A learning management system, aka LMS, is software used to manage, deliver, track and report the training and development activity of an organization. The LMS market has skyrocketed during the past ten years and continues to be one of the highest growth categories in the software industry. As of 2015, there are more than 600 LMS vendors to choose from and the industry is worth over $4 billion. In 2016, those numbers increases to approximately 700 vendors and an industry worth over $5 billion with an expected growth to over $15 billion by 2021. Whether you’re new to the LMS industry or just need a refresher, the following facts and research will help you get up to speed fast.
1) What is the size of the LMS market?MarketsandMarkets reports the LMS market was worth $4.07 billion in 2015. North America is the region expected to lead market growth with expansion expected in the Asia-Pacific and Latin American markets as well. The rebounding U.S. economy is a major factor of LMS market growth. Businesses are investing more on training, so naturally more LMS software is being purchased. As more businesses look to increase training opportunities for their employees, partners and customers, they are realizing the cost savings and scalability that eLearning can provide. Technology advancements and the continued adoption of cloud technology are driving demand for online learning solutions.
2) Who uses an LMS?LMS users fall into two main categories:
3) How is LMS technology delivered?LMS technology is delivered in one of the following two methods:
- On-premise or Custom/Client hosted
- Cloud or SaaS (Software as a Service)
4) Why do organizations buy LMS software?A recent study reported the three primary reasons companies purchase an LMS are to:
- Administer required compliance-related training
- Develop and train internal employees
- Extend training to customers, resellers and channel partners to educate and increase adoption of products and services
First Time vs. Experienced LMS BuyersIn a 2015 survey of LMS buyers, first-time buyers stated their top reasons for purchasing an LMS were to improve efficiency of their training processes (27%) and more effectively report training activity such as completion rates and training return on investment (ROI) (24%). Of those switching from one LMS vendor to another, 31% said they needed features their current vendor lacked and 23% said their LMS was either broken or not user-friendly enough.
5) What are the most common LMS features?LMS software functionality can vary greatly from vendor to vendor. Certain systems cater to a specific industry or niche, while others offer more advanced functionality in a certain area of training (compliance, mobile, gamification, etc.). LMS technology and functionality are constantly evolving. The following are reported as the most-used LMS functions overall.
- Trainee testing – 73%
- Training administration – 68%
- Record-keeping – 53%
- Virtual classroom – 45%
- Document management – 45%
Learn MoreFor more research, facts and stats, presented in a stunning visual format, check out these fantastic infographics: Top LMS Stats and Facts For 2015 Infographic You Need To Know —eLearning Industry 2014 State of the Industry — ATD Top LMS Software Infographic — Capterra
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