North America Adaptive Learning Software Market Size, Share & COVID-19 Impact Analysis, By Deployment (On-premise and Cloud), By Enterprise Type (Large Enterprises and SMEs), By End User (K-12, Corporate, and Higher Education), and Regional Forecasts, 2023-2030

The North America adaptive learning software market size was valued at USD 1.01 billion in 2022 and is projected to grow from USD 1.20 billion in 2023 to USD 4.42 billion by 2030, exhibiting a CAGR of 20.5% during the forecast period.

Adaptive systems can automate this process by changing the presentation of materials according to student performance. The system “learns” from the student's progress and adjusts the learning path. In some cases, they have proven to be cost-effective and have significant productivity gains in educational delivery, with the potential to complement classroom instruction and fill content gaps. This methodology goes hand in hand with rigorous assessment studies that show that teaching is targeted at the learning level rather than the grade level, which leads to important learning outcomes.  

The key players operating in the market are highly focused on developing new features and products to strengthen their market position. These companies are also investing in research & development activities to launch new products and boost business growth. For instance,

• In October 2022: McGraw Hill launched Sharpen, a study app that can be used on mobile, which delivers learning via a continuous content feed, swipeable study tools, bite-sized videos, and a personalized activity dashboard.

COVID-19 Impact

Increasing Adoption of EdTech Tools in COVID-19 to Drive the North America Adaptive Learning Software Market Growth

The COVID-19 pandemic caused the greatest disruption to the education industry and affected nearly 1.6 billion learners in nearly 190 countries. School closures due to COVID-19 brought significant disruptions to the education sector and increased inequalities around the world. Despite these disruptions, North American countries started using adaptive mechanisms, such as Zoom, social media, Google Classroom, and email in emergency distance learning systems to recover from learning losses.

EdTech tool companies offer several powerful teaching tools that assist teachers to create a comprehensive learning environment for students. Since then, there has been a sudden spike in the adoption of e-learning tools. The U.S. government released USD 1.5 billion from the CARES federal law in 2020 to help schools build digital infrastructure to facilitate virtual learning. The Canadian government announced a USD 1.75 billion fund in 2020, called the Universal Broadband Fund, to combat digital fraud and boost broadband services across the country. 

In 2020, online platforms were widely used by policymakers (83% of countries) to provide remote education while schools were closed. However, only a quarter of the school children worldwide had access to this facility. Over 31% of school children worldwide did not have access to distance learning. This has boosted the usage of online learning to engage and motivate students.

The COVID-19 pandemic has shown that relying on traditional forms of school does not help. In the future of learning, technology is increasingly likely to diversify the ways in which it supports students.

LATEST TRENDS 

Integration of AR/VR in Adaptive Learning to Gain Traction for Educators

The applications of augmented and virtual reality in learning bring two significant benefits such as increased student engagement and learner immersion. These high-tech mechanisms provide learners with a safer environment to practice and integrate processes without any risks that they might enfold for themselves or others.

With AR and VR-aided training, learners feel that something is happening around them in reality rather than just observing while learning. The technology activates their narrative associative network instead of the memory network to remember relationships between concepts.

Various large enterprises are using virtual reality in their employee training programs. For instance, Volkswagen uses VR to train over 10,000 employees in customer service and team member training. During the Black Friday sale, Walmart uses VR to train its employees. So far, they have trained over 140,000 of its employees.

Such implementations by big firms drive the growth for applications of AR and VR in corporate training as well as on the institutional level. For instance,

• In June 2022, McGraw Hill, in collaboration with Verizon, introduced a new mobile application that brings Augmented Reality (AR) learning activities to K-12 students and schoolrooms across the nation. The new application leverages interactive and immersive features of AR technology and aids educators in delivering personalized, immersive learning experiences for learners.


• In April 2022, Labster, one of the leading platforms for virtual labs, launched LXD Research to conduct third-party self-governing studies on K-12 education technology of Labster (EdTech) solutions. With the research engagement, Labster's team conducted studies to offer institutions Labster Virtual Reality (VR) based science models. Learners use the adaptive learning capabilities of Labster with instant feedback and study essential science modules.

Augmented reality and VR can also be used in game-based training programs to provide an enhanced experience and increase the learner's engagement.

Such implementations and applications suggest that incorporating AR/VR technology with adaptive learning is gaining traction for educational institutes, learners, and other professionals in this market.

DRIVING FACTORS

Immersive Tech Applications of AI Enhance the Adaptive Learning Software Market Growth

Advanced adaptive learning is characterized by implementing artificial intelligence and machine learning to have more accuracy in the one-to-one learning experience. AI-driven adaptive solutions influence network understanding regarding behavioral nodes, creating deeper interactions between content, persona types, and learning objectives. AI-based adaptive learning approach enhances learner engagement, which promotes tutoring by helping students improve their weak spots and sharpen their skills. As the technology continuously monitors the learner's actions, it helps to identify the knowledge gaps and provide applicable recommendations.

According to Gartner's Strategic Trends article 2022, adaptive AI is among the top 10 strategic technologies, as it enables real-time response and concurrently retrains models. It adapts quickly to dynamically changing circumstances based on adjusted goals and new data.

Hence, AI-based implementations in adaptive learning open up new opportunities for new advancements and innovations in the market. For instance,

• In August 2022, HMH introduced foundational connected skills that combine one-to-one AI-driven tutoring and precise phonics instructions in K-2 classrooms. HMH's connected learning and learning approach combines the best of all with Amira Learning and Saxon Spelling and Phonics, offering research-assisted foundational reading help for students.


• In July 2022, McGraw Hill received the STEM Education innovation award for McGraw Hill ALEKS in EdTech Breakthrough Program 2022. ALEKS is an artificially intelligent web-based assessment and learning tool for Higher Education and K-12. The EdTech Breakthrough Awards program honors brilliance in educational technology solutions, enterprises, and individuals.

Such technological developments and recognitions fuel the market growth.

RESTRAINING FACTORS

Network Problems, Bandwidth Congestion, and Latency Issues Linked with the Software could Dent Market Growth 

Adaptive learning systems are usually deployed in a data center of the school district or public cloud. They are dependent on a network that is resilient, reliable, and with good bandwidth so that the applications are accessible to students at anytime from anywhere. Latency issues, bandwidth congestion, and other network outages affect the overall performance of students during online exams. Adaptive learning solutions combine various technologies such as Artificial Intelligence (AI), mixed reality, streaming and recorded video, and gamification systems. The simultaneous use of such intensive bandwidth applications affects the network capabilities. Also, the rise in remote working, virtual meetings, and other systems have resulted in network issues.

Home classrooms and educational institutions are not prepared for such traffic surges and can experience unexpected network outages and congestion. Such outages affect the worst possible moment such as during virtual exams. For instance,

• According to the EDW (Education Week) report 2020, over one-third of K-12 district respondents are concerned about their internet connectivity as the connectivity is limited, so they are unable to adopt advanced technologies. Also, around 15 - 16 million out of 50 million students in the U.S. lack either digital devices or internet access in their households, as per Common Sense Media. These network issues limit learners and educators from adopting advanced technologies and thus hamper the advancement of technology in the region.

SEGMENTATION

By Deployment Analysis

Ease of New Technology Integration to Surge Demand for Cloud-based Adaptive Learning Software

By deployment, the market is bifurcated into cloud or on-premise. The cloud segment is estimated to witness a high CAGR during 2023-2030.

The adoption of cloud-based adaptive learning software is increasing as cloud-based software is cheaper, much faster, and more efficient than on-premise learning software.

Adoption of cloud-based adaptive learning is increasing among enterprises and academic institutions in the region as it provides greater flexibility and customization at a lower cost.

By Enterprise Type Analysis

Low Training Budget among SMEs to Fuel the Segment’s Growth 

On the basis of enterprise type, the market is divided into large enterprises and SMEs. Both SMEs and large enterprises are adopting adaptive learning software for training their employees. The SMEs segment is predicted to grow at a high CAGR during the forecast period.

According to a report by Training Magazine, enterprises spend around USD 1,100 on employee training every year. For SMEs, that’s a lot of money to spend on professional development, so the SMEs opt for adaptive learning software that helps SMEs to create custom materials that help their employees in learning and retain information. 

By End User

Adoption of Adaptive Learning Software in Higher Education Institutions Led to its High CAGR during the Forecast Period

By end user, the market is divided into K-12, higher education, and corporate.

Among these, K-12 generated maximum revenue in 2022 and higher education is estimated to showcase a high CAGR during the forecast period. The adoption of adaptive learning is increasing in higher education due to increasing need for innovative and creative learning software that can help students learn more in a fun way. Also, students are preferring game-based learning for improving engagement, which surges the software demand.

COUNTRY INSIGHTS

The market is studied across the U.S., Canada, and Mexico

According to our research, the U.S. accounted for the largest revenue share in 2022. Owing to the increasing adoption of adaptive learning, it has become a major adopter of the EdTech platform in the U.S. Also, COVID-19 accelerated the adoption of EdTech for K-12 and higher education. It is estimated that around 30.0% of American students have enrolled in some online learning or courses. In 2022, investments in EdTech have surpassed USD 4.2 billion in the U.S.

One of the major factors influencing the growth is the presence of key players in the U.S. The key players include McGraw Hill, Dreambox Learning, Docebo, and HMH. These players are making significant investments in incorporating advanced technology features into their solutions and are using strategies such as partnerships, acquisitions, and others to provide better customer experience. For instance,

• In August 2022, HMH, a learning technology firm, introduced a new connected learning and teaching solution featuring Saxon Phonics & Spelling + Amira Learning for supporting foundational literacy in the K-2 classroom.

KEY INDUSTRY PLAYERS

Key Players Enter into Strategic Partnerships to Expand their North American Businesses 

The players studied in the scope, such as McGraw Hill, DREAMBOX LEARNING, INC., D2L Corporation, and Pearson, capture majority share in the North America adaptive learning software market share.

Companies invest in strategic alliances and acquisitions to enlarge the business, products, technologies, and other offerings with year-on-year revenue growth. Partnerships and acquisitions vary as per the business requirements, such as the expansion of product portfolio, which helps increase the global presence, and new customer base. Prominent players acquire firms and form alliances with other players to streamline and nurture their business operations. Various key players such as Docebo, McGraw Hill, Talespin, and others have adopted this strategy.

To keep up with the dynamic user requirements, prominent players are upgrading their existing products and innovating new ones in the market. Advancing existing products aid businesses in creating learning products that provide better user experience and determine measurable learning development.

Innovation capabilities help to upsurge access to education worldwide and involve more directly and efficiently with consumers. For instance,

October 2022- Talespin received new funding from WRG (WestRiver Group). With the funding, Talespin also announced the acquisition of Pioneer Adaptive Learning from Singularity Group. The acquisition comprises the addition of new advisors and employees from Singularity Group. Talespin has become a beneficiary of the increasing demand, with WRG (WestRiver Group) joining its increasing list of investors such as Cornerstone, SEEK Investments, Accenture, Pearson, and Go1.

January 2022 – Docebo announced a strategic alliance with Pavilion to improve the learning experience for members of the Pavilion. The partnership comprises various Docebo products that will allow Pavilion to support its 7,000-plus members with new training modules and certification opportunities, resources, learning experiences, and content offerings with Pavilion University, which is power-driven by Docebo.

LIST OF KEY COMPANIES PROFILED:

• McGraw Hill (Platinum Equity) (U.S.)


• DREAMBOX LEARNING, INC. (U.S.)


• John Wiley & Sons, Inc. (U.S.)


• Cerego (U.S.)


• Curriculum Associates, LLC (U.S.)


• D2L Corporation (Canada)


• Docebo (Canada)


• Houghton Mifflin Harcourt (U.S.)


• Pearson (U.K.)


• Istation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2023 – Agro High School collaborated with McGraw Hill to introduce a virtual high school for grown-ups. This collaboration will provide a flexible, personalized, and complete online learning involvement for students age 18 or who are above 9th grade. The enrolling students will have access to the entire online coursework with McGraw ALEKS and McGraw Hill Connect. The two platforms allow students to learn at their own pace with personalized learning.


• January 2023 – McGraw Hill expanded its engagement with two schools in Egypt to enhance its digital learning experience. The two institutions, OWN Heliopolis and Rajac International can leverage adaptive learning platforms and content with McGraw Hill’s OLP (Online Learning Platform) and McGraw Hill ConnectEd.


• February 2023- Wiley extended its open-access contract with Ten Academic Alliance to deliver its solutions to universities across the eastern and midwestern U.S. It is a three-year agreement with the libraries of these big academic alliances. The agreement grants 14 joining flagship universities and 17 allied campuses access to publish and read Wiley's entire journal portfolio. 


• November 2022- Curriculum Associates announced the launch of the new addition of i-Ready Classroom mathematics to aid student involvement and Discourse-Driven Math Teaching. The new edition includes activities, assessments, and standards-aligned modules for Grades K–1 to satisfy the developmental requirements of early learners.


• January 2023- The D2L Learning and Teaching Studio introduces a new master class series, blog resources, and podcast for practitioners and educators in K-20. With up-to-date research and access to professionals, it enables educators to develop professional and personal skills.

REPORT COVERAGE

The North America adaptive learning software market research report includes prominent areas to gain enhanced insights into various end use sectors. Additionally, the report provides an understanding of the recent industry developments and evaluates modern solutions being adopted by players in North America. It also highlights some growth-stimulating boundaries and components, allowing the reader to obtain an all-inclusive understanding of the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2019-2021
Growth Rate	CAGR of 20.5% from 2023 to 2030
Unit	Value (USD billion)
Segmentation	By Deployment, Enterprise Type, End User, and Country
By Deployment	On-Premises Cloud
By Enterprise Type	Large Enterprises SMEs
By End User	K-12 Corporate Higher Education
By Country	U.S. (By End User) Canada (By End User) Mexico (By End User)