E-Learning Market

Market Overview

The global e-learning market size was worth USD 277.33 billion in 2023. It is projected to reach USD 903.28 billion by 2032, growing at a CAGR of 14.02% during the forecast period (2024–2032)

E-learning refers to training and testing services conducted or shared through the Internet. Growing Internet, mobile, and smartphone penetration are 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.

Market Dynamics

Drivers: Increasing Demand for Internet-Enabled Devices

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. 

Drivers: Growing Need for Strong Workforce Skills

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.

Restraint: Growing Demand for Continuous Product Innovation

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.

What are the Future Opportunities Supporting E-Learning Market Sales Growth?

Increasing Use of VR and AR Applications

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.

Regional Analysis

By region, the global e-learning market share is divided into North America, Asia-Pacific, Europe, Latin America, and the Middle East and Africa.

Which Regional Markets Should E-Learning Companies Focus On?

North America dominates the regional market and is projected to grow at a CAGR of 10.3% by 2030. 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.

Due to the growing trend of employing online courses and learning materials as a viable substitute for traditional classroom instruction, the market is booming. This is fueling the growth and acceptance of e-learning solutions across all industries. The region's high average disposable income, rapid smartphone proliferation, and advancements in the development of interactive and gamified learning platforms are the primary factors projected to drive market growth in terms of user base and subscriptions. Factors such as an increase in the spending power of millennials, high adoption of smartphones, inclination toward new technology, and high urbanization are driving the growth of the e-learning market in the region.

Asia-Pacific is the fastest-growing region in the global e-learning market. It is estimated to grow at a CAGR of 17.1% by 2030. 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 user base for vendors to target. 

Europe accounts for the third-largest position in the market. It is anticipated to grow at a CAGR of 14.2% during the forecast period. 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.

Segmental Analysis

The global e-learning market is segmented based on deployment model, provider, course, and end-user.

The market is further segmented by deployment model into On-Premise and Cloud.

On-premise e-learning is the term used to describe software and infrastructure that are hosted and managed within the organization's private data centers and IT infrastructure. The organization controls the software, data, and infrastructure with on-premise e-learning. This enables a higher degree of security and customization. Nevertheless, on-premise e-learning necessitates that the organization manage the e-learning system's IT maintenance, enhancements, and administration. The initial expenses of on-premise e-learning may be higher due to the organization's requirement to allocate resources for the deployment and management of the system, including hardware, software, and IT resources.

The term "cloud-based e-learning" denotes the hosting and managing of e-learning software and infrastructure by a third-party cloud provider. Cloud-based e-learning enables the organization to access the e-learning system via the Internet, while the cloud provider is responsible for all IT maintenance, upgrades, and administration operations. Cloud e-learning can provide greater flexibility, as users can access the system from any location with an internet connection. It also has reduced upfront costs, as the organization pays a subscription fee rather than investing in on-premise infrastructure. Nevertheless, cloud e-learning may lessen the organization's direct control over the software and data, raising security and customization concerns for specific organizations.

The market is further segmented by provider into Content Provider and Service Provider.

E-learning content providers, corporations, or institutions provide digital educational content and solutions for online learning. They develop and distribute interactive materials, including courses, tutorials, videos, exams, and simulations, that can be accessed remotely via web-based platforms or learning management systems. Some of the most significant e-learning content providers are EdX, Coursera, LinkedIn Learning, and Udemy. These providers provide a diverse selection of courses covering various industries and topics. E-learning content providers utilize technologies such as artificial intelligence (AI), virtual reality (VR), and augmented reality (AR) to improve the learning experience and make it more immersive and engaging. Factors such as the increase in remote learning, the demand for perpetual learning, and the advancements in educational technologies are expected to drive the substantial growth of the e-learning content providers market in the coming years.

Companies that provide various services to facilitate the delivery and administration of online learning programs are called e-learning service providers. Content development, instructional design, analytics and reporting, learner support, and learning management system (LMS) hosting and maintenance are among the services that may be rendered. E-learning service providers assist organizations in developing, deploying, and optimizing their online training programs, eliminating the necessity of constructing and maintaining the entire infrastructure in-house. Custom content development, virtual classroom administration, learner engagement tools, and LMS implementation and customization are among the primary services provided by e-learning service providers. Additionally, the e-learning service provider market is expanding rapidly as organizations increasingly implement online learning and seek specialized expertise to improve the efficacy of their training sessions.

The market is further segmented by course into Primary and Secondary Education, Higher Education, Online Certification, and Professional and Test Preparation.

Digital learning materials and interactive tools are provided to students from kindergarten to 12th grade through e-learning solutions for primary and secondary education. These solutions frequently encompass adaptive learning platforms, video lessons, educational activities, and virtual classrooms that accommodate a variety of learning styles and paces. In primary and secondary education, E-learning aims to improve learning outcomes, personalize learning, and increase student engagement. The COVID-19 pandemic has prompted numerous schools to transition to remote learning, accelerating the adoption of e-learning in primary and secondary institutions.

In higher education, e-learning provides online courses, degree programs, and certifications administered through virtual classrooms and learning management systems (LMS). E-learning in higher education allows students to pursue their education remotely while balancing work, family, and other responsibilities, thereby enhancing their flexibility and accessibility. To establish an engaging learning experience, online courses in higher education frequently integrate multimedia content, interactive discussions, and collaborative projects. Numerous top universities and colleges have partnered with e-learning platforms such as Coursera, edX, and FutureLearn to expand their online offerings and engage a global audience.

The market is further segmented by end-users into K-12, higher education, corporate, and vocational education.

This segment encompasses online and digital learning solutions for primary and secondary education from kindergarten to 12th grade. Interactive learning materials, educational games, adaptive learning platforms, and virtual classrooms that are designed to meet the requirements of K-12 students are all included in this. The COVID-19 pandemic has prompted numerous schools to transition to remote learning, accelerating the adoption of K-12 e-learning. The K-12 e-learning market is primarily driven by the necessity for personalized learning, enhanced accessibility, and the integration of emergent technologies such as AI and AR/VR.

This sector includes online courses, degree programs, and certifications that universities and colleges provide. These solutions offer students the flexibility and accessibility they require by utilizing multimedia content, virtual classrooms, and learning management systems (LMS). Many of the world's most prestigious universities have partnered with e-learning platforms to broaden their online offerings and reach a global audience. The demand for flexible and cost-effective education and the necessity for continuous learning and upskilling are among the factors propelling the higher education e-learning market.

Recent Developments

• May 2022 - Anthology, a leading provider of education solutions that support the entire learner lifecycle, and the United Nations Educational, Scientific and Cultural Organization (UNESCO) announced Anthology's sponsorship for the World Higher Education Conference (WHEC2022) in Barcelona, Spain. UNESCO and Blackboard, now part of Anthology, initially formed a partnership to support global digital learning initiatives in 2020. This flagship higher education event, held only once each decade, marks the organizations' continued collaboration to help define the future of higher education.
• April 2022 - Pearson, the world’s leading learning company, announced it had acquired Mondly, a global online language learning platform. The acquisition will allow Pearson to offer a full range of ways for people to learn and prove their English skills – adding online self-study to its current diagnosis and learning tools and assessment portfolio.