KSA E-Learning Market Outlook to 2026

Market Overview:

The e-learning market in Saudi Arabia has been experiencing significant growth, due to factors including government initiatives, technological advancements, increasing internet penetration, and the rising demand for skill development and education among the population. The Saudi government has been promoting e-learning initiatives as part of its Vision 2030 program, aiming to diversify the economy and invest in human capital development. The Ministry of Education in KSA has been particularly instrumental in promoting e-learning solutions across schools and universities.

The advancement of technology, especially in the areas of mobile devices and internet connectivity, has made e-learning more accessible to a wider population in Saudi Arabia. With the proliferation of smartphones and high-speed internet, learners have greater access to online courses and educational content. Saudi Arabia has seen a rapid increase in internet penetration rates over the past few years, enabling more people to access online education platforms and resources. It has eased the growth of e-learning across various sectors, including corporate training, higher education, and vocational skills development.

The KSA E-Learning market is highly fragmented & is at a growing phase with course pricing & subscriber base being the primary parameters on which the companies operate. The ecosystem of KSA E-learning market includes Pre-K & K-12, Post K-12, Language and Casual Learning, and LMS companies along with regulators, higher education and incubators.

• KSA E-Learning Market Analysis

The Saudi Vision 2030 aims to increase the share of e-learning in the education sector to 50% by 2030. The National Transformation Program allocated around SAR 7 billion ($1.87 billion) to support the development of digital infrastructure and e-learning initiatives.

Demand for upskilling and reskilling opportunities has resulted in emergence of several e-learning platforms and providers in Saudi Arabia including Coursera, Udemy, and LinkedIn learning, offering a wide range of courses and certifications.

Blended learning i.e. combining traditional classroom teaching with online learning, is gaining popularity in KSA. Educational institutions are adopting a mix of face-to-face and online learning methods to enhance student engagement and flexibility.

Saudi Arabia has a relatively small pool of e-learning experts who have the necessary knowledge and skills to develop, implement, and manage e-learning platforms and programs. Due to this, there is often a reliance on international experts which is costly and may limit the localization of e-learning content and strategies.

Key Trends by Market Segment:

KSA E-Learning by Course: In 2022, the market is segmented into Pre-K and K-12, Post K 12 and Language & Casual Learning. The Pre-K and K12 is the dominant segment with ~40% of overall contribution of share. The higher share of this segment is on account of Test preparation for post-higher secondary college entrance exams & increasing digitization of school education. The COVID-19 pandemic has increased the adoption of e-learning in K-12 education. With schools closed and students learning from home, e-learning has become an essential tool for delivering education remotely.

KSA Pre-K and K-12 Learning by Subscribers: In 2022, the market is segmented into free & paid subscription. Free subscribers dominate this segment with ~85% of the overall share. E-learning organizations are encountering difficulties in securing paying users due to the growth of free online educational content. These organizations have significant turnover as a result of clients choosing paid subscriptions but frequently not renewing them.

KSA Pre-K and K-12 by Level of Grade: In 2022, the market is segmented into Primary, Secondary & Tertiary where Secondary education dominates the segment with ~39% of overall contribution. Secondary level students have access to the necessary infrastructure for e-learning, like computers, internet connectivity, and digital resources, which further drives the market.

Competitive Landscape:

• Major Players in KSA E-Learning Market

Market leaders in Pre-K and K-12 E-Learning like Noon are positioned with high subscribers and low prices, as of 2022

In 2022, KSA Pre-K and K-12 E-learning Market is moderately fragmented with top 3 players accounting for ~50% share in terms of revenue generated.

Post K-12 Market leader Baims has low prices and high subscribers while Allen have captured high subscribers with high prices

Coursera is the market leader in Language & Casual E-learning in KSA with highest number of paid subscribers which it has acquired by offering low prices, in 2022.

Faheem dominates amongst pre-K12 and K12 companies with SAR 168 Mn of revenue while offering the first hour free and 140k KSA subscribers.

Recent Developments:

May 2023: The Saudi model of distance education and e-learning has received much international praise, from UNESCO for their achievement in e-learning governance.

March 2022: Saudi Authority for Data and Artificial Intelligence ('SDAIA') signed a Memorandum of Understanding ('MoU') with the National E-Learning Centre.

Feb 2022: Saudi Electronic University which is led by President Dr. Lilac Al-Safadi. The university has established the Global Trends in E-Learning Forum to enhance the future of education. The MoU aims to strengthen partnerships with academic entities and universities and to promote cooperation in building joint training programs and exchanging expertise to help develop human capabilities.

Future Outlook:

The market will grow at a CAGR of 10.7% during 2022-2027 due to government initiatives and emerging technologies.

Continued government support and investments in digital infrastructure and education under Vision 2030, is expected to propel the growth of e-learning in KSA.

Emerging technologies like Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) will inevitably enhance the e-learning experience and provide learners with personalized and engaging content

Universities are planning to create exclusively online courses for students, in order to reach larger set of students.

Shift towards personalized & specific approaches with high-tech digital education tools (robotics and AI-powered learning products) are some factors which will contribute towards the growth of KSA Pre-K & K-12 E-Learning Market.

In KSA, school enrolment is projected to increase with a CAGR of 3.8% from 2022 to 2027.