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

Learning Management System (LMS) Market Forecast 2023-2027

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. 

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

The Market shows accelerating growth during the forecast period.

Request Free Sample in PDF

The market is driven by various factors, including the increasing integration of technology in educational institutions and the rising use of smartphones and communication devices for learning. LMS platforms cater to schools and organizations by providing access to educational content, courses, and certification programs. These systems facilitate progress tracking and offer personalized learning experiences for individual learners, supporting upskilling and reskilling initiatives in response to evolving business landscapes. With the growing demand for internet connectivity, LMS solutions play a vital role in enhancing education delivery worldwide.

Market Segmentation

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.

By End-User 

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.

Get a glance at the market contribution of various segments View PDF Sample

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.

Regional Insight

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

View the Bestselling Market Report Instantly

Market Dynamics and Customer Landscape

The market is experiencing exponential growth driven by the digitalization of industries and the increasing demand for remote learning solutions. LMS platforms are transforming academic and corporate settings by offering online courses, blended learning models, and flexible learning options. They enable organizations to implement training programs efficiently, upskill employees, and track progress effectively. With interactive and smart learning platforms accessible via smartphones and other communication devices, educational institutions and businesses are embracing technology to deliver engaging educational content and certifications. As the need for upskilling and reskilling continues to grow in the dynamic business landscape, the LMS market anticipates sustained expansion.

Significant Market Trends

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.

Major Market Challenge

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.

Customer Landscape

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

Who are the leading players in the LMS market?

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:

• 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.
• Xperiencify LLC

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.

Market Analyst Overview

The market is witnessing exponential growth driven by the widespread digitalization of industries and the increasing demand for remote learning solutions in both academic and corporate settings. LMS platforms play a pivotal role in facilitating blended learning models that offer flexible learning options to upskill employees effectively. These platforms leverage Interactive platforms and smart learning platforms to cater to the diverse needs of learners accessing content through Smartphones and other communication devices with reliable internet connectivity. As the demand for educational content rises, LMS platforms must adapt to accommodate individual learners seeking upskilling and reskilling opportunities in today's dynamic business landscape.

In the realm of Global Learning Management Systems (LMS), technology stands as the cornerstone, continually evolving to meet the diverse needs of learners. As organizations emphasize the importance of skills, certifications become integral, prompting the rise of mobile learning solutions to provide flexible access. The emphasis on user experience drives providers to enhance their platforms, expanding offerings to cater to varied learning preferences. Collaborations through strategic partnerships foster innovation and promote lifelong learning initiatives. However, challenges like budget constraints and reduced spending amid digital transformation efforts require agile solutions to ensure the sustainability and accessibility of LMS platforms for global audiences.

Segment Overview

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. 

• End-user Outlook
  • Academic
  • Corporate

• Deployment Outlook
  • On-premise
  • On-cloud

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

 

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  44.97 billion
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 market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

View PDF Sample

What are the Key Data Covered in this Market Research 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 size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. Get in touch