LONDON--(BUSINESS WIRE)--According to the latest market study released by Technavio, the global learning management system market is expected to grow at a CAGR of close to 24% during the forecast period.
This research report titled ‘Global Learning Management System Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes an up to date analysis and forecasts for various market segments and all geographical regions.
Learning management systems (LMSs) are positively impacting the corporate sector, as a majority of enterprises are using them to build a central repository for enterprise related data. The most significant application of LMS is in training and evaluating employees, which helps enterprises gain a competitive advantage over other companies.
A large number of universities and colleges are also installing LMS. Although this trend is more evident in developed regions, it is growing stronger in emerging economies, such Asia-Pacific (APAC). Content management and student management are the key areas of focus for educational institutions that invest in LMS.
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The report categorizes the global learning management system market into three major end-user segments. They are:
- Corporate
- Education
- Higher education
Global corporate LMS market
The global corporate LMS market is expected to generate close to USD 8 billion by 2020, growing at a CAGR of over 22%.
Although the corporate segment in most regions was affected by the 2008 global economic recession, it has recovered and is registering growth. There is an increased demand for cost-efficient training solutions from leading companies in this segment. This has led to the development and delivery of both standardized and customized online courses, across industries.
“Corporations are upgrading technologically and replacing old systems with LMS to create digital learning material including video-based training and presentations. LMS helps companies reduce the cost incurred in organizing remote face-to-face training sessions. This provides an opportunity for LMS vendors to identify the key requirements of corporations and develop targeted applications as an alternative to existing legacy systems,” says Jhansi Mary, a lead analyst at Technavio for education technology research.
In addition, with advances in cloud technology, LMS providers are now offering their services in a Software-as-a-Service model (SaaS), which has further reduced the operational costs of companies. Additionally, the emerging trend of gamification has entered the corporate sector. Companies are currently demanding easy-to-use solutions that can be customized.
Talent retention is another challenge for firms, which has led to the development of retention methods and strategies. In this area, LMS plays a critical role by monitoring employee performance to help companies design their reward policies accordingly. Employee collaboration is important in facilitating business communication, especially for companies with offices in geographically diverse locations. Therefore, the various collaborative management tools and features offered by LMS will attract large organizations with strong geographical presence. Content management and compliance management, the other prominent applications of LMS, jointly accounted for 22%-26% of the global corporate LMS market.
Global higher education LMS market
The global higher education LMS market is expected to exceed USD 1.7 billion by 2020, growing at a CAGR of more than 25%.
The high growth rate of this segment can be attributed to the rise in the number of online courses offered by universities across the world. These universities generate and deliver large amounts of online content in collaboration with app designers, course designers, and IT staff. In addition, these online courses are available at a lower cost and are more convenient, as a result of which they attract potential e-learners worldwide. In addition to offering products, many service providers also collaborate with and manage the entire e-learning system of these higher education institutions.
Industrialization has given rise to various alternative employment opportunities that require specific domain knowledge. After completing high school, many students enroll in employment-oriented vocational courses. In addition, students, as well as teachers, are participating in certificate programs to gain a competitive edge and distinguish their skills from others. The demand for LMS from the higher education segment is expected to remain robust during the forecast period.
Global K-12 LMS market
The global K-12 LMS market is expected to reach USD 1.4 billion by 2020, growing at a CAGR of almost 29%.
The K-12 segment reported the highest growth rate as compared to the other segments. Blended learning is the most widely adopted form of e-learning in the K-12 segment. K-12 schools are adopting blended learning as a method of teaching to make the learning process more productive. Blended learning requires online course materials that are backed by LMS.
LMS also offers student management and collaboration for a smooth exchange of information. In addition, instructors use online assessment tools to monitor students. The schools with advanced information and communications technology (ICT) infrastructure are also adopting digital textbooks. This trend is expected to gain momentum during the forecast period. So, LMS vendors will have the opportunity to develop targeted applications for K-12 academic requirements.
Content management is the largest application of LMS in the global education sector. The primary component of online courses is content. Many LMS providers offer content development services to customers. LMS applications help customers create, store, and manage content efficiently based on course requirements.
The top vendors highlighted by Technavio’s education research analysts in this report are:
- Cornerstone OnDemand
- Oracle
- SAP
- Skillsoft
Top-vendor offerings:
| Company | Products offered | |||
| Cornerstone OnDemand Inc. | Cornerstone Learning Cloud | |||
| Cornerstone Recruiting Cloud | ||||
| Cornerstone Performance Cloud | ||||
| Cornerstone Extended Enterprise Cloud | ||||
| Oracle Corp. | Oracle Learning Management | |||
| Oracle iLearning | ||||
| PeopleSoft Enterprise Learning Management | ||||
| SAP SE | SAP Enterprise Learning | |||
| Skillsoft | SumTotal Learn | |||
| Maestro LMS | ||||
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