Today no one doubts the benefits of e-learning in all its aspects – in educational institutions, for corporate training or for personal development. In fact, it is being preferred by a larger number of institutions and individuals because of the higher results that it comes with.
For companies, e-learning can be one of the most efficient tools to get ahead of their competitors, promote international growth and boost their employee engagement. Naturally, it is important to create relevant e-learning modules that are properly translated and localized, so that they can reach the target audience more efficiently.
For the individual learners, the various forms of online learning give them the opportunity to add new skills and knowledge the way they want it and when they want it. Microlearning and gamification are one of the preferred forms for adults as they present the information in smaller chunks and in a much funnier way.
Generally, there are many facts associated with e-learning that reveal its significant power in our technology-driven world. Here are a few interesting ones that are worth noting.
Self-Paced E-Learning Market Declines
In a report published in August 2016, Ambient Insight predicted a steep decline in the self-paced e-learning market worldwide for the period 2016-2021. The company that tracks learning technology markets in 122 countries gave a rather gloom prediction for the revenue that will be generated by self-paced e-learning.
According to their results, the global revenues for 2016 reached $46.6 billion, which was already a slight decline compared to the $46.9 billion in 2015. The results expected for 2021, however, are much worse – the revenue should reach not more than $33.4 billion. Thus, the worldwide five-year compound annual growth rate (CAGR) for self-paced e-learning stands at –6.4%.
There is a difference in the decline rate compared by continents.
Source: The 2016-2021 Worldwide Self-paced eLearning Market: The Global eLearning Market is in Steep Decline, Ambient Insight
Only Africa retains a flat growth of 0.9% over the period, while all other areas reveal a significant decline. The most notable drop in revenue is to be experienced in Asia.
The decline can be traced by different product types as well.
It is interesting to note that according to the report the declining revenues in the US are related to reduced spending in the government, corporate, and higher education segments. Still, the USA remains at the top of all the countries that buy e-learning products, followed by China, Canada, South Korea and India.
The negative results for self-paced e-learning don’t mean that e-learning is declining in general. On the contrary. It is performing well especially the cost-effective Game-based Learning, Simulation-based Learning, Mobile Learning, and Cognitive Learning products.
Game-Based Learning Market with Great Performance Globally
In another of their reports, Ambient Insight reveals that the global game-based learning market will be thriving in the upcoming years. For the period 2016-2021 the growth rate of the revenues from game-based learning products stands at 22.4%. In 2016 the revenue was $2.6 billion and is expected to reach $7.3 billion by 2021.
It is also interesting that investments in game-based learning companies by private parties reached a stunning $322.6 million just for the first half of 2016 and are expected to grow.
There are several reasons that define the growth of this e-learning segment that includes strong demand for language learning products, high demand for mobile brain trainers, a spike in demand for early childhood learning apps and other.
Source: The 2016-2021 Worldwide Game-based Learning Market, Ambient Insight
The rise of the game-based learning market is a prove that adults also want to have fun while learning.
Main Company and Employee Benefits as a Result of E-Learning
The power of e-learning and its benefits for the overall development of a given company are numerous. The companies that want to be successful should be able to recognize the needs of their employees and provide them with the relevant training to foster the necessary skills. Trained and motivated employees will result in business growth as they are going to be more productive.
Most of the CEOs realize that human capital is the leading asset in their organization, which is then followed by the product/service they offer and the relationship with their customers.
“71% Of CEOs identified human capital as a key source of sustained economic value.”
Source: “Leading through Connections” IBM CEO Study, 2012.
As a result, 84% of employees in Best Performing Organizations are receiving the training they need compared with 16% in the worst performing companies. (IBM report).
Source: IBM Smarter Workforce (Kenexa) 2013 Survey.
What is important, however, is that the company management needs to provide the right training to the right people in order to achieve the desired results. It is also worth noting, that employees who believe that they are not able to achieve their personal goals and desire for realization will soon leave the organization in pursuit of better career options.
In recent years, online training turns out to be much more efficient than instructor-led training, especially in a corporate setting. It takes up to 60% less time compared to the traditional classroom methods, while the retention rates are much higher – between 25% and 60%. This is basically due to the fact that online training gives the learner more control and flexibility.
Furthermore, in their report, IBM also noted that one dollar invested in employee training results in $30 productivity. The company also noted that e-learning saves them a significant amount of money compared to what they usually have invested in classroom forms of training.
The conclusion is that online training is one of the best forms of training that the organizations can use. It is beneficial to both the company and its employees and the advancement of the new technologies allow for various types of modules to be provided to different people in order to best match their needs.
E-learning is a power that is used by the modern society to improve its overall quality of living. While some techniques or particular types, of course, may decline, others thrive and prove that the market is flexible and open to changes.