Procurement Market Intelligence Report
Learning Management Software
Sourcing Guide & Market Intelligence
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Learning Management Software Global Overview
Definition
Summary
Learning management software (LMS) programs are applications that remotely administer education courses or training programs. Key buyers include educational institutions, healthcare providers, government agencies, finance and insurance firms, and IT firms.
This Report Includes:
- Software-as-a-Service (SaaS)
- Software-as-a-Product (SaaP)
- Course Design Services
Not in this Report:
- Human Resource Software
- Enterprise Resource Planning Software
- In-Person Training
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Global Learning Management Software Procurement Trends
Discover the top international trends affecting procurement in the global Learning Management Software market.
Warning Trends
The European Union’s Artificial Intelligence (AI) Act enters into force
- In August 2024, the European Union (EU) began enforcing its new regulation on artificial intelligence. Although EU legislation, the act will have a major effect on global technological companies operating in the AI space, similar to the General Data Protection regulation.
- The legislation aims to apply a risk-based framework to AI regulation, meaning different AI applications will be treated differently. The law applies a general ban for “unacceptable” uses, such as social scoring and predictive policing.
- For general-purpose AI models, companies will be required to comply with EU copyright law and intellectual property provisions, carry out regular testing, issue transparency disclosures, and implement adequate cybersecurity protections. For “high-risk” AI applications, such as autonomous vehicles, medical devices, financial services, and biometric identification systems, companies must meet stricter requirements in terms of risk-mitigation systems, documentation, human oversight, and cybersecurity.
- Companies that breach the AI Act may face fines ranging from 7.5 million euros or 1.5% of global annual revenues to 35.0 million euros or 7.0% of global annual revenues, whichever amount is higher.
- While the blanket ban on unacceptable systems entered into force in February 2025, most of the obligations do not take effect for a full year. In August 2025, requirements for general-purpose AI will come into effect, and in August 2026, obligations for high-risk AI systems will be enforced.
Positive Trends
The DOJ proposes Google breakup in latest tech antitrust action
- In August, Google was found guilty of operating as a monopoly and engaging in anti-competitive practices through the operation of its search engine business.
- In response to this ruling the Department of Justice (DOJ) has stated it will seek a breakup of Google’s business segments, among other similarly harsh penalties. While the actual penalty Google receives must be approved by the judge, the DOJ’s proposed penalties signal a zero-tolerance policy toward tech monopolies.
- During the last few years, the Federal government has significantly increased its enforcement actions against major technology companies in an effort to contest the high level of market share concentration in this sector.
- These actions include high-profile anti-trust lawsuits against Amazon, Apple, and Meta, in addition to the case against Google. Consequently, the results of these lawsuits could significantly affect the structure of a wide range of tech markets.
Global Learning Management Software Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 1,130 |
| #2 Europe | 1,115 |
| #3 South America | 840 |
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Geography Drilldown - US & Europe
Average Cost of Learning Management Software
United States
2026 Market Pricing$0.90 to $XX.XX
per user per monthEurope
Average Price
Prices in the Learning Management Software market range from $0.90 to $XX.XX, depending on Features, Deployment Model, Level of Service, Number of Users and Storage Space. For example, lower prices are associated with Off-the-shelf content library and asynchronous learning options, whereas higher prices are associated with All features included in lower tiers, plus features like customized content and performance tracking.
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Learning Management Software Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Learning Management Software market, prices in the US have grown 3.6% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is +1.4%.
United States (2022-2025)
Europe (2022-2025)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Learning Management Software
Total cost of ownership is Medium in the Learning Management Software market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Cancellations may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Set Up Fees
Implementation
Billed During
Maintenance
Security
Unforeseen
Cancellations
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -2.3 in the United States. Buyer power is most positively impacted by Forecast Price Trend. It is most negatively impacted by Supply Chain Risk. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer & Packaged Software Wholesalers
- Intellectual Property Leasing Companies
- Computer Server Suppliers
- Data Processing & Hosting Service Providers
2nd
Tier Suppliers
- Colleges & Universities
- Software Publishers
- Law Firms
- Computer Product Manufacturers
- IT Consulting Firms
Biggest Learning Management Software Suppliers in the US by Revenue
The largest Learning Management Software vendors by revenue in the US are Moodle Pty Ltd, Automatic Data Processing, Inc. and Adobe Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Sap Se | Global | WALLDORF | >10,000 | 10-15 | ||||
| Oracle Corporation | Global | AUSTIN, CA | >10,000 | 5-10 | ||||
| Blackboard Inc. | Global | Reston, VA | 1,001-10,000 | 5-10 | ||||
| Moodle Pty Ltd | 101-250 | 5-10 | ||||||
| Microsoft Corporation | Global | Redmond | >10,000 | < 5 | ||||
| Adobe Inc. | Global | SAN JOSE | >10,000 | < 5 | ||||
| Automatic Data Processing, Inc. | Global | ROSELAND, NJ | >10,000 | < 5 | ||||
| Cornerstone OnDemand | Global | SANTA MONICA, CA | 1,001-10,000 | < 5 | ||||
| Skillsoft Limited | Global | Clonskeagh, IE | 1,001-10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Learning Management Software market is 17.4% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Supply chain risk for LMS is low, indicating that market suppliers face little risk of unexpected input price spikes or service interruptions. Low supply chain risk is a result of the digital nature of market products, which require limited physical inputs.
Despite moderate market share concentration, a significant level of competition among vendors provides buyers with numerous avenues through which to find a software program that will meet their needs and their budget.
The average vendor has a moderate degree of financial risk due to the relative newness of the market compared to more established software markets, which slightly increases the likelihood that their provider will go out of business.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.
Supplier Information
Sap Se
Sap Se is a public company operating globally in the information, professional, scientific & technical services and educational services sectors. The company's offerings include warehouse management systems, travel management software, recruitment software, order tracking software, contract management software.... Subscribe to learn more
Blackboard Inc.
Blackboard T&L, LLC is a private company operating globally in the information sector. The company's offerings include text similarity detection software and learning management software. Founded in 1997, the company is currently headquartered in Washington, D.C., United States of America with an estimated... Subscribe to learn more
Moodle Pty Ltd
Moodle Pty Ltd is a private company operating in the information sector. The company's offerings include learning management software. with an estimated 127 employees. Subscribe to learn more
Oracle Corporation
Oracle Corporation is a global technology company that provides enterprise information technology (IT) products and services. It comprises three businesses: the Cloud and License business, which offers Oracle Applications, Oracle Database, and Oracle Middleware software offerings, among others, deployed using... Subscribe to learn more
Adobe Inc.
Adobe Inc. is a public company operating globally in the information sector. The company's offerings include website analytics software, sales & marketing software, graphics & photo imaging software, video editing software, web content management software. Founded in 1982, the company is currently headquartered... Subscribe to learn more
Automatic Data Processing, Inc.
Automatic Data Processing, Inc. is a public company operating globally in the information, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include recruitment software, human resources software, aca compliance... Subscribe to learn more
Cornerstone OnDemand
Cornerstone OnDemand is a private company operating globally in the information sector. The company's offerings include employee performance management software and learning management software. Founded in 1999, the company is currently headquartered in SANTA MONICA, California, United States of America with... Subscribe to learn more
Instructure Inc.
Instructure Inc. is a private company operating globally in the information sector. The company's offerings include learning management software. Founded in 2008, the company is currently headquartered in Cottonwood Heights, Utah, United States of America with an estimated 1000 employees. Subscribe to learn more
Microsoft Corporation
Microsoft Corporation is a technology company offering digital technology and artificial intelligence (AI) to businesses and individuals worldwide. It develops cloud-based solutions that deliver customers with software, services, platforms, and content and provides solution support and consulting services.... Subscribe to learn more
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Procurement Management KPIs for the Learning Management Software Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Retention Rate and Employee Retention Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on System Availability and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Retention Rate |
|
Number of customers at start of period Number of customers added within period |
Customer satisfaction represents customers’ overall satisfaction with an LMS vendor. Customer satisfaction can be used to determine whether customer improvements are required. Customer satisfaction can be used to evaluate a company’s reputation and quality of offerings. |
| Employee Retention Rate |
|
Number of employees at start of period Number of employees at end of period |
The employee retention rate represents the share of employees a company is able to retain over a set time frame. The employee retention rate can be used to estimate a company’s costs associated with employee turnover. The employee retention rate can be used to determine a company’s likelihood of retaining quality employees and performing quality work. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Customer Support
What is your client renewal or repeat business rate? Why do companies renew their contract with your business?
How have you changed your service in response to customer complaints and suggestions?
Security
Has your clients' private data ever been compromised? If so, how?
How often is our data and content backed up on your servers? What contingency plans do you have in the event of server malfunction or failure?
Value-Added Services
What value-added services do you provide? How will including value-added services impact pricing?
Do you offer discounts for bundling value-added services? If so, what are the terms?
The ultimate prep for procurement negotations
View all 29 negotiation questions for this category when you subscribe.
Learning Management Software RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should provide a general overview of their business, including number of employees and regions in which they operate.
Buyers should state the features of the LMS programs they desire.
Statement Of Need
Buyers should specify the features that are needed in the software and the options for different features.
Buyers should describe their existing IT infrastructure and should state how the learning management software will work with their hardware.
Project Budget
Buyers should specify the total budget for their software purchase.
Buyers should include details about spending expectations and limitations.
The RFP process made easy
Find out how you can access RFP templates for 800+ procurement categories to start writing better, more consistent RFPs.
We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
