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The Learning Management System (LMS) Market size is estimated to grow by USD 44.98 billion at a CAGR of 20.85% between 2022 and 2027. Cost-effective learning and development programs propel market expansion as educational institutions and corporate learning embrace advanced digital learning environments (DLEs). These DLEs enhance learning program efficacy, task efficiency, and employee retention. Notably, higher education and K-12 LMS sectors witness significant adoption, fostering a move towards active learning, personalization, and innovative degree progress tracking. DLEs form holistic ecosystems, integrating analytics engines and content repositories while adhering to strict interoperability and data exchange standards. The concept of DLEs varies based on the needs of learners, instructors, and institutions, ensuring scalability and customization. It also includes an in-depth analysis of drivers, market growth and trends, and challenges. Furthermore, the market growth analysis report includes historic market data from 2017 to 2021.
The Market shows accelerating growth during the forecast period.
Companies are implementing various strategies, such as market growth and forecasting, strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The company develops customized software to streamline and facilitate data-intensive processes like learning, assessment, training, support, and sales through software applications. The company's key offerings include learning management systems such as Violet LMS.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of the 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.
North America is expected to witness steady growth during the forecast period, mainly due to the increasing demand from corporate organizations. 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 witness steady growth during the forecast period, mainly due to the increasing demand from corporate organizations. Fosters the growth of online learning services in the region through centralized learning, which has driven the demand for corporate LMS in SMBs. Also, SMBs in the region have a strong presence, with the majority of them located in the US, Canada, and Mexico. In addition to this, the growing need for effective and quality education in the developed and developing economies in North America further fuels the growth of the regional market.
North America is projected to contribute 34% by 2027
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The education, mobile education and electronic learning (e-learning) sector have become increasingly prevalent, catering to diverse learners through open online courses and online tutorials. Particularly popular among millennials, these platforms offer multichannel learning experiences, leveraging widespread internet penetration and cloud adoption. Traditional training methods are being supplanted by Software as a Service (SaaS) solutions, especially in sectors like healthcare, BFSI, and telecom industries. Both large enterprises and small & medium enterprises (SMEs) are embracing these technological advancements, recognizing the flexibility and accessibility they afford in education and training. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges for the market. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Based upon the End-user segment academic segment will be significant during the forecast period. The rising popularity of online learning and the increase in the number of universities that provide online learning fuel the growth of the market segment. In the academic sector, the higher education segment dominates and contributes the highest revenue to the market. Further, the growing prominence of m-learning as a mode of teaching in schools and colleges has compelled companies to provide solutions that are compatible with mobile devices, such as mobile phones and tablets, among others. The analytics and reporting features of allow teachers to gain a holistic and detailed view of the student's progress in their respective subjects and develop personalized learning paths for them. This is creating a demand for in the higher education segment, which is expected to remain steady during the forecast period. The growth of this segment is primarily attributed to the increasing adoption of the market (LMS), which is driven by an increase in the global demand market.
The academic segment had a market share of USD 6.70 billion in 2017.
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The global market for the corporate sector is poised for steady growth in the forecast period. The increasing demand for a centralized distribution system and the need for a cost-effective solution to manage company operations and support various systems like enterprise resource planning (ERP), knowledge management systems (KMS), and other support systems are driving market growth. Corporate platforms enable companies to deliver online training courses, reducing the operational costs associated with employee training. With corporates can provide online courses to employees and remotely monitor their progress, resulting in reduced hardware costs and office space requirements compared to traditional classroom training.
The market is witnessing rapid growth driven by the increasing demand for online education and training solutions across various industries. LMS software serves as a comprehensive platform for delivering e-learning content, managing training programs, and assessing learner performance. Key features include user-friendly interfaces, scalability to accommodate diverse user bases, and customization options to tailor the learning experience. Integration with analytics tools enables organizations to track learner progress and evaluate the effectiveness of training initiatives. With robust support and a wide range of content modules, LMS providers are revolutionizing education and training delivery in the digital age.
The increasing popularity of cloud-based LMS is the primary trend driving the market growth. Due to the advent of advanced technologies, there has been a heavy emphasis on the increased adoption of cloud-based solutions. As a result, many traditional providers are switching to cloud-based LMS. Cloud-based LMS eliminates the need for the deployment of servers at the organization's premises and is generally hosted on the providers' servers. The purchase of cloud-based LMS is generally subscription-based, therefore resulting in a low initial cost.
The implementation cost related to cloud-based LMS is also much lower when compared with traditional LMS, as there is no need to devote time or human resources to the installation of programs. Additionally, cloud-based e-learning is faster to set up and requires less time to be deployed. Also, the subscription rates are much lower in comparison to the cost of purchasing and implementing a traditional LMS. As a result, many companies of traditional LMS solutions are opting for penetration pricing for solutions. This is driving down the cost of LMS, making it more accessible and affordable even in Tier 2 and Tier 3 schools.
An increase in the number of open-source may impede the market. The industry will continue to face intense competition from the open-source solutions industry. The global market has seen major growth in open-source solutions. In contrast to traditional, open-source has witnessed increased adoption in the academic sector, especially in the higher education sector, when compared with the corporate and K-12 sectors. Because of the increased adoption, the market has witnessed an influx of providers offering open-source platforms for end-users.
For instance, Sakai offers a specifically for educational institutions. This incorporates various tools, such as online testing and can be easily integrated with Google Docs. Moodle, an open-source, is another popular offering in the market. Open-source offers several advantages over proprietary, with the biggest advantage being cost reduction in terms of obtaining licenses. Unlike proprietary solutions, open-source LMS solutions do not fall under restrictive copyright laws, which deduct the licensing fee from the cost of ownership. The development and maintenance costs for open-source LMS solutions are also lower than those for proprietary LMS solutions.
The market forecasting report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the market trends and analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
In the learning process there's a growing integration of next gen technology such as artificial intelligence to enhance the user-friendly experience and scalability of platforms. As the workforce seeks continuous learning solutions, LMS providers focus on delivering value through innovative modules and marketplace offerings. This market witnesses a steady growth rate driven by the increasing demand for digital learning solutions. LMS platforms play a crucial role in LMS marketing, enabling organizations to streamline training processes and optimize learning outcomes. With advancements in technology, the LMS market continues to evolve, catering to the diverse questions and needs of modern learners and organizations alike.
Learning Management System market is experiencing substantial growth due to the increasing demand for distance learning solutions and the rapid developments in educational technology with smartphones. As government initiatives and businesses invest in innovation to enhance productivity, LMS platforms are evolving to meet the diverse needs of academics, consumers, and corporate training programs. With the rise of mobile learning and multichannel delivery modes, LMS providers like Blackboard and Canvas LMS are integrating cloud and SaaS solutions to cater to educational institutions, large enterprises, and small & medium enterprises (SMEs) worldwide. This dynamic market is characterized by fierce competition, driven by the increasing demand for user-friendly, scalable, and customizable learning platforms that enhance the learning experience for learners and instructors alike.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 20.85% |
Market growth 2023-2027 |
USD 44978.02 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
19.21 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adrenalin eSystems Ltd., Blackboard Inc., Classe365, Clearlake Capital Group L.P., D2L Corp., Degreed Inc., Docebo Inc., Epignosis, GENTLAB S.R.L, Instructure Holdings Inc., Looop Online Ltd., Oracle Corp., Pearson Plc, PowerSchool Holdings Inc., SAP SE, Skillsoft Corp., Tovuti Inc., Violet InfoSystems Pvt. Ltd, Workday Inc., and Xperiencify LLC |
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, Market condition analysis for 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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