Fosway Group's latest analysis of the digital learning market, the 2023 Fosway 9-Grid™ for Digital Learning, reveals a market that remains resilient despite cuts to corporate learning budgets. The shift to hybrid working accelerated the use of digital learning, and now corporates are looking to digital to support more flexible ways of learning whilst improving the learning experience.

The 2023 Fosway 9-Grid™ for Digital Learning shows that skills are having a significant impact on corporate buying decisions. The use of artificial intelligence (AI) to support career development and talent mobility is disrupting the employee experience, and these shifts are starting to filter through to learning, with vendors evolving their solutions to better support skills development.

For the first time, this year's Fosway 9-Grid™ for Digital Learning distinguishes between Digital Learning Suite Providers and Digital Learning Specialist Providers. This reflects Fosway's view of the evolution of the digital learning technology ecosystem. In this year's 9-Grid™, Specialist Providers focus predominantly on off-the-shelf content libraries or more immersive simulations, including scenario-based digital learning experiences. Digital Learning Suite Providers support a range of digital learning services, including bespoke digital learning content, blended learning enablement, coaching, digital learning consulting, and platform opportunities.

The research also reveals that the demand for skills is putting pressure on organisations to align skills to strategic business goals. Some organisations are starting to embrace opportunity marketplaces to help upskill employees rapidly and at scale. These marketplaces are powered by AI technology that links skills to learning opportunities and work projects.

Much of the innovation around skills has been driven by HR technologies, but that is now changing as learning technology providers invest in skills enablement.

David Perring, Director of Research at Fosway Group, commented, "This year's 9-Grid™ report shows that digital learning is the one area of the learning budget where corporates feel that they can make their investment go further. Skills and AI technologies are big drivers here, and although AI has yet to fully prove its worth, it is starting to have a significant impact on the digital learning landscape."

Despite the opportunities for AI to accelerate the business impact of learning, the research suggests that L&D teams continue to struggle to show their value, and this at a time of growing availability of business data. This is compounded by the fact that, according to Fosway research, less than 20% of L&D teams describe their approach to business transformation, upskilling, learning culture, or career development as very effective. 

"Skills are a strategic priority for organisations, something we see reflected on the buyer and vendor sides of the market," said David Wilson, CEO of Fosway Group. "However, innovation in this area is only now beginning to seriously impact the learning-technologies market. L&D teams must be alive to the opportunities of these technologies and how they can significantly impact the future success of their organisations."

As well as the 9-Grid™ for Digital Learning, which is a market analysis of solutions that provide content and resources, Fosway Group also produces the 9-Grid™ for Learning Systems, which concentrates on the platforms that power that content and those resources.

Fosway's David Wilson and David Perring will take questions on the research in a live online “Ask the Analyst” session, 26 April 2023.