eLearning came intobeing through itsearly predecessors in theform of CBT &then WBT.It took off mainly due toits potential to savecosts, the inherentadvantages in centralizingcontent, the reduction inlogistics costs, ease inmaintenance of contentand uniformity in contentdelivery.
It soon caught on andbecame an importantpart of the ‘learningstrategy’.It not only helped companiessave costs on a recurringbasis but also helpedimprove organizations’performance.
The size of the e-learning Westernmarket inEurope was $358mnin 2003*. Image Courtesy: http://www.flickr.com/photos/robdeman/2390666040/ *Source: European Corporate e-Learning Market Forecast and Analysis, 2003 - 07‘, by IDC
In 2007, the U.S. eLearning market was $17.5 bn*, while the corporate market for Self- paced eLearning was $5.2 bn#.*Source: "eLearning: A Global Strategic Business Report,“ by Global Industry Analysts #Source: Ambient Insights 2008-2013 US Corporate Market Forecast
Thus, as an industry, eLearning had witnessed significant growth over the years. The global market for self- paced eLearning products and services had reached US $ 27.1 billion in 2009*.Read more *Source: Ambient Insight Report
There was promising growth on one hand and recession on the other.Recession threatened to disrupt the continuity ofgrowth and momentum of the eLearning industry. Image Courtesy: http://www.flickr.com/photos/toddography/12034661/
From the companiespoint of view -tremendous pressures wereput to save on costs &to generate more valueat the same cost.There was mix of costpressure and need to keepan eye on training to surviveand grow beyond therecession phase.
There has been an increasein demand for eLearningprimarily to compensatefor the budget cuts andto reduce overalltraining costs.While this is proving and willcontinue to prove a booster interms of revenue growth forlearning solutions providers, italso has the potential to erodethe true value to some extent.
This second wave couldhave a pull-backeffect, potentially.Over the past few years, asthe industry wasmaturing, the focus wasslowly moving towardsproducing learning solutionsthat impact performance anddollar numbers.
This could lead to a surge insolutions which are good from acost perspective but notfrom a ‘learning’perspective.This is because with the focus onfinding the cheapest solution, otherimportant parameters may getoverlooked.
Companies will realize that the real cost of bad eLearning is much higher than good eLearning.Cost of bad sales training Read more
As more suchsolutions are adoptedby companies, it would takeanother level ofeffort to evangelizeand educate customerson the true valueand potential ofeLearning.
More companies are now able to produce better qualityeLearning at costs lower than before – striking theright balance.
So companies can work withlimited budgets and stillcreate good eLearning.This can be done byfocusing on criticallearning needs &areas, and designingsolutions that engage themind, encouragereflection, and inducebehavior change.
Companies are also pushing technology innovation todevelop advanced solutions.
The demand for eLearning isgrowing at a 5 yearcompound annualgrowth rate (CAGR) of12.8% and revenues will reach$49.6 billion by 2014*. *Source: Ambient Insight Report
North America willcontinue to be the biggestmarket.
The compound annual growth rate in Asia is a very healthy 33.5%*. By 2014, Asia (which includes Australia and New Zealand in this report) would overtake Western Europe to become the second largest market after North America.*Source: Ambient Insight Report
The size of e-learning market in India is expected to grow from the $27 million (in 2008) to $280 million by 2012. *Source: Report by brokerage firm CLSA Asia Pacific Markets
East Europe issecond fastest ingrowth terms at23.0%*.Vibrant outsourcinghubs have come up incountries such asBelarus and theUkraine. Image Courtesy: http://upload.wikimedia.org/wikipedia/commons/7/74/Easterneurope-map.png *Source: Ambient Insight Report
The demand for local content in eachregion is increasing. This is due to resistance in regional markets to content that has been translated but not localized. Source: Ambient Insight Report
100% of primary and secondaryschools in Korea & Singapore offersome type of online education already*. *Source: Ambient Insight Report
New tool and learning platform suppliers are enteringthe market at a steady rate in each region even in more mature markets like North America.
Adoption of self-paced eLearning is now wide spread across buying segments. North America where corporate are still the top buyers, will see academic buyers emerge as top buyers in next five years. Source: Ambient Insight Report
….And the demand for eLearning Solutionswill continue to grow. Image Courtesy: http://www.flickr.com/photos/feverblue/3980021169/