Market Overview

The estimated domestic e-learning market for FY2022 is 370,500 million yen, a rise by 4.3% from the previous fiscal year, among which both B2B for enterprises and B2C for individuals have continued flourishing, with the former estimated to have increased by 10.7% on a year-on-year basis to 107,500 million yen and the latter by 1.9% on the same basis to 263,000 million yen. When compared to FY2020 and FY2021 amid the corona crisis when the market expanded considerably, however, the growth rates have slowed down, especially the B2C market.

The B2B market, i.e. e-learning for enterprises, seems to have grown stably in corporate training programs for FY2022, but the rapidly-surged demand in the beginning of corona situations has quietened down. In addition, subsequently to customer base for e-learning services in general expanded and small-scale deployment increased at SMEs, the market has seen lower sales per customer, leading the market growth as a whole to be on the decelerating trend.

For the B2C market, i.e. e-learning for individuals, many of learning genres that comprise this market have shown sluggish demand against a backdrop of the subdued corona crisis. There also are some hindrances (challenges) against the market expansion such as children’s lower learning intentions (stagnant demand for off-campus learning) after having experienced corona crisis, which is likely for the growth rate of the concerned market in FY2022 to suddenly slow down to a slight increase, as opposed to rapid growth in FY2020 and FY2021.

Noteworthy Topics

Higher Demand for E-Learning, with a Keyword of Reskilling

Reskilling has been in the spotlight because of the need to train and educate human resources that can respond to the current social environment pressing ahead with digital transformation. Because reskilling programs require provision of learning experiences in accordance with individual levels, while the learners (employees) need to obtain new knowledges and skills whilst working, the affinity is high with e-learning equipped with the methods of having solutions for these challenges (learning recommendations using AI technology, learning without restricting the time or place, etc.) Therefore, many of those who demand reskilling are likely to have an intention of using e-learning, making the service providers to feel the urging needs for e-learning with reskilling being the keyword.

In order for reskilling to properly functions, companies are needed to organize systems for the skills that are required for business workflows, and to visualize and digitalize the skills that each person possesses. Hereafter, not only providing of learning programs but also of other services are expected to increase.

Future Outlook

The domestic e-learning market size for FY2023 is projected to rise by 1.8% on a YoY basis to 377,300 million yen.

The B2B market is likely to remain stable, driven by the demand for corporate digital transformation as well as reskilling. Nevertheless, despite the continuing market expansion, the market growth is expected to be on a deceleration tendency, because of sales reduction per customer caused by increased small-scale deployment stemming from customer base expansion, fiercer competition, and fewer chances to use e-learning due to recovery of face-to-face education opportunities.

The B2C market is projected to show steady growth, as generalization of e-learning as a learning tool being underway, stable demand for e-learning to cover the roles of teachers and instructors mainly at cram schools, general increase in the working adults using spare time on learning, with spare time generated by the spread of remote working, and diversified learning services due to increase in the e-learning-incorporated learning services.

Research Outline