The global learning and development market is constantly evolving and many of these big changes have been evident in the past few years. Before further details are explored, it is important you know some facts. The learning and development market value was approximately $400 billion in 2017. Procurement Intelligence Expert, Beroe predicts that the market will grow at a CAGR of up to
5% until the end of 2020. The e-learning market is expected to grow at more than 11% by the end of 2020. High maturity markets include North America and Western Europe. Some of the APAC regions such as Japan and Singapore are high maturity markets too.
Many key components drive the cost and some of these are project management cost, content design and delivery cost, and technology cost. Some of the top global service providers are Informa Training, GP Strategies Corporation, The Training Associates, Skillsoft, Xerox Corporation, and DDI. Some of the global suppliers of e-learning are City and Guilds Group, Trivantis, Adobe, Desire2Learn, and Educomp. There has been a steady growth in the market for self-learning. This trend has emerged from developed regions in particular as people are willing to learn more especially in Europe and the US.
Beroe’s research states that one of the learning and development trends 2020 is that the e-learning market will see massive growth by 2023. Latin America and APAC regions will emerge as high growth markets. The US and Europe will see a steep growth in e-learning services as well. The main reason is that there has been an increase in demand such as gamification, e-learning tools, and LMS platforms. While the developed markets are able to provide the necessary technical integration, the developing markets are struggling to catch up although this is likely to change in the future as these markets become better equipped.
One of the trends of the corporate training market overview is that AI is being used more than ever before. This trend will continue as more service providers use it for providing solutions. For example, organizations can use AI to understand the behavior of their employees which in turn can help the training needs of that employee. This personalized type of training can help each employee grow at his own pace rather than take the one size fits all approach which was common earlier. Another trend that is here to stay is video training which has proven to be effective in the past. The video training will need to evolve regularly.
You should know that one of the global learning and development market trends is that Virtual Reality and Augmented Reality will be used in corporate training. Many Fortune 500 companies used these in 2017 according to Procurement Intelligence Experts, Beroe. In the future, the use of AR and VR technologies seems bright as the demand is likely to significantly increase in the future. Organizations are putting learning at the forefront since many employees are taking up jobs as an opportunity to learn. Organizations are aware of this and so they are emphasizing on providing learning opportunities.
Google has predicted that 80% of employees across the globe have deskless jobs. This means that newer approaches such as mobile training can be provided to these people for learning. Instead of opting for a ready package from vendors, companies will need to customize their offering to ensure their employees get value and training that they require. Since every organization is different, the program and training should be suitable for that industry in particular. Performance feedback is another factor that should be given importance to ensure retention and growth in the future. Many organizations are already using that method but more need to use it.
The World Economic Forum report has stated that over half of the employees who are working now will be required to upgrade their skills in the next three years. Since the training industry is highly competitive and the supplier base is fragmented in nature, buyers will have better bargaining power which can give them the ability to negotiate. Organizations have realized that work and learning are becoming more integrated and this trend will continue. The prediction is that learning will be part of an everyday process and that personal and teamwork learning will be given its due as these are important too.
The global learning and development market trends show that the market will grow although two key constraints that must be kept in mind; funding and change management. Not all organizations are able to provide the best L&D tools which can ultimately affect them and their employees. This is mostly because of funding constraints for SMBs. Change management is another big constraint that can affect the market. Communication is key in this aspect to ensure all the stakeholders are aware of what needs to be done to provide solutions that are best for the organization.