E-Learning Market in Japan: Key Research Findings 2024

Negative Growth Expected for FY2023 E-Learning Market

Yano Research Institute (the President, Takashi Mizukoshi) carried out a survey on the e-learning market in Japan and found out the respective trends of B2B and B2C markets, trends of market players, and future outlook. 

E-Learning Market Size Transition and Forecast
E-Learning Market Size Transition and Forecast

Market Overview

The estimated domestic e-learning market for FY2023 by sales at service providers is 369,000 million yen, down by 0.9% from the previous fiscal year. In detail, B2B for enterprises rose by 6.0% on YoY to 114,000 million yen, while B2C for individuals declined by 3.8% on YoY to 255,000 million yen. Owing to the negative growth by B2C, FY2023 expects a decline for the entire market.

The B2B market, i.e. e-learning for enterprises, shows steadfast demand, despite slowdown in special demand (sharply increased demand for remote education) during COVID-19 crisis, as the companies’ tendency to rely on e-learning continues due to the needs for digital transformation promotions and employee reskilling.

On the other hand, the B2C market, i.e. e-learning for individuals has been overall generalized and the services diversified but has been affected by the sluggishness in e-learning services at cram schools, preparatory schools, and for correspondence education due to decreased number of students or participants at these schools and education.

Noteworthy Topics

Generative AI Applications

Ever since the launch of ChatGPT, a representative service of generative artificial intelligence (AI), in November 2022, generative-AI implemented service development and releases have accelerated in the realm of e-learning.

Currently, generative AI is employed at e-learning businesses for creating exam/teaching materials, explanations for words/vocabulary, conversion of class audio into text, learning advice, audio production for language classes, English sentences using unlearnt/difficult words for rote learning, etc., showing various directions. Though already providing generative AI-implemented services, not a few businesses still grope for what can be realized by using it. For in-house tasks, many businesses use it for taking minutes and generating ideas, but they most feel useful in composing questions such as analogous questions.

While many e-learning service providers feel that the advent of generative AI is a tailwind, concerns are also pointed out, such as the copyright issue for the original data, use of AI aiming at efficient learning brining about commoditization of services that can cause difficulty in differentiation from competitors, and AI adoption that facilitates client companies to conduct in-house e-learning which may no longer necessitate e-learning or corporate training businesses.

Future Outlook

FY2024 expects the e-learning market size in Japan to increase slightly by 0.1% on YoY to 369,350 million yen.

The B2B market is regarded to continue enjoying the steadfast demand by corporations for digital transformation promotions and employee reskilling. Nevertheless, slowdown in growth rate is expected, because of declined spending per customer stemming from increased small-scale deployments as a result of expanded customer base, fiercer competition, and sluggishness of cram/preparatory school business.

The B2C market is on a declining trend, because of an anticipated decrease in the number of learners who attend video classes, a major market component, at cram and preparatory schools and for correspondence education. Meanwhile, robust demand is expected for e-learning in qualification exam classes, and in English classes due to increased opportunities for overseas business trip, assignment, and traveling. 

Research Outline

1.Research Period: January to March, 2024
2.Research Object: E-learning system developers, architects, and distributors, e-learning contents developers, producers, and providers, companies managing and providing business training and seminars using e-learning (operators of private preparatory schools, language schools and business trainers), learning software developers, producers, and distributors, etc.
3.Research Methogology: Face-to-face interviews (including online) by expert researchers, survey via telephone & email, and literature research

The e-Learning Market

The e-learning market in this research refers to a form of learning services provided through networks including the internet. The learning methods using gaming devices and PC software are not included. E-learning genres range extensively from business, academic subjects, languages, IT technologies, qualification acquisition, to various cultural and general knowledges.

<Products and Services in the Market>

LMS (learning management system), e-learning contents, e-learning operation/services

Published Report

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