Global Learning Management Systems Market Size, Share, Growth Analysis, By User Type(Academic, Enterprises), By Deployment Model(On-Premise, Cloud), By Industry Vertical(Government & Education, Retail) - Industry Forecast 2022-2028

The Global Learning Management Systems Market is segmented based on user type, deployment type, industry verticals, and region. Based on User Type it is categorized into Academic and Enterprises, Based on Deployment Model it is categorized into On-Premise and Cloud, and Based on Industry Vertical it is categorized into Government & Education, Retail, Healthcare, IT & Telecom, Manufacturing, Hospitality, and Others. Based on the region it is categorized into North America, Europe, Asia-Pacific, South America, and MEA.

Analysis by Industry vertical

Due to the growing demand for effective learning tools for training students, the academic segment is expected to account for the majority of Learning Management Systems Market share during the forecast period. K-12 and higher education are the two sub-segments of this category, with the K-12 subsegment surpassing the higher education subsegment. According to the SQ Analysis, LMS will be used by 64% of K-12 schools and 36% of higher education colleges and universities.

The market is expected to be driven by the rapid adoption of LMS across K-12. Its growing popularity in the corporate sector is expected to accelerate, as it allows businesses to conduct meetings, training, and entrepreneurship programs efficiently regardless of distance. Flexible learning environments for online training are becoming increasingly popular in the healthcare industry. E-learning is being used by the retail industry to provide sales training and product information to their employees. For example, to improve staff, brand, and product knowledge, Gekko launched a digital learning solution for the retail industry. The demand for learning management systems is expected to rise as a result of such initiatives.

Analysis by Deployment type

During the forecast period, the On-Cloud segment is expected to have a dominant Learning Management Systems Market share. Based on our analysis we found that, earlier, due to its in-house safety and security capabilities, the on-premises segment dominated the market. Small businesses and educational institutions are increasingly moving toward cloud-based deployment models because of the pricing flexibility. On the other hand, the demand for the software as a service (SaaS) model is increasing due to the ease of use when connecting various applications and services. Cloud deployment creates a stable, flexible, scalable, and secure infrastructure, which is expected to boost learning management system market growth.

In 2022, North America is expected to dominate the learning management systems market because of the growing ed-tech activities in the region. There are many colleges and universities in the United States. This factor would provide players with a huge opportunity to expand their businesses in this country. According to the EdSurge ed-tech funding database, in 130 deals in 2020, education technology startups in the United States invested USD 2.2 million in venture and private equity funding. The investment is roughly 30% higher than the previous year, USD 1.7 million was invested in year 2019. As a result, North America is a significant contributor to Learning Management Systems Market expansion.

Similarly, the use of open-source learning management systems (LMS) has grown in Europe. According to Brighteye Advisors' European Ed-Tech Funding Report, 2021, EdTech funding in Europe increased to USD 711 million in 2020, up from USD 651 million in 2019. The demand for online learning is growing in Europe's educational and corporate sectors.

Over the forecast period, Asia Pacific is expected to have the fastest growth. China, Australia, India, Japan, Malaysia, Singapore, and other Asian Pacific developing economies are making an investment into platforms that promote online education, training, and courses. For instance, Chinese e-learning leaders such as TAL Education Group and GSX Techedu raised approximately USD 3.2 million in February 2020 to promote e-learning technology across the country. Similarly, Australia's ed-tech industry is the country's second-largest start-up community, and it is creating significant Learning Management Systems Market opportunities. As a result, the market in Asia Pacific is expected to grow rapidly.

Driver

• The rise of 5G technology has resulted in significant changes in the cloud computing world. 5G's low latency connectivity allows for smoother communications and faster data transfers. 5G speeds up access to video analytics and artificial intelligence, making cities safer. This enables city managers, building owners, and facility managers to make more informed decisions and provide better public services. These factors are creating a lucrative growth opportunity for the global learning management market over the forecast period.
• To gain a competitive advantage, institutions are increasingly using online interactive learning methods. With increased internet penetration and cloud adoption, the learning management model provides user-friendly content creation and distribution solutions for websites, mobile devices, and social platforms. The platform also aids in the administration, reporting, tracking, and automation of online learning courses. As a result, many educational institutions are shifting to interactive online learning methods. These factors are expected to create growth opportunities for the global learning management market over the forecast period.

Restraint

• LMS vendors are constantly trying to implement modern technologies to improve their offerings as the adoption of LMS solutions expands. With more visuals and less text, more engaging themes and expressions, an emphasis on virtual immersive learning, and, eventually, gamification to captivate e-Learners, LMS solutions help educators adapt to reducing attention spans. Artificial Intelligence (AI) can be used to create an AI-based mentor who can assist students in understanding concepts, recommending courses, and providing feedback to help them improve their grades. Other technologies, such as data analysis, analyze students' thought processes and learning styles based on their daily interactions, allowing them to provide tailored courses and a personalized learning experience for them.

Key players are concentrating on the continuous development of their product portfolios through the use of advanced technologies. They are expanding their product portfolios to meet the demand for industry-specific and custom offerings. For instance, In May 2022, Class Technologies Inc. acquired Blackboard Inc., a well-known EdTech company that serves higher education, government clients, and businesses. With this acquisition, the company hopes to focus on providing creative resources to a variety of businesses while also accelerating innovation in its flagship learning management system. Similarly, strategic alliances, acquisitions, and collaborations would assist key players in increasing their Learning Management Systems Market share.

Top Players Company Profiles

• McGraw Hill (US)
• D2L Corporation (Canada)
• SAP SE (Germany)
• Saba Software (US)
• Absorb LMS Software Inc. (Canada)
• Blackboard Inc. (US)
• Cornerstone OnDemand, Inc. (US)
• Oracle Corporation (US)
• IBM Corporation (US)
• Paradiso Solutions LLC (US)

Recent Developments

• In April 2022, Brock selected Kitchener-based D2L to provide the next Learning Management System.
• In March 2021, For K-12 districts, Blackboard Inc. launched "Blackboard Unite for K-12," a remote learning solution suite. In the current COVID-19 pandemic situation, the primary objective is to provide educators with a high-quality virtual teaching and learning experience.
• In February 2021, Cornerstone OnDemand, Inc. announced the completion of its acquisition of Saba Software, a global leader in talent experience solutions and Vector Capital portfolio company. Given current Learning Management Systems Market conditions, the total transaction value has been reduced from $1.395 billion at the time of announcement to roughly $1.295 billion at the time of closing.

• Due to the closure of educational institutes and universities around the world, the COVID-19 pandemic has had a positive impact on the learning management systems market, as customers have increased their use and adoption of online and digitalized learning methods. Consumers are increasingly preferring to learn online during the pandemic, which is driving massive growth in learning management systems. Furthermore, educational industries provide customers with learning management system options all over the world, allowing them to continue their educational degrees and improve digitalized learning in the market. As a result, during the global health crisis, this has become one of the major growth factors for the learning management system market.
• With technological advancements and learning modules available on electronic platforms on the internet, the education system around the world has changed. For a better user interface with the learning environment, the Internet and smart devices have an integrated learning management system. Due to the low-cost cloud deployment model, a variety of user types, including academics and businesses, are rapidly adopting LMS, which is expected to drive growth in the coming years.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analysis, the rising number of smartphone users, rising internet penetration, and rising uses of digital media have resulted in a significant increase in online users. This creates a whole new avenue for dynamic e-learning solutions, which will expand the Learning Management Systems market over the forecast period.

The rise of 5G technology has resulted in advanced changes in the cloud computing industry. 5G's low latency connectivity allows for faster data transfers and smoother communications. 5G speeds up access to video analytics and artificial intelligence, making the city a safer place. This allows city managers, building owners, and facility managers to make better decisions and provide better public services. The full transformational potential of 5G is yet to be realized, and this presents a significant growth opportunity for the LMS market.