The size of the eLearning market is growing in demand
Market Size of the Growing E-Learning Market I’m Takadaoka from the Marketing Department. To prevent the spread of COVID-19, online learning using e-learning systems has garnered significant attention. In addition to measures to prevent the spread of the coronavirus, this trend is also driven by the fact that traditional employee training methods—such as in-person training and on-the-job training (OJT)—are becoming less effective. The research firm Yano Research Institute (Nakano, Tokyo) has released a report forecasting that the domestic e-learning market size for fiscal year 2020 will reach 246 billion yen, a 4.5% increase from the previous fiscal year. According to the report, demand for online learning is expected to continue even after the spread of the novel coronavirus subsides. The analysis suggests that learning services utilizing the internet—such as remote and online classes—will become increasingly prevalent at institutions like cram schools where in-person instruction is not possible. In this article, we will introduce the background and reasons why e-learning is essential in the coming era. Table of Contents: 1. Trends in the E-Learning Market Size for Fiscal Year 2019 2. Key Reasons E-Learning Is Gaining Attention for Employee Training 3. Examples of How E-Learning Is Being Utilized! 4. Efficient Talent Development Using learningBOX 5. Summary Trends in the E-Learning Market Size for Fiscal Year 2019 Source: Yano Research Institute | Based on survey results regarding the domestic e-learning market The B2B market is booming due to increased corporate investment in talent development. The domestic e-learning market size for the 2019 fiscal year is projected to reach 235.4 billion yen, a 7.7% increase from the previous fiscal year. The breakdown shows that the B2B market (including individuals within companies and organizations) is projected to reach 68.4 billion yen (up 5.2% year-over-year), while the B2C market (for individuals) is projected to reach 167.0 billion yen (up 8.8% year-over-year); both markets are expected to continue expanding. Source: Yano Research Institute | Survey Results on the Domestic e-Learning Market According to the article, this indicates that the e-learning market is growing in both the B2B and B2C sectors. In the B2B market, e-learning has become more user-friendly due to the diversification of learning tools driven by the widespread adoption of smartphones and tablets, the evolution of video content, and advancements in cloud environments. Combined with growing corporate demand for employee development, e-learning is now penetrating more industries and companies than ever before. What is B2B? B2B (Business to Business) refers to transactions between businesses, specifically where one company provides goods or services to another. Sales Are Also Growing Steadily in the B2C Market The domestic e-learning market size for fiscal year 2020 is projected to reach 246 billion yen, a 4.5% increase from the previous fiscal year. This fiscal year, demand for distance learning is expected to rise in both the B2B and B2C sectors due to the impact of the COVID-19 pandemic, leading to an increase in the number of e-learning users. Source: Yano Research Institute | Based on survey results regarding the domestic e-learning market. In the B2C market, the spread of learning styles utilizing smartphones, tablets, and social media, the evolution of services driven by advances in information and communication technology, and the emergence of learning services utilizing AI (artificial intelligence). This is not only steadily increasing the number of users but also fostering an environment in which e-learning is becoming mainstream as a form of personal learning. Both the B2B and B2C markets are expected to continue expanding in the future. What is B2C? B2C (Business to Consumer) refers to transactions in which a company provides goods or services to individuals. For example, companies that sell products to general consumers—such as home appliance manufacturers, apparel retailers, and department stores—are B2C businesses. Reference: The domestic e-learning market continued to expand in fiscal year 2019, driven by a steady increase in the number of users and the diversification of services offered | Yano Research Institute Ltd. Why e-learning is gaining attention for employee training Many companies are likely considering implementing employee learning and training through e-learning. Amid this trend, some may be considering implementation while feeling uncertain about whether their company’s environment is suitable for e-learning or if it will be effective. Why are companies turning their attention to e-learning? Let’s outline the reasons. Reason 1: Repetitive learning is possible anytime, anywhere, tailored to employees’ spare moments. With the diversification of work styles today, there is likely a growing demand for a training style that can be conducted at the employee’s convenience—regardless of time or place—rather than the traditional one-size-fits-all approach to employee training. With paper-based materials, even if you want to update the information to the latest version, you must create, print, and distribute new copies each time, which takes a long time for the updates to reach everyone. With e-learning, you can ensure everyone has access to the latest course simply by replacing the distributed materials. Point 2: Minimizing the Time and Money Spent on Employee Development Companies that have traditionally relied on in-person training face significant costs for each session, including venue fees, travel expenses, and lodging costs. Furthermore, in-person training is often a one-time event, so if participants have questions later, they are left relying solely on meeting minutes. As a result, more and more companies are adopting e-learning because it allows them to deliver the same training to remote employees via the internet, thereby reducing costs. To summarize the issues with traditional training: It involves significant human and time costs... Costs arise from securing instructors, participants having to take time away from their regular duties, and scheduling adjustments. Furthermore, venue size may limit the number of participants, and adding instructors to accommodate larger groups can increase costs accordingly. It takes time to organize training... For training sessions involving large groups, a certain amount of time is required for preparation—from selecting a venue and coordinating schedules to planning the training content—to ensure the session is meaningful. ▼Benefits of e-Learning • Easy management of learner progress • Lower operating costs • Reduced preparation effort • Standardized training quality Here are some scenarios where e-learning can be utilized! E-learning is a method of learning that utilizes the internet. Learning content, such as videos, is stored on a server (learning management system) and delivered to learners via internet-connected computers, tablets, smartphones, and other mobile devices. As a result, as long as learners have access to an environment where they can take e-learning courses, each individual can study at their own convenience, anytime and anywhere. While e-learning offers many benefits, it can be difficult to determine whether it can be used effectively or if it’s a good fit for your company. So, how is e-learning actually being used in businesses? Here are some examples of its applications. Used for Corporate New Employee Training An increasing number of companies are introducing e-learning to train new hires. After all, training new hires involves significant time and cost, from creating and preparing educational materials to assigning instructors during the training period. By utilizing e-learning, companies can reduce time and cost, measure trainees’ learning progress and outcomes, and use this data as a basis for decisions regarding their subsequent job assignments. Used as an Internal Information-Sharing Tool Some companies also implement e-learning to share documents and surveys. E-learning is an extremely convenient tool for simultaneously distributing and collecting tests and surveys among employees. A major feature of e-learning is its ability to provide personalized training by tailoring its use to the needs of specific organizations, departments, or individuals. Efficient Talent Development with learningBOX learningBOX is an e-learning system that makes it easy for anyone to get started with e-learning. It is designed with a focus on “ease of use” and “affordability.” It offers detailed customization options tailored to users’ needs, including course setup, learner group management, and the ability to distribute learning materials to specific groups. learningBOX is available starting at 33,000 yen per year for 100 accounts. You can use it for free with no time limit for up to 10 accounts, so please register for learningBOX and try it out to see how user-friendly it is and what it can do! ▼To see actual results and effects of learningBOX—such as how it resolved XX or improved XX—please check out our case studies here. ➡ Click here for learningBOX case studies Summary In this article, we introduced the market size of e-learning—a sector likely to see ever-increasing demand—and the underlying reasons behind this trend. We believe many companies are considering using e-learning for employee training and development. However, some may be hesitant to implement it, wondering whether their company’s environment is suitable for e-learning or if it will be effective. learningBOX is free for up to 10 accounts. You can easily create an account in less than five minutes. If you’re thinking, “I want to try e-learning, I’m interested in it, or I’m considering implementing it,” please give learningBOX a free try! Thank you for reading this article.