eLEARNING MARKET / PART 1

E-Learning is a rapidly growing market. The main vendors in the market are:

• Content Providers
• Service Providers
• Technology Providers

Let’s state some facts about the current and expected situation about the e-learning market:

According to the Ambient Insight- The US Market for Self Paced eLearning Products an Services : 2008-2013 Report, the growth rate of the market by product type is given in the graph below:

1

Also according to the Ambient Insight – US 2008-2013 Learning Technology Market Report, the growth rates of the market of all e-learning products types across all buying segments is given in the graph below:

2

The 2010 Global Industry Analysts eLearning Report, states that content building still has the largest segment of the market but technology based products are catching up.

Analysis of these data shows us :

Content building still has the highest share in the revenue but the growth rate analysis shows us that new-technology based products are catching up. The highest growth rates are in the Cognitive Learning, Colloborative Social Learning , Mobile Learning and Learning Technology Services segments respectively.

The reason for less than expected growth of content building is not only due to market saturation:

1) The 2010 Global Industry Analysts eLearning Report, lists “ Development of effective content material “ as one of the prior reasons restraining the growth of eLearning in general.

2) In the summer of 2010, in the annual letter of the gatesfoundation , e-learning is clearly mentioned as the future of education

( see full letter here: http://www.gatesfoundation.org/annual-letter/2010/Pages/education-learning-online.aspx ).

“The foundation has made a few grants to drive online learning, but we are just at the start of this work. So far technology has hardly changed formal education at all. But a lot of people, including me, think this is the next place where the Internet will surprise people in how it can improve things—especially in combination with face-to-face learning. With the escalating costs of education, an advance here would be very timely.”

However in the letter, some key points are mentioned:

“But online learning can be more than lectures. Another element involves presenting information in an interactive form, which can be used to find out what a student knows and doesn’t know.”

One other key point mentioned in the letter is :

“There is a lot of online material being developed, but it isn’t organized in a way where it is easy to find the best material that fits what you want to do.”

Therefore, it certainly is clear that content building should not be just presenting the content and leaving the user on his/her own.
We believe that an eLearning product should be able to assess, diagnose and guide its user.

One other key fact about the e-learning market is that

“the future is mobile learning”

According to Ambient Insight 2009-2014 US Mobile Learning Market Report, Mobile Learning is the future of E-Learning. The rapidly growing technology in mobile technology ( mobile phones, Ipads, laptops, netbooks etc.. ) enables us to develop applications that can be used in these tools.

3

In summary,

a) Content is the king, but other segments are clearly catching up.
b) Cognitive learning and Mobile learning segments are two of the most rapidly growing segments in the business.
c) An e-learning software should be able to at least find out the needs of its user.
d) E-learning is the future of education and mobile learning is the future of e-learning.

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