Learning Management System Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Deployment, By Enterprise Size (SME), By Delivery Mode, By End User, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global learning management system market size was valued at USD 20.33 billion in 2023 and is expected to expand at a CAGR of 19.7% from 2024 to 2030.Development in multimedia graphics, high-speed telecommunication networks, and digital devices contribute to the increasing adoption of learning management system (LMS). The market showed positive change amid COVID-19 and is expected to witness massive spending and investments led by educational institutions, governments, and enterprises in the coming years. For instance, in March 2023, Docebo S.p.A. announced a partnership with ELB Learning, a software company. The partnership will allow for improved learning experiences by integrating both companies' finest solutions and services. As educational institutions and businesses grapple with the complexities posed by remote work, geographical barriers, and ever-evolving learning needs, adopting digital learning solutions is becoming imperative. In this transformative context, LMS platforms are emerging as indispensable tools, seamlessly supporting the transition toward digital education and corporate training.

LMS platforms enable the delivery of learning materials in various formats, including videos, simulations, and interactive elements, which significantly enrich the learning process and make it more engaging for learners. This rich content delivery supports active participation and enhances comprehension and retention of learning materials. Additionally, the data on learner behavior, engagement, and performance generated by digital learning platforms can be utilized by educators and trainers to personalize learning experiences, identify areas for improvement, and measure the effectiveness of training programs more effectively.

The increasing adoption of online learning bodes well for the growing demand for LMS platforms that can accommodate diverse learning styles and preferences. At the same time, there is an evolving need for inducing flexibility in learning methodologies, prompting the integration of features, such as microlearning modules and mobile accessibility. As such, LMS platforms are evolving to meet these changing requirements of both learners and businesses, offering adaptable solutions aligned with contemporary learning trends. By prioritizing online learning strategies, LMS providers are looking forward to reaching a wider audience, ensuring inclusivity and active participation. The emphasis on flexibility is thereby highlighting the significance of agile learning solutions that can be accessed at any time and from any location. In response to these changing demands, LMS platforms are evolving to facilitate comprehensive tools and functionalities that can enhance the learning experience for businesses and their employees.

Component Insights

The solution segment led the market in 2023, accounting for over 67.0% share of the global revenue. LMS solutions boast a wide array of features, such as content management, assessment tools, communication channels, analytics, and seamless integration capabilities with other software systems. By providing a holistic suite of functionalities, LMS proves to be an all-encompassing solution capable of meeting the multifaceted demands of modern learning environments. Furthermore, the segment’s dominance is driven by its ability to address users' diverse needs through customization, comprehensive features, scalability, robust support, enhanced user experience, and cost-effective pricing models.

The services segment is predicted to foresee significant growth in the coming years. The growth of the service segment can be attributed to the rising demand for installation and the need for technical assistance. Education and learning providers offer various educational services, including implementation, consultancy, and support. Learners can leverage these services for effective curriculum development and the smooth performance and maintenance of current activities. Integration-as-a-service is a feature of the advanced system that reduces installation time and complexity. The business consulting sub-segment, on the other hand, is expected to lead this market due to improved collaboration and communication between trainers and learners.

Deployment Insights

The cloud segment accounted for the largest market revenue share in 2023. The widespread adoption of cloud-based solutions can be attributed to their accessibility, scalability, and cost-effectiveness. Cloud infrastructure enables organizations to access the LMS platform from any location with an internet connection, facilitating remote learning and collaboration on a global scale. Cloud platforms offer virtually limitless scalability, enabling organizations to effortlessly accommodate growing user bases, and expanding learning initiatives without the need for costly infrastructure investments or manual intervention. This scalability empowers organizations to adapt to changing demands and scale their learning programs dynamically, ensuring optimal resource utilization and user satisfaction.

The on-premises segment is predicted to foresee significant growth in the coming years.On-premises deployments offer total control, customization, and better integration. Training and development departments across all businesses are rapidly adopting mobile learning. Most companies adopt technology-assisted learning, allowing employees to create, save, and display innovative ideas in the workplace. Companies that adopt mobile learning solutions have observed positive changes in productivity and creativity among their employees.

Enterprise Size Insights

The large enterprises segment accounted for the largest market revenue share in 2023.Large enterprises use LMS software, owing to their several advantages, including lower training and development costs, centralized training resources, faster training, and more. The above factors are anticipated to increase the demand for LMS software for corporate and education enterprises. Key market players are collaborating with enterprises to increase their customer base and develop innovative content. For instance, in March 2022, Cornerstone acquired EdCast Inc. provider of a learning platform for institutions, enterprises, and governments worldwide. Through this acquisition, the company aims to accelerate the value of customers by providing innovative learning, skill-building, and content with the help of EdCast Inc.

The small & medium enterprise segment is anticipated to witness significant growth in the coming years. The segment growth can be attributed to the advantages associated with on-premises deployment, particularly enhanced data safety and security. Enterprises prefer the on-premises model because housing data and models within a company's data center ensure protection from external threats. Moreover, the use of on-premises infrastructure grants enterprises greater control over their machine-learning pipeline, leading to enhanced efficiency and cost reduction. in addition, the user-friendly interfaces and intuitive design of LMS platforms make them accessible to SMEs with limited technical expertise. These platforms are designed to be easy to implement and manage, minimizing the need for extensive IT support and training. This simplicity and ease of use enable SMEs to quickly adopt and leverage LMS technology to enhance employee learning and development initiatives.

Delivery Mode Insights

The instructor-led training segment accounted for the largest market revenue share in 2023.Instructor-led training LMS platforms offer advanced features and functionalities specifically tailored to support the delivery of live, synchronous training sessions. These platforms provide tools for scheduling, attendance tracking, interactive discussions, and live video conferencing, enabling instructors to recreate the immersive learning experiences of traditional classrooms in a virtual environment. This capability fits strongly with organizations seeking to maintain the effectiveness of their training programs while transitioning to remote or hybrid learning models.

The blended learning segment is anticipated to witness significant growth in the coming years. Blended learning incorporates advanced solutions such as virtual classrooms, mobile learning, and webinars. These methods combine various levels of interaction and content delivery via digital mediums. The primary purpose of blended learning is to enhance the teaching experience, and it can also include personalized teaching methods for better learning outcomes. Higher academic and K-12 schools typically employ blended learning. Blended learning offers flexibility, improved education, corporate training, and improved return on investment (ROI).

End user Insights

The academic segment accounted for the largest market revenue share in 2023. A learning environment provides personalized and flexible training programs addressing each learner's needs. E-learning utilizes a holistic and ecological learning strategy to strengthen learning systems, ensuring future developments in education and technology. On the other hand, new technology developments, such as mobile learning and AI and ML in academic learning settings, can provide the education industry with the necessary resources to develop a modernized learning module for the future that is highly focused on digital learning.

The corporate segment is anticipated to exhibit the highest CAGR over the forecast period. The application of LMS is expected to increase in the corporate sector as it provides flexibility in conducting training, meetings, and onboarding processes. The retail industry has adopted e-learning, trained sales employees, and provided product insights. Corporate LMS software keeps all the e-learning content in one place. The LMS software can also save the staff time searching multiple drives and devices for content while lowering the risk of losing important training material and data. For instance, in February 2023, Woven Brands, LLC, developer of a workplace management platform designed specifically for franchising, announced the release of a new learning management system within its centralized platform. The new platform capabilities is expected to result in increased engagement and significant employee learning and development

Regional Insights

North America learning management system market dominated with a revenue share of over 37.0% in 2023.The promising growth prospects of the regional market can be attributed to the rising demand for online education across all levels, and the subsequent need for efficient content delivery, course management, and remote student engagement. In addition, advancements in technologies such as AI, machine learning, and data analytics are enhancing LMS capabilities to personalize learning experiences and improve learning outcomes. Moreover, government initiatives promoting digital learning and workforce development, alongside funding programs for educational institutions and businesses, further bolster the North American LMS market.

U.S. Learning Management System Market Trends

The U.S. LMS market is poised for significant growth, driven by the digitization of higher education and the increasing adoption of LMS platforms in universities, colleges, and online institutions. Corporate sectors, mainly in healthcare, finance, and manufacturing, are leveraging LMS for mandatory training and compliance. Government funding, through initiatives such as the CARES Act, is enhancing digital infrastructure in K-12 schools and universities, further supporting LMS integration. The rise of online learning platforms, such as Coursera, Inc, and Udemy, has also accelerated LMS demand to manage courses and enhance learning experiences.

Europe Learning Management System Market Trends

The Europe LMS market is expected to witness significant growth over the forecast period. The regional market growth can be attributed to the European Union's increased focus on enhancing digital competencies and technology integration within the education sector via the Digital Education Action Plan. This has increased LMS adoption across educational institutions in the region. In addition, the growing focus of governments and education authorities on workforce development and learning is driving the demand for flexible and accessible training solutions, positioning LMS platforms as essential tools for upskilling and reskilling the workforce.

Asia Pacific Learning Management System Market Trends

The Asia Pacific LMS market is poised to experience rapid growth over the forecast period, driven by the increasing prevalence of computing devices and smart technology adoption across the region. Developing countries such as India have witnessed a surge in affordable broadband connectivity, facilitating widespread access to digital educational resources and services. This is expected to empower users to engage in digital learning experiences. Moreover, education stakeholders in emerging markets are increasingly turning to technology to address the gap between access to high-quality education infrastructure and teaching resources.

Key Learning Management System Company Insights

Key LMS companies include Cornerstone., Anthology Inc., D2L Corporation, and PowerSchool. Companies active in the LMS market are focusing aggressively on expanding their customer base and gaining a competitive edge over their rivals. Hence, they pursue various strategic initiatives, including partnerships, mergers & acquisitions, collaborations, and new product development. For instance, in January 2024, PowerSchool, a leader in K-12 cloud-based educational software, is making a big push into the Indian market. They plan to nearly double their India-based workforce, growing from 1,300 to 2,000 employees in the next 3-5 years. To accommodate this growth, PowerSchool is significantly expanding its Centre of Excellence (CoE) in Bengaluru and plans to further develop its Chennai office in 2024.

Recent Developments

• In November 2023, Moodle Workplace 4.3 introduces a new way for L&D managers to manage teams. They can now manually assign managers to individuals, offering more flexibility and control. This is particularly helpful for creating temporary teams or managing projects with changing dynamics. This new feature also integrates seamlessly with HR systems, making data exchange easier and simplifying administration for IT staff.

• In May 2023, D2L Corporation, a global learning technology leader, has strengthened its strategic partnership with Ellucian, a provider of integrated higher education technology solutions. This partnership aims to enhance the learning experience for students and faculty by providing seamless integration between D2L's Brightspace learning platform and Ellucian's Banner Enterprise Resource Planning (ERP) system.

• In December 2022, Moodle strengthened its presence in the global EdTech market by acquiring e-ABHYAS Academy, a certified Moodle partner. This strategic move provides Moodle's entry into the fastest-growing Indian EdTech sector. By leveraging eAbyas' expertise in customization, implementation, and support, Moodle can now offer a more comprehensive service package directly to Indian customers. This acquisition positions Moodle to capitalize on India's EdTech growth potential and deliver a stronger solution to its global audience.

Learning Management System Market Report Scope

Global Learning Management System Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global learning management system market report based on component, deployment, enterprise size, delivery mode, end user, and region.

• Component Outlook (Revenue, USD Billion, 2017 - 2030)

  • Solution

  • Services

• Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

  • Cloud

  • On-premises

• Enterprise Size Outlook (Revenue, USD Billion, 2017 - 2030)

  • Small & Medium Enterprises

  • Large Enterprises

• Delivery Mode Outlook (Revenue, USD Billion, 2017 - 2030)

  • Distance Learning

  • Instructor-led Training

  • Blended Learning

• End user Outlook (Revenue, USD Billion, 2017 - 2030)

  • Academic

    • K-12

    • Higher Education

  • Corporate

    • Healthcare

    • Banking, Financial Services, and Insurance (BFSI)

    • IT and Telecommunication

    • Retail

    • Manufacturing

    • Government & Defense

    • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • MEA

    • UAE

    • South Africa

    • KSA