Part
01
of five
Part
01
Growth of Online Learning
Key Takeaways
- The online learning market in the US is $42.52 billion as of 2021.
- Between 2016 and 2020, this market grew at a CAGR of 8.9%.
- The online learning market in the US is expected to grow at a CAGR of 12% between 2020 and 2024.
Introduction
Information on the market size, historical growth, and future projected growth of the online learning market in the US has been provided below. The calculations and assumptions used have also been explained.
Current Market Size
- The online learning market in the US is $42.52 billion as of 2021.
Historical Growth
- In 2016, the online learning market in the US was valued at $27 billion. At the time, the US accounted for 50% of the self-paced learning market. Because the market size in 2020 was $37.96 billion, this represents a CAGR of 8.9% between 2016 and 2020.
Future Growth
- According to Market Watch, the online learning market in the US is expected to grow at a CAGR of 12% between 2020 and 2024. This growth translates to a $21.64 billion increase.
Calculations
1) Current Market Size
- The online learning market in the US is expected to grow at a CAGR of 12% between 2020 and 2024. This represents a growth of $21.64 billion.
- Let the starting amount (market size in 2020) be x. Therefore, the final amount (market size in 2024) = x*1.12*1.12*1.12*1.12 = 1.57x
- The difference between the final amount and starting amount is $21.64 billion. In other words, 1.57x - x = 0.57x = $21.64 billion
- Therefore x (market size in 2020) can be calculated as $21.64 billion / 0.57 = $37.96 billion
- The market size in 2021 (current market size) can be calculated as $37.96 billion * 1.12 = $42.52 billion
2) Historical Growth
- In 2016, the online learning market in the US was valued at $27 billion.
- In 2020, the market size was $37.96 billion
- Using the CAGR calculator, this represent a CAGR of 8.9% between 2016 and 2020.
Research Strategy
For this research on the historical and future projected growth of online learning in the US, we leveraged the most reputable sources of information that were available in the public domain, including market research websites like Market Watch and Think Impact. For the figures that were unavailable in the public domain such as historical growth and current market size, we triangulated using the other figures we were able to find. Our calculations and assumptions have been provided in the findings above.