Facts Revealing | The Power Of The E-Learning Industry

E-learning has been around since the mid-1920s, when simple learning machines like the Automatic Teacher were made. Learners had to answer questions correctly on this bubble-sheet testing machine before they could move on to the next question. It was a game changer in modern education as it slashed costs to about $15, or half the amount required to educate a student for an entire year during that period. Some thirty years after the invention of Pressey's Automatic Teacher, B.F. Skinner developed the “Teaching Machine,” a mechanical device that contained questions and rewarded learners for each correct answer. The “Teaching Machine" was designed to provide learners with immediate and consistent reinforcement to maintain their interest in learning. From the onset, it was clear that e-learning was built with the following principles in mind: 

• To provide immediate feedback to learners. 
• To facilitate self-paced learning
• To allow learners to cover more material in a short time. 

Looking at the current state of e-learning, it is safe to assume that nothing has changed in terms of the principles behind the industry and the problems it attempts to address. Although the industry seemed to stagnate from the 60s up until the late 80s, something revolutionary that would change the e-learning landscape was in the works. As computers began to shrink in size and enter offices as personal assistants, more people were exposed to the mind-blowing technology of computers for the first time. This was the opportunity the e-learning industry was waiting for as CDs and floppy discs blew up in popularity, especially in the world of academia. By the 90s, universities were already exploring ways to reach more students remotely with the help of the internet. The UK’s Open University quickly embraced the trend, offering internet-based courses to students across the country, enrolling 2,000 students in its first year alone. Starting in the 90s, e-learning started gaining ground as personal computers became more visible in workplaces and homes worldwide. As a result, the e-learning industry experienced a boom as more PCs were connected to the internet. This made  it easy to share learning materials through CD-ROM and digital formats like PDFs, which soon became an incentive for the industry to capitalize on emerging technology to earn more revenue. Let’s explore the e-learning industry, how it became a multibillion-dollar industry, and what to expect in the future. 

E-Learning In Brief

E-learning, also known as online learning, educational technology, computer-based training (CBT), and web-based training (WBT), occurs electronically, most commonly over the internet. Unlike in the 80s, 90s, and early 2000s when CDs and floppy disks were primarily used to store and transmit e-learning material, with the internet's proliferation, e-learning has migrated to learning management systems (LMS), software for creating, managing, organizing, and delivering online learning materials to students.

Why e-learning became a thing

To understand the sudden rekindled interest in learning management systems and e-learning, especially in the post-pandemic era, we need to go back to the late 90s when the first commercially successful LMS company, Blackboard, appeared on the scene to help businesses and schools keep track of their learners’ attendance, grades, and overall performance. E-learning has always been about breaking the barriers to education and allowing learners from anywhere around the world to access learning materials and opportunities that would otherwise be impossible with traditional education. The pandemic helped us rediscover e-learning and improve existing online learning systems to cater to the masses with the introduction of new features and apps to help solve the crisis that left millions without access to education. Businesses were also affected in a similar fashion, with employee training shifting to virtual classroom systems to onboard new employees and retrain existing ones. The widespread use of smart internet-capable devices has propelled the growth of e-learning, especially in the last three decades, as individuals are constantly interacting with the digital world using personal computing devices which can create, process, edit, and share information instantly, making them the perfect tools for accessing online education. The technological strides we have taken in the last few years have helped us reduce costs by saving billions of dollars on learning materials and making online learning more attractive to institutions and learners. According to a survey conducted in 2020 by the US National Center for Education Statistics, 44 percent (7.0 million) of all undergraduate students exclusively took online courses. While these figures may make it seem like this is only unique to colleges and universities, data from a 2022 study by Skill Scouter shows that 41.7% of the world's Fortune 500 companies use E-learning technology to train their employees. This means that at least four of the world's ten largest corporations recognize the value that E-learning brings to the table. 

Growth of the e-learning industry

From the 2000s, we can observe the steady growth of the industry into a multibillion-dollar sector with many vying for a piece of the market share as learners discover the convenience of learning online. Companies also began implementing e-learning to train their employees, improve efficiency, and reduce costs. As the industry grows, new terminologies like "mobile learning”, "gamification" and "social e-learning" became more profound as e-learning became a necessity. The birth of web 2.0 played a crucial role in the development of interactive learning platforms that we use today, as many of these learning platforms started to pop up around late 2004. Corporations began jumping on the bandwagon and began utilizing e-learning for employee training. New and seasoned employees now had the opportunity to increase their industry knowledge and extend their skill sets. Individuals also began accessing programs that allowed them to get online degrees and better their lives through increased knowledge from the comfort of their own homes.

 Interactive learning has helped make e-learning a convenient way to learn almost anything on the web, with multimedia content aiding trainers in crafting engaging content for learners. 

The late 2010s saw a new boom in the industry with e-learning platforms like Coursera, Udemy, Udacity, and Edx, hence the phrase “Year of the Massive Open Online Course (MOOC)” in reference to the spike in e-learning platforms that blew up in popularity in 2012. The e-learning space is set to grow even bigger than estimated, as pre-pandemic estimates by Forbes had gauged a $350 Billion industry valuation by 2025.

Advantages of e-learning for businesses & employees: 

Convenience: Employees can benefit from the convenience of e-learning as they learn and improve their skills from anywhere through smart devices without having to physically attend a lecture. E-learning platforms also offer convenience to businesses, as they allow them to track learner performance and implement changes, introduce course updates, and collect feedback effortlessly.

‍Low-cost: E-learning is much cheaper than traditional education as businesses cut overheads like salaries for trainers and paying for learning resources. However, businesses incur costs during the development of the system and for training content development. However, the cost is worthwhile when it comes to return on investment. According to the e-learning Industry, businesses that replace traditional education with e-learning save at least 50 percent on costs. Considering that e-learning reduces instruction time by 60%, it is anticipated that cost savings will increase even further. Individuals also benefit from the costs associated with e-learning as the cost of accessing e-learning services has significantly reduced compared to the industry's early days. Personal computers and smartphones are now more affordable than ever, which has helped make information more accessible.

Better engagement: E-learning systems allow learners to learn using various formats, which can help boost engagement and improve retention. Engaged learners are more likely to complete their courses and implement what they learned in the workplace, which can positively impact business.

The future of e-learning: The e-learning industry is set to grow as more businesses adopt e-learning tools to assist in their training and development. Institutions like schools and governments are also integrating e-learning into their existing systems, which has transformed the e-learning industry from a niche to a major industry serving businesses and organizations in different sectors. According to a Skilljar study, the use of video content in training has increased by 500 % since the pandemic. The growing popularity of video-based learning and virtual trainers is changing the way we use e-learning content as our tastes and needs change. With the development of augmented and virtual reality, it seems there might be a chance for this new technology to be integrated into e-learning to help make e-learning more engaging. 

‍Conclusion

E-learning has alleviated many of the problems associated with learning, such as time and cost constraints that previously limited learners' learning paths. These reasons are sufficient to sustain e-learning as a solution to many major learning problems. E-learning tools and techniques are becoming increasingly sophisticated as a result of advances in educational technology. They now provide learners with a more impressive and effective learning experience. More learners and employees are using e-learning to get certified, learn new skills, and broaden their knowledge base. The e-learning industry is growing in importance and as more businesses embrace learning management systems for their training, the sector is set to continue growing. Thanks for making it this far, if you want to learn more about how e-learning can benefit your business, check out our previous articles or browse Greenmusk services on our site to see how we can help you make the most of your learning and training.

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