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72 Essential LMS & eLearning Statistics: 2020 Market Share & Data Analysis

Category: B2B News

In this fast-paced world where almost everything changes at lightning speed, today’s newest technology may become outdated after a few days or weeks. The same is true with what we learned in school, some of which could likely be irrelevant or totally obsolete by the time we started our first jobs. This breakneck speed of change is one of the reasons why the LMS system and eLearning platform market is among the busiest in the technology industry nowadays.

The LMS space itself is peppered with disruptive technologies–AI, VR, mobile, big data–hence, the need to keep pace with the trends. To help you out, we have prepared these learning management systems and eLearning statistics. They include market figures, software adoption and uses, effects on businesses and schools, and key industry trends, critical information that will provide you with valuable insights, whether you’re a vendor, administrator, instructor, or learner.

key lms statistics

1. LMS & eLearning Software Market Statistics

The learning management system market size is expected to be among the biggest in the entire technology industry in the immediate future. With more than 700 LMS vendors in the market today, the digital learning landscape is likely to become more exciting and intense in terms of competition and upcoming technological breakthroughs.

  • As more and more companies embrace technology-based learning solutions, the worldwide LMS and eLearning market will increase to $15.72 billion by 2021, due to a steady 5% growth over the last three years. [1]
  • By 2022, the learning management system market will balloon to $19.05 billion, based on a forecast 5-year, 24% CAGR. [2]
  • It is predicted that by 2023, the worldwide LMS market value will reach $22.4 billion. [3]
  • The Asia-Pacific region is estimated to grow at the highest CAGR from 2018 to 2023. [4]
  • Large companies–those with high technology spending to provide employees an accessible and standard training environment–comprise 30% of global LMS buyers. [5]
  • Primary participants in LMS platforms are C-Level executives at 65% and managers at 35% [4]
  • The mobile learning market is estimated to grow to $38 billion in 2020 [6]

Sources: Markets & Markets, Zion Market Research

The major growth drivers[4] behind the ongoing LMS market boom include the rising adoption of digital learning, numerous government initiatives for LMS growth, the expanding use of AI and machine learning (ML) in both academic and corporate learning setups, and Bring Your Own Device (BYOD) policy and enterprise mobility. Likewise, open learning platforms like Moodle are also spearheading the popularity of online courses. Today, we have dozens of Moodle alternatives that let administrators deep-configure their LMS system via open API.

2. LMS Software Adoption and Uses Statistics

At the rate the gamut of learning management system research and development initiatives is driving new technological innovations, it’s probable that many companies will invest more of their L&D dollars into a learning management system, which not only delivers and tracks training but also provides effective results. The same goes for schools worldwide, where administrators are increasingly collaborating with their IT departments in choosing the best LMS for their institutions.

  • For the past 16 years, small businesses have increased their use of e-learning by 900%, making online learning the new normal. [7]
  • Among businesses that use LMS systems, 74% of employees take advantage of the BYOD policy, as this enables learning from the comfort of their own device. [8]
  • As adults spend up to five hours daily watching videos, 98% of organizations worldwide are using video-based training programs in their digital learning approaches.
  • Among college students who had the option to choose between online and on-ground learning, almost 60% selected online learning. [9]
  • By 2020, 98% of small businesses are planning to use LMS to fulfill their learning requirements. [7]
  • To fill-up their skills gaps and reach their full capacity, numerous companies have invested more money into L&D in 2018. [10]
  • The overwhelming majority of students use mobile devices not only to search for their online program of study (87%) but also to complete online coursework (67%). [9]
  • Taking advantage of LMS platforms offerings, Google has enrolled 80,000 of its employees in Udacity’s HTML5 course. [11]
  • Nearly 70% of learning and development (L&D) teams state that they feel pressure to measure the impact for learning from leadership, 2019 [12]
  • 38% of respondents say that there is much more pressure in 2019 to measure learning than in 2018 [12]
  • 96% of respondents want to measure learning. However, only 50% are evaluating learning based on ROI, organizational impact, and job performance [12]
  • Only 14% of respondents feel that they measure digital learning impacts effectively [12]
  • 53% consider their measurement of digital learning impact to be ineffective [12]
  • A surprising 33% admit they don’t measure their digital learning impact at all [12]
  • 32% of respondents in the US and UK feel they are unqualified for their jobs with 33% fearing their bosses and colleagues think the same, [13]
  • 52% in both countries report that they have colleagues who are not qualified for their jobs. [13]
  • 48% of companies do not believe that their organizational cultures are not conducive to social learning [12]
  • Only 23% of L&D teams believe that they have the skills to facilitate social learning [12]
  • 70% to 90% of all workplace learning happens informally, 2019 [6]
  • 87% of employees believe that it is essential to share knowledge socially, 2019 [6]
  • Around 60% of companies use some form of social learning, 2019 [6]
  • Social learning has 75:1 ROI ratio compared to formal web-based formal training, 2019 [6]

Barriers to LMS adoption, 2019 [6]

  • 52% report that the inability of LMS platforms to integrate with other digital systems is a barrier to satisfaction
  • While 51% cite poor user experience and 44% the cost of LMS technology as the big barrier.
  • 24% are not satisfied with LMS platforms that have limited or no mobile capabilities at all
  • 67% of LMS users want providers to make their LMS functionality more complete
  • 66% of LMS users want providers to improve their customer and technical support

Plans for LMS adoption [6]

  • 30% of L&D professionals plan to incorporate games and simulations in their e-learning program for 2020
  • 93% will develop live online learning for their program in 2020
  • 33% want to develop MOOCs in 2020
  • 64% want to include open resources for their digital learning programs in 2020
  • 35% want user-generated content to be included in learning programs in 2020
  • 58% are planning to introduce enterprise social networks to help learning in 2020

 

The bulk of the learning management system data we’ve analyzed indicate that the adoption and usage of LMS and eLearning technologies are likely to accelerate further. Looking back, it is almost 30 years since the very first LMS was used by the UK’s Open University[14] in 1990. From web learning and on-demand learning, LMS technology had undergone numerous changes and advancements to reach today’s generation of digital learning tools that support learning anytime, anywhere.

Most Popular LMS Software

  1. TalentLMS. TalentLMS is a scalable, cloud-based learning management system that offers hassle-free course creation and delivery, conferencing, and gamification. Learn more about this LMS platform in our TalentLMS review.
  2. Absorb LMS. It provides your business with a host of core features that give you full control over the learning experience you offer to your employees.  In our Absorb LMS review you’ll find more details about this solution.
  3. SAP Litmos. SAP Litmos is designed to work seamlessly with any device to ensure hassle-free employee training. You can also adjust courses according to the learner’s knowledge level. Read our SAP Litmos review to learn about the system’s full set of features.
  4. Docebo. Docebo makes coaching and knowledge sharing easy with powerful but user-friendly tools. Our Docebo review provides more details on this platform.
  5. iSpring Learn LMS. iSpring Learn LMS lets you quickly develop and upload course content, which learners can access even when offline. Our iSpring Learn LMS review provides a closer look at the platform’s unique features.

3. LMS Impact on Business and Academe Statistics

The benefits of digital learning technology[15] are compelling and extensive. It provides organizations the convenience of organizing eLearning content in a single place and gives learners unlimited access to LMS materials. It removes the cumbersome tasks of manual tracking of learner performance and progress, including the usual high cost of L&D. With new innovations emerging regularly, the rich features of LMS platforms are likely to expand further.

  • Learning innovation delivers over a 9% improvement in organizational growth, transformation, profit, and productivity. [16]
  • For students who have experienced both in-person and virtual classrooms, 85% feel that learning online is as good or better than attending courses on campus. [9]
  • In 2019, more and more organizations are expected to embrace personalized training strategies. [17]
  • 72% of organizations worldwide say that eLearning helps them gain competitive advantage, while over 40% of Fortune 500 companies are extensively using eLearning in their operations. [18]
  • In 2018, while 93% of L&D professionals prefer to use LMS to boost employee engagement, only 27% were able to do so successfully. [12]
  • Compared to instructor-led training, eLearning uses 40%-60% less employee time, which allows organizations to cut the time staff are away from their jobs, including removing the need for travel. [19]
  • In a survey on how modern workers learn, 94% prefer learning at their own pace, 91% say that collaboration is the most useful to help them learn, and 76% get their motivation to learn online from the need to do their jobs better / faster. [20]
  • 82% say that reporting analytics is an important platform feature in LMS programs to improve their digital approach to business learning, while 90% state that learner engagement is the most important feature [12]
  • 24% of academic respondents state that improving customer experience and engagement is their primary concern [21]
  • 67% of academic institutions are still in the planning or trailing phase when it comes to deploying analytics for different LMS processes [21]
  • Researchers and practitioners predict that the next step for LMS is to become a “next-generation digital learning environment” (NGDLE) that focuses on teaching and learning rather than administrative purposes. Also, these NGDLEs are digital ecosystems that meet unique institutional needs. [21]
  • Spending for enterprise video in the education industry is predicted to grow from $1.5 billion in 2017 to $3.1 billion in 2022 [21]
  • In 2017, 53% of institutions used two to five lecture capture platforms across campuses. This complicates how video materials are being stored and shared. [21]
  • Educational institutions are slowly moving to the cloud with overall spending of $1.4 billion in 2018 to a predicted $3.2 billion in 2022 [21]
  • 68% of employees prefer to learn at work, 58% prefer to learn at their own pace, and 49% prefer to learn at the point of need, 2019 [6]
  • 73% of adults consider themselves as lifelong learners, while 63% of working adults are professional learners, 2019 [6]
  • 37% of organizations are looking to replace their LMS platforms; 43% of large organizations, 38% of mid-size organizations, and 26% of small organizations want to replace their LMS platforms [6]
  • Skilled and motivated workers can make sales rollouts faster by 22%. They can also help reduce the time spent on searching for sales content by 35% [6]
  • 92% of executives identified soft skills training as the most essential skill set to develop through talent development programs. [6]

Impact of e-Learning Innovation on Organizations, 2018

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Source: TowardsMaturity & eLearningIndustry

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The learning management system market share in large enterprises and SMBs is in continuous flux, as businesses, regardless of their size, are increasingly expanding their use of digital learning modalities. The same goes for educational institutions, whose expanding use of different types of LMS solutions is also paving the way for new levels of academic excellence. 

4. LMS Technology Statistics

As the competitive space for technology-based learning continues to expand faster, staying on top of the latest LMS developments and trends have become more important than before. Likewise, the need for LMS vendors to continually reinvent themselves had never been more demanding today than it was before.  

  • As videos will compose 80% of Internet traffic worldwide, video-based learning is increasing because it is engaging, easy to absorb, and can effectively hold the learner’s attention. [22]
  • Companies are choosing the “agile business” learning platform, which are LMS solutions that are configurable, customizable, and deployable in a matter of days, and have integrated content development tools that streamline the creation and delivery of targeted content to multiple learner groups. [23]
  • AI drives automated and personalized learning, including enabling L&D practitioners to focus more on learning program enhancements rather than engaging in repetitive tasks. [24]
  • AR/VR is considered by L&D professionals as the most practical and immersive approach to teaching learners how to perform actual tasks in a safe environment. [25]
  • Learner biometrics will provide real-time learning feedback for both organizations and the academe, for purposes such as market research, consumerism, and analytics. [26]
  • Advanced technologies like AI and machine learning help enhance the learning process by analyzing performance data, test responses, etc. to determine trends and created automated actions/insights for learners and stakeholders. [27]
  • 82% say that reporting analytics is an important platform feature in LMS programs to improve their digital approach to business learning [12]
  • 64% of learners find it important to have training materials accessible via mobile, 2019 [6]
  • 46% of learners use mobile learning before they go to sleep at night, 2019 [6]
  • Many advocate a more modern learning platform that is not just designed for training management but is designed to cater to interactive learning practices with exponential evolution [6]
  • L&D is now entering its third generation where it will be driven by AI and will see more personalization and automation [6]
  • In 2021, 50% of enterprises will have a learning assistant for employees and even customers who need training [28]
  • By 2021, 30% of learning analytics will tie performance with the knowledge level of participants [28]

From big data learning management system and AR/VR to specialized market segments, cloud-hosted LMS, and new protocols, these are only some of the major current and future developments that will affect the training industry throughout 2019 and beyond.

Tips for getting the best LMS software

Having an LMS solution is only as good as having a strategy that nurtures a culture of self-directed learning in an organization, be it in business or the academe. A learning culture made efficient by LMS is critical to developing relevant, timely skills, which help learners to be more ready and empowered to take on new challenges.

Without a doubt, organizations that are able to provide learners with the correct LMS tools to facilitate efficient skills development as they perform their daily tasks are most likely to succeed in the current highly competitive market environment. To future-proof your choice of an LMS, ask yourself these:

  1. Does the LMS have video support? As mentioned above, after taking over the Internet, videos are also conquering the LMS sphere. So in case you’re still not using this form of rich, highly-engaging media, it’s high time for you to do so to capitalize on the vast benefits that video learning materials bring.
  2. Does it make room for the possibility of AR/VR integration? It is suggested that businesses, especially those in heavy industries or engaged in handling hazardous materials, in starting integrating AR/VR in their training sessions as these technologies do not only allow learners to train in hostile environments safely, they’re also notably immersive and economical.
  3. Am I abreast of new technologies? Well, you are after reading this guide. This collection of essential industry statistics and trends reflects today’s learning systems landscape–extensive, deep, and highly complex. The more informed you are, the better your choice of the best LMS platform for your business or school.

Amidst a plethora of LMS solutions in the market at present, it is suggested that businesses searching for the best LMS for your business to conduct some research first before making a buying decision to ensure success. 

 


References:

  1. ^LMS Market by Component
  2. ^Global Learning Management System Market
  3. ^LMS Market worth $22.4 billion by 2023
  4. ^LMS Market by Component – Global Forecast to 2023
  5. ^ELEARNING MARKET TRENDS AND FORECAST 2017-2021
  6. ^A Docebo E-Learning Trends 2019
  7. ^2018 E-Learning Trends
  8. ^Wearables, BYOD and IoT: Current and future plans in the enterprise
  9. ^ONLINE COLLEGE STUDENTS
  10. ^10 Workplace Trends You’ll See In 2018
  11. ^Putting MOOCs to Work Recap
  12. ^Learning Technologies Awards 2019
  13. ^FAKE IT‘til you MAKE IT?
  14. ^History and Trends of Learning Management System
  15. ^Top 8 Benefits of Using Learning Management Systems
  16. ^The Transformation Journey
  17. ^Seven Learning And Development Trends To Adopt In 2019
  18. ^The Top eLearning Statistics And Facts For 2015 You Need To Know
  19. ^VERYTHING YOU EVER WANTED TO KNOW ABOUT eLEARNING
  20. ^Bright ideas with real-world impact
  21. ^2019 Trends to Watch: Higher Education
  22. ^How to Fireproof your elearning Journey in 2018
  23. ^Top Learning Systems Trends – A 2019 Extended Enterprise Market Guide
  24. ^E-Learning Trends 2019
  25. ^5 Examples Of Immersive VR Training Solutions To Increase Training ROI
  26. ^30 Incredible Ways Technology Will Change Education By 2028
  27. ^Artificial Intelligence Enhances The Learning Process: How Is That Possible?
  28. ^The Aragon Research Globe for Corporate Learning, 2019

 

Louie Andre

By Louie Andre

B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. From pitch deck to exit strategy, he is no stranger to project business hiccups and essentials. He has been involved in a few internet startups including a digital route planner for a triple A affiliate. His advice to vendors and users alike? "Think of benefits, not features."

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