, Blackboard, British Council, Oracle, Pearson, Aptara, Adobe, Skillsoft, and NIIT. These players offer various courses and certifications across various domains, catering to different learning needs. Further, setting the price right to effectively gauge and capture the marginal utility of the potential consumer is another strategic challenge for vendors in the e-learning market. Since there are a few safeguards to protect intellectual property, especially regarding content copyright, vendors must constantly innovate and offer better engaging content effectively.