Education and Learning Analytics Market Size, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Education and Learning Analytics Market


The global education and learning analytics market size was valued at USD 17.01 billion in 2018. It is anticipated to witness a CAGR of 17.4% over the forecast period. The increased awareness about the potential of learning analytics in improving or changing a learning system in response to student performance, or, in a corporate context, improving the performance of educational institutions is the key factor driving the market for education and learning analytics. Also, learning analytics helps the education sector improve the quality of teaching & learning through innovative and adaptive lessons that suit the cognitive abilities of the learners, which encourages the increased adoption of these techniques in the education sector.

The growing proliferation of e-learning technologies such as mobile learning devices, student information systems, lecture capture, and learning management systems (LMS) has allowed the education sector easy access to huge chunks of data concerned with teaching & learning practices. While these techniques are being applied in education with the aim of improving the productivity of conventional education systems & student outcomes, the enterprise sector is adopting these techniques to augment the workforce. Adoption of these techniques in the enterprise sector is also increasing as a way of strategic goal setting & tracking employee performance across organizations.

Education and learning analytics techniques help organizations in understanding better if their learning programs are driving the desired business outcomes and are improving employee productivity. These techniques also help in prioritizing learning programs that are leading to the desired outcomes and eliminating programs that are wasting the organizations time & money. Learning analytics techniques have gained tremendous traction in the fields of corporate learning & development in the past few years. Owing to this, several companies are introducing solutions catering to the rising learning analytics needs of the enterprise sector. For instance, Blackboard, Inc. developed learning solutions for workplaces & communities along with K-12 schools & colleges, to help them alter their approach towards imparting training & education.

Harnessing the increased use of 3D animation techniques for better clarity & visualization of the topic at hand is expected to enhance the effectiveness of learning analytics software in the present market conditions. For instance, Alteryx, Inc. introduced Visualytics, an interactive enhancement to the companys Alteryx analytics platform. The enhancement allows easy integration of graphic representation of information across the Alteryx platform. The improved visualization of data with the help of charts & graphs is aimed at maximizing the efficacy of business-critical models to data scientists. The growing demand for such interactive education & learning analytics solutions in the enterprise sector is expected to open up new growth avenues for the market in the long run.

The successful implementation of analytics software hinges on the availability of adept data scientists, which is not uniform across the globe. However, a surge in the employment opportunities for data scientists with appropriate skillsets across the education as well as enterprise sectors, as a direct consequence of the growing demand for these solutions, is expected to be seen in the near future. As analytic tools process huge chunks of data, stringent privacy regulations & norms imposed by the federal bodies are expected to challenge the market growth to some extent.

Component Insights of Education and Learning Analytics Market

Based on component, the education and learning analytics market is segmented into software and services. The software segment accounted for a significant share of the market 2018 and is expected to maintain its dominance throughout the forecast period. Intense competition among leading players coupled with increasing investments in R&D activities to enhance their software offerings is expected to contribute to the growth of this segment. High demand for education and learning analytics software in the education as well as enterprise sectors are also likely to contribute to the growth prospects of the segment.

The services segment is expected to witness significant growth, exhibiting a CAGR over 18% over the next six years. This segment is further segmented into managed and professional services; the professional services segment captured a larger revenue share in 2018. The demand for services such as consulting, support, and maintenance is anticipated to witness high growth in the near future owing to the rising number of small- and medium-sized enterprises. These firms make use of analytics for imparting quality information to their employees as well as customers.

Type Insights of Education and Learning Analytics Market

In terms of type, the market for education and learning analytics is segmented into descriptive, predictive, and prescriptive analytics. The descriptive segment captured the highest revenue share in 2018 and is anticipated to continue dominating the market over the forecast period. Features such as the ability to track Returns on Investment (RoI), deal with performance issues, and analyze efficiency in learners through positive feedback lead to the high demand for descriptive education & learning analytics. Decision-makers in the enterprise sector utilize descriptive analytics that is obtained through a wide range of historic data for evaluating comparisons between two or more entities. This helps them attain a holistic view of trends & performances to streamline business strategies.

The predictive segment is expected to witness significant growth as predictive learning analytics is used across various industries to identify & analyze patterns in learning data and predict future behaviors. For instance, air ticket booking websites use predictive analytics technology for making ticket price variations based on past travel booking trends. Also, the growing demand for personalized communications services, real-time analysis, and rise in concerns regarding cybercrimes is expected to contribute to the growth of this segment over the forecast period.

Deployment Insights of Education and Learning Analytics Market

Based on deployment, the market for education and learning analytics has been segregated into the cloud and on-premise. Cloud deployment emerged as the dominant segment in 2018, with organizations increasingly preferring analytics services based on cloud platforms. This is attributed to the benefits of the cloud platform such as low deployment cost, optimized performance, personalized services, and flexibility. Simpler & effective data processing techniques, massive storage, and easy switching between projects also encourage the adoption of cloud-based deployment of education & learning analytics solutions.

The on-premise segment offers more information security & privacy as compared to cloud deployment. However, the mounting costs of the installation of the on-premise model for learning analytics limits the growth of this segment. Nevertheless, the enterprise sector benefits through on-premise deployment on account of its high efficiency in data extraction, wherein data can be pulled from distinct databases and compiled together for a specific goal.

End-Use Insights

Based on end use, the market for education and learning analytics has been segmented into academics and enterprise sectors. The enterprises segment led the market in 2018 and is expected to register high growth over the forecast period as well. The adoption of these solutions in the banking sector is expected to witness high growth, primarily attributed to the increasing use of core banking systems that evaluate digital credit for customers based on their profile. Core banking systems also bring about a high degree of transparency in the banking system. Besides, the public sector is anticipated to witness widespread adoption of education & learning analytics solutions and services due to a rise in the deployment of analytics software by governments worldwide.

The deployment of education & learning analytics solutions in the academics sector is expected to witness significant growth due to an increase in the modernization of learning systems. Learning analytics & associated metric reveal the learning abilities in an individual or groups. These techniques enable access to interactive and easy-to-analyze live statistics about the learner and emphasize more on improvement areas. Increased awareness of these benefits is expected to drive the adoption of such analytics techniques in the academics sector in the near future.

Regional Insights of Education and Learning Analytics Market

The North American regional market held the dominant position in 2018 and was valued at more than USD 6 billion. The dominance of the regional market is attributed to the early adoption of the latest technologies. Additional factors such as the high number of international students for studying in the region and use of learning software in the enterprise sector are expected to enhance the regional market growth.

The market in Europe is poised for steady growth over the forecast period, thanks to the increasing popularity of learning analytics solutions among prominent educational institutes in the U.K., Germany, France, and Switzerland. The Asia Pacific market is envisioned to witness the fastest growth, with an anticipated CAGR of over 20% throughout the forecast period. The enterprise sector, specifically the IT & telecommunication and e-commerce industries in countries such as China, India, and Japan, is expected to be a key adopter of a wide range of education & learning analytics solutions.

Market Share Insights of Education and Learning Analytics Market

Some of the key players operating in the market for education and learning analytics are Blackboard Inc., D2L Corporation, IBM Corporation, Microsoft, MicroStrategy Inc., Oracle, Saba Software, and Tableau Software, Inc. Mergers & acquisitions, new product launches, and collaborations are some of the leading business strategies adopted by key players for business expansion in the market. For instance, in March 2019, Blackboard, Inc. collaborated with Higher Education of Brasilia, a Brazil-based higher education center, where the institute leveraged the companys offering "˜Blackboard Learn for providing an online platform to their students and to further validate their academic outcomes.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Education and Learning Analytics Market Research Report

This report forecasts revenue growth at regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the education and learning analytics market based on deployment, type, component, services, end use, and region.

Type Outlook (Revenue, USD Billion, 2019 - 2030)

  
Descriptive
  
Predictive
  
Prescriptive

Deployment Outlook (Revenue, USD Billion, 2019 - 2030)

  
On-premise
  
Cloud

Component Outlook (Revenue, USD Billion, 2019 - 2030)

  
Software
  
Services
  
Managed
  
Professional
  
Consulting
  
Support & maintenance

End-Use Outlook (Revenue, USD Billion, 2019 - 2030)

  
Academics
  
K12
  
Higher education
  
Enterprises
  
Retail
  
Financial services
  
Healthcare
  
Public Sector
  
Others