Part
01
of one
Part
01
What is the Global market-size (TAM) for the Learning Analytics industry?
Hello! Thank you for your question regarding the market size of learning analytics industry globally and USA. The short answer according to my research is that the estimated global market size learning analytics market is about $650 million as of 2014 and is estimated to grow at a rate of 25.45% CAGR between 2014-19. The estimated market size globally for higher education learning analytics is about $370.5 million as of 2014. The estimated market size in the USA for learning analytics for higher education market is about $52 million as of 2014 and this is expected to grow at a rate of 26% CAGR between 2015-2020. You'll find a deep dive of my research below, along with an explanation of my methodology.
METHODOLOGY
In order to answer this request, i looked at reports published by Technavio, Absolute Reports, RNRMarketResearch reports and articles published in news websites such as PRNewswire and Yahoo Finance. Using these reports I was able to find the global market size broken down at university level (Higher education) and also the USA specific figures. In cases where a projected growth figure was available, I have back calculated using the CAGR calculator in order to obtain 2014's figures.
The CAGR calculator is used as follows. The beginning value, usually a 2014 or 2015 figure is entered. Then, the ending value, usually a 2020 or 2019 value is entered. Subsequently, period value is entered which is usually 5 years. Upon clicking calculate, the percentage generated is CAGR.
For example, for estimating global market size of learning analytics market for 2015, I input the ending value as 2000, period as 5 and I varied the beginning value to reflect the 25.45% CAGR. Upon entering 650, I approximately reached a value of 25.45.
FINDINGS
According to RNRMarketResearch, the global learning analytics market is estimated to be about $2 billion by end of 2019 and will grow at a rate of 25.45% CAGR. Using the CAGR calculator, we can estimate that as of 2014, the estimated market size for learning analytics globally as of 2015 including higher education and K-12 is about $650 million. Out of the $650 million market globally, about 57% of the market share is held by higher education segment. This gives the higher education learning analytics market to be about $370.5 million.
USA is the leader in the global market whereas the majority of the growth lies in the Asia-Pacific and regions excluding North America & Europe. In 2014, the rest of the world (excluding North America and Europe) contributed about $166 million (25.59%) to the global market.
Also, when analyzing the market for the method of deployment, trends and reports reflect that the on-premises deployment is currently in the lead with about 85% market share when compared to on-cloud deployments.
In the USA, the market size for learning analytics market is growing at a CAGR rate of about 26% from 2015-2020 according to Technavio. The estimated market size in 2020 is about $322 million for both higher education and K-12. Reflecting the global trend, the market share contribution of the higher education or the university market is also to reach 50% by 2020. This means that by end of 2020, the market size of learning analytics in the USA for higher education would be about $161 million. This figure, combined with the CAGR, helps us project that the market size in the USA in 2014 was about $52 million for higher education segment (using CAGR calculator)
Within the USA market, the reason for deployment of learning analytics in universities is majorly for performance management since this segment will occupy about 50% of the total market share by 2020.
Reflecting another global trend in terms of method of deployment, on-premises is estimated to grow one percent higher that the overall growth in the USA with a CAGR of about 27%.
Some of the major players in this industry in the USA are BlackBoard and Desire2Learn. However, new entrants like Infrastructure are growing at a much faster rate. For example, using their Canvas product aimed at higher education institutes, Infrastructure has acquired about 80% institutes in the new implementations market.
SUMMARY
1. The estimated global market size for learning analytics market is about $650 million as of 2014 and is estimated to grow at a rate of 25.45% CAGR between 2014-19.
2. The estimated market size globally for higher education learning analytics is about $370.5 million as of 2014.
3. The estimated market size in the USA for learning analytics for higher education market is about $52 million as of 2014 and this is expected to grow at a rate of 26% CAGR between 2015-2020.