The demand for eLearning platforms is increasing day by day and so is the need for Learning Management Systems. According to a report submitted by Fortune Business Insights, there was 23.9 % growth in the market size of Learning Management Systems and it is further expected to grow from $13.38 billion in 2021 to $44.49 billion in 2028 at a Compound Annual Growth Rate (CAGR) of 18.7%.
So what factors have led to such remarkable growth in the market size of Learning Management Systems? Is this web technology really going to be a necessity for your business success?
The above graph shows the projected continuous increase in the LMS market size in the period of 2021 to 2028. So the question arises what has led to this remarkable growth in the need for LMS among educational institutions and businesses? Let’s discuss the factors involved in the growth rate of Learning Management Systems and why every business needs them today.
The novel coronavirus pandemic has affected the market and economy in many ways. With schools and educational institutes being temporarily closed and several companies adopting work from home policies, the demand for online management systems is at its peak.
According to a recent study, a U.S. based training institute, Inc. has witnessed a growth of 8.6% in its web traffic in April 2020. A Learning Management System provides the best solution to create and distribute learning courses and online tutorials to the audience. Hence, the need for the same will keep growing in future.
As the concerns for mental health and work-life balance are growing, many companies are adopting various time management solutions for their employees.
A Learning Management System allows the users to create, access and manage data remotely. It saves a lot of time spent in travelling or creating content and managing them. So, it's not a surprise that the demand for the LMS industry is increasing in the market. Recently, many companies have adopted the LMS solution to train their employees and track their performances.
Effective time management increases productivity and enhances performance. A good LMS solution supports the employees to train and even work from anywhere. This allows them to have a healthy work-life balance and be more efficient at work. An LMS solution also allows the employees to track their performance and upskill themselves to produce quality work.
One major reason why businesses are adopting a Learning Management System is that it helps them to provide a personalised user experience to their learners.
Based on the job profile of their employees, companies can provide them with relevant course materials to enhance their skills. For instance, an employee in the sales department can be provided with sales-related course materials and product insights to understand his job better.
Managing a product portfolio is a must for any company to achieve its business goals. It plays an important role in grabbing investors and managing the cash flow. A good LMS solution allows businesses to manage their product portfolios by regularly reviewing and analysing the investments and market conditions.
Different companies are also able to expand their product portfolios by adding new technology into their existing portfolio through a good learning management system. For instance, Coconut Learning ingrains added features of machine learning into its LMS solution to improve the end-user experience.
To conclude we can say that the demand for Learning Management Systems will keep on growing in the coming years. While more than half of the market share is expected to be owned by the edTech sector, the rest of the corporate sector will also witness rapid growth. And why not, when businesses can offer a flexible environment and self-paced learning platforms to their employees without a hassle. All it takes is a good Learning Management System.
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