Key Market Overview:
Learning Management Systems (LMS) market size was valued at USD 17.36 Billion in 2022 and is estimated to reach over USD 69.69 Billion by 2030, witnessing a CAGR of 19.2% during the forecast period (2023-2030).
A Learning Management System (LMS) is a software application that allows organizations to manage and deliver e-learning content to learners. It is designed to simplify the management, delivery, and tracking of online training programs, courses, and assessments. The LMS provides an online platform where learners access training content, interact with instructors, collaborate with peers, and monitor their progress.
Learning management system has wide applications among organizations of all sizes, ranging from small businesses to large corporations and educational institutions. LMS is popular in industries including healthcare, finance, and technology, in order to provide on the floor training to professionals and develop personality traits among the work force. The growing adoption of remote work and online learning is expected to propel the demand for LMS to deliver high-quality and scalable training programs.
Furthermore, a well-designed onboarding process plays a crucial role in improving employee retention within organizations due to its significant long-term benefits. For instance, the study published by Tovuti LMS revealed that an effective onboarding program lead to an 82% increase in employee retention and higher levels of productivity. Thus, the growing focus on employee retention among businesses is propelling the demand for Learning Management Systems (LMS).
Learning Management Systems (LMS) Report Coverage:
Increasing focus on cost reduction
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||69.69 Billion|
|CAGR (2023-2030)||19.2 %|
|By Component||Software and Services|
|By Deployment Model||On Premise and Cloud|
|By User Type||Academic and Corporate|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Blackboard Inc. (Anthology), Instructure, Inc., Oracle, IBM, Docebo, Infor, SAP SE, Adobe, PowerSchool, LearnWorlds, Open LMS (Learning Technology Group plc), 360Learning, iSpring, SkyPrep Inc., Tovuti LMS, WBT Systems|
LMS helps organizations save costs by reducing the need for traditional classroom-based training, which are expensive in terms of travel, accommodation, and other related expenses. Additionally, the growing focus on scaling up training programs of organizations is propelling the demand for Learning Management Systems.
For instance, according to the study published by 360Learning, companies incur a total cost of USD 600 billion each year due to the significant turnover of employees, which results in lost productivity and expenses related to hiring replacements. Hence, the rise in demand for employee retention programs for saving business costs boosts the demand for learning management systems.
The growing rate of globalization
The rising growth of global businesses has resulted in the adoption of LMS to provide a centralized platform for organizations to manage their training programs across different regions and languages, ensuring consistent training delivery and quality.
• Globalization has increased the demand for online education, as students from different parts of the world seek to learn from the comfort of their homes. This has led to the development of more sophisticated LMS that can cater to the needs of these students.
• Globalization has made it easier for learners to access resources from different parts of the world. LMS could integrate resources from different sources, including international academic databases, online libraries, and multimedia platforms.
• LMS facilitates collaboration and communication between learners from different parts of the world. Globalization has made it easier for learners to connect and work together, regardless of their location. LMS also provides tools for online collaboration, such as discussion forums, video conferencing, and social media.
Hence, the above-mentioned factors boost the learning management systems (LMS) market growth.
Growing compliance requirements in various industries
Several industries such as healthcare, retail, IT & Telecom, hospitality, and others have compliance requirements that mandate regular training and certification for employees. LMS helps organizations stay compliant with these regulations by delivering and tracking training programs. Therefore, the growing regulatory compliances in these industries are propelling the demand for learning management systems (LMS).
• LMS platforms do not offer the level of customization required by educational institutions to meet their specific requirements. This acts as a significant limiting factor, as institutions are forced to adopt a one-size-fits-all solution that are predefined by the LMS entities.
• LMSs, in a few instances fail to fulfill user\'s requirements, thus resulting in low usage rates and lack of motivation. The major factors attributed to the reduced user engagement owing to poor user experience, lack of relevant content, or limited personalization options.
• The lack of integration with other systems used by educational institutions such as student information systems, assessment systems, and other learning tools is also negatively impacting the adoption of LMS. The resulting factors are attributed to disjointed and inefficient workflows, thus limiting the effectiveness of LMS.
• Several companies are recognizing the importance of professional development of their employees as a way to increase the rate of retention and productivity. Hence, the scope of introducing improvements in employee training programs is expected to offer lucrative opportunities for the market.
• The high potential of improvements in e-learning is expected to offer lucrative opportunities for LMS providers. The companies have an opportunity to offer mobile-friendly platforms that allow learners to virtually access learning content on devices such as smartphones and tablets.
Based on the component, the market is categorized into software and service. The service segment accounted for the highest market share in 2022. A majority of businesses adopt LMS to gain access to customized learning modules as per the organizations requirements. Also, companies offering LMS services help to stay compliant with regulatory compliances, especially in government organizations, thereby propelling the demand for LMS. For instance, the American Institute of Chemical Engineers (AIChE) partnered with professional services team of WBT Systems to completely migrate their systems into latest learning management systems called Personify360. Therefore, the increasing demand for LMS services to fulfil compliance requirements of organization is boosting the growth of learning management systems market.
However, the software segment is expected to grow at the fastest CAGR rate during the projected period. The major factor attributed to adoption of LMS software in businesses is to gain enterprise-level security and reliability. The software for LMS is also anticipated to witness an increase in demand due to the favorable adoption of remote working in several businesses.
By Deployment Model
The deployment segment is categorized into on-premise and cloud. The cloud segment accounted for the highest market share in 2022. The cloud deployment model offers advanced security features such as encryption, data backup, and recovery, that help keep data safe from unauthorized access or loss. The cloud-based LMS witnesses an increase in demand from schools to manage and deliver educational content to students, helping teachers to monitor student progress and offer personalized instruction. For instance, Google offers a cloud-based learning management system called Google Classroom, comprising a part of Google Apps for Education, designed for academic institutions. Therefore, the favorable adoption of cloud-based LMS among organizations propels the learning management systems market.
However, the on-premise segment is expected to register the fastest CAGR over the forecast period. The growing adoption of LMS for stable and reliable access to the business system is anticipated to propel the segment growth over forecast period. Also, one of the major factors attributed to the segment growth is the favorable adoption of on-premise LMS among organizations with high access to sensitive and confidential data. Hence, the growing adoption within institutions with high volumes of confidential data is anticipated to boost the demand for on-promise LMS.
By User Type
The user type segment is categorized into academic and corporate. The corporate segment accounted for the highest market share of the learning management systems (LMS) market statistics in 2022. Increased employee engagement and retention is the major factor attributed to the high adoption of LMS in corporate organizations. An LMS also allows these organizations to track employee progress and performance, which enables organizations to make data-driven decisions about future training initiatives. For instance, according to a study released by iSpring, the adoption of corporate training within companies results in a hike of over 218% in the income per employee combined with a higher profit margin of over 24%. Therefore, the growing preference for corporate LMS among organizations to increase business profitability is boosting the market growth.
Further, the academic segment is projected to witness the fastest CAGR over the forecast period. LMS is a cost-effective alternative to conventional training programs as it eliminates the need for physical classrooms, textbooks, and other learning materials. The institutions could save money on infrastructure, equipment, and other resources, thereby, the aforementioned factors are expected to propel the demand for LMS among academic users.
Based on region, the market is segmented into North America, Europe, the Middle East and Africa, Asia Pacific, and Latin America. In 2022, North America accounted for the highest market share over 33.10% of the Learning Management Systems (LMS) market statistics. The growth in the region is attributed to the growing awareness among businesses about powerful analytics and reporting tools to track learner progress, identify knowledge gaps, and measure the effectiveness of learning initiatives within institutions. Also, the major factor attributed to the growth of the LMS market is the favorable adoption of LMS solutions offered by established market players situated in the region such as Blackboard Inc. (Anthology), Instructure, Inc., and others. For instance, in March 2023, Anthology announced that the distinguished private culinary school named Culinary Institute Lenotre (CIL), situated in United States, selected LMS platform called Blackboard Learn Ultra. Therefore, the growing adoption of LMS solutions within recognized institutions is propelling the growth of LMS market in the region.
Moreover, Asia Pacific is projected to register the fastest CAGR of 19.6% during the forecast period. The growth of e-learning is a significant factor contributing to the increased demand for LMS in the Asia Pacific region. The region has a large and growing population of students and professionals who are seeking new ways to learn and upgrade their skills. For instance, according to the statistics published by The World Economic Forum in 2022, the Asia Pacific region had the highest number of students using online learning platforms, with 28 million new enrollments for a total of over 68 million courses. Thus, the high adoption of e-learning among increasing professionals and students is expected to boost the adoption of LMS in the Asia Pacific region.
Learning Management Systems (LMS) Market Competitive Landscape:
The learning management systems (LMS) market is expected to witness staggering growth over the forecast period, with each provider offering unique features and functionalities. The companies offer their services and software on the basis of the specific needs of any organization or institution, such as the size of the user base, the type of courses offered, and the level of customization required. Mentioned are key players that operate in the latest market space to offer innovative products for various industries –
• Blackboard Inc. (Anthology)
• Instructure, Inc.
• SAP SE
• Open LMS (Learning Technology Group plc)
• SkyPrep Inc.
• Tovuti LMS
• WBT Systems
• In February 2023, Anthology revealed that EC-Council University (ECCU), a specialized institution focused on advanced cybersecurity technology education, opted for Blackboard Learn. ECCU adopted Anthologys primary learning management system (LMS) to offer its students a user-friendly and personalized workflow system.
• In January 2022, Looop, the highly regarded learning management system (LMS) in the United Kingdom, had been acquired by 360Learning for over USD 20 million.