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Technavio identifies top four trends in the global LMS market

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Learning Management System (LMS): Key market research findings

  • North America dominates the market geographically
  • Corporate segment accounts for a majority of the market’s revenue
  • Key vendors – Cornerstone OnDemand, Oracle, SAP, and Skillsoft

Technavio’s market research analysts predict the global market for LMS to grow at a CAGR of almost 24% between 2016 and 2020. The growth of this market is fueled by the growing need to automate assessment functionalities. The conventional assessment system process is time-consuming, with high chances of inaccuracies. The difficulty and complexity of this system increases with an increase in student enrollment or expansion of the course curriculum. LMS enables teachers to grade students on a real-time basis. During 2015, the global LMS market was dominated by North America with a market share of almost 63%.  The presence of many multinational corporations (MNCs) and other large organizations in the region triggers a demand for corporate training, subsequently fueling the growth of the LMS market.

The new market research report from Technavio presents a breakdown and analysis of the LMS segments based on the end-user.

“The augmented adoption of smartphones is prompting several organizations to introduce bring-your-own-device (BYOD) programs to enable their employees to work remotely. Organizations are also emphasizing on m-learning as it can help them deliver online training materials to their employees’ handheld devices. As a result, vendors in the market are developing LMS that can be accessed with the help of mobile devices,” says Jhansi Mary, Lead Analyst, Education, Technavio Research.

In 2015, the corporate segment accounted for around 75% of the overall market share to become the dominant shareholder in the global LMS market. With the constant pressure on corporations to upgrade their processes technologically, they are replacing old systems with LMS to create digital learning materials, including video-based training and presentations, and deliver them to employees to encourage participation and feedback. This provides an opportunity for LMS vendors to identify the key requirements of corporations and develop targeted applications as an alternative to existing legacy systems.  

The key vendors in the global LMS market include Cornerstone OnDemand, Oracle, SAP, and Skillsoft. Currently, the market is becoming more complex for end-users to select appropriate products from the wide variety of offerings provided by vendors. The market includes new players as well as specialized providers, and there is no clear leader in the market landscape. The introduction of social functionalities in LMS will also help in the growth of this market. It has also been estimated that nearly half of the large organizations are purchasing social platforms to learn about them and test their effectiveness. Therefore, vendors need to offer functionalities that address the unique business needs of their target customers to survive in the competitive market landscape.

A more detailed analysis is available in the Technavio report, Global LMS Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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