Key Market Overview:
Learning Management Systems (LMS) Market is projected to grow from USD 16.19 Billion in 2022 to USD 42.67 Billion by 2030, at a CAGR of 12.88% during the forecast period.
A learning management system (LMS) is a software platform designed to manage, deliver and track online learning content and educational courses. LMSs are used by educators, trainers, and organizations to deliver training and educational programs to learners in various formats, such as e-learning courses, webinars, videos, and other digital content. Learning management systems are integrated with other learning tools and systems including video conferencing and offer various features such as course management, learner tracking, assessments, and progress monitoring.
The growing demand for online education and training programs, especially after the COVID-19 pandemic, has led to a significant increase in the adoption of LMSs. Schools, universities, and organizations have shifted their teaching and training programs to online platforms, thereby driving the growth of the learning management systems (LMS) market. For instance, in November 2020, Disguise launched new online learning management system (LMS) designed to provide online training and certification programs for its customers, partners, and users. Therefore, consumers’ shift towards online teaching platforms is accelerating the growth of the learning management systems market.
Market Dynamics:
Driver:
The need for employee training is the major driver boosting the growth of the learning management systems market. Several companies are investing in employee training and development programs to improve their workforce’s skills and knowledge. LMSs are an attractive solution for employee training as they offer a centralized platform for delivering, managing, and tracking training programs. For instance, in October 2022, Food and Drug Administration (FDA) launched a new LMS platform called ORA LearnED to train its staff on regulatory compliance, policies, and procedures.
Restraints:
Implementing an LMS is quite expensive, especially for small organizations with limited budgets. The cost of an LMS includes software licenses, hardware, hosting, and maintenance, which is a significant barrier for adoption of LMSs in some organizations. Furthermore, integration of LMS into existing systems and software is challenging and time-consuming creating issues in data management, user authentication, and compatibility, thereby limiting the effectiveness of learning management systems. Therefore, integration issues of the learning management systems is hindering the growth of learning management systems (LMS) market.
Opportunities:
Integration of artificial intelligence (AI) and machine learning (ML) into existing LMS software is expected to present potential opportunities for the growth of the learning management systems market. AI algorithms are anticipated to analyze data about an individual’s learning style, preferences, and progress to personalize the learning experience resulting in more engaging and effective training programs. Moreover, ML algorithms are expected to automate routine administrative tasks, such as course creation, grading, and feedback. Therefore, the integration of such technologies is anticipated to drive market growth during the forecast period.
Learning Management Systems (LMS) Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | USD 42.67 Billion |
| CAGR (2023-2030) | 12.88% |
| By Delivery Mode | Distance Learning, In-House Learning, and Blended Learning |
| By Deployment | On-Premise and Cloud-Based |
| By End-User | · Academic
o Schools o Colleges o Universities · Corporate o Instructor-Led Training o E-Learning o On-the-Job Training o Others (Conferences and Workshops) |
| By Geography | North America, Europe, Asia Pacific
Latin America, Middle East and Africa |
| Key Players | McGraw Hill, D2L Corporation, SAP SE, Saba Software, Absorb LMS Software Inc., Blackboard Inc., Cornerstone OnDemand, Inc., Oracle Corporation, IBM Corporation, Paradiso Solutions LLC |
Market Segmentation:
By Delivery Mode
Based on the delivery mode, the market is trifurcated into distance learning, in-house learning, and blended learning. The in-house learning segment dominates the global market and accounted for the largest revenue share in the year 2022. In-house learning enables organizations to develop their employees’ skills and knowledge by customizing their training programs to meet the unique requirements of the organization. For instance, in November 2020, the Foreign Service Institute (FSI) launched a new learning management system platform called FSiLearn by promoting instructor-student communications to facilitate effective training.
The distance learning segment is anticipated to emerge as the fastest-growing segment during the forecast period as it offers ease and convenience to access education from any location. Distance learning provides access to education for individuals who are unable to attend on-campus courses. Moreover, distance learning offers flexibility to learners to complete courses at their own pace making it suitable for people with a busy lifestyle.
By Deployment
Based on the deployment, the market is bifurcated into On-premise and Cloud-based. The on-premise segment accounted for the largest revenue share in 2022. On-premise LMS allows organizations to have complete control over their data in order to protect the sensitive information of their students. Moreover, On-premise LMS allows organizations to customize their training programs according to their specific needs, thereby contributing to the growth of this segment.
The cloud-based segment is anticipated to witness robust growth during the forecast period due to its accessibility and flexibility offered to consumers. Cloud-based LMS solutions are accessible from anywhere with an internet connection ideal for remote or distributed workforces. Moreover, Cloud-based LMS solutions have a user-friendly interface that is quite easy to navigate allowing learners to engage with the system and complete their training effectively. For instance, in October 2022, ClearTouch announced the launch of its List Management Services (LMS) alongside its cloud contact center platform. The LMS provides businesses with a range of features to manage their customer lists, import and export lists, and segment lists based on criteria such as location or purchase history.
By End-User
Based on the end-user, the market is divided into academic and corporate. The academic segment dominates the learning management systems market. The COVID-19 pandemic has accelerated the trend towards online learning, as educational institutions have adapted to remote and hybrid learning models. As a result, there has been a significant increase in demand for academic LMS to support online learning. LMSs are used by educational institutions such as universities, colleges, and K-12 schools in order to make education easily accessible to all students.
The corporate segment is expected to grow during the forecast period. The rise of remote and distributed workforces has increased the need for online training and development programs. Corporate LMS enables organizations to deliver training and development programs to employees working at any location. For instance, in November 2022, Peppermint Technology launched a new product called Minerva, a learning management system (LMS) designed specifically for the legal industry. Minerva is designed to help law firms and legal departments to deliver training and development programs to their employees in a scalable and cost-effective way.
By Region
North America dominates the learning management systems market as E-learning is becoming increasingly popular in North America, with many universities, schools, and companies adopting online learning platforms to deliver training and education. Moreover, North America has a large and diverse market for LMS solutions, with organizations such as Blackboard Inc., Oracle Corporation, and Cornerstone OnDemand, Inc. operating in the region further accelerating the growth of the regional market.
Asia-Pacific is expected to showcase the strongest growth during the forecast period due to the growing awareness about LMS solutions in both educational and corporate institutions. Governments and private organizations in the Asia Pacific region are investing heavily to support the growing demand for e-learning and distance education. For instance, in February 2020, Udemy announced that Benesse Holdings, Inc., a Japan-based company invested USD 50 Million. The investment was aimed at supporting Udemy’s expansion in Japan and other Asian markets.
Learning Management Systems (LMS) Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and Application launches have accelerated the growth of the LMS market. Key players in the market include-
- McGraw Hill
- D2L Corporation
- SAP SE
- Saba Software
- Absorb LMS Software Inc.
- Blackboard Inc.
- Cornerstone OnDemand, Inc.
- Oracle Corporation
- IBM Corporation
- Paradiso Solutions LLC
Recent Developments:
- In January 2022, the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) launched PLATO e-learning platform and virtual community. The platform is designed to provide training and capacity building to drug professionals across Europe.
- In April 2020, UNICEF and Microsoft partnered to launch a global learning platform called “Learning Passport” aimed at helping students to address the COVID-19 education crisis.
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