MOOCs Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, India, UK, Italy - Size and Forecast 2023-2027

MOOCs Market Forecast 2023-2027

The MOOCs market is estimated to increase by USD 27.88 billion and grow at a CAGR of 34.26% between 2022 and 2027. Market growth hinges on various factors, such as the increase in the regional market, which enable collaborative learning in higher education, and the implementation of effective methods for upscaling skills. Challenges in this domain encompass issues like completion rates, deficiencies in learning pedagogy, and problems related to credentialing.  The exponential rise of regional MOOCs stands as a pivotal force propelling the expansion of the massive open online course market. Historically, this market has been largely dominated by English-language courses; however, the recent expansion into languages such as Chinese, German, and Spanish has significantly widened the appeal of MOOCs, attracting a more diverse audience. This diversification not only caters to learners with different language preferences but also unlocks opportunities in emerging economies where proficiency in English may be less prevalent. Major platforms such as Coursera have astutely recognized this shift and consequently diversified their course offerings, signaling the untapped potential for further growth in the market.

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

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Segmentation

This report extensively covers market segmentation by type (XMOOCs and CMOOCs), subjects (technology, science, business and management, arts and humanities, and others), and geography (North America, APAC, Europe, 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.

By Type

The market share growth by the XMOOCs segment will be significant during the forecast period. It refers to extended MOOCs, which are primarily based on traditional university courses. Such solutions expand the number of students that can take university-level courses. The global market is expected to record steady growth during the forecast period.

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The XMOOCs segment was valued at USD 1.98 billion in 2017 and continue to grow by 2021. Although the introduction was driven by cMOOCs, currently, most providers offer courses on the platform. Market leaders such as Coursera Inc. and Udacity Inc. serve MOOC learners using this model, as these are predicted to be more effective than cMOOCs, especially for higher education and corporate learners. As many learners pursue MOOCs to increase literacy levels and attain skills that are necessary to stay competitive in the market, delivering the same on these is more feasible. Further, it is easier for course providers to attract and retain learners by using these models, as this platform enables structured video lectures, computer-marked assessments, peer assessments, online degrees, certifications, and digital badges. Such factors will increase the market growth during the forecast period.

By Region

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North America is projected to contribute 35% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US, being the technology hub of the world, exhibits a high demand for individuals proficient in the field of technology. The US is one of the major contributors to the growth of the market in North America, followed by Canada and Mexico. A substantial number of courses for the US market are designed for corporate learners as the demand for academic MOOCs in the US is comparatively low. Students of this region opine that they have access to adequate quality education, and hence, there is a lesser need to invest. On the other hand, the Millennial group, which mostly comprises the corporate workforce, is keener on pertaining to technology, business, and management, followed by personality development. The primary reasons for the growth of the market in the region are diminishing technology barriers. In addition to this, various government organizations in the US have started rolling out multiple initiatives that not only increase awareness among the people but also help identify new models that could improve the effectiveness in both the higher education and the K-12 sector, along with corporate offices.

Market Dynamics and Customer Landscape

The market is witnessing exponential growth due to the proliferation of digitalization and the widespread accessibility of smartphones and the Internet. As technology continues to advance, massive open online courses are becoming increasingly popular among learners seeking alternative educational opportunities beyond traditional classroom education. The convenience and flexibility offered by MOOCs appeal to both educators and learners, allowing them to access high-quality educational content from anywhere at any time. Moreover, the rising demand for technology skills, particularly in areas like computer science, Blockchain, AI, data science, and cybersecurity, is driving the adoption of MOOCs as a means to acquire relevant expertise and stay competitive in the job market.

Another significant driver in the market is the democratization of education. MOOC platforms like Class Central and edX offer a diverse range of online courses, including postgraduate degree programs, enabling learners from various backgrounds to access education that was previously limited by geographical barriers, financial constraints, or educational infrastructure. The scalability of MOOCs allows for self-paced learning and real-time discussions, fostering interactive and engaging educational experiences. With features like video streaming and face-to-face interactions, MOOCs are revolutionizing education by providing an inclusive learning environment that caters to the diverse needs of learners worldwide, thus driving the continued expansion of the MOOCs market.

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 proliferation of regional MOOCs is a significant driver propelling the growth of the massive open online course market. Traditionally dominated by English-language courses, the expansion into languages such as Chinese, German, and Spanish has broadened the appeal of MOOCs to a more diverse audience. This diversification not only accommodates learners with varying language preferences but also opens up opportunities in emerging economies where English proficiency may be limited. Leading platforms like Coursera have recognized this trend and expanded their course offerings in response, indicating the market's potential for further growth.

A key challenge addressed by regional MOOCs is the language barrier faced by learners, particularly those in regions with lower English proficiency. By offering courses in local languages, MOOC providers aim to empower learners who may lack confidence in English communication skills. This strategy not only enhances accessibility but also fosters cultural diversity, enriching the learning experience for participants. Moreover, catering to the linguistic and cultural needs of diverse learner groups can significantly boost engagement and retention rates, driving revenue growth for both local and international MOOC providers operating in these markets.

Significant Market Trend

Another key factor driving the massive open online course market growth is the extensive application in corporate training. The learning and development paradigm in the corporate training market is witnessing exhaustive developments, mainly on account of increased application technology solutions in training programs. With elements such as e-learning courses, interactive digital content, gamification, visual technologies, and adaptive learning, organizations are in a better position to design and develop training programs. They have enabled many organizations to ascertain training programs where they can implement self-paced learning methods, especially for non-technical topics such as soft skills and compliance training.

Moreover, leading vendors have also witnessed notable demand from governments across the world for both highly-skilled and medium-skilled workforce development. Apart from established enterprises, they have witnessed huge traction in the SMB segment as well. Key issues these companies deal with are funding, product innovations, and working capital management. Employee skills development, although necessary, is not a focus area owing to the limited availability of resources. Hence, to manage the skills gap, one of the measures startups have begun to implement is to enroll their employees in a pre-determined set of MOOCs that align with their business requirements.

Major Market Challenge

Completion rates are one of the key challenges hindering the massive open online course market growth. The leading vendors are introducing numerous solutions at a rapid pace, and the issue of persistently high drop-out rates continues to challenge the profitability of many vendors in this market. Conventionally, the course completion rate for technical courses has been less than 15% for most classes, irrespective of the course and service provider. Although the objective of providing knowledge through MOOC platforms is knowledge-sharing and better access to free education, the persistent issue of completion rates continues to be a primary concern.

These issues represent the growth potential of enrolments, which is a strong indicator for various investors who fund MOOC providers. Further, low completion rates increase the ambiguity among learners as they could conclude that due to factors such as low quality and lack of accreditation, these courses are not being considered by the learners who have dropped out of the courses they enrolled for. In addition, other factors leading to high drop-out rates are the lower availability of appropriate recommendation systems and the low scope to implement customization using embedded analytics due to the large learner base for many courses these service providers offer.

Key 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 Market Customer Landscape

Who are the Major MOOCs Market Companies?

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.

360training- The company offers MOOCs in job-oriented fields such as Meditech, HR, power and utility, insurance, and politics. Also, The company operates as an online training school specializing in programs such as food & beverage, environmental courses, science, and business.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Alison
• Ambow Education Holding Ltd.
• Coursera Inc.
• edX LLC
• Instructure Holdings Inc.
• iTutorGroup Inc
• iversity Learning Solutions GmbH
• NIIT Ltd
• Pearson Plc
• SAP SE
• Seek Ltd.
• Simplilearn Solutions Pvt. Ltd.
• SkillShare Inc.
• Telefonica SA
• Think and Learn Pvt. Ltd.

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.

Segment Overview

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. 

• Type Outlook 
  • xMOOCs
  • cMOOCs

• Subject Outlook 
  • Technology
  • Science
  • Business and Management
  • Arts and humanities
  • Others

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

Market Analyst Overview

The market experiences exponential growth driven by digitalization, smartphones, and internet accessibility. Information and communication technologies empower educators to transcend traditional classroom education through digital learning and computer science. Innovations like Blockchain and Artificial Intelligence (AI) enhance smart cities and cryptocurrency integration. MOOC platforms like Class Central and FutureLearn offer diverse online courses, fostering technology skills and postgraduate degree programs. Despite geographical barriers and limited infrastructure, MOOCs democratize education, catering to lifelong learners from low-income backgrounds. Technological advancements ensure scalability, while real-time interactions and automated feedback systems enrich the learning experience, revolutionizing education worldwide.

Furthermore, the market is thriving with the rise of data science, data analytics, machine learning, and cybersecurity courses offered by platforms like edX and UCRX. Global University Systems (GUS) integrates AI-powered career management solutions into Massive Open Online Courses (MOOCs), enhancing professional development opportunities. Despite challenges like limited infrastructure and financial barriers, MOOCs cater to learners in remote areas, with diverse content available in multiple languages. Through video streaming and open access study materials, MOOCs create virtual classrooms fostering real-time discussions and peer-to-peer interaction. With technological innovations and free educational resources, MOOCs continue to revolutionize learning in the digital age.

Additionally, edX and UCRX address educational challenges like limited infrastructure and physical disabilities by offering online courses in statistics and AI/machine learning. This flexibility accommodates learners with work and family commitments, making education cost-effective without the need for physical classrooms while still facilitating face-to-face interactions in virtual settings.

MOOCs Market Scope
Report Coverage	Details
Page number	173
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 34.26%
Market growth 2023-2027	USD 27.88 billion
Market structure	Fragmented
YoY growth (%)	33.02
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 35%
Key countries	US, China, India, UK, and Italy
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	360training.com Inc., Alison, Ambow Education Holding Ltd., Coursera Inc., edX LLC, Instructure Holdings Inc., iTutorGroup Inc, iversity Learning Solutions GmbH, NIIT Ltd, Pearson Plc, SAP SE, Seek Ltd., Simplilearn Solutions Pvt. Ltd., SkillShare Inc., Telefonica SA, Think and Learn Pvt. Ltd., Udacity Inc., Udemy Inc., Vedantu Innovations Pvt. Ltd., and XuetangX
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, Market condition analysis for forecast period
Customization purview	If our market research 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 market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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