Enjoy complimentary customisation on priority with our Enterprise License!
The MOOCs market is estimated to grow at a CAGR of 34.26% between 2022 and 2027. The size of the market is forecast to increase by USD 27,877.75 million. The growth of the market depends on several factors, including the rise in regional MOOCs, facilitating collaborative learning in higher education, and effective mechanisms to upscale skills.
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.
To learn more about this report, Download Report Sample
The rise in regional MOOCs is notably driving the market growth, although factors such as the completion rates 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 MOOCs Market Driver
One of the key factors driving the massive open online course market growth is the rise in regional MOOCs. The English language continues to dominate as the medium of instruction in the market. While languages such as Chinese, German, and Spanish have existed, their prevalence was minimal 2-3 years ago. However, as the learner base expanded and with improved technological solutions, leading players such as Coursera have increased their offerings in other languages as well. As discussed, with emerging economies showing a keen interest in affordable online education, there is robust growth potential for courses in respective local languages.
A substantial portion of learners in these potential regions do not have adequate English communication skills. As a result, although they are keen to pursue numerous courses, a lack of English knowledge deters their confidence to interact in learner groups and also grasp the pace of lectures. In addition, it could increase cultural diversity, mainly for learners based in regions such as MEA. With MOOCs in regional languages, vendors intend to overcome these challenges and gain the confidence of this learner group, which presents the huge revenue-generating potential to local and international MOOC providers.
Key MOOCs Market Trend
Another key factor driving the massive open online course market growth is the extensive application of MOOCs 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. MOOCs 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 for MOOCs from governments across the world for both highly-skilled and medium-skilled workforce development. Apart from established enterprises, MOOCs 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.
Key MOOCs Market Challenge
Completion rates are one of the key challenges hindering the massive open online course market growth. The leading vendors are introducing numerous MOOCs 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 enroll 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 MOOCs 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 MOOCs 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.
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:
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.
The market share growth by the XMOOCs segment will be significant during the forecast period. XMOOCs refers to extended MOOCs, which are primarily based on traditional university courses. Such MOOCs expand the number of students that can take university-level courses. The global xMOOCs market is expected to record steady growth during the forecast period.
Get a glance at the market contribution of various segments Request a PDF Sample
The xMOOCs segment was valued at USD 1,986.00 million in 2017 and continue to grow by 2021. Although the introduction of MOOCs was driven by cMOOCs, currently, most providers offer courses on the xMOOCs platform. Market leaders such as Coursera Inc. and Udacity Inc. serve MOOC learners using the xMOOCs model, as these are predicted to be more effective than cMOOCs, especially for higher education and corporate learners. As many learners pursue MOOCs with the intention of increasing literacy levels and attaining skills that are necessary to stay competitive in the market, delivering the same on xMOOCs is more feasible. Further, it is easier for course providers to attract and retain learners by using the xMOOCs model, 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.
For more insights on the market share of various regions Request PDF Sample now!
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 in MOOCs. On the other hand, the Millennial group, which mostly comprises the corporate workforce, is keener on MOOCs 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 of MOOCs in both the higher education and the K-12 sector, along with corporate offices.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for North America. However, in 2021, large-scale vaccination drives and other government initiatives resulted in the relaxation of lockdown restrictions, and business operations were resumed. The ease of learning from home offered by online education had a positive effect on the enrollment of students from other nations. Therefore, these factors are expected to drive the growth of the global massive open online course (MOOCs) market during the forecast period.
Technavio categorizes the global massive open online course (MOOCs) market as a part of the global education market (also referred to as the global education services market). The parent, global education market, covers products, services, and solutions that are offered to educational institutions, corporate institutions, students, parents, individuals, and teachers. Our research report has extensively covered external factors influencing the parent market growth 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 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).
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 27,877.75 million |
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 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.