Bullish Corporate LMS Software Market Forecast Driven by Personalized Training Demand

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The global job market has been surging despite high inflation and the ongoing supply chain crisis, as all major world regions reported an increase in the intent to hire new talent. A strong job market pushes the demand for training and development initiatives, which in turn, drives the demand for learning management systems (LMS). This is precisely what occurred in the corporate space.

A recent report by MarketsandMarkets projects the corporate LMS software market size expanding from $8.1 billion in 2022 to $21.1 billion by 2027 at a staggering annual growth rate of 21.1%. The majority of the LMS market growth originates from the Asia Pacific at 45%, given the software’s rising penetration in the region. Interestingly, the industry is also expected to register significant growth in mature markets like Europe (35%) and North America (20%).

The strong showing of the LMS software market implies the high volume of new hires across the globe and mass digital transformations since these events require training programs. Challenges like skills gaps and employee attrition also added to the demand. In addition, today’s hybrid working environment has pushed cloud-based SaaS solutions to the fore. As such, the MarketsandMarkets report cites interactive and personalized training as a key driver to the market’s growth, raising the demand for eLearning solutions in corporate spaces.

This emerging LMS trend has influenced enterprises to put a higher premium on training. Now, it is considered a key element of business strategies and leadership and development (L&D) programs, with LMS software as the means through which these are conducted.

Increased Involvement in Business Initiatives

Today’s employment boom has led to an increase in the deployment of L&D programs and LMS solutions across various training areas. LinkedIn’s 2022 Workplace Learning Report notes the year-over-year growth of initiatives like diversity and inclusion programs (45% from 34%), in-person training (41% from 25%), large-scale upskilling or reskilling (41% from 31%), leading through change training (42% from 37%), data analytics training (25% from 18%), and creativity development programs (16% from 12%).

Corporate training also currently plays a vital role in business strategies and company adaptability. New stats show that 87% of L&D specialists are involved in aiding their companies’ change management initiatives. Additionally, 74% of L&D leaders believe employee development programs are now more cross-functional and 72% think that these have become a more strategic activity in enterprises.

With the growing importance of training in corporate initiatives, the usage of LMS has skyrocketed over the years. Recent LMS and eLearning software statistics from Training Magazine reveal that 90% of organizations leveraged LMS in 2021, growing from the previous year’s 84% share. The percentage for 2022 is expected to go even higher based on the current demand.

So, how does corporate LMS software help businesses exactly?

Corporate Benefits of LMS and Personalized Training

Conducted across teams and departments, training programs are diverse in content and the manner in which instruction is conducted. This drives the need for personalized training, deployed via an LMS, that fits the specific learning needs of a group of employees. LMS software affords users access to the program and influences a variety of organizational improvements.

Decreases Learning Duration

Personalized training centers more on bridging skills gaps than having learners imbibe entire courses. And so, customized programs are faster to complete than traditional courses while producing desirable outcomes. In 2021, L&D enrollees took 23% less time learning compared to other learners. This enables employees to rejoin the active workforce after only a short span of time.

Improved Memory Retention

LMS platforms allow instructors to implement different types of activities and means to impart knowledge, keeping learners engaged throughout the duration of a course. Lengthy lectures can be turned into informative slides and presentations that incorporate real-world scenarios and company experiences. Course makers can also apply fun activities like gamifying lessons to further stimulate the interest of learners.

Upskilling and Reskilling Solution

Personalized training can be used to introduce new job skills, technology, and workflow kinks. Likewise, it can serve as a refresher course or focus on sharpening existing skills. LMS platforms enable businesses to customize courses down to the last detail based on the specific learning needs of employees. The workforce, in turn, feels more valued since the training programs give the impression that the organization is investing in them.

Completing a course also boosts the abilities and confidence of learners. After all, they will have an easier time accomplishing their tasks and moving through their workflows.

Immediate Access to Feedback

Besides conducting personalized training, LMS software can be used as a tool for collecting feedback. Managers can track the progress of their team post-training and provide comments on the platform. The feedback can be leveraged to create better courses down the line, focusing on the common difficulties of learners. Meanwhile, learners can use it to apply necessary adjustments. As for managers, not everyone is comfortable providing constructive criticism face-to-face, so they can type them down on the space provided by the LMS platform instead, which involves far less pressure.

Remote Access to Training

Most companies have adopted a hybrid working model. Employees are in the office for limited periods each week so traditional means of training won’t work. Corporate LMS software does away with this concern since housed training programs can be accessed at any location that has a stable internet connection. Most platforms are compatible with mobile devices, affording learners the option to undergo training on their desktops, laptops, smartphones, and tablets.

Besides the aforementioned benefits, LMS platforms and personalized training can improve employee retention due to upskilling or reskilling, enhance the internal mobility of organizations, and better orient the workforce about inclusivity and diversity. This combination of training and technology can, in fact, shape the culture of an organization.