Competition, challenges and caveats
London (UK), November 2013 - (by Bob Little) A recent report - by TechNavio - on the global eLearning market predicts that it will grow at a CAGR of 7.90% over the period 2012 to 2016. The report concludes that a key factor contributing to this growth is the increase in initiatives promoting eLearning. It also points out that the global eLearning market has been witnessing consolidation and offers the caveat that educational policies inhibiting the growth of the market could pose a challenge.
There are incontrovertible signs that globalisation is affecting the education market. As such, there is huge potential for the developed world to provide education – especially technology-delivered education - for the developing world.
Recognising this challenge, the UK Government’s Industrial Strategy for Education, published in the summer, places significant emphasis on developing the sector through the Open University Futurelearn massive open online courses (MOOC) development programme, incorporating the involvement of the British Library, British Museum, British Council and the 21 universities – although there’s no mention of a role for the BBC in promoting and disseminating the learning materials.
Much of the Strategy deals with the importance of students studying in UK higher education (HE) institutions – principally because they generate some 75% of the UK education sector’s income. Figures in the supporting document indicate that just over 500,000 overseas students are registered to study with UK HE institutions. Apparently only 115,000 of these are currently using any form of distance learning.
So, it’s no wonder that policymakers worry about the arrival of MOOCs and their potential to radically re-shape this market. These policymakers seem to fear that the UK HE market will suck in a generation of US MOOCs, rather like the UK sucked many US virtual learning environments (VLEs) – otherwise known as learning management systems (LMSs) - into HE in the late 1990s.
The economic downturn since 2008 hasn’t helped this sector – with corporate learning & development budgets continuing to be cut. Moreover, from a UK perspective, the number of corporate educational technology (edtech) vendors based abroad who’ve entered the UK market has far outweighed corresponding UK vendors’ export activities. This suggests that UK corporate online learning technologies vendors – with a very few notable exceptions, such as Kineo and LINE Communications - are too busy competing in the UK market to see, find and exploit the growing opportunities in the world market.
However, the Government’s Strategy - which admits that the UK edtech sector faces keen challenges and requires additional support if it’s to deliver its full growth potential - aims to bring together industry and Government to address what the Government sees, and the TechNavio report confirms, as a massive global growth opportunity in the education market. However, while the Government stresses the importance of the entire education market, the Strategy focuses only on HE, ignoring the corporate learning technologies market.
Commenting on the Strategy, David Patterson, a Director of Learning Light – a UK-based consultancy with in-depth knowledge and experience of the corporate eLearning marketplace and how to use eLearning materials effectively – said: "It’s difficult to disagree with the statement that the UK is an edtech world leader but it’s disappointing that, again, the UK’s impressive position in corporate online learning technologies isn’t appreciated - or even acknowledged. The UK’s excellence in online learning for the corporate workplace is something which the Government seems to continually ignore."
"It’s significant how the Government is seeking to address the skills area with learning technology - and focusing on employer ownership,” he continued. “If this policy can bring the benefits of eLearning to this country’s small and medium enterprise sector it’ll deliver a much needed stimulus towards training in these organisations. This would promote growth in the UK’s corporate eLearning sector and provide a platform on which to build a successful international education and training offer in vocational education and training. It could reveal a market many times bigger than HE - and it’s one that’s currently not well served."
For over 20 years, Bob Little has specialised in writing about, and commentating on, corporate learning – especially eLearning – and technology-related subjects. His work has been published in the UK, Continental Europe, the USA and Australia. You can contact Bob via bob.little@boblittlepr.com His e-book, ‘Perspectives on Learning Technologies’ (e-book; ASIN: B00A9K1VVS) is available from The Endless Bookcase and from Amazon. It contains over 200 pages of observations on issues in learning technologies, principally for learning & development professionals.
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