There seems to be universal agreement that the worldwide E-Learning market will show fast and significant growth over the next three years. The worldwide market for Self-Paced E-Learning reached $35.6 billion in 2011. The five-year compound annual growth rate is estimated at around 7.6% so revenues should reach some $51.5 billion by 2016. A definition of Self-Paced Learning is Education in which learners study at their own pace, without a fixed starting date or regularly scheduled assignment completion dates in common with other students enrolled in the same program. However, there may be a fixed overall completion timeframe.
While the aggregate growth rate is 7.6%, several world regions appear to have significantly higher growth rates. According to recent regional studies, the highest growth rate is in Asia at 17.3%, followed by Eastern Europe, Africa, and Latin America at 16.9%, 15.2%, and 14.6%, respectively.
The E-Learning market is clearly expanding year-on-year, even though it’s difficult to compare market data coming from different sources. For example, if you include the Gaming and Gamification tools within the E-Learning market, then the growth numbers are even more impressive. Using a “classic” understanding of E-Learning reveals at least three dominant sub-sectors: Content, Authoring tools, and Learning Platforms. The recent innovations within the technology infrastructure divide the Learning Platform into two business (and technological) models: Hosted and Installed platforms. According to a recent analysis from Ambient Insight, these sub-sectors are expected to grow at different rates:
In 2012, Bersin & Associates stated that there were some 500 providers in the LMS market and only five of them have more than a 4% market share.
This market share is an overall image of the market. This picture changes significantly if the focus shifts to specific producers and specific market sub-sectors. Moodle, for example, currently has more than 30% of the market in the Education and Government sub-sectors. (SOURCE: E-Learning GUILD RESEARCH) According to the Bersin Industry study, the LMS market was expected to reach $1.9 billion in 2013. However the growth exceeded expectations, closing the year at $2.55 billion.
According to Product & Users, the LMS market is expected to experience a growth of 23.17% between 2017 and 2018. According to Ambient Insight, the packaged content market will reach $38.3 billion by 2016 (SOURCE: AMBIENT INSIGHT 2012). According to sources, large and affirmed Companies (such as the Global 5000) are the primary buyers of E-Learning products and services. They account for more than 30% of the E-Learning Market clientele.