

This IDC study (which is a translation of the Japanese report IDC #J9330102), estimates the size of the Japan corporate elearning market from 2007 to 2008 and presents a forecast for 2009 to 2013. eLearning among companies in Japan has expanded steadily on the back of the demand for compliance education; however, system usage fees and the pressure on falling prices have increased with a continuous downward trend of content prices and the widespread use of software as a service (SaaS)/application service provisioning (ASP) models. Although the Japan elearning market will continue to expand steadily, IDC believes that the growth rate will decrease gradually and that the market will approach maturity. Due to the impact from the global economic crisis, IDC expects the year-over-year (YoY) growth rate to decline in 2009 and 2010. Cutbacks on employee education/training expenses will lead to a curtailment of elearning spending; however, as a shift from classroom-based training to elearning is gaining momentum due to the curtailment of expenses, IDC forecasts that the elearning market will maintain a positive growth despite the impact from the economic crisis.
As the market matures, vendors are reexamining the positioning of their elearning business. One direction is to transcend the boundary of elearning and shift to strategic human resource (HR) consulting. The other direction is to position elearning as part of the outsourcing business and specialize the operation of elearning systems. "Vendors should focus on strategic HR consulting and the development of SaaS/ASP business model and strive to create new market opportunities," analyzes Mimei Ito, research manager, IT Services, IDC Japan.