“THE GLOBAL E-LEARNING MARKET IS GOING TO EXCEED USD 388 BILLION BY 2026, GROWING AT A CAGR OF 13% DURING THE FORECAST PERIOD”.

Let’s take a closer look at the industry:

INSIGHTS INTO THE E-LEARNING INDUSTRY

The worldwide e-learning market will be worth about USD 388 billion by 2026, increasing at a CAGR of 13% during the forecast period. By 2026, the online learning industry is expected to increase by almost 110 percent in absolute terms. A paradigm change is occurring in the online education industry and content distribution. The market moves from content delivery to interactive learning platforms and language instruction to functional skill development and competence assessment. The growing emphasis on m-learning, the deployment of augmented reality, and the adoption of cloud infrastructure for hosting applications to achieve scalability will provide attractive possibilities for the market’s leading online education firms.

In 2020, the United States was the largest market for e-learning platforms, accounting for around 35% of total worldwide revenue. Technologies such as AR and VR are among those that are reshaping business practices. These technologies also encourage suppliers to build mobile platforms that improve the real-time interactive experience of consumers. At the moment, mobile e-learning applications account for around 53% of all apps in the app store, with this figure anticipated to rise in the future. The emergence of the COVID-19 epidemic altered the course of the online learning market’s growth. COVID-19’s influence on online education resulted in a rise in online learning programs and increased participation in the virtual classroom. In the United States, 7 out of 10 parents of K-12 children who are not actively enrolled say that their child participates in an online distance learning program provided by the public or private school to which they go.

SNIPPETS

• The worldwide online education market expanded by more than 18% in 2020 due to the COVID-19 effect.
• China’s e-learning market was estimated at USD 19 billion in 2020, owing mainly to a rise in private expenditures supporting the industry’s expansion.
• In 2020, the top five digital learning markets were the United States, China, Canada, South Korea, and Japan.
• In 2020, the corporate e-learning market was estimated to account for around 30% of total revenue.
• During the lockout in 2020, the education industry became one of the critical bets for investors, particularly EdTech, which has registered about USD 1.1 billion, four times higher than the previous year.
• Byju’s India’s biggest education platform, raised USD 200 million from Tiger Global, General Atlantic committed USD 200 million, and Mary Meeker’s Bond Capital invested USD 100 million in the education industry.

GROWTH AND INVESTMENT OPPORTUNITIES IN THE E-LEARNING MARKET

• Major merchants and service platforms, including Alibaba and Tencent, are trying to diversify their portfolios by investing in high-potential, technology-enabled EdTech businesses with significant market potential.
• Professional venture capital funds are on the lookout for the next unicorns in the field of tech-enabled learning. Google Capital, Learn Capital, 500 Start-ups, GSV Capital, First Round, and NewSchools Venture Fund are among the most active funds.
• India, the Philippines, Indonesia, China, and Thailand are developing as significant hotspots for low-cost language training solutions, resulting in a demand for value-based learning platforms.
• Vendors should provide solutions that include experience in open-source and content production platforms, customized learning, and the implementation of blended learning models.
• Vendors must maintain a constant eye on new entrants’ pricing; simultaneously, the price-based rivalry is not encouraged; appealing prices might deter customers, which can be successfully countered by innovation and product development.

Related Post: Can eLearning Classes Take the Role of The Traditional Classroom?

SEGMENTATION OF THE E-LEARNING MARKET

DELIVERY MODE INSIGHTS

“Packaged content by distribution mode is expected to rise by more than USD 101 billion by 2026”.

In 2020, the bundled content sector will account for about 58 percent of the e-learning market. Private institutional interest in gamification is growing as suppliers strive to increase the competitive advantage of their teaching over traditional approaches. The demand for e-learning as packaged material is increasing, mainly owing to corporates’ need to gain skills. For example, the growing need for skills in the technology industry, such as virtual reality, artificial intelligence, and big data, drives the adoption of this form of delivery in the corporate e-learning market. This has resulted in numerous suppliers considerably growing and expanding their operations over the last several years. Pluralsight, a tech e-learning service, is one of Utah’s fastest-growing enterprises. The bundled e-learning content industry will continue to expand as business requirements increase and demand greater adaptability.

The global market’s fastest-growing delivery mode category is learning management systems (LMS). LMS aids in the development of a practical blended learning approach and increases departmental efficiency. Vendors in the online education industry may now provide a diverse selection of products and solutions thanks to advancements in cloud-based platforms.

LEARNING MODE INSIGHTS

“By 2026, the self-paced learning segment is expected to grow at a rate of about 127 percent.”

During the projection period, the self-paced category is predicted to retain its dominance, with a growth rate of approximately USD 139 billion. We estimate that self-paced e-learning will grow at a CAGR of 15 percent between 2020 and 2026 in countries like Myanmar, Mongolia, and Rwanda. We also expect that self-paced e-learning will grow at a CAGR of more than 15 percent in Laos, Nepal, and Cambodia. Approximately 72.78 percent of individuals consider themselves lifelong learners, offering enormous development prospects in the market for online education firms during the projected period.

PERSPECTIVES BY FUNCTION TYPE

“In 2020, the training sector accounted for around 72 percent of the total e-learning market’s revenue share.”

By 2026, the training segment is expected to increase by 104 percent in absolute terms. Computer-based training is a cutting-edge learning approach that uses specialized training programs built for specific activities. An example of web-based training would be the delivery of computer-based instruction over the internet. The emergence of the COVID-19 pandemic increased global demand for various modalities of learning. Vendors took advantage of this need to broaden their product ranges and attract new customers. In 2020, the cost of professional, government-related, and academic training was expected to be approximately USD 134 billion.

END-USER PERSPECTIVES

“Corporate training services will provide tremendous investment possibilities for global e-learning suppliers.”

During the projection period, the corporate segment will expand by about 134 percent in absolute terms. As the COVID-19 epidemic produced broad and lasting changes in work culture and laws, learning and development professionals used corporate e-learning as a method to empower and teach their staff. To obtain a greater part of the corporate training market, players are focusing on delivering cost-effective, efficient, and time-saving cloud-based solutions.

In businesses, e-learning is typically used solely for a single subject. Compliance training is the most commonly used area of e-learning, with more than half of all compliance training now given online.