CATEGORY INTELLIGENCE - LEARNING & DEVELOPMENT

ID: MRFR/0023 | February 2023 | 200 Pages         

The global L&D market is forecasted to grow at a CAGR of 2–3 percent to $377 (E) billion and $393 billion between 2023 and 2026, respectively. The Onset of the pandemic has had a significant impact on the technology-enabled training services market 


Global Learning & Development Industry: Revenue Break-up


revenue-break-up


Learning & Development Market Outlook


The learning and development industry is expected to grow at a CAGR of 2–3 percent. The corporate e-learning market is expected to grow at a CAGR of 9–10 percent during 2023–2025 




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




  • Increase in trainer rates influence the overall training cost, as it is the key cost factor in classroom-based training 




  • Advancements in Learning Technology: Buyers are more focused on learner engagement and learning retention, hence the buyers are opting for technology-enabled delivery methods such as Gamification, simulation-based training, and virtual reality training 




  • Learning Technology cost is one of the key cost factors that influence overall training spend. Globally, packaged e-learning content services are gaining importance also sourcing off-the-shelf training courses are highly observed 




  • In developed regions like the US and Europe, e-learning services are expected to increase mainly due to a consistent increase in demand for gamification, an 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




COVID-19, Russia-Ukraine Crisis, and Economic Headwinds Impact on Learning & development services


The pandemic has accelerated the digital transformation of suppliers, and organizations are focusing on automating and streamlining the process to reduce time and cost. Performance management and training evaluation are crucial steps in the process flow


As video-based learning, mobile-learning, and immersive learning solutions are growing rapidly, experts found there is a growing demand for customized LMS platforms, instead of deploying LMS and investing time in implementation and customization


 


Learning & Development Pricing Insights


The price breakup for various training services (technology cost) is expected to increase slightly by 2023


This is because there are unlimited technology up-gradations taking place in the market (MOOCS, bite-sized learning, and mobile learning). These tech-enabled learning programs will be the reason for the increase in prices in the future


Learning & Development Supply Outlook


The US and Europe do show potential for a price rise in the market in the coming years. This is because the investment by suppliers in technology is increasing year-on-year; almost 10 percent of the annual revenue is spent on technology. Hence, there would be a price increase in the future


There is a huge demand in emerging markets like APAC & LATAM; hence, prices are expected to increase


Any change in technology would have an impact on the price in these regions 


Regional Market Insights


Globally, the top organizations are outsourcing their L&D activities to suppliers that support technology-enabled training solutions. North America exhibits significant growth in the e-learning sector between 2023 and 2025. It is the most mature market for online learning products in the world, with a modest growth rate of 4.4 percent. 


Supplier Intelligence


In the L&D market, the concept of managed training services is slowly increasing, since the training requirement differs from company to company, and it also depends on the industries, in which they operate


The L&D market consists of more than 1000 corporate L&D suppliers, but few suppliers are capable of providing managed training services globally 








1. Executive Summary

1.1. Executive Summary

1.2. Impact of COVID-19 on L&D Industry

1.3. Talking Points to Business: L&D Services

2. Global Market Analysis

2.1. Global L&D Market Maturity

2.2. Global L&D Industry Trends

2.3. Key L&D Technology Adoption Trends

2.4. Global L&D Drivers and Constraints

2.5. Regional Market Outlook

2.6. Industry Outlook: L&D Affecting Factors

2.7. Porter’s Five Forces: Developed and Emerging market

3. Market Monitoring Insights

3.1. Cost Structure Analysis: Major Spend Categorization

3.2. Spend Contribution

3.3. Cost components and Expected Savings

3.4. Cost Structure Analysis

3.5. L&D Cost Saving Opportunity

3.6. Pricing Analysis

4. PROCUREMENT BEST PRACTICES

4.1. Sourcing Models

4.2. Sourcing Models: Comparative Analysis

4.3. Sourcing Models: Pros and Cons

4.4. Engagement Strategies

4.5. Cross Industry Sourcing Model Adoption

4.6. Key Success Factors for Implementation

4.7. Pricing Models: Comparative Analysis

4.8. Regional Pricing Best Practices

4.9. KPI and SLA components

4.10. Negotiation and Cost-Saving Opportunity

5. SuPPLIER ANALYSIS

5.1. Supplier Profiling

5.2. SWOT Analysis

6. PURCHASING PROCESS

6.1. RFP Builder

6.2. Sustainability Initiatives