Learning & Development Market Intelligence

Industry Outlook & Drivers

Global L&D Industry Outlook

• The global L&D market was valued at $403 billion in 2017
• The market is forecasted to grow at a CAGR of 4–5 percent to $446.1 billion between 2017 and 2020
• Regions, such as North America, Western Europe, and some parts of APAC, such as Australia, Japan, Hong Kong, Singapore, have a high market maturity
• APAC and parts of Latin America are expected to be the future growth driving markets for L&D services
• The global learning and development market size is $367 billion, North America is a mature market, making up to 45 per cent of the L&D market.
• According to training market research, content design and delivery cost, project management cost, technology cost are the key components of cost.
• The growth potential of the Latin America e-learning market is high. The e-learning trend is emerging fast in the APAC regions too. North America is expected to exhibit a significant growth in e-learning sector by 2023. 
• The market intelligence training industry is a very competitive industry with a fragmented supplier base, providing the buyers a higher bargaining power over the price and service delivery negotiation opportunities.

Global L&D Industry Trends

• In developed regions, like the US and Europe, e-learning services are expected to increase mainly due to consistent increase in demand for gamification, increase in applications providing LMS platforms and rapid e-learning tools.
• In the US and Europe, self-paced learning is growing exponentially, with an increasing urge to learn more, new topics based on the convenience of the employees

• In 2017, the top buyers of the mobile learning market were the US, Brazil, Indonesia, China, and India

• In 2017, China, the US, Indonesia, India, and Brazil are expected to be the top buyer

• Key suppliers of e-learning are Adobe, Blackboard, Articulate, City and Guilds Group, Desire2learn, Docebo, Edmodo, Educomp, Techsmith, Trivantis, Ispring

• In developing markets, currently, very few service providers are technically equipped to integrate the VR in e-learningfew service providers are technically equipped to integrate the VR in e-Learning

Global L&D Market Maturity

• Europe and North America are well-matured markets. Globally, top MNCs are outsourcing their L&D activities to global and regional suppliers.
• APAC and Latin America are witnessing higher adoption due to the efforts by large global buyers to consolidate the supply base.

Global L&D Drivers and Constraints

• The learning and development industry is expected to grow at a CAGR of 4–5 percent.

• The corporate e-learning market is expected to grow at a CAGR of 11.41 percent during 2018 – 2020

• Training directly effects revenue growth, and hence, organizations have increased their investment in training and development.
• The key drivers are transforming traditional training to effective, measurable and technology-enabled training solutions by outsourcing to global/regional suppliers.

Drivers

Tech-enabled Training Solutions:

• The need for consistency of performance drives ongoing training
• Learning in the cloud and emergence of video as the dominant approach to mobile learning
• In 2017, most of the Fortune 500 companies have incorporated Virtual Reality (VR) and Augmented Reality (AR) in their corporate training format. This trend is likely to increase significantly
•  The training market is experiencing huge transformation from micro learning to Gamification, this trend is growing rapidly.

Operational Benefits: 

• Outsourcing to a single global L&D supplier would allow buyers to standardize the level of services across various locations. Productivity and efficiency could be enhanced through the introduction of various critical performance indicators and compliance clauses in the contract.
• Centralized procurement through a regional model will help buyers re-examine their budgets on a regional scale.

Constraints

Budget/Funding

• Budget constraint is a major problem with some mid-sized organizations, which leads to a compromise in training delivery platforms such as digital aids.
• Creating or fitting existing content into the e-learning platform would be difficult for companies with budget constraints.

Change Management 

• Internal (SMEs, content designers and training experts) as well as external stakeholders should be communicated with effectively about their roles and responsibilities before implementing e-learning.

Market Overview 

According to training market research, the majority of the market intelligence training suppliers in mature regions are adapting the same expansion strategies of collaborative partnerships to cater to buyers’ demands across the globe.

Less differentiation of the services is offered by different players in the learning and development market in the developed regions. 

Spend involved in tech-enabled training is high. The latest trends in e-learning services are mainly due to the consistent increase in demand for gamification, increase in applications, providing LMS platforms and rapid e-learning tools.

The price breakup for the various training services (technology cost) are expected to increase slightly by 2020.

Why You Should Buy This Report

• This analysis report by Beroe provides information about the global learning and development market size, industry trends, drivers and constraints.
• It gives the regional market outlook of APAC, Australia, Europe, etc. and provides Porter’s five force analysis of the developed and emerging markets.
• It gives insight into supplier trends and key supplier profiles, cost structure breakdown, key spend categories and price forecast.
• It lists out the best sourcing and pricing models.