eLearning has grown significantly in recent years and is projected to continue growing. Enrollment in online classes increased by over 400,000 students from 2012 to 2013. Most institutions see online learning outcomes as being equal or better to traditional learning. While large online universities still lead the market, startups have entered the eLearning industry with new approaches. MOOCs, enrichment courses, and corporate training are expanding opportunities in non-credit online education. Cloud-based platforms allow schools to partner and offer online degrees. The worldwide eLearning market is projected to reach $51.5 billion by 2016, with North America reaching $27.1 billion.

1. August 22, 2014
eLearning Market Review

2. Traditional Education
Traditional education consists of face-to-face courses, textbooks, paper
assignments, and limited flexibility.
− Course size limited due
to capacity restrictions
− Tuition costs continue to
rise each year
− 50% of students use
their laptops for note-
taking in class at least
once a week

3. Why eLearning?
eLearning has grown significantly over the past few years and will continue
to grow in the future.
− In 2013, 7.6 million students were enrolled in at least one online class;
an increase of 411,000 students since 2012
− 74% of big academic players rate online learning outcomes the same
or better than traditional learning
− Only 9.7% of polled institutions reported online education was not a
critical part of their long term strategy
Source: Babson Survey Research Group

4. Innovating Traditional Education
eLearning offers several capabilities that traditional education does not:
− Scalability
− Cost-effectiveness
− Convenience
− Digitalization

5. Opportunities for eLearning
− Education on a mass, global
scale means more people can
become students
− Brick-and-mortar institutions
looking to increase enrollment
can do so through adopting
eLearning methods
− Marketing opportunities are
high among startups that
currently run off word-of-mouth

6. eLearning Industry Growth
− No longer saturated exclusively
by big online universities, though
still the market leaders
− Start-ups have entered the
industry offering new methods to
approach how to educate online
− Higher education institutions
looking towards these start-ups to
help develop their online
curriculum and experiment with
new methods

7. eLearning Landscape
For Credit No Credit
Online
Universities
Partner
Programs
Brick-and-Mortar
Efforts
Enrichment
Courses
MOOCs

8. For Credit: Online Universities
− Online universities continue to lead the eLearning market
− According to Nielsen data, television and internet advertising
(respectively) garner the most spend from online universities
University of Phoenix
TV ads $105.6M
Internet $3.57M
DeVry University
TV ads $62.58M
Internet $7.64M
Kaplan University
TV ads $8.95M
Internet $905K
− 2011: University of Phoenix, Online Campus had highest enrollment of all
degree-granting colleges or universities with 307,871 enrolled students*
*Source: National Center for Education Statistics

9. For Credit: Partner Programs
−2U: Provides a cloud-based
software-as-a-service platform to host
educational content that can be
accessed globally
− Q2 2014 revenue was $27.4M;
32% increase from Q2 2013
−Has raised $95M in funding
− No marketing efforts due to
required enrollment with a
partnered institution
− Programs that offer online versions of degrees from accredited brick-and-
mortar institutions
Source: 2U press release; 2U Impact Report 2014

10. No Credit: MOOCs
− Free, not-for-credit courses
for personal learning, resume
building, and certification in
select subjects
− Created by higher education
professionals and enhanced
by partnerships with large
organizations worldwide
− Opportunity to act as
content marketing medium for
organizations and institutions
− Brick-and-Mortars using
MOOCs as an chance to
experiment with eLearning
Source: The Chronicle of Higher Education

11. No Credit: Enrichment Courses
− Courses based in advancing one’s personal
education, such as learning a language or a
vocational skill
− Open English: personalized learning 24/7 ($350M)
− Lynda.com: contributor-model allows for content
creation in large quantities; received $103M in
funding in January; 1M+ paying members
− Codecademy: leading the free eLearning category
with 24 million users, $12.5M in funding, expanding
overseas
− Called the “Next Frontier In Digital Education”
by Forbes

12. Future of eLearning
− Worldwide eLearning Market projected to
reach $51.5B in revenue by 2016
− North American eLearning revenue
alone projected to reach $27.1B by 2016
− Cloud-based software-as-a-service solutions
will continue to grow as a platform for
eLearning
− Corporate eLearning to begin replacing face-
to-face training sessions due to convenience
and cost-effectiveness for employers
− K-12 sector will continue to be impacted
most by innovative eLearning technology in
coming years Source: Docebo E-Learning Market Trends &
Forecast 2014 - 2016 Report, March 2014

13. THX
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