Product Code: 70330
The microlearning market is expected to register a CAGR of 14.2% over the forecast period (2020- 2025). The use of microlearning is rapidly becoming more common across workplaces, homes, and educational institutions. According to the NTL Institute of Applied Behavioral Science Learning Pyramid model, the traditional learning methods based on listening, reading, and observing are getting ineffective, and only 20% to 30% of contents might be recalled by the person. The advancement in technology based on simulation learning is effectively driving the growth of the market, with a high percentage of learning outcomes.
- The increasing adoption and availability of cloud have been a significant driver for the market, as it provides the platform and infrastructure to address the scalability limitation of on-premise microlearning experiences. Further, microlearning has witnessed an increasing implementation in existing applications and platforms, including gamification for customer engagement, and value creation.
- Also, the growing demand of millennials for high flexibility and variation of jobs has resulted in half of the workforce consisting of freelancers changing positions frequently and combining different projects at different organizations instead of doing routine long-hours jobs. Therefore, these freelancers are becoming a target audience for microlearning solution providers.
- For instance, nowadays, organizations recruitment pages on the website offer information about open positions and, at the same time, provide a dashboard of online courses preparing the candidate for the task. According to the International Training Centre, Today, all UN agencies use two-hour online sessions divided into 5 to 10-minute pieces to be completed by applicants within a one-week deadline at their own pace.
- The Covid19 pandemic has forced schools, universities, and workplaces to close, and these institutions are implementing e-learning solutions to ensure continuity in imparting education. Due to the lockdown, online learning institutions are also witnessing a significant increase in the number of students. Covid-19 has provided immense opportunities to microlearning in various end-user industries, and thus the market will grow in the long run.
Key Market Trends
Gamification of Training and Education to Drice the Market Growth
- The expedited growth of microlearning is due to an increase in the number of smartphones and mobile devices that have directly created a vast base for gamification in the microlearning market. This growth is supported by the high recognition of gamification systems as a method to architecture human behavior to induce innovation, productivity, or engagement.
- An HBR article identifies that gamification also helps in customer retention and increases customer retention rates by 5%, increases profits by 25% to 95%, and can fetch better results for the businesses. Brands can provide scannable codes on the products, and on scanning the code, the customer can avail of a certain number of loyalty points.
- Enterprise gamification in training, productivity, and skill enhancement are expected to witness substantial growth during the forecast period. Organizations have shown a heavy inclination toward collaborative systems, which do not create a competitive environment, as they are widely considered counterproductive.
- Gamification in microlearning solutions is also functioning as a handy tool for increasing the overall productivity of employees by using various methods, such as rewards for task completion in case of project management or data contribution or access, in case of knowledge management. However, the industry is also facing an absence of standardized guidelines for the application of gamification due to the lack of a substantial amount of academic research in the area.
North America is Expected to Hold Major Share
- The North America eLearning market accounts for nearly 40% of the industry share. It is increasing due to the fast-technological adoption by numerous organizations to provide adequate training to its employees. The growth of e-learning will provide immense opportunity to microlearning providers in the region.
- The organizations in the region are attracted by gamification's ability to raise engagement and loyalty, measured in time, on-site, repeat visits, and viral distribution by an average of 30%. Apart from participation, gamification's revenue effects are also impressive. American multinational software company, Autodesk, raised its trial usage by 40% and conversion rates by 15% while Extraco Bank raised its customer acquisitions by 700%.
- Another influencing factor is the increased penetration of digital devices. According to GSMA, the number of smartphone subscribers in North America is expected to reach 328 million by 2025. Moreover, by 2025, the region may witness an increase in the penetration rates of mobile subscribers (86%) and the internet (80%), the second-highest in the world. Increased device penetration will have a positive impact on the virtual reality market in the region.
- According to a report from IBM, 75% of Gen Z'ers prefer to use a smartphone as compared to other mobile devices. So, a mobile-focused training strategy in microlearning will grow in the future to interest them in learning. Changing economic, social, and behavioral aspects such as these leading to acceptance of technology at an exponential rate will only boost the market growth of microlearning in the region, making them sustainable solutions.
The market is fragmented, with many local and regional players competing with each other in a fast-growing education sector. Players in the microlearning market are engaged to offer their content through the interactive medium that will develop a high interest of the learners in these training platforms.
- May 2020 : Qstream, a microlearning software leader for engaging sales teams in mobile sales learning programs was recognized among the 2020 Top Training Company for the sales training sector of the learning and development market.
- January 2020 : Cornerstone OnDemand, Inc., announced that it acquired Cluster, a French technology company that developed an AI-powered skills engine and extensive skills ontology, used by leading global brands, including Carrefour and SNCF.
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Table of Contents
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
- 4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitutes
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Market Drivers
- 4.4.1 Increasing Demand for Training Deskless and Mobile Workers
- 4.4.2 Growing Need for Skills-Based and Result-Oriented Training
- 4.4.3 Gamification of Training and Education
- 4.5 Market Restraints
- 4.5.1 Reluctance of enterprises to spend huge amount on transforming existing training content into microcontent
- 4.6 Assessment of Impact of Covid-19 on the Industry
5 MARKET SEGMENTATION
- 5.1 By Component
- 5.1.1 Solution
- 5.1.2 Services
- 5.2 By Organization Size
- 5.2.1 Large Enterprises
- 5.2.2 Small and Medium-Sized Enterprises
- 5.3 By Deployment Mode
- 5.3.1 On-Premise
- 5.3.2 Cloud
- 5.4 By End User
- 5.4.1 Retail
- 5.4.2 Manufacturing
- 5.4.3 Banking, Financial Services and Insurance
- 5.4.4 Telecom and IT
- 5.4.5 Other End Users (Healthcare and Life Sciences, Logistics)
- 5.5 By Geography
- 5.5.1 North America
- 5.5.2 Europe
- 5.5.3 Asia Pacific
- 5.5.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles*
- 6.1.1 Mindtree Limited
- 6.1.2 IBM Corporation
- 6.1.3 SwissVBS
- 6.1.4 Axonify Inc
- 6.1.5 Bigtincan
- 6.1.6 Saba Software
- 6.1.7 iSpring Solutions Inc.
- 6.1.8 Epignosis
- 6.1.9 Qstream, Inc.
- 6.1.10 Cornerstone OnDemand, Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS