Online education or e-learning has already significantly revolutionized the education sphere. This doesn’t just go for students either. E-learning has also become an integral part of how Enterprises educate their employees.
Here are four markets within the e-learning industry that are expected to witness strong growth during the 2015-2019 period:
Digital Education Publishing Market
Anticipated CAGR: 18.33 percent from 2015-2019
Market Driver: Affordability
In the US, the Textbook market is huge. In 2014, full-time college students spent US$600-1,200 on average on textbooks. Students have become more price sensitive as the web allows them to compare prices and find alternative sources such as online libraries and discounted e-books.
One such alternative source is CourseSmart. This platform, founded in 2007 by five of the largest textbook publishers, is one of the largest libraries of e-texts and digital course materials. It comprises a catalog of over 20,000 textbooks, which represents close to 90 percent of all textbooks in use.
Also, MOOCs allow students from all categories to download or install basic educational textbooks and related content free of cost. Earlier, students who wanted cheaper textbooks would explore the Used Book market. Educational institutions need to purchase only those e-textbooks which are updated with respect to format and content, unlike the print books, which had to be bought every academic year.
Market Challenge: Copyright Infringement for Digital Publications
Electronic piracy is one of the fastest growing cyber-crimes. A rise in devices such as e-readers and tablets has driven the demand for e-books but at the same time created copyright issues because of piracy. Illegal copying and sharing of digital textbooks reduces the profits of authors and publishers.
Although this is a global problem, these issues are evident in areas such as the Middle East and Latin America because of low awareness of intellectual property rights. In certain cases, the lack of stringent regulations or a governing authority that can clamp down on piracy has encouraged the proliferation of illegal digital content.
Such challenges will stop vendors from exploring business opportunities in such areas and publishers from digitizing their content because of an unsupportive legal environment.
E-Learning Packaged Content Market
Anticipated CAGR: 8.94 percent from 2015-2019
Market Driver: Technological Advancements in E-learning Tools
Rapidly changing technology is another driving force boosting the growth of the Global E-learning Packaged Content market. E-learning, which was initially limited to CBL, is now delivered through all forms of electronic media including tablets and smartphones. The number of users of these gadgets approaching online packaged content providers for either a fee or subscription-based packaged content is increasing.
In addition, with HTML5, a new standard for HTML, e-learning has become more accessible through cellphones. Universities and LMS providers are now delivering e-learning packaged content services using cloud systems.
This has further reduced the operational costs for companies and has made IBL more cost effective. Some cloud-based LMS providers include Latitude Learning, Docebo, Mindflash Technologies, and Skillsoft.
Market Challenge: Lack of Proper IT Infrastructure
The lack of proper IT infrastructure hinders the adoption of evolving technologies and smart ways of online learning by educational institutions. Such institutions lack the funds required for the installation of software and the purchase of computers and other devices.
In addition, because there is a lack of availability of advanced hardware, software, and facilities in economically less advantaged regions, the institutions in these regions fail to provide appropriate training to produce qualified teachers.
Hence, there is a significant infrastructural disparity between developing markets such as Africa and developed markets such as the US. Governments worldwide are introducing policies to attract investment from foreign and private investors to improve the situation.
Generic E-Learning Courses Market
Anticipated CAGR: 10.47 percent from 2015-2019
Market Driver: Flexibility in Learning
The learning achieved through online resources provides flexibility in terms of accessing the information, completing the course, and the ability to access information anytime and anywhere. It has proven to be advantageous not only to students and institutions but also to faculty members.
E-learning is extremely beneficial to individuals who want to pursue more than one course simultaneously. It is also beneficial to employees as it provides them the flexibility to learn the desired course without compromising on their office productivity.
In addition, faculties who provide online tutoring have the leverage to work from anywhere they want. Also, with most online courses taught asynchronously, teachers have the flexibility to make their own schedules. Students undeniably benefit the most because they can schedule their own online classes and there are plenty of learning sources and materials available.
They can also complete courses as they wish and at their own pace because there are lower constraints on completion times.
Market Challenge: Increased Competition from MOOCs
The providers of online study materials and related services are facing increased threats from open resources for education such as MOOCs. MOOCs are getting popular among end-users because of the benefits they offer in comparison to the traditional way of offering these services via charging a fee or through subscription.
The biggest advantage to end-users is the cost reduction in availing online learning. These open sources allow an unlimited number of users to take part free of charge. MOOCs are eating into the segment of users who enroll for free courses solely for the purpose of knowledge development, which in most cases do not have a direct impact on their qualification credits and employment opportunities.
Also, MOOC courses are holistic in nature covering broad aspects of a given subject. Therefore, for certain generic courses, users would enroll for the relevant open source course and refer to freely downloadable online publications.
Though MOOCs pose a potential threat to the Global Generic E-learning Courses market, they cannot eat into the share of generic e-learning courses beyond a certain point, as corporates would prefer to train their employees via reputed and accredited service providers while students rely on such service providers as they have better recognition in the market.
Educational PC Market
Anticipated CAGR: 13.66 percent from 2015-2019
Market Driver: Government Initiatives
Governments of various countries worldwide are formulating new policies and initiatives to increase the distribution of computing devices in schools and universities. Governments are also planning to build and develop more centralized planning processes and educational policies.
The use of computers, tablets, and laptops in learning processes has enhanced the efficiency of the education system. Therefore, these initiatives have enormously increased the demand for educational content on digital platforms. Some of the important government initiatives are listed below:
Market Challenge: Lack of Digital Expertise
The growth of the Global Education PC market is curtailed by the slow rate of adoption of computing technology among users. Many education institutes are yet to include smart education tools and technologies because of a lack of technical expertise.
Lack of awareness of smart education technologies also leads to a shortage of skilled teachers. Governments of some developing countries are striving to modify the education structure by including computer-based learning in education curricula.
Governments have also taken initiatives to distribute computers and tablets in schools and universities as well as for underprivileged students to increase awareness of the feasibility of their use.
In addition, many private investors are also investing in the Education sector through programs to spread awareness of the benefits of such teaching and learning methodologies.
