United States Learning Management Systems (LMS) Market

Market Overview

The United States learning management system (LMS) market size was valued at USD 4,864 million in 2021 and is projected to reach USD 24,577 million by 2030, registering a CAGR of 19.43% during the forecast period (2022 to 2030).

A Learning Management System (LMS) is software that documents, monitors, reports on, and delivers training courses and programs. With the assistance of LMSs, employees can cost-effectively acquire knowledge, resulting in numerous advantages for companies. Moreover, the functionality of LMS platforms has made the learning process more straightforward than ever before. LMS solutions enable educational institutions to collaborate with students from around the world.

Highlights

• The solution segment dominates the market by Component.
• The distance Learning segment dominates the market by delivery mode.
• The cloud segment dominates by Deployment.
• The corporate segment dominates by user groups.

Market Dynamics

The United States Learning Management System (LMS) Market Drivers:

Emergence of Mobile Learning and BYOD as a Business Trend

Due to the costs associated with traditional teaching methods, organizations worldwide opt for e-learning services for employee training and education. Bring your own device (BYOD) is rapidly becoming a global trend in which employees bring their own devices to work for work-related or other purposes, such as training and development. With the increase in digital technology adoption and preference for BYOD, businesses are concentrating on implementing LMS on smartphones for integrated employment training. Smartphones, laptops, tablets, and USB drives are the most prevalent examples of BYOD devices that employees bring to work.

The United States Learning Management System (LMS) Market Restraints:

Enterprise Resistance to Converting Existing Training Content to Microcontent

Numerous organizations rely on comprehensive training and development programs and possess training and development content that is difficult to convert into microcontent. Due to its tediousness and expense, organizations must invest more in transforming their existing training content into microcontent. To implement microlearning-based training, it is difficult for an organization to organize and manage content within the micro-framework, and it may be necessary to create training content from inception, which can be costly.

The United States Learning Management System (LMS) Market Opportunities:

Artificial Intelligence (AI) Implementation in Learning Management Systems

Implementing artificial intelligence in learning management systems will generate market expansion opportunities. Integrating artificial intelligence into LMS will enable periodic and gradual performance evaluations to classify students/users according to their abilities, paving the way for developing advanced and highly intuitive training programs. Artificial intelligence's intuitive and predictive development capabilities make it the ideal ally for virtual education through learning management systems. The integration of AI with LMS enables the development of an unrivaled relationship between the user/student and platform through highly personalized training processes that identify users' cognitive, emotional, social, behavioral, or personality aspects to motivate them to learn through a strategy that appeals to the personality traits directly associated with acquiring new skills, such as competitiveness.

Regional Analysis

The United States is one of the most significant revenue contributor to the market globally and is expected to grow at a CAGR of 19.43% during the forecast period. The status quo in the United States can be attributed to the region's advanced I.T. infrastructure, which has enabled United States businesses to employ cloud-based LMS technologies sooner. As LMS technology is already widely adopted, leaving little space for growth. In recent years, LMS providers have been observed collaborating with United States universities and organizations. Additionally, the United States government is undertaking numerous initiatives to improve the inefficiency of traditional learning modules. Several educational institutions in North America are making substantial investments to adopt the newest and most advanced learning technologies, thereby expanding the LMS market. Blackboard Inc., Cornerstone On-demand, Inc., Desire2learn Incorporated, and IBM Corporation are prominent market participants in the North American learning management systems (LMS) market; however, the market continues to consolidate around Blackboard, Canvas, D2L Brightspace, and Moodle – the "big four" in this space.

Segmental Analysis

The United States learning management system (LMS) has been categorized into four segments, Component, Delivery Mode, Deployment, and User Group.

Based on Components, the Learning Management Systems market is segmented into: Solutions and Services.

The solution segment is expected to grow with the highest CAGR of 19.82% during the forecast period owing to an increase in legacy system upgrades to activate the latest technology and use cases.

Based on Delivery Mode, the Learning Management Systems market is segmented into three: Distance Learning, Instructor-led Training, and Blended Learning.

The Distance Learning segment dominated the market and is expected to grow at a CAGR of 18.75% during the forecast period.

Based on Deployment, the Learning Management Systems market is segmented into Cloud and On-Premise.

The cloud segment holds the highest market share and is expected to grow at a CAGR of 19.7% over the forecast period, as the Learning Management System is primarily designed for Cloud entertainment.

Based on User Group, the Learning Management Systems market is segmented into: Academic and Corporate.

The corporate segment holds the highest market share and is expected to grow at a CAGR of 19.65% over the forecast period due to the increasing number of Learning Management System deployments in different industries.

Recent Developments

• November 2022- D2L Corporation introduced the D2L Brightspace Creator+package. This package enables users to create engaging digital course content using Brightspace-integrated workflows, saving course creators time, effort, and money.
• September 2022- Instructure entered into an agreement with its partner Google that provides a robust and comprehensive integration solution for Google Classroom users. Educational institutions can synchronize course information and enrollment between their student information systems (SIS or MIS) and Google Classroom.