Adaptive Learning Software Market Size, Share & COVID-19 Impact Analysis, By Deployment (On Premise, Cloud), By End User (K-12, Higher Education, Corporate), and Regional Forecast, 2020-2027

The global adaptive learning software market size was valued at USD 1.61 billion in 2019 and exhibiting a CAGR of 22.1% during the forecast period. The market is projected to reach USD 7.94 billion by 2027 and further expand to USD 17.64 billion by 2031.

The cutting-edge technologies comprising artificial intelligence, machine learning, data science, and adaptive learning are changing the dynamics of the digital education industry. The advent of ubiquitous computing has urged education systems to leverage adaptive techniques in both instructional and assessment programs. Adaptive learning assures outcome-driven and cost-effective approaches that make tailored training material straightforward and easy for learners. Therefore, education and corporate institutes are embedding adaptive learning tools into their online training modules. For instance, in August 2020, ConveGenius, an EdTech, acquired Gray Matters India to amplify its adaptive learning platform. This acquisition would allow ConveGenius to integrate its automated learning capabilities with GMI’s measurement science. This would further reinforce their ‘EdTech for Naya Bharat’ project that aims to empower over 100 million students.

COVID-19 Impact

Temporary Closure of Institutes to Spur Demand for E-Learning Software

The COVID-19 pandemic has created a huge disruption in education as well as corporate sectors. The temporary closure of schools, universities, and institutes has greatly impacted learners, educators, and skill development establishments. Although, some countries have started planning to reopen education institutes based on grade levels; continued virulence of the virus may again lead to the closure of institutes. These decisions may carry enormous economic and social implications and are expected to have lasting effects on learners and educators.

During this time, e-learning platforms such as adaptive learning platforms are likely to become a priority for the continuation of learning. In the corporate world too, up-skilling has become extremely critical for professionals to prolong their careers in the present scenario. The imminent economic downturn has forced companies to cut non-core jobs. The only two ways for professionals to future proof their career are to be skilled in areas that are probable to see continual growth or to be more capable and qualified than the peer group. Adaptive learning software is expected to play a crucial role in this situation owing to its benefits such as one-to-one instructions, greater time efficiency, confidence-based approach, the capability to create individualized learning paths, and personalized learning for a heterogeneous group.

Albeit, the slowdown in world economic growth has disrupted the adaptive learning industry to some extent, the growing e-learning trend is expected to show optimistic growth post-pandemic. Although adaptive learning is on its long way to become the standard for academic and corporate learning, it is expected to revolutionize the entire education and corporate sector in the near future.

LATEST TRENDS

Increasing Trend for Self-Directed Learning to Propel Market Growth

In the self-directed learning (SDL) approach, the learner takes the responsibility of learning at their own pace and time with or without the assistance of mentors. This approach enables learners to assess, control, and manage their learning activities. Adaptive learning software is one of the tools used in this approach that creates data about the learners while they are taking training modules or e-learning courses. In the traditional approach, it is difficult to track the performance of every student. With the help of these platforms, students’ performance can be tracked online and modified to their learning experience. It not only assists in understanding individuals’ performance and needs but also indicates improvement and predicts the learners’ future performance. Thus, a growing inclination towards self-directed learning is expected to drive the growth of the market.

DRIVING FACTORS

Need for Advanced and Innovative E-learning Software to Boost Market Growth

The rising need for advanced and innovative solutions to improve the students’ pass rate, score, and retention level has led to the emergence of advanced digital learning software. An adaptive learning tool uses a range of advanced technologies like artificial intelligence (AI), augmented reality (AR), virtual reality (VR), among others, and static layouts to display content on a screen. These technologies enhance the capabilities of the software and make it more enjoyable for learners. It enables students to learn things more easily and understandably. AR and VR technology helps in understanding difficult science concepts easily, thereby generating interest in learning. It helps in modernizing and enriching content, thereby making information more efficient and intuitive. Thus, adaptive learning is expected to completely innovate the way education is approached, and bring a spark back into the classroom.

Growing Preference for Game-Based Learning Software to Augment Market Growth

Nowadays, organizations are striving to improve their training approaches by creating game-based learning to engage and empower learners. Gamification has the potential to improve retention rates and enhance the application of the subject matter at work. It is considered an excellent application in training and education to improve retention and performance as well as creates long-term adherence to the task at hand. Therefore, companies are looking forward to implementing game-based solutions such as adaptive learning software which can add value to organization-wide learning.

RESTRAINING FACTORS

Complexities Associated with the Software to Impede the Market Growth

The design and development of adaptive learning platforms need to be done very accurately because creating tests, and adaptivity content is a complex task. Full personalization and endless adaptivity are difficult to achieve, whereas, limited adaptivity may lead to insecurity among learners. Also, complexity in supporting various learning styles such as visual and audio can be time-consuming and difficult. The cost associated with the purchase of software and training trainers is quite high. These factors may hamper the growth opportunities of the market.

SEGMENTATION

By Deployment Analysis

Low Cost and Minimal IT Dependency to Fuel Demand for Cloud-Based Software

On the basis of deployment, the market for adaptive learning software has been categorized into on-premise and cloud.

The cloud segment is expected to observe the highest CAGR during the forecast period as it requires minimal efforts to set up cloud-based software. It provides better flexibility and customization at a low cost. Organizations that adopt cloud software only need to pay for the services that they use.

The on-premise segment holds the highest market share owing to security concerns. Security is considered a major selling point of on premise platforms as the data is stored on in-house infrastructure. It does not require third party ownership to manage and maintain the infrastructure.

By End User Analysis

Inclination Towards Innovative Learning to Increase Demand for K-12 Software

Based on the end user, the market is segmented into k-12, higher education, and corporate.

Among these, the k-12 segment holds the maximum adaptive learning software market share owing to the increasing adoption of creative and innovative eLearning software by educators to make learning enjoyable for children. Growing preference for challenge-based games and goal-oriented computer modules to improve student engagement, which in turn, will drive the growth of the market.

Further, the corporate segment is expected to be the fastest-growing segment during the forecast period. The adoption of this software to train and provide various instructions, training, and suggestions to employees is boosting the growth of the market. Also, this software helps to increase individuals’ work efficiency, improve employee competency, and assists in making learning faster.

REGIONAL INSIGHTS

North America is likely to hold the highest market share during the forecast period. The growing partnerships and collaborations among digital education vendors and institutes for incorporating advanced software in existing education models are driving the growth of the market in North America. For instance, in January 2018, DreamBox Learning partnered with Knotion, a Mexico-based learning solution provider, to deliver an adaptive math learning platform in English and Spanish to empower personalized and differentiation for thousands of K-9 students across Mexico. Later, in October 2019, DreamBox Learning partnered with the Nevada Association of School Administrators (NASA), to provide NASA educators access to on-site training, research-driven live webinars, and other professional development resources to assist them to personalize their math instruction as per student’s unique growth and learning needs.

Asia Pacific is expected to be the fastest-growing region during the forecast period. The growing initiatives by the government to improve the digital infrastructure in the education sector is expected to drive the Asia Pacific adaptive learning software market growth. For instance, in May 2020, the Finance Minister of India announced the launch of the 'Pradhan Mantri e-VIDYA' initiative in support of digital education. Such initiatives are likely to propel the growth of the market. Similarly, European government initiatives like” Digital Education Action Plan” and “Digital @ Youth Work“projects are expected to fuel the growth of the European market.

The Middle East and Africa and South America are also expected to witness significant growth during the forecast period.

KEY INDUSTRY PLAYERS

MacGraw-Hill to Expand Adaptive Learning Business Through Strategies

McGraw-Hill, one of the leaders in the adaptive learning software market has made significant investments in digital capabilities to sustain its position in the market. The company’s long history of offering adaptive learning solutions has helped them to develop a robust and growing database of student’s achievements. This is helping companies to improve the effectiveness of their solutions. In addition to investments, the company has invested over USD 200 million for the acquisition of LearnSmart, ALEKs, and Engrade, which has substantially strengthened its adaptive learning offerings.  

Similarly, other companies like DREAMBOX LEARNING, Knewton, Inc., D2L Corporation, Kidaptive, Pearson, among others are offering various advanced adaptive learning platforms, considering the various needs of educational institutes as well as corporates. These providers are working closely with learning institutions to set up an adaptive learning environment to achieve the projected results.

August 2019 – McGraw-Hill announced the expansion of its adaptive technology-based Connect Master suite to offer affordable active learning experiences that would improve students' critical thinking skills, engagement, and ability to apply knowledge to real-world challenges.

February 2019 – McGraw-Hill launched SmartBook 2.0 as a major enhancement to its market-leading learning management solution, named, Connect learning platform. SmartBook 2.0 tracks student progress and prepares a report, allowing instructors to identify the area in which students are struggling.

LIST OF KEY COMPANIES PROFILED:

• Cerego (California, US)


• Curriculum Associates, LLC (North Billerica, US)


• D2L Corporation (Kitchener, Canada)


• Docebo (Toronto, Canada)


• DREAMBOX LEARNING (Washington, US)


• Fishtree (Arlington, US)


• Houghton Mifflin Harcourt (Massachusetts, US)


• Imagine Learning (Utah, US)


• Kidaptive (California, US)


• Knewton, Inc. (New York, US)


• Macmillan (New York, US)


• McGraw Hill (New York, US)


• New Leaf Technologies (Maharashtra, India)


• Paradiso (California, US)


• Pearson (London, United Kingdom)


• Realizeit (Dublin, Ireland)


• SAS (North Carolina, US)


• Scootpad (California, US)


• Smart Sparrow, Pty Ltd (Sydney, Australia)


• Fuel Education LLC (Herndon, US)


• EdSurge Inc. (California, US)


• Wiley (New Jersey, US)


• aNewSpring (Rotterdam, Zuid Holland)


• Intetics Inc. (Florida, US)


• HCL Technologies Limited (Noida, India)


• intellAdapt (Massachusetts, US)


• Domoscio (France)


• GradeSlam (Montreal, Canada)

KEY INDUSTRY DEVELOPMENTS:

• February 2020: McGraw-Hill entered into an agreement with Proctorio, a leading provider of learning integrity solutions. The partnership enabled McGraw-Hill to utilize Proctorio's remote proctoring and browser locking features within its McGraw-Hill Connect Digital Learning Platform, initially targeting college courses starting in the Fall of 2020.


• January 2020: Pearson made a strategic acquisition by purchasing Smart Sparrow, a prominent adaptive learning platform provider, at an estimated cost of USD 25 million. This acquisition aimed to bolster Pearson's capabilities in the adaptive learning market and play a pivotal role in advancing the growth of Pearson's Global Learning Programme (GLP).

REPORT COVERAGE

The market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION