{"id":3604,"date":"2017-11-02T08:29:03","date_gmt":"2017-11-02T12:29:03","guid":{"rendered":"https:\/\/news.elearninginside.com\/?p=3604"},"modified":"2019-05-24T12:10:13","modified_gmt":"2019-05-24T16:10:13","slug":"corporate-elearning-market","status":"publish","type":"post","link":"https:\/\/news.elearninginside.com\/corporate-elearning-market\/","title":{"rendered":"Who is Pocketing all the Money Businesses Spend in the Corporate eLearning Market?"},"content":{"rendered":"

Businesses are spending more money than ever on eLearning for their employees, and much of it is paid out to vendors who provide content authoring tools, ready-made learning content, learning management systems, and customized eLearning services. When market research company Technavio reported on the global corporate eLearning market in 2016, it predicted an 11% CAGR or compound annual growth rate for the period of 2016-2020 (source<\/a>). Its more recent report ups that figure to 18.54% for 2017-2021 (source<\/a>). This amounts to a global market that will be worth in excess of $30 billion. It begs the question \u2013 who is pocketing all this money corporations are spending on eLearning? As it turns out, there are no easy answers to this question.<\/p>\n

Segmenting the Corporate eLearning Market<\/h2>\n

The way Technavio studies the corporate eLearning market breaks it up into three major components or segments: content, technology and services.<\/p>\n

The content<\/em> segment includes the players who provide either the tools to generate eLearning content or offer off-the-shelf content to businesses. This is segment of the market is considered to be the largest contributor of corporate eLearning revenues and was worth more than $12 billion in 2015. What has been driving this segment in recent years are companies utilizing self-paced learning for their employees. The company accumulates a central collection of learning assets that employees can easily access on their device of choice. Building and managing the collection of learning content can be handled in-house or outsourced to content delivery vendors.<\/p>\n

The technology<\/em> segment of the corporate eLearning market includes all the mobile apps and websites that have been developed to create and deliver eLearning content, which means this segment includes the ubiquitous Learning Management System (LMS), which in recent years has been driven by cloud-based offerings that allow companies to educate and train employees in a virtual environment. The cloud-based LMS represents a low-cost but robust learning solution where companies don\u2019t have to worry about installing upgrades or performing maintenance.<\/p>\n

The services<\/em> segment includes the players who work with companies to better understand their learning needs and then create customized eLearning solutions to meet them.<\/p>\n

Key Vendors in the Corporate eLearning Market<\/h2>\n

Across all the segments of the corporate eLearning Market, it\u2019s interesting to take a look at who Technavio has labeled as the four \u201ckey vendors\u201d for this industry.<\/p>\n

Adobe<\/strong> is high on the list. Although best known for its design software (Photoshop, Illustrator, etc.) its PDF software (Acrobat, Reader, etc.), and its rapidly growing cloud-based marketing and analytics offerings,<\/p>\n

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Wikimedia Commons<\/figcaption><\/figure>\n

Adobe has a prominent place in the eLearning industry with content authoring tools Adobe Captivate and Adobe Presenter Video Express as well as its Adobe Captivate Prime LMS. Adobe Systems raked in $5.85 billion of revenue in 2016, but how much of that might be attributable to its corporate eLearning offerings is a mystery. The company\u2019s Creative Cloud division makes up 50% of Adobe\u2019s value, and the fast-growing Cloud Marketing makes up 27% of its value, while its Document Cloud offerings make up 15% of its value. That\u2019s 92% right there with those divisisons. Interestingly enough, Adobe\u2019s eLearning offerings are buried in the company\u2019s Printing and Publishing division, which is expected to bring in a mere $172 million this year (source<\/a>), but only a part of that would be from eLearning as it also includes actual print-enhancement solutions.<\/p>\n

Expertus<\/strong> is an LMS company, but unlike Adobe Systems it is privately-held, which means information is hard to come by, but Hoovers puts the company\u2019s revenues at just under $4.3 million, which isn\u2019t bad for a standalone LMS company (source<\/a>). It has signed up some very large companies that help explain this \u2013 companies like Siemens, the huge German electronics and electrical engineering company with more than 350,000 employees worldwide, medical company Boston Scientific with its 24,000 employees, and Swiss company ABB with its 136,000 employees.<\/p>\n

GP Strategies<\/strong> is a professional services company that helps companies improve performance through its four divisions: Learning Solutions, Professional and Technical Services (training, consulting and other services), GP Sandy (custom product sales training for US automotive companies), and Performance Readiness Solutions (performance consulting). It\u2019s worth noting that the Learning Solutions segment of the company is the largest, with $209 million in revenue for 2016 (source<\/a>).<\/p>\n

Skillsoft<\/strong> is both an LMS as well as a learning content company. Like Expertus, it is a private company, but Hoovers estimates its revenue to be $685.52 million (source<\/a>), which is impressive to say the least.<\/p>\n

Technavio goes on to list another 15 \u201cprominent vendors\u201d in the corporate eLearning market:<\/p>\n