According to Ambient Insight "pricing pressures, competition, Open Source solutions like Moodle, server appliances with pre-installed content, and inexpensive hosted services are driving prices down very fast."

According to their newly released market forecast, the eLearning industry has begun to grow again after several years of stagnation. The industry was stalled for four years following the U.S. economic recession. Prior to the recession, the early adopters in the enterprise corporations defined the industry. Now eLearning is no longer just an enterprise trend. Wide adoption is now occurring across all the buying segments.

Ambient comment: "Enterprise companies are currently still the largest buyers in the 2006 market but the demand is now growing much faster in other buying segments," said Adkins. "It is a new industry and the old rules do not apply. The market now favors innovative disruptor suppliers that are skilled at meeting the needs of the new buyers. Suppliers that know the answer to the question, 'who is the new buyer?' now have the advantage in the market."

The research predicts that the market for eLearning will grow by 30.8% over the forecast period. Other key findings include the major shift in buying behavior and buyer demographics, a transformation of the supply chain, the robust growth in BPO “smartsourcing” services, innovative business models, and new revenue opportunities for nimble suppliers.

The revenues for outsourced services are growing by 80.2%. There is a strong demand for content targeted to specific sectors, but revenues for installed technology are flat primarily due to factors such as price pressure, rather than lack of market demand.