The global e-learning market was worth USD 215 billion in 2021. It is estimated to reach an expected value of USD 645 billion by 2030 at a CAGR of 13% during the forecast period (2022–2030). E-learning refers to training and testing services conducted or shared through the Internet. Growing Internet, mobile, and smartphone penetration is one of the fundamental growth drivers of the e-learning market. This has revolutionized content delivery mode and has also evolved the method by continuously improving bandwidths and reducing data prices.
The advanced application of technologies develops new standards for corporate learning and training. It helps transform the traditional way of doing things, as quick changes like work by innovative technologies pose challenges for organizations. Businesses are getting more intercontinental and globalized, thereby increasing the adoption of remote working and telecommuting.
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E-learning is revolutionizing the education system by supporting better connections and designing a collaborative future for education. Internet of things plays a significant role in creating more intelligent and connected schools. Smart classrooms are transforming education in both private and government schools. Schools are becoming technologically advanced and equipped with new tools and techniques.
The Internet of things has facilitated the revolution from teacher-centric to student-centric education. It is reinventing education by offering advantages such as efficient management, concrete learning, interactive sessions, and trackable performance. IoT, along with artificial intelligence, provides efficient energy use, superior home security, and speedier streaming of data and content. These advancements in IoT are driving the growth of the e-learning market.
With increasing internet and smartphone penetration, the demand for seamless connectivity between electronic devices is also on the rise. Evolving cloud infrastructure and low data prices driven by huge volumes are the major drivers in strengthening connectivity as they eliminate several problems associated with cost, scalability, security, and efficiency. As the number of connected devices increases, the solutions hosted on the connectivity-enhancing platforms also evolve in terms of number and capabilities. This has given rise to a host of new business opportunities, varying from streaming webinars that enhance the reach of quality educational content from premier universities to facilitating much-needed medical advice to remote areas across the globe.
For several decades, the migration of skilled resources from developing to developed countries has been migration. It is one of the significant contributors to the language learning market worldwide. The demand for a specialized, skilled workforce has brought the need for language translation, localization, and interpretation services. In this context, online language learning platforms have garnered interest from organizations on account of their agility compared to traditional language learning avenues. Further, with organizations undertaking cost-cutting measures in several verticals, especially in automotive, mining, and IT services sectors, outsourcing back-office operations to developing countries like India, the Philippines, and Indonesia has become a trend.
Technological advancements have transformed the face of doing business, including how the workforce is trained and how employees learn. Organizations have shifted from a structured and organization-focused model to more personalized and individual-focused learning experiences. Also, the initiation of data analytics and AI into learning platforms has developed new frontiers for learning and development. To meet continuous learning challenges, businesses require to embrace the latest tools and technologies. Therefore, education is evolving with digitization, thereby generating the need for more operational and strategic learning and development.
With the e-learning market gaining momentum, there is a need for continuous innovation for vendors to differentiate their products and drive service adoption among a more comprehensive section of end-users. AI and cognitive learning technologies have started to play a decisive role and are poised to be game-changers in several learning avenues. To stay relevant and updated, learning providers are forced to adopt these emerging technologies to extend the lifecycle of their existing products and make the best out of customer lifetime values.
In recent years, technology has changed education, such as student information systems (SIS) that simplify attendance tracking and grade books, test prep software, smartboards, and paperless classrooms. These innovations, including AR, VR, machine learning, and digital textbooks, will witness higher growth during the forecast period. Several educational institutions are focusing on safeguarding confidential data from cybersecurity attacks and how to leverage it to improve student outcomes. Also, educators' shift toward cloud computing for effective systems such as accounting, student information, and grades has provided several benefits.
While product innovation is considered suitable for the market to stay relevant and competitive in the long run, a continuously evolving consumer mindset coupled with frequent overhauls of technologies and interfaces will result in cost overheads in the short term, rendering several platforms irrelevant. Further, vendors will be forced to optimize resources between scaling up the business and investing in perennial product development.
VR and AR are increasingly being adopted to deliver training. Virtual reality technology enables deep learning by reducing risk and immerses learners in a new environment. Augmented reality provides just-in-time learning by offering training to learners at their fingertips. AR and VR applications are increasingly being adopted in the learning space as they provide solutions to practical needs. Virtual reality is being used for performing intricate procedures and handling high-risk tasks. VR and AR solutions enable learners to connect with the content. They address one's needs and help learners develop a highly immersive learning experience.
Ed-tech start-ups with the deployment of AR and VR are set to continue gathering investors' interest since the market is still termed to be in the nascent growth stage with vast untapped business opportunities. More than 100 start-ups and vendors are actively engaged in developing AR and VR-driven ed-tech content. These companies collectively garnered investments of USD 84 million in 2016. It is set to grow at least 20 times over the forecast period, driven by the diversification of conventional ed-tech players and corporate investment interests.
The global e-learning market share is segmented across delivery mode, learning mode, function, end-user, and region.
By delivery mode, the global e-learning market is segmented into Packaged Content, Learning Management Software (LSM), and Others.
The packaged content segment holds the largest market share. It is estimated to reach an expected value of USD 325 billion by 2030 at a CAGR of 11.2%. The demand for e-learning as packaged content is increasing, primarily due to the desire to acquire skills among corporates. For instance, there is an increasing demand for skills in industries such as virtual reality, artificial intelligence, and big data. Over the past few years, this has led to several vendors witnessing significant growth. The packaged e-learning content market will continue to grow with increasing requirements from corporates.
Learning management software (LMS) is the second-largest segment in the market. It is estimated to reach an expected value of USD 202 billion by 2030 at a CAGR of 15.6%. With a rising need to develop and train employees, corporations are constantly looking for ways to provide adequate training. To make more minor changes or completely refurbish a product line, LMS helps re-educate employees and manage the process. It delivers compliance training to employees and helps in tracking employees' compliance. Today, various organizations have a diverse workforce and are working from distinct locations across the world with the help of LMS as it enables easy login from any location.
By learning mode, the global e-learning market is segmented into Self-Paced and Instructor-Led.
The self-paced segment accounts for the largest market share. It is estimated to reach an expected value of USD 425 billion by 2030 at a CAGR of 14.6%. Self-paced e-learning offers flexibility in learning. A significant growth driver of the self-paced e-learning segment is the growing attitude among people to improve their career prospects and enhance their skill-based proficiency.
The instructor-led is the fastest-growing segment and is estimated to reach an expected value of USD 85 billion by 2030 at a CAGR of 10.7%. The following factors are driving the success of instructor-led learning:
› Reduced Cost: Travel and lodging costs can be reduced or eliminated.
› Convenience: Students have an option to choose the timings. They can either study from their homes or offices.
› Increased Capacity and Scalability: This type of learning accommodates many students without increasing the number of materials or space needed in typical classroom settings. It can accommodate students across the world.
By function, the global e-learning market is segmented into Training and Testing.
The training segment is dominant over the testing segment. It is estimated to reach an expected value of USD 435 billion by 2030 at a CAGR of 12.6%. Online learning portals have chat support to assist students. Online training improves the information retention capacity of learners with attractive images, movie clips, videos, animated descriptions, and legible fonts. Demonstrating information in well-shaped ways helps in understanding the content better.
The testing function segment is estimated to grow swiftly, accounting for an expected value of USD 200 billion by 2030 at a CAGR of 14.4%. Testing is more than just grades. It supports students by challenging them to interact, reflect, and utilize their knowledge to solve problems, answer questions, and transmit information. Conducting tests with the help of games helps engage and challenge students in a non-traditional way. It turns a series of inquiries into a game. It is an accurate indicator of the knowledge and skills acquired. It works well during employee training. E-learning tests ensure ease of use, the accuracy of the content, instructional integrity, user satisfaction, and technological soundness. The main objective of testing in an e-learning program is to ensure its learnability.
By end-user, the global e-learning market is segmented into K-12, Higher Education, Corporates, Government, and Vocational.
The corporate segment holds dominion over other end-use applications. It is estimated to reach an expected value of USD 230 billion by 2030 at a CAGR of 15.2%. As the COVID-19 pandemic has caused changes in work culture worldwide, learning and development specialists have taken corporate e-learning as their strategy to empower and train employees. It offers excellent investment opportunities for vendors in the global e-learning market.
Higher Education accounts for the second-largest market share, and it is estimated to reach an expected value of USD 135 billion by 2030 at a CAGR of 11.8%. The connection among communities, faculty, and students drives the growth of educational institutions. K-12 is the fastest-growing end-use application and is estimated to reach an expected value of USD 159 billion by 2030 at a CAGR of 13.4%. K-12 has played a significant role in the consistent growth of the global educational sector. Mobile devices and gamification tools are the major market drivers for K-12.
By region, the global e-learning market share is divided into North America, Asia-Pacific, Europe, Latin America, and the Middle East and Africa.
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North America dominates the regional market and is estimated to reach an expected value of USD 76 billion by 2030 at a CAGR of 11.3%. The demand for e-learning from the institutional segment in the region is driven by high awareness of their advantages over conventional offline learning models, better technological infrastructure, and extensive reach of innovative learning and training solutions. The same is further reinforced by technology-leveraged industries that warrant an advanced degree of language proficiency, functional and vocational expertise, and soft skills. The high demand for e-learning solutions in the US mainly influences the market growth in North America.
Asia-Pacific is the fastest-growing region in the global e-learning market. It is estimated to reach an expected value of USD 80 billion by 2030 at a CAGR of 18.1%. The APAC e-learning market is predicted to be impacted by the increasing penetration of smartphones and rapid urbanization. It increases the probability of these devices being used to access learning material and educational content by the users, eventually leading to a higher potential userbase for vendors to target.
Europe accounts for the third-largest position in the market. It is estimated to reach an expected value of USD 40.5 billion by 2030 at a CAGR of 15.2%. Consumers in Europe, mainly the government and corporate segments, are interested in adopting paid e-learning subscriptions. The trend to invest in e-learning subscriptions and online courses or digital universities, creating opportunities for higher revenues for e-learning vendors.