Online Learning and Skill Development in the US to 2021 - Market Size and Intelligence Report - Indalytics Advisors

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ONLINE LEARNING AND SKILL DEVELOPMENT IN THE US TO 2021 — MARKET SIZE AND INTELLIGENCE REPORT

© Indalytics Advisors [email protected] www.indalytics.com

November 2016

Online Learning and Skill Development in the US to 2021 — Market Size and Intelligence Report


TABLE OF CONTENT

Market Size of Online Learning and Skill Development in the US

Characteristics of Online Learning and Skill Development in the US

o Volume of B2B and B2C Online Learning and Skill Development in the US

o Free and Paid Online Learning and Skill Development Courses in the US

o B2B Online Learning and Skill Development in the US — by Industries

o Online learning and Skill Development Courses on Learning Portals

Forecasted Market Size of Online Learning and Skill Development in the US

Drivers Impacting Online Learning and Skill Development in the US

o Increase in Online Corporate Training and Development

o Rising Higher Education Costs

o High Attrition and Hiring Rate in the US

o High Internet Penetration

o Use of Mobile Phones

Trends in Online Learning and Skill Development in the US

o Introduction of new Online Learning and Skill Development Companies

o Collaboration among Companies

o Increased Investments in Online Learning and Skill Development in the US

Revenue Models of Online Learning and Skill Development Companies

5-Forces Analysis of Online Learning and Skill Development in the US

o Bargaining Power of Buyers

o Bargaining Power of Suppliers

o Threat of New Entrants

o Threat of Substitutes

o Industry Rivalry



Profiles of Key Players

o Codecademy

o Coursera

o EdX

o General Assembly

o Khan Academy

o Lynda.com

o OpenSesame

o Pluralsight

o Skillshare

o Udacity

o Udemy



LIST OF FIGURES

Figure 1: Market Size of Online Learning and Skill Development — US — B2B and B2C

Figure 2: Learners in Online Learning and Skill Development — US — B2B and B2C

Figure 3: Online Learning and Skill Development Courses — US — Free and Paid

Figure 4: B2B Online Learning and Skill Development — US — By Industries

Figure 5: Breakup of Online Learning and Skill Development — US — By Types of Courses

Figure 6: Forecasted Market Size of Online Learning and Skill Development — US — 2016

(E)–2021 (F)

Figure 7: Expected Job Increase in the US — By Training Types — 2014–2024(F)

Figure 8: Average Tuition Fee of Postsecondary Institutions — US — 2005–06 to 2014–15

Figure 9: % of Population with an Associate's or Higher Degree — US

Figure 10: Employment Separation Rate (%) — US — 2011–2015

Figure 11: Annual Hiring Rate (%) — US — 2011–2015

Figure 12: Internet users (per 100 people) — US —2011–2015

Figure 13: Mobile Phone Subscriptions (per 100 people) — US —2011–2015

Figure 14: Five Forces Analysis of Online Learning and Skill Development in the US



PUBLICATION DATE

November 2016

NUMBER OF PAGES

52

PRICE OF THE REPORT

Single User: US$1,000

Multi User/ Enterprise: US$2,500

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ABOUT THE REPORT

The report ‘Online Learning and Skill Development in the US to 2021 —

Market Size and Intelligence’ discusses the current and forecasted market

size of the online learning and skill development sector. The sector

includes training and courses imparted to experienced as well as budding

professionals, entrepreneurs and corporate employees. It includes courses

taken directly by learners, as well as through their employers (B2B

corporate training).

The report segregates the market size on the basis of various levels of

online skill development, such as industries, courses and mode of training.

It discusses the forecasted market size and year–wise growth of the space

till 2021, along with the various drivers, which will lead to this growth. It

further talks about the various trends that are shaping the online skill

development space, along with the profiles of major US–based players.

The report does not cover offline courses, as well as online courses for

school and university students.



EXECUTIVE SUMMARY

Market size of online learning and skill development in the US is estimated

to reach US$XX.XX billion by the end of 2016. While XX.XX % (US$ XX.XX

billion) of the market comprises of online training and skill development in

Business–to–Business (B2B) space, the Business–to–Consumer (B2C) space

accounts for only XX.XX % of the market at an estimated US$ XX.XX billion.

The online learning and skill development in the US is forecasted to grow

at a compound annual growth rate (CAGR) of XX.XX %, and reach US$ XX.XX

billion by the end of 2021. The growth will be led by various factors such

as increase in online corporate training and development as well as

attrition, rising higher education costs, and more people using internet

enabled devices.

The market is also witnessing several trends such as new online learning

and skill development products, collaboration among companies, and

increasing investments and acquisitions.



RESEARCH METHODOLOGY

This report has been prepared through the following comprehensive

methodology:

Market size of online learning and skill development has been defined as

the aggregate of online learning spend by experienced as well as budding

professionals, entrepreneurs and corporate employees. For estimating the

total market size, whole of the online learning space was segregated into

B2B and B2C to calculate the demand for online learning and training. A

demand-driven approach has been followed rather than a supply-driven

approach as several online skill development providers — such as Udacity

and Udemy — also cater to learners from outside the US.

Bases of all the figures and future estimates are taken from the statistics

provided by the online learning companies, government, ministries, as well

as prominent organizations such as the World Bank, International

Monetary Funds, UNESCO Institute of Statistics, World Factbook — CIA etc.

The data is further validated through credible analyst reports, white

papers by industry organizations, questioners and expert interviews.



ORGANIZATIONS MENTIONED IN THE REPORT

1776

1105 Media

Alelo

Allos Ventures

Altos Ventures

ApprenNet

Canvas

Capella Education Company

CareerBuilder

City Light Capital

Codecademy

Collaborative Fund

CourseHorse

Coursera

Credly

CrunchFund

CyberVista

DataSchool

DeVry University

Distance CME

Edmodo

Edovo

EDTRAININGCENTER

EdX

Elsevier

First Mobile Education

Five Elms Capital

Founder Collective

Frontline Technologies

General Assembly

Google

GoReact

Graham Holdings Company

HarvardX

High Alpha Capital

Index Ventures

Jack Welch Management Institute

Jefferson Education

Kaplan

Khan Academy

Learn.net

Lesson.ly

LinkedIn



Lumina Foundation Venture Fund

Lynda.com

Marco's Pizza

Marco's University Online

Massachusetts Institute of Technology

MasterClass

Mindflash

MIT OpenCourseWare

MIT Professional Education

Naspers

New Enterprise Associates

New Markets Venture Partners

OnCourse Learning

OpenSesame

OpenView Venture Partners

O'Reilly

Partech Ventures

Pluralsight

Practice

PTC

Raytheon Professional Services

Red Ventures

Salesforce

Schoox

Sentdex

Skillshare

Social Capital

Stanford University

SunTrust Banks

SV Angel

Talentbuddy

Talentedge

TDWI

Teachscape

TensorFlow

Thrive Capital

Totara LMS

Towson University

Treehouse

Udacity

Udemy

Union Square Ventures

University of Illinois at Urbana Champaign

University of Pennsylvania

University Ventures

Wake Technical Community College

Wharton School of Business

Yale Open Courses

Education Sector in Nigeria to 2020 — Market Size and Intelligence Report


REPORT SAMPLE

Market size of online learning and skill development in the US is expected

to reach US$XX.XX billion by the end of 2016. While XX.XX% (US$XX.XX

billion) of the market comprises of online training and skill development in

Business–to–Business (B2B) space, the Business–to–Consumer (B2C) space

accounts for only XX.XX% of the market at an estimated US$XX.XX billion.

In the B2B space, industries such as healthcare, hospitality, business

services and financial services, have more than XX.XX% of their staff

development training in online or digital form. These industries also

witness high attrition rate, and therefore find it beneficial to have online

training and development, rather than offline one-to-one trainings with

trainers. High attrition and high training volume makes B2B online learning

and skill development space an attractive business segment for online

learning providers to target at.

Market size of B2C online learning and skill development space is low as

approximately XX.XX% of all the courses hosted on all major learning

platforms and marketplaces are free of cost. Further, only approximately

XX.XX% of all the courses are completed, where learners can pay for

accreditation.



FIGURE 1: MARKET SIZE OF ONLINE LEARNING AND SKILL DEVELOPMENT — US — B2B AND B2C

Source: Indalytics Advisors

B2B Online Learning and Skill Development,

XX.XX%

B2C Online Learning and Skill Development,XX.XX%

Total Market = US$XX.XX billion Date = 2016 (E)



TABLE 1: INVESTMENTS AND ACQUISITIONS IN US ONLINE LEARNING AND SKILL DEVELOPMENT — 2016

Company Investor / Acquirer Amount (US$ million)

Udemy Naspers 60.00

Codecademy Naspers 30.00

MasterClass New Enterprise Associates 15.00

OpenSesame Altos Ventures and Partech Ventures 9.00

Lesson.ly OpenView Venture Partners, High Alpha Capital, and

Allos Ventures

5.00

CourseHorse Red Ventures 4.00

GoReact Five Elms Capital 4.00

Practice City Light Capital, Social Capital, 1776 and Jefferson

Education

4.00

Credly University Ventures, New Markets Venture Partners,

and Lumina Foundation Venture Fund

2.50

Edovo Undisclosed Investors 2.25

EDTRAININGCENTER Frontline Technologies N.A.

Teachscape Frontline Technologies N.A.

Distance CME OnCourse Learning N.A.

Talentbuddy Udemy N.A.

Learn.net Schoox N.A.

Source: Indalytics Advisors



DISCLAIMER

No part of this publication may be reproduced, stored in a retrieval system or transmitted

in any form by any means, electronic, mechanical, photocopying, recording or otherwise,

without the prior permission of the publisher, Indalytics Advisors Private Limited.

The information contained in this report is of a general nature and is not intended to

address any particular individual or entity’s circumstances. Although proper care has been

taken to provide accurate and timely information, there can be no guarantee that such

information is accurate as of the date it is received or that it will continue to be accurate

in the future. The publisher should not be held liable for any discrepancy in the

information. No one should act upon such information without appropriate professional

advice after a thorough examination of the particular situation.

Publication Volume: GCI-16-GL-03

Publication Date – November 2016

© 2016 Indalytics Advisors Private Limited

For further information, please contact [email protected]

mailto:[email protected]



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