Learning Management System Market

Updated on : March 21, 2023

Learning Management System Market Analysis

The automation testing market size is expected to increase from USD 24.7 billion in 2022 to USD 52.7 billion by 2027, at a CAGR of 16.4% during the forecast Period. Due to the ongoing recession, the worsening economic condition in Europe is likely to slow down the demand for PCs and laptops. Technologies such as software solutions are also expected to be impacted by the recession. According to the Bank of England, inflation in the UK is expected to reach a peak of over 13% and can stay above 10% in 2023. Consumer IT spending in Asia Pacific is also declining with the ongoing tight market conditions in the US and Europe. However, enterprise IT spending is expected to remain stable as organizations focus on IT security and digital transformation in the short run.

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Recession Impact: Learning Management System Market

The War in Ukraine, higher inflation, bad financial conditions, economic decelerations of key trading partners, and social discontent is slowing the growth prospects. The war in Ukraine is shaking the global economy and raising uncertainty about the outlook for Latin America and the Caribbean. The impact is felt in Latin America through higher inflation that is affecting real incomes, especially for the most vulnerable. The policymakers are reacting to this difficulty by tightening the monetary policy and implementing measures to soften the blow on the most susceptible and contain the risks of social unrest. As per The Harris Poll, 62% of Canadian organizations are confident that they can survive the upcoming recession. This is because many large capital projects were delayed due to the pandemic that have secured funding and will proceed as planned, even if there is a slowdown. Despite the uncertainty, some industry researchers and individual companies continue to forecast growth. For instance, Capgemini boosted its revenue growth objective for 2022 to 14% to 15% versus its previous forecast of 8% to 10%. Higher global and domestic financing costs can accelerate capital outflows and represent a challenge for the region, given large public and external financing needs in some countries and the limited resources to finance investments in the region. Even before the war, various regions’ recovery from the pandemic was losing momentum. After a sharp rebound last year, growth is returning to its pre-pandemic trend rate as policies shift, slowing to 2.5% for 2022. Exports and investment are resuming their role as main growth drivers, but central banks have had to tighten the monetary policy to combat an increase in inflation. As per the IMF, Gulf countries have strengthened their reform programs, which has supported increasing their sources of revenues and will assist them in facing the global recession. As per the report by the Central Bank of the United Arab Emirates, the UAE GDP is to grow by 5.4% and 4.2% in 2022 and 2023. This growth will be driven by higher oil production, with the growth of the manufacturing sector by 2031. Specifically, in the education industry, the threat of recession is resulting in a hike in tuition fees due to this student loan debt piling up. Even if colleges or universities have chosen not to increase fees, the qualitative costs of higher education will still be higher. The spiking inflation may lead to employers lowering salaries or reducing their staff nationwide. Students depending on their parents to repay loans or fund their education may struggle due to income cuts.

Learning Management System Market Dynamics

Drivers: Enterprises focusing more on human capital development
Training and development are important parts of workforce development and organizational growth & effective employee learning and development positively impact employee performance and organizational competitiveness. Training enables employees to develop a positive attitude toward learning and improving proficiency, which results in enhanced productivity and competitiveness in the workplace and the organization. It involves content development, method of delivery, and integration of technology. LMS helps enterprises prepare practical training modules for employees to understand and grasp the information. Employees can access the modules at any time, which helps employees be more productive and deliver value to the company.

Restraints: Reluctance of enterprises to convert existing training content into microcontent
Many organizations rely on full-fledged training and development programs and already have detailed training and development content, which is difficult to convert into microcontent. Globally, organizations do not invest a significant amount in transforming their existing training content into microcontent due to its tediousness and costliness. It becomes quite difficult for an organization to organize and manage content into the micro-framework and the organization might need require building training content from scratch to implement microlearning-based training, which can be expensive.
Opportunities: Incorporation of advanced technologies for a better training environment
The LMS vendors are constantly trying to implement modern technologies to improve their offerings due to the increasing adoption of LMS solutions. LMS solutions enable educators to adapt to reducing attention spans, with more visuals and less text, more engaging themes and expressions, emphasis on immersive virtual learning, and, eventually, gamification to captivate learners. Artificial Intelligence (AI) can be implemented to create an AI-based mentor who can help understand concepts, suggest courses, and provide feedback to improve student performance. Other technologies. The technologies such as AI, data analysis, helps user to provide tailored courses for them to provide a personalized learning experience and also enable learners to acquire knowledge in the way that suits them best technologies help improve student performance, provide personalized programs, and reduce dropouts.
Challenges: Lack of LMS solutions with multi-language support
Language can be a barrier for students whose first language is not English. According to a study by Pearson in 2015, around 75% of the world’s population does not speak English at all. In cases such as this, LMS vendors need to provide multiple-language support for different regions. Limited vocabulary and language skills might become a hurdle for some students to  actively participate in class, socialize with peers, and learning to their full potential. Thus, LMS vendors need to overcome this challenge to help put students at ease and empower them to have an efficient learning experience.

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Based on component, the solutions segment holds the largest market size during the forecast period

The number of solution providers has increased considerably in the past few years due to the low entry cost in the LMS market. LMS can work as a standalone solution and is used by several clients as a standalone LMS. However, in several other organizations, the learning suite works as an integrated system that also comprises other solutions. LMS providers are competing to increase their market coverage and expand their presence in newer markets. The urge of organizations to have customized modules to train their employees is driving the growth in the LMS solutions segment

Based on the services, the implementation services to be one of the larger contributors to the LMS market growth during the forecast period

Implementation services in the LMS market enable enterprises to customize, implement, configure, and deploy an LMS solution according to their business needs. The appropriate implementation of LMS solutions enables the best utilization of the LMS suite, irrespective of the learning type, such as synchronous learning or asynchronous learning. These services enable organizations to customize an LMS solution to match the organization-specific training workflow and user hierarchy, thereby improving the delivery and effectiveness of the training imparted.

Based on delivery mode, the instructor-led training segment to be a larger contributor to the LMS market growth during the forecast period

When Instructor-led training is conducted over LMS, the trainer can build assessment sections into the training program. These assessment sections are electronically conducted, storing all learners’ responses in the backend of the LMS, which is processed into a meaningful report and presented to trainers. LMS can also store the training content, which means trainers can provide learners with a repository or supporting training content, which simplifies and engages learners.

Based on user type, the academic user segment is to be a large contributor to the LMS market during the forecast period

LMS is used in academics to improve the efficiency of the learning process. This helps streamline education by enabling mobility, interaction, and real-time teaching. Nowadays, various universities are using LMS to improve academic performance. The use of mobile phones and smart devices has increased significantly in the young generation, thus boosting the LMS market for academic users to grow. LMS solutions in the academic sector open up new doors for sharing knowledge without boundaries of time and distance. This segmentation is based on the nature or level of education provided by institutes.

Based on academic user type, the higher education segment is to be a large contributor to the learning management system market during the forecast period

LMS is used in higher education to simplify the learning process. The popularity of online education or distance learning has been on the rise in recent years. Given the potential of e-learning in higher education and its broad range of possible implications for institutions and learners, governments might be expected to take a keen interest in it. Hybrid learning is now acquiring greater attention due to its time and place flexibility.

Based on corporate user type, the software & technology vertical to be a large contributor to LMS market during the forecast period

LMS in software and technology companies is vital for continuously improving the skills of employees. Players in this vertical require continuous and rigorous training for their employees and the companies have to be competitive as this vertical caters to a huge customer base and offers a comprehensive range of software, hardware, and services.  This is the fastest-evolving vertical in economy which updates its information daily and it becomes important to keep employees informed about the latest developments. Corporate LMS solutions help these companies fulfill their training needs in lesser time and cost in an automated and centralized manner.

Based on deployment type, the cloud deployment to be a large contributor to LMS market during the forecast period

Cloud solutions are available in multiple service models, but Software as a Service is the most common; it offers simple service-based architecture. Moreover, the simplicity in connecting several applications and services is another factor that plays a crucial role in supplementing the growth of the cloud-based segment in the global learning management system market.

Asia Pacific to grow at the highest CAGR during the forecast period

 LMs market by region is segmented into five regions such as North America, Europe, MEA, Latin America, and APAC. The APAC is expected to grow at highest CAGR suing the forecast period. The major growth factors for increasing adoption of LMs in APAC is increasing IT spending among organizations in the region which is fueling rising adoption of advanced technologies, such as cloud computing, AI, and IoT among others. In order to enhance skill set of individuals and employees across organizations are expected to drive the demand for LMS solution across the region. eLearning and distance learning are gaining traction owing to growing internet penetration. Highest student population, coupled with advancing technologies, is the major driving factor of LMS solution in the Asia Pacific region. Educational institutions in Asia Pacific are focusing on implementing digital solutions and encouraging the use of advanced technologies to make the learning process more engaging for young minds and help them retain the information longer. The Asia Pacific region has great growth opportunities for LMS solution providers.

Key Market Playes

The learning management system market is dominated by companies such as Blackboard Inc. (US), Cornerstone (US), Moodle (Australia), D2L Corporation (Canada), Instructure Inc. (US), PowerSchool (US), IBM (US), Infor (US), Adobe (US), LTG (UK), Google (US), Oracle (US), SAP SE (Germany),  Docebo (Canada), LearningPool (UK), LearnWorlds (UK), TalentLMS (US), Acorn LMS (Australia),  My Learning Hub (UK), LearnDash (US), Touvti LMS (US), 360Learning (France),  Epignosis (US), LearnUpon (Ireland)], SkyPrep (Canada),  Absorb LMS (Canada), CrossKnowledge (France), Lessonly (US), Axonify (Canada), BizLibrary (US), Thinkific (Canada), iSpring (US), Blue Sky eLearn (US), Trakstar (US), DigitalChalk (US), KMI Learning (US), and.These vendors have a large customer base and strong geographic footprint along with organized distribution channels, which helps them to increase revenues.

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Scope of the Report

This research report categorizes the LMS market to forecast revenue and analyze trends in each of the following submarkets:

By Component:

• Solutions
• Services
  • Consulting
  • Implementation
  • Support Services

By Delivery Mode:

• Distance Learning
• Instructor-led Training
• Blended Learning

By Deployment Type:

• Cloud
• On-premises

By User Type:

• Academic Users
  • K-12
  • Higher Education
• Corporate Users
  • Software & Technology
  • Healthcare
  • Retail
  • Banking, Financial Services, and Insurance (BFSI)
  • Manufacturing
  • Government & Defense
  • Telecom
  • Other Corporate Users

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Nordic Countries
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• APAC
  • China
  • Japan
  • Australia & New Zealand
  • India
  • South Korea
  • Singapore
  • Rest of APAC
• MEA
  • Kingdom of Saudi Arabia
  • United Arab Emirates
  • South Africa
  • Israel
  • Qatar
  • Rest of MEA
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In November 2022, D2L Corporation launched D2L Brightspace Creator+ package, the package enables users to create an engaging digital course content using workflows integrated into Brightspace, which helps course creators in saving time, effort and money.
• In September 2022, Instructure entered into an agreement with its partner, Google, that bridges the integration gap for Google Classroom users with a robust and comprehensive solution. With the integration, educational institutions can now keep course data and rosters synchronized between their student information systems (SIS or MIS) and Google Classroom.
• In October 2022, Cornerstone released its new Talent Experience Platform (TXP) designed to help talent leaders unlock the limitless potential of their workforce and streamline the way they do it.
• In October 2022, a new feature was added to Google Classroom. Now, the teachers can save time by adding grading category information before exporting google assignments in google classroom.
• In July 2022, Anthology introduced Anthology Intelligent Experiences (iX)™, the company's vision for a connected ecosystem of products and services that use data to power meaningful interactions both in and outside the classroom. The Anthology iX approach will create interactive moments by breaking down data silos and combining insights across critical systems to inform more relevant engagement between staff, faculty and learners.

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