Published Date : 26 Jan 2024
The global corporate learning management system (LMS) market size was exhibited at USD 8.3 billion in 2022 and is anticipated to touch around USD 54.69 billion by 2032, expanding at a CAGR of 20.80% from 2023 to 2032.
A corporate learning management system (LMS) is defined as software for delivering training and learning content to the employees of an organization in an online mode. The corporate learning management system is widely used to onboard new employees and provide them with the required skills and knowledge to perform their roles according to the expectations of an organization. Corporate LMS offers a set of tools that assist in creating learning materials for the employees of a wide range of organizations including small to medium-sized businesses, large enterprises, and governmental organizations of different sizes.
For small- and medium-sized businesses (SMBs), a corporate LMS offers development with comparatively lower costs and without loss of productivity. Organization expenses can be minimized significantly by reducing corporate training costs, including travel, accommodations, and others. Moreover, employees can opt for online courses at their own pace and at a time convenient to them. A corporate LMS platform also facilitates the tracking of progress and completion of courses of the registered individuals by several features, while data analytics can be used to improve the development program.
The growth of the corporate learning management system (LMS) market is driven by several factors, including rapid digitalization, rising demand for digital learning, growing emphasis on skills and knowledge development, rising adoption of cloud-based solutions, increasing investment by private organizations for training and learning development, the emergence of virtual and reality, robust growth of IT sector. Moreover, rapid industrialization coupled with the growing adoption of advanced technologies has given rise to skill training and learning software in the corporate sector to benefit both employees and employers and is likely to accelerate the growth of the market.
North America is expected to dominate the market during the forecast period. The advancement in technology drives the growth of the region, the presence of SMBs and large companies, rapid industrialization, the growing adoption of digital solutions, favorable policies by the government for corporate learning solutions, increasing focus on skill-based and goal-driven training to improve employee performance, and rising competitiveness in the industry.
The increasing investment in IT infrastructure AI-based learning management systems is driving the growth of the corporate learning management system market in the region. The region is characterized by a dedicated ecosystem of e-learning content creators, AI-based learning providers, and ed-tech startups. Additionally, the increasing presence of multinational companies in countries like the United States and Canada has increased the demand for corporate learning solutions. Thus, this is expected to propel the market growth in the region during the forecast period.
|Market Revenue in 2023
|USD 9.98 Billion
|Projected Forecast Revenue by 2032
|USD 54.69 Billion
|Growth Rate from 2023 to 2032
|CAGR of 20.80%
|2023 to 2032
|North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Increasing demand from SMBs and large enterprises
The rising demand for corporate LMS from SMBs and large enterprises is expected to fuel the market's expansion in the coming years. Corporate training plays an important role in the majority of companies. Due to the rapid pace of digitalization, corporate LMS is gaining popularity in SMBs and large enterprises. It helps companies to onboard new employees and upskill existing employees to deliver services effectively. Corporate LMS has made it easier to manage training and development programs, performance tracking, reporting, and feedback documentation. Corporate enterprises extensively use such solutions to manage e-learning programs and are likely to impact the market's growth positively.
Rising implementation of cloud-based services
The implementation of a cloud-based model is expected to fuel the market's growth during the forecast period. The use of cloud-based corporate LMS is gaining traction as cloud services are preferred in small and mid-sized companies due to their cost-effectiveness, scalability, flexibility, and other related benefits, which increase the productivity and efficiency of an organization.
Reluctance to convert existing training content into microcontent
The reluctance to convert existing training content into microcontents is projected to hamper the market's growth. Businesses often show skepticism about converting their existing training content into microcontents. In addition, the lack of awareness about corporate learning management systems due to the less adoption of advanced digital solutions in underdeveloped countries is likely to limit the expansion of the market.
Lack of skilled professionals
The lack of skilled professionals is expected to restrain market growth. Highly skilled professionals are needed to develop high-quality training materials. However, due to training costs and a lack of appropriate experience, there is a significant shortage of such personnel in the market. This lack of skilled professionals may cause technical challenges in addressing issues and implementing necessary updates.
Robust growth of the IT sector
The robust growth of the IT sector is projected to propel significant opportunities for the expansion of the global corporate learning management system in the coming years. Companies in the IT sector need to regularly train their employees due to the dynamic changes in technologies. As IT companies experience technological innovations that require solutions for new challenges in a dynamic era and serve the learning needs of employees, new opportunities arise in the market. IT professionals need to update their skills to keep pace with evolving technology. Corporate LMS delivers a convenient way for organizations to train and upskill opportunities.
The emerging trend of personalized training
A corporate learning management system facilitates customized training for learners to improve their performance. There is a rising need for interactive and personalized training environments for employees to increase productivity and efficiency with reduced costs. In addition, the corporate LMS enables administrators to track the content that the users are accessing, such as pages not visited, pages most visited, and other minute details. Therefore, the rising demand for eLearning solutions to offer personalized training is anticipated to spur the demand to offer opportunities for corporate learning management systems during the forecast period.
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