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The corporate learning management system (LMS) market is estimated to grow at a CAGR of 23.99% between 2022 and 2027. The size of the market is forecast to increase by USD 23,037.66 million. The growth of the market depends on several factors, including the implementation of cloud-based corporate LMS, the replacement of legacy LMS, and the increased need for skilled employees.
This report extensively covers market segmentation by deployment (on-premise deployment and cloud deployment), end-user (large enterprises, small, and medium enterprises), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The implementation of cloud-based corporate LMS is notably driving the market growth, although factors such as technical constraints to implement corporate LMS may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Corporate Learning Management System (LMS) Market Driver
The implementation of cloud-based corporate LMS is notably driving market growth. The global corporate LMS market is expected to register exponential use of cloud-based LMS. Cost benefits associated with the use of cloud-based LMS are one of the primary factors accounting for this trend. Therefore, the use of cloud services helps companies reduce costs as they do not require servers to install LMS services. This cloud-based LMS is mainly helpful for small and mid-size enterprises that lack the skilled staff and expertise to manage operations.
Moreover, with the implementation of cloud-based services, users can avail of hassle-free system upgrades and maintenance to respond to the continuously changing market dynamics. Additionally, with the rise in the use of mobile devices in the corporate sector, cloud-based LMS vendors are incorporating mobile accessibility with better integration options and large storage space. It also acts as a prominent tool in offering customized learning and content delivery. Therefore, the abovementioned factors will drive the growth of the market during the forecast period.
Significant Corporate Learning Management System (LMS) Market Trend
A customized learning environment is an emerging trend in the market. The advanced LMS services that are being developed by the vendors are equipped with built-in analytical features to track the content that is being accessed by the users, such as pages most visited and other minute details. Such details are stored and analyzed to design content specific to the data collected. Thus, market vendors are expanding their businesses with partnerships and M&As to serve large organizations with customized compliance training.
The feedback received from online mentors and analytical features embedded in the software, such as a progress tracker and course alerts, help learners to gauge their performance with respect to other learners. Moreover, the provision for generating personalized reports provides crucial insights into subject understanding that can be practiced through personalized practice quizzes and questions. Hence, these factors will fuel the market growth during the forecast period.
Major Corporate Learning Management System (LMS) Market Challenge
Technical constraints to implementing corporate LMS are major challenges impeding market growth. Customization and integration are some of the technical constraints in implementing LMS solutions in the corporate sector. Most organizations are facing a challenge in the customization of LMS solutions followed by integration.
LMS vendors need to provide technical support to the end-user companies to enhance the product functionality, but the support can be withdrawn if the clients impose cost reductions, thereby creating challenges for the companies in implementing LMS. Hence, companies deal with issues of customization in terms of features, content creation, format, and delivery methods.
SaaS-based LMS solutions are not easily integrated with other business applications as the technology stack used in it differs from other software. To achieve the real potential of e-learning through the use of LMS solutions, companies need to integrate their LMS with existing business applications. Lack of integration and inappropriate LMS implementation leads to inefficiencies in the business processes, which in turn are likely to reduce users' interest in developing newer online courses. Therefore, such factors will hinder the market growth during the forecast period.
Key Corporate Learning Management System (LMS) Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Corporate Learning Management System (LMS) Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Axonify Inc. - The company operates under one segment. The company under this segment provides solutions for training, reinforcing, communicating, integrating, and pricing for various industry sectors. The key offerings of the company include corporate learning management system solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Technavio categorizes the global corporate learning management system (LMS) market as a part of the global application software market within the global IT software market. The parent global application software market covers companies that are engaged in developing and producing application and system software. It also includes companies offering database management software. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The market share growth by the on-premise segment will be significant during the forecast period. Most corporates have incorporated on-premise LMS deployment. The presence of technical staff in the company helps them in installing and using the software and tools that are suitable and useful. Therefore, the availability of in-house technical expertise saves them the cost of outsourcing the services to third-party solution providers.
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The on-premise deployment segment was valued at USD 2,606.06 million in 2017 and continued to grow until 2021. Technical training is one of the key components in various industries, including IT and manufacturing setups. Since both are completely process-based, every single step in task execution can have significant impacts on the overall productivity of businesses. Therefore, there is an increased focus on imparting technical skills such as coding, programming, analytics, technical writing, and project management to employees in industries and IT companies through the on-premise deployment of LMS. With the increasing amount of data, technical expertise through the on-premise deployment of LMS in Data Mining and Big Data is also trending across corporations around the globe. Additionally, many corporate organizations are implementing LMS tools via on-premise deployment. Despite high costs, companies prefer on-premise solutions because they can be easily installed and are relatively secure to use. These services also enable companies to customize and integrate other software and devices within the installed network. Therefore, such factors will boost market growth during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in North America is expected to grow at a moderate rate during the forecast period. In the corporate training and talent management process, organizations in North America have been a pioneer in introducing job-related and skills-related training, which has been widely followed across the world. While some organizations develop patented training by collaborating with training institutes, others offer customized licensed services developed by leading training institutes. With the presence of many multinational companies and other large organizations, there is a huge demand for corporate training solutions.
The US is a prominent consumer of training solutions due to the favorable policies implemented by the government. In 2021, among all fields, the highest demand was for technical training pertaining to risk and security management, followed by network designing in corporate firms. Hence, the necessity to create training and close the skills gap and reskill employees are huge. Furthermore, governments are also making efforts to promote corporate learning and training. Such initiatives are likely to boost the demand for corporate LMS in the region. This, in turn, is expected to drive the growth of the market in North America over the forecast period.
The COVID-19 pandemic induced-lockdowns had devastating effects on the market. However, with the lifting of lockdown restrictions and the adoption of effective vaccination measures, companies in the manufacturing industry, such as Volkswagen Group and others, tried to get back into their businesses. Many companies that underwent the negative after-effects of the pandemic announced plans to increase productivity by investing in automation technologies and accelerating the effects of technology megatrends. Thus, companies are providing online training, especially to low-skilled employees and new employees, thereby driving the growth of the regional corporate LMS market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Deployment (On-premise deployment and Cloud deployment), End-user (Large enterprises, Small, and medium enterprises), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).
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Corporate Learning Management System (LMS) Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 23.99% |
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Market growth 2023-2027 |
USD 23,037.66 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
23.29 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 33% |
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Key countries |
US, Canada, China, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adobe Inc., Aptara Inc., Axonify Inc., Bigtincan Holdings Ltd., Blackboard Inc., City and Guilds Group, Cornerstone OnDemand Inc., D2L Corp., Docebo Inc., HealthStream Inc., Heuristix Digital Technologies Private Ltd., International Business Machines Corp., iSpring Solutions Inc., iTacit, Jzero Solutions Ltd., Oracle Corp., Paradiso Solutions, Pluralsight Inc., SAP SE, and Skillsoft Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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