There are many new and exciting changes taking place within the e-learning sector. There has been a great deal of growth for businesses and educational institutions alike as the benefits associated with incorporating and utilizing e-learning has only grown over the last few years and is predicted to grow even more in the next four years or so. Now the industry is spending more and students and teachers are saving more by turning to online mediums for delivering their courses and completing course work.
In 2012, the e-learning industry spent 4.4 trillion dollars on global education. This was supported by 1.4 billion students and 62.5 educators. While this is a significant amount it is the market for online learning which is the fastest growing market within the education sector, and it currently stands at 91 billion dollars. It is forecasted that it will utilize twenty three percent of all global education costs by 2017. The reason for this growth is because seven hundred million individuals in the world still lack the most basic literacy skills, something that can only be rectified with increased education and online education is the most cost effective way to deliver this education.
Since 2000, the cost of education has increased by eighty four percent and since 2000, thirty that number was seven prevent higher than CPI. This has created situations like the current student loan debt issue in the United States which has reached over one trillion dollars. Turning to e-learning is a cost effective alternative to this situation.
And there is now ample opportunity for this kind of alternative given that since 2000, internet users have grown nearly eight hundred and seventy percent around the world. This has amounted in a total of 2.4 billion users around the world, which created a shift in how people engaged with other areas of the world. The trend for e-learning has already taken hold; in Europe, there are over three thousand e-learning companies. The reason for this is that businesses are seeking to expand their geographic reach, including their scale and the services they offer which can only be done with consolidation.
Global education expenditure is expected to increase by 7.4 percent between now and 2017 while e-learning expenditure is expected to increase by 23 percent between now and 2017. This breaks down to roughly 4.4 trillion dollars spent in 2012 for k-12 and post-secondary e-learning. By 2015 it is predicted that this will be 5.4 trillion dollars for K-12 and post-secondary education. By 2017, it will exceed 6.3 trillion dollars for K-12 and post-secondary education. There are many sectors involved in this growth too. Corporate and government learning accounts for eight percent of the global education expenditure, while K-12 education accounts for fifty percent, and thirty four percent accounts for post-secondary education.
The e-learning industry is structured with four areas. The first area is content. The key factors affecting this structure are corporate and consumer requirements, as well as regulatory requirements and curriculum. The type of business it affects includes content businesses, open source businesses, and publishers. The second area is management systems. This is affected by scale, efficiency, and complexity. The type of business it affects includes tools, smart technology, and software platforms. The third area is distribution. This area of business is affected by online factors, free/paid factors, one-to-one factors, and one-to-many factors. It affects learning portal businesses, immersive learning businesses, and MOOC’s. The fourth and final area is customer service. The key factors affecting this structure are cost, flexibility, and the level of qualification.
Author Bio: David Miller is an educational researcher who has vast experience in the field of teaching, online testing and training. He is associated with prestigious universities and many leading educational research organizations. He’s an ed-tech veteran, currently pursuing research in ProProfs Knowledge Base Software, and is a contributing author with ProProfs.