E-Learning Market: Growth Trending Model of Education & Up-skill, and the Covid19 Impact
“Education is the most powerful weapon which you can use to change the world.”-- Nelson Mandela
The focus on quality education is one of the key metrics globally, as education is the key pillar for a country to have progressive growth in the future. E-learning system contributes a significant role in supporting the traditional methods of education systems and up-skill at corporate levels. The basic functionality in e-learning is to use the technology & services either through an online system or LMS (learning management system), or mobile applications tools, virtual classrooms, etc., to learn the contents of the academics or non-academics sectors or corporate training at a self-pace or via instructor. The e-learning market has very high growth in the last two decades with a high level of evolution of technologies like cloud service, artificial intelligence & machine learning, and other innovative ideas. E-learning saves the cost and is easy for users to learn through interactive learning using audio & video systems or gamification or through Virtual Learning Environment (VLE).
The digital revolution and online education plans by various public & private institutes have led to the high growth of e-learning. With time, the content volume for online courses and online users has increased drastically. The adoption of cloud-based platforms and the accessibility of the internet have supported the e-learning model. At the end-user level, the market is segmented by users at academic and non-academic level as K12, Higher Education, Vocational training, Corporate, and Government. In the current pandemic situation, the universities, schools, and academic institutes are closed, allowing the e-learning market to grow at a faster rate. In this covid-19 impact, the number of users has increased for online classrooms for K12 and undergraduate students. The low cost and a large number of students will also help the schools (private & government schools), universities to leverage on the economies of scale and hence more network at a lower cost. The governments & non-government organizations are also taking initiatives to enable the infrastructure need at rural levels to provide education for all.
Besides, there is a steep rise in the number of employees/workforce joining different short-term courses or certification programs to up-skill or various courses to enhance their knowledge at the corporate level. The corporate skill training using the e-learning system also supports higher revenue growth as it saves employees time compared to traditional learning methods. The corporate e-learning market is estimated to have a CAGR of 14.2% over the forecast period 2020-2025.
In the global e-learning market, the North American region dominated the market with over 39% in 2019. The rapid growth in technology, increasing number of internet users in developing nations, and government’s support for the e-learning system have driven the market to higher growth. For the period 2014-19, the global e-learning market has witnessed a CAGR of 15.53%. In the developing economies, increasing average disposable income, an increasing number of smartphone users, the adoption of online education among students & vendors providing attractive subscription offers to users are supporting the high growth of the e-learning market. The Asia-pacific region is estimated to have the highest growth rate of 15.2% in the forecast period 2020-2025. Training services (re-skill, up-skill, vocational training) dominated the market with approx. 70% of the global e-learning market. In Asia-Pacific, the corporate training services are estimated to have high growth because of the more new users and high potential market. The learning of skills through e-learning will support employees, freshers, and unemployed too to scale up new career opportunities.
There are few challenges in the e-learning market in developing economies and underdeveloped nations, such as lack of proper infrastructure for e-learning to students in rural areas, lack of awareness and motivation, lack of concentration & decision-making skills by users to choose suitable courses, an abundance of free content online, etc.
The key players in the online e-learning market include Udemy, Coursera, Byjus, Unacademy, Blackboard Inc., Skillsoft Corp., Oracle Corp., NIIT Ltd., edX, eduCBA, Pearson, LinkedIn, Udacity, Futurelearn, Skillshare, Khan Academy, etc.
In 2020, till July, there was an increase in investments in edtech startups by Venture Capitals. About USD 998 million was infused in 31 deals of edtech startups. Key players are also involved in merger & acquisition activities to gain market share and take advantage of the trending growth in the market. The top-tier universities are also utilizing the e-learning system by making courses accessible via online platforms. Universities like Stanford University, Harvard University, Georgia Institute of Technology, Michigan State University, MIT, university of oxford, IITs (India), etc., provide online courses under different categories. Covid19 impact has caused the higher enrolment rate through online classes. Many of these institutes are also offering low-priced courses depending on skills and executive programs for the experienced workforce.