by market analyst, Ambient Insight – an ethics-based market research firm – shows growing dissatisfaction and frustration among learning and development professionals with antiquated learning tools, like the Learning Management System (LMS).
As a result, this is leading to a steep decline in global e-learning that may be difficult to reverse.
According to the report, global revenues for self-paced e-learning reached $46.6bn in 2016, down slightly from the $46.9bn the previous year.
However, by 2021, worldwide revenues for e-learning are projected to plummet to $33.4bn.
Andres Jonmundsson – head of learning and development at Fuji Xerox Australia – recently spoke at the Learning & Development Masterclass
held in Sydney on 30 November.
He told L&D Professional
that he sees a shift from traditional facilitation and classic e-learning towards a more agile learning philosophy.
“This involves producing smaller content in a fun and creative way to trigger the participant’s interest to learn more. There would then be links to further learning and a mechanism to share thoughts,” he explained.
“I think this year we will see more acceptance of social learning, and I believe learning practitioners will ‘influence’ their audience much the same way someone would do using Twitter or a blogging site.”
So what does this mean for the e-learning in 2017?
The Ambient Insight report warned that the global e-learning industry is now “in the midst of a perfect storm” of market conditions that are driving revenues down including weak demand for most self-paced products.
These include commoditization, the late stage of e-learning's product lifecycle, pronounced product substitution, and the so-called leapfrog effect with buyers in developing countries completely bypassing eLearning for newer products.
According to Deloitte’s Global Human Capital Trends 2016 report
, more than $140bn USD is spent on corporate learning every year and yet according to Ambient Insights
, global revenues in the self-paced e-learning market (defined by LMS, off-the-shelf content and services) is expected to drop from $46.6bn in 2016 to $33.4bn by 2021.
And as for the reason behind the decline of LMS?
According to Ambient Insights, it’s a lack of innovation as self-paced e-learning enters “the final phase of its product lifecycle”.
“While most companies that need learning management already have LMS products, there is significant churn as they can now easily switch to another supplier,” the report stated.
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