The digital learning market is still strained

Published in March 2026, the Fosway 9-Grid™ for Digital Learning looks at the learning content market for EMEA’s business leaders – here, Fosway analysts survey the continuing economic situation and its impact on the digital market.

A third consecutive year of challenging economic conditions, compounded by increased political uncertainty, has further strained the digital learning market. Whilst the market grew in the past as reduced classroom activity pushed organisations towards more efficient digital solutions, that equation no longer holds. Buyer dynamics such as flat or reduced budgets, longer buying cycles, greater scrutiny of spend and postponement of investment decisions are even more entrenched, and low single digit growth, or decline, is increasingly common for vendors. Customers are scrutinising their supply chains more closely, prioritising value over volume, resulting in more intense competition for customers.

Diversification beyond core business lines, more proactive partnerships and vendor consolidation all suggest that growth is no longer a given. Merger and acquisition activity has intensified, with some larger deals likely to create wider waves in the market. Investors are prioritising profitability and sustainable growth, so cost reductions and more cautious investment are clear trends in vendor planning.

Strategies are changing as vendors seek growth

Against this economic backdrop and the accelerating ability of AI to disrupt the market, relying on traditional core business for growth is increasingly untenable. Vendor briefings have been dominated by new strategies, pivots and fresh go-to-market propositions as confidence in the status quo erodes. Content library providers and aggregators are widening their offer to retain a firmer foothold in customer budgets. For some, adding more full-featured platform capability to manage and apply content more precisely shows a closer focus on business outcomes.

For others, skills practice using AI tools adds personalised activity to complement access-based content library subscriptions. Positioning to become a full skills solution provider is a frequent shift, tying their value proposition closer to harder business priorities rather than being earmarked as discretionary spend.  For vendors, there are many new market positions but it is clear that content alone, however defined, is no longer sufficient.

Customers seek simpler supply arrangements

One growing consequence of the search for greater value is a drive to simplify supply-side arrangements. This is particularly true for larger enterprise buyers seeking better value and more influence over fewer suppliers, often encouraged by procurement and IT demands to consolidate vendor relationships. Demand for managed learning services is growing across the range of digital learning solutions, alongside a need to extract greater value from existing contracts. This consolidates supply choices into fewer contracts, reducing the management burden for L&D leaders and administrators. Managing a complex network of supply options flexibly is therefore a core capability.

Consolidation continues as M&A activity intensifies, encouraged by more attractive valuations. Equally, investors are seeking exits in a tightening, if not declining, market. AI is again a powerful catalyst here, reducing barriers and extending services offered by incumbent suppliers, making them more attractive to customers looking to reduce supply chain complexity.

This is an excerpt from the 2026 Fosway 9-Grid™ for Digital Learning. Get the full insight and discover all the latest market and solution trends by reading the whole report here.

What should you do next?

• You can read the full 9-Grid™ for Digital Learning report here – learning content market insight that no other analyst can match.
• The Digital Learning AI Insights 2026 Market Assessment provides buyers with a clear analysis of the AI innovation in the Digital Learning market – read our latest critical research here.
• Digital Learning Realities 2026 – share your experience of digital learning, get first look access to the results, and benchmark your progress.

Other recommended reading

• Build your AI strategy with evidence, not guesswork. All our published research so far is here >> Fosway AI Strategic Research Programme

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