E-LEARNING INDUSTRY INSIGHTS
The global e-learning market size will reach revenues of around USD 388 billion by 2026, growing at a CAGR of 13% during the forecast period. The online learning market is likely to witness an absolute growth of about 110% by 2026. The online education market and content delivery is seeing a paradigm shift from content delivery to interactive learning platforms, language training, functional skill development, proficiency testing, and higher education pedagogy, video streaming of classes to corporate training, talent management, and e-governance. The increasing focus on m-learning, deployment of augmented reality, and cloud infrastructure adoption for hosting applications to derive scalability will create lucrative opportunities for leading online education companies in the market.
The US accounted for the largest market for e-learning platforms, at around 35% of total global revenue in 2020. Leading technologies such as augmented reality, virtual reality, artificial intelligence, and machine learning shape the industry and encourage vendors to develop mobile platforms that boost the real-time interactive experience for the consumers. At present, around 53% of the applications on the app store are mobile e-learning applications and are expected to increase in the future. The onset of the COVID-19 pandemic changed the growth trajectory of the online learning market. The impact of COVID-19 on online education led to a higher number of online learning programs and increase participation in the virtual classroom. In the US, 7 out of the 10 parents of K-12 students, who are currently not in school, report that their child participates in an online distance learning program run by the public or private school they attend.
- Due to the COVID-19 impact, the global online education market grew by over 18% in 2020.
- In 2020, China’s e-learning market was valued at around USD 19 billion primarily due to an increase in private investments supporting the development of the industry.
- The US, China, Canada, South Korea, and Japan were the top 5 digital learning markets in 2020.
- The corporate e-learning market size was at around 30% of the total revenue in 2020.
- In 2020 during the lockdown, the education sector became one of the big bets for investors, mainly EdTech, which has recorded around USD 1.1 billion, which 4 times higher compared to the last year.
- Major deals in the education sector include Byju’s raising USD 200 million from Tiger Global, USD 200 million blends from General Atlantic, and USD 100 million invested by Mary Meeker’s Bond Capital.
E-LEARNING MARKET – GROWTH AND INVESTMENT OPPORTUNITIES
- Major retailers and service platforms such as Alibaba and Tencent are looking to diversify their portfolios with high-potential, technology-enabled, EdTech startups with great market opportunities.
- Professional venture capital funds are looking to create the next unicorns in the tech-enabled learning space. The most active funds include Google Capital, Learn Capital, 500 Start-ups, GSV Capital, First Round, and NewSchools Venture Fund.
- India, the Philippines, Indonesia, China, and Thailand are emerging as top hot spots for cost-effective language training solutions, creating a demand for value-based learning platforms.
- Vendors should offer solutions that offer expertise in open-sourced and content creation platforms, personalized learning, and the deployment of blended learning models.
- Vendors must keep a continuous track of the pricing of new entrants; simultaneously, price-based competition is not recommended, attractive prices can detract buyers, which can be effectively mitigated with innovation and product development.
E-LEARNING MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Delivery Mode
- Learning Mode
- Function Type
INSIGHTS BY DELIVERY MODE
Packaged content by delivery mode to witness an incremental growth of over USD 101 billion by 2026
The packaged content segment occupied around 58% of the e-learning market share in 2020. Private institutional interest toward gamification is on the rise as the vendors are trying to improve the competitive edge of their pedagogy over the conventional methods. The demand for e-learning as a packaged content increases, mainly due to the desire to acquire skills amongst corporates. For instance, the increasing demand for skills in the tech industry such as virtual reality, artificial intelligence, and big data is propelling the adoption of this mode of delivery in the corporate e-learning market. Over the past few years, this has led several vendors to grow and expand their businesses significantly. For instance, Pluralsight, a tech e-learning provider, is one of the fastest-growing companies in Utah. The packaged e-learning content market will continue to grow as corporates’ requirement rises and needs more agility.
LMS is the fastest-growing delivery mode segment in the global market. LMS helps develop an appropriate blended learning strategy and improves departmental efficiency. With the innovation in cloud-based platforms, vendors can offer a wide range of products and solutions in the online education market.
INSIGHTS BY LEARNING MODE
The self-paced learning segment is projected to witness an absolute of around 127% by 2026
The self-paced segment is expected to maintain its dominance, witnessing an incremental growth of over USD 139 billion during the forecast period. Europe, Russia, and the UK have emerged as the major consumers of self-paced e-learning modes over the last decade. The self-paced e-learning segment in countries such as Myanmar, Mongolia, Rwanda, Sri Lanka, Laos, Nepal, Cambodia, Ethiopia, Senegal, Uganda, Mauritius, Mali, Slovakia, Namibia, and Lithuania are expected to grow at a CAGR of more than 15% during the period 2020–2026. About 72.78% of adults consider themselves lifelong learners, creating tremendous growth opportunities for online education companies in the market during the forecast period.
INSIGHTS BY FUNCTION TYPE
The training segment accounted for around 72% of the total e-learning market’s revenue share in 2020
The training segment is projected to witness an absolute growth of approximately 104% by 2026. Computer-based training is a new-age learning method that uses special training programs designed for different tasks. Web-based training is a subset of computer-based training and is made available on the internet through web technologies. The onset of the COVID-19 pandemic propelled the demand for these modes of learning in the global market. Vendors leveraged this demand to expand their product portfolios and widen their customer reach. Training professional, governmental-related, and academic was estimated at around USD 134 billion in 2020.
INSIGHTS BY END-USER
Corporate training services to offer excellent investment opportunities for vendors in the global e-learning market.
The corporate segment will record an absolute growth of approximately 134% during the forecast period. As the COVID-19 pandemic caused the changes in work culture and regulations to become more widespread and permanent, learning and development specialists have taken corporate e-learning as their strategy to empower and train their employees. Players focus on deploying cost-effective, efficient, and time-saving cloud-based solutions to gain a larger share in the corporate training segment.
In companies, e-learning tends to be adopted only in a particular subject matter. Compliance training is the area that is widely adopted in e-learning, and more than 50% of the training related to compliance practices is now delivered online.
INSIGHTS BY GEOGRAPHY
The US and China represented the world’s two largest regions, accounted for a collective e-learning market share of around 46%
The North America e-learning market is expected to post an incremental growth of over USD 62 billion during the forecast period. The corporate sector is expected to remain the largest segment in the North American market. The e-learning market in the US is projected to grow at a CAGR of around 10% during the period. The US is the largest self-paced learning market globally, with the potential to radically influence the prospects in the industry. Together, public and private investments constitute an annual flow of about USD 1.3 trillion into the country’s education system. A significant amount of it is channelized to improve the effectiveness of conventional learning and training methods.
The APAC e-learning market largely includes low-and moderately priced course modules due to numerous vendors offering free or relatively cheaper models to compete with international e-learning platforms. The APAC market, although smaller than the market in North America, is displaying impressive growth driven by some structural changes in key countries such as India and China.
E-LEARNING MARKET VENDOR LANDSCAPE
Vendors offer highly customizable platforms that can enable instructors to customize content dynamically as per the end-user requirements. Setting the price right to effectively gauge and capture the marginal utility of the potential consumer is another strategic challenge for vendors in the market. While freemium offerings with attractive short-term subscription pricing can help players garner a large customer base, continuous investments in product development, especially through gamified and contextualized interfaces, can help them engage and retain the learning audience.
BlackBoard is undeniably the leader in the US market. Its diversified product portfolio and easy-to-operate LMS are some of the factors for its success. The company is developing innovative models that provide great opportunities to deliver better learning and teaching experience.
The e-learning market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Delivery Mode
- Packaged Content
Segmentation by Learning Mode
Segmentation by Function Type
Segmentation by End-user
- Higher Education
Segmentation by Geography
- North America
- South Korea
- South Korea
- Latin America
- Middle East & Africa