Corporate Learning Management System Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,Canada,China,UK,Germany - Size and Forecast 2023-2027

Corporate Learning Management System (LMS) Market Forecast 2023-2027

The corporate learning management system (LMS) market size is forecast to increase by USD 23.04 billion, at a CAGR of 23.99% between 2022 and 2027. Market growth is underpinned by various factors, notably the adoption of cloud-based corporate Learning Management Systems (LMS). The transition from legacy LMS to modern cloud solutions marks a significant trend driving market expansion. This shift reflects the growing demand for agile and scalable learning platforms that can keep pace with evolving educational needs. Additionally, the emphasis on upskilling and reskilling employees in today's dynamic business environment contributes to the market's upward trajectory. The integration of advanced features and functionalities in cloud-based LMS further enhances their appeal, offering organizations efficient and comprehensive learning solutions. As businesses prioritize employee development and training, the demand for innovative LMS solutions continues to grow, creating opportunities for companies and stakeholders in the corporate learning sector.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

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.

Market Dynamics and Customer Landscape

The market is driven by various factors, such as the increasing adoption of cloud-based solutions and SaaS-based LMS models, catering to the diverse needs of SMEs and corporate clients. Trends include the rise of microlearning, AR, VR, AI, and ML for immersive training experiences. Challenges lie in addressing the limited vocabulary of traditional methods, ensuring retention rates, and meeting the demands of high-risk industries for safe and controlled virtual learning environments. 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 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 companies 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 Market Trend

A customized learning environment is an emerging trend in the market. The advanced LMS services that are being developed by the companies 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 companies 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 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. 

Moreover, LMS companies 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. Therefore, such factors will hinder the market growth during the forecast period. 

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.

Market Customer Landscape

Who are the Major Market Players?

Companies 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 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 companies, including:

• Adobe Inc.
• Aptara 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.

Qualitative and quantitative market growth analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Market?

The market is diverse and caters to a wide range of sectors, from SMEs to large enterprises across various industries. Cloud-based solutions have gained immense popularity due to their scalability and accessibility, offering flexibility to organizations of all sizes. Conversely, On-premises LMS solutions still hold relevance for companies with specific data security or compliance needs.SaaS-based LMS models have emerged as a cost-effective and efficient option, especially for smaller businesses looking to streamline their training and educational programs. Microlearning, AR, VR, AI, and ML are transforming the landscape of corporate learning, providing dynamic and engaging experiences for employees. In the technology and retail verticals, the demand for corporate learning management systems is on the rise, with a focus on a centralized system for managing learning content and delivering online courses. This trend has led to the emergence of specialized e-learning content creators and learning technology providers, catering to the evolving needs of organizations moving away from traditional methods of training.

The market share growth by the on-premise deployment 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 2.61 billion 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. 

Which are the Key Regions for the Market?

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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 pioneers 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.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest market trends and growth opportunities from 2017 to 2027. 

• Deployment Outlook 
  • On-premise deployment
  • Cloud deployment

• End-user Outlook 
  • Large enterprises
  • Small and medium enterprises

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is experiencing significant growth driven by a multitude of factors. Small and Medium Enterprises (SMEs) are increasingly turning to cloud-based solutions over traditional on-premises LMS, embracing the scalability and flexibility offered by SaaS-based LMS models. Technologies like Microlearning, AR, VR, AI, and ML are reshaping the learning landscape, providing immersive and interactive experiences. This transformation is particularly evident in technology and retail verticals, where a centralized system for managing learning content and delivering online courses is essential.

Moreover, the shift towards web-based interfaces and mobile apps has empowered users to access training materials anytime, anywhere, with real-time tracking of user progress and adherence to compliance requirements. LMS providers are enhancing their offerings with advanced analytics capabilities for data-driven business insights, catering to diverse needs across on-premise and cloud-based segments. Large organizations are leveraging LMS platforms to ensure data security, achieve cost efficiency, and provide upskilling opportunities for IT professionals. Content quality, ongoing maintenance, and troubleshooting are focal points during the implementation process, facilitating the industrialization of training and development through e-learning content and learning technology.

Furthermore, across multiple industries, the demand for advanced e-learning solutions with immersive and interactive features, such as realistic simulations and safe virtual environments, is driving adoption. LMS providers are partnering with corporate clients like Coca Cola and Unilever, offering tailored learning programs and facilitating professional development through peer-to-peer knowledge sharing and personalized learning paths. The market's evolution towards cloud technology and enterprise management underscores the critical role of learning software in meeting the evolving needs of employers and supporting continuous training initiatives, including onboarding and channel training within the extended enterprise and Human Resource sectors.

Market Scope
Report Coverage	Details
Page number	162
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 23.99%
Market growth 2023-2027	USD 23.03 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	23.29
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 33%
Key countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
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.
Market dynamics	Parent market analysis, .Market forecasting, 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.
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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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough market research report analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

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