Learning Management Systems (LMS) Market

Market Overview

The global Learning Management Systems (LMS) Market size was valued at USD 17,481 million in 2021 and is predicted to reach at USD 87,493.3 million by 2030, increasing at a CAGR of 19.30% from 2022 to 2030.

Learning management systems (LMS) are most often used for online learning, but they're also used for other reasons, such as providing as a platform for online content, including asynchronous and synchronous courses. In addition, LMS software, also known as a computer-based training software, helps educational institutions and businesses better manage their online learning courses, which may be a very successful strategy to enhance employee engagement and retention thereby improving staff skill levels.

An increase in the use of learning management systems (LMSs) to cut costs and improve convenience is a major driver for the market. lms market expansion is also being fuelled by the increasing use of smartphones, high internet speeds, and the growing popularity of learning management systems among consumers and educational institutions alike. The market's expansion is hampered, however, by expensive courses and unreliable internet connections in rural areas.

As a result of elements such as automated human-intervened activities, the integration of artificial intelligence (AI) presents considerable opportunities for learning management system firms to extend their products. Furthermore, it is expected that the market will benefit from an increase in advances and activities aimed at digitalizing education.

Market Dynamics

Drivers: Increase in Penetration of Smartphones and Artificial Intelligence (AI)

The growth of the learning management systems market is fueled by several factors, including the increasing preference of consumers for learning management systems, the rising penetration of smartphones in conjunction with improved internet connectivity, the massive adoption of these systems by educational institutions, and so on.

In addition, the incorporation of artificial intelligence (AI) presents significant opportunities for businesses that specialize in learning management systems to increase the breadth and depth of the services they provide. These opportunities are made possible by the AI's ability to automate processes that previously required human intervention. In addition, the expansion of technologies and activities geared toward digitalizing education is predicted to present a possible opportunity for market growth in the near future.

Drivers: Cloud Deployment Models and Digitalized Education

With the advent of electronic learning platforms and technological advances, education systems around the world have seen significant transformations in the last few years. Learning management systems have been incorporated into the Internet and smart devices for a better user experience. In the coming years, the low-cost cloud deployment strategy of LMS is predicted to support the expansion of many user groups, including academics and businesses.

The cloud-based deployment methodology does not necessitate a large upfront investment and does not necessitate a lot of ongoing maintenance. Thus, academics and businesses are the two most common user groups. The lms market is expected to develop over the forecast period due to direct IT control, real-time teaching, faster document processing, and the cost-effectiveness of cloud deployment. These act as key drivers for the learning management systems market.

Restraints: Inability to Track Performance and Measure Return on Investment

In response to the growing demand for learning management system (LMS) solutions, LMS providers are consistently exploring new technological avenues in an effort to enhance the products and services they provide. LMS solutions assist instructors in adjusting to the shorter attention spans of e-learners by providing more images and less text, more intriguing themes and expressions, an emphasis on virtual immersive education, and, eventually, gamification to hold the attention of e-learners. It is possible to use Artificial Intelligence (AI) to develop an AI-based mentor that may assist students in understanding topics, provide suggestions for courses, and offer feedback in order to improve the performance of students. Other technology solutions, such as data analysis, examine the thought processes and learning styles of students based on the interactions they have throughout the day. This enables teachers to tailor their lessons specifically to the needs of individual students and create a more personalized educational experience.

What are Future Significant Opportunities in Global Learning Management Systems Market?

• Gamification In LMS Can Promote Learning and Create New Opportunities

Gamification in LMS enhances learning, engages individuals, and handles issues. It helps draw people's attention to games and keeps them captivated, engaged, connected, and included. With gamification, workers can learn more, change skills quickly, and retain info compared to agents who learn less intuitively.

Gamification connects with pupils by using game characteristics like attention, movement, and rivalry to learning exercises. Due to rapid advances in data technology in education, schools need to adapt their teaching techniques by combining gaming with Learning Management System Market, which improves LMS usability. They foster healthy competition among students to increase their learning.

Segmental Analysis

The global learning management systems market is divided into different segments according to By Component, By Deployment, By Enterprise Size, By Delivery Mode, By End-user

By Component, the global learning management systems market is segmented into Solutions and Services. In 2021, the solution segment led the market with almost 70% of the market share. Advanced technologies such as Machine Learning (ML), Artificial Intelligence (AI), and analytics are being integrated into existing learning management system (LMS) platforms by market companies such as Cornerstone, Oracle, SAP, and others.

During the projected period, the service segment is expected to grow at a quicker rate. The significant growth in the service segment is due to increased demand for installation and technical support. Implementation, consultancy, and support are among the educational services provided by education and learning service companies.

By Deployment, the global learning management systems market is segmented into Cloud and On-premises. In 2021, the on-premises category led the market with a share of more than 48%. In the coming years, demand for on-premises services is expected to decline. Complete control, customization, better integration, and a longer deployment time are all advantages of on-premises deployments.

Mobile learning is rapidly being adopted by training and development departments across all industries. The majority of businesses use technology-assisted learning, which allows employees to generate, save, and share innovative ideas at work. Companies that implement mobile learning solutions have witnessed an improvement in productivity, as well as innovation and employee loyalty.

By Enterprise Size, the global learning management systems market is segmented into Small & Medium Enterprise and Large Enterprises. In 2021, the big enterprise size segment dominated the market, accounting for more than 55 percent of the total market share. Companies have adopted the use of LMS software because of the benefits it provides, which include lower training and development expenses, consolidated training resources, speedier training, and more. Large organizations are expected to boost their demand for LMS software built for the corporate and education industries as a result of the considerations outlined above.

To expand their client base and create creative content, the players are cooperating with businesses. Cornerstone, for example, bought EdCast Inc., a supplier of a learning platform for global institutions, companies, and governments, in March 2022. With the support of EdCast Inc., the company hopes to increase the value of clients by giving some new learning, skill-building, and content.

By Delivery Mode, the global learning management systems market is segmented into Distance Learning, Instructor-led Training and Blended Learning. In 2021, the distance learning segment led the market, accounting for more than 45 percent of the total market share. Moreover, during the forecast period, the instructor-led training (ILT) category is expected to grow at the fastest rate of 19.85 percent. Instructor-led training enables instructors to interact with learners and employees, resulting in a more seamless learning experience.

Since it administers educational content, online course administration, and student work assessment, the demand for LMS in academics has grown. In the coming years, distant learning is projected to develop somewhat, and employees and students are likely to choose instructor-led training over distance learning.

By End-User, the global learning management systems market is segmented into Academic and Corporate. In 2021, the academic division led the market with a share of more than 60%. The market is divided into two types of end-users: corporate and academic. Personalized and flexible training packages that target each learner's particular needs should be available in a learning environment. To reinforce learning systems and ensure that they can adapt to future changes in education and technology, e-learning should employ a holistic and ecological learning strategy.

New technological breakthroughs, such as mobile learning and the use of AI and ML in academic settings, can, on the other hand, provide the resources needed for the education industry to design a modernized learning module for the future that is heavily centered on digital learning.

By Region or Geography, the global learning management systems market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America had the largest portion, accounting for more than 45 percent of worldwide revenue in 2021. Due to increased Ed-tech activity, North America is expected to lead the LMS industry. The United States has the most institutions and colleges, which means that LMS providers will have more opportunities to build their operations in this country.

During the predicted period, Asia Pacific is expected to expand. To boost e-learning and development, India, China, Japan, and other Asia Pacific countries are investing in and using learning management system platforms. Expanding corporate footprints is a priority for market participants in the region.

Regional Analysis

The global learning management systems market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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In 2021, North America held the largest share of the market, accounting for more than 41.0 percent of the total revenue generated worldwide. As a result of the increasing number of Ed-tech activities, it is projected that North America would dominate the LMS industry. The United States has the biggest number of institutions and colleges in the world, and because of this fact, there is a good chance that companies that supply LMS will have opportunities to grow their operations within this country.

The market for learning management systems in North America is influenced by a number of factors, including opportunities, drivers, and limitations. The ever-increasing need for education or learning that is both efficient and of high quality is an essential factor in determining how well the market will perform in North America. The quick implementation of innovative learning has been welcomed in North America, which has resulted in an increase in the region's market share for LMS.

On the other hand, the shift away from cloud-based services in organizations is projected to create enormous opportunities for the development of the learning management system market in North America.

The Asia Pacific region is projected to experience growth over the period under review. In order to further e-learning and professional growth, many nations in the Asia Pacific region, including India, China, Japan, and others, are investing in and adopting learning management system platforms. The region's various market players are placing an emphasis on increasing their commercial footprints.

For example, in March 2021, LTG PLC acquired Bridge, a learning management system platform that helps improve skills and performance while also assisting managers and people in transforming their company via alignment, connection, and growth. Bridge was purchased by LTG PLC. As part of the acquisition, the company plans to unite the collection of businesses that give clients the ability to find solutions to the pressing and ever-changing problems that leaders face in the workplace.

Recent Developments

March 2022 - Cornerstone bought EdCast in March 2022. To better serve their clients, both companies will benefit from this merger, which is expected to shake up the edtech business.

September 2021 - Anthology, a leading provider of higher education solutions that serve the full learner lifecycle, and Blackboard announced a merger today. The merger will establish the world's most advanced EdTech ecosystem. The combination aims to expedite education institution transformation to improve learner experience and student performance.

Learning Management Systems (LMS) Market Segmentation

By Component

• Solution
• Services

By Deployment

• Cloud
• On-premises

By Enterprise Size

• Small & Medium Enterprise
• Large Enterprises

By Delivery Mode

• Distance Learning
• Instructor-led Training
• Blended Learning

By End-User

• Academic
• Corporate

By Region

• North America
• Europe
• Asia Pacific (APAC)
• Latin America
• Middle East and Africa (MEA)