Prescient & Strategic Intelligence has estimated the global education technology — EdTech — market size at $237.6 billion in 2021, and it is expected to touch $998.4 billion by 2030, at a CAGR of 17.3%.
With the development of technologies such as AI and IoT, EdTech solutions are set to evolve. More so, the incorporation of VR and AR in these solutions supports a more-interactive learning experience for students.
Other factors driving the demand for EdTech solutions include the developments in connectivity infrastructure, surging smartphone penetration, increasing speed of the internet, and growing investments by private equity and venture capital firms. Learning material is easily accessible through smartphone apps and the increasing disposable income has advanced the demand for mobile learning platforms.
Key Findings of Education Technology Market Report
- The rising usage of the internet and smart devices drives the industry in APAC. In addition, the government’s financial help in developing countries, such as China and India, combined with the advancing accessibility of smart devices for students, is assisting the growth of the market. According to the UNICEF, China has 282 million students and 17.32 million teachers in more than 530,000 schools.
- Individual learners generated above $100 billion in education technology market revenue in 2021 as they are more open to garnering new skills. Additionally, the high federal investments in the education industry drive the usage of EdTech solutions among individuals.
- In the coming years, the usage of IT-driven educational methods will grow the fastest among educational institutions. This can be credited to the growing trend of smart classes, which gained wings during the pandemic.
- For instance, in March 2020, the Los Angeles Unified School District (LAUSD) and the Public Broadcasting Service (PBS) signed a partnership to provide 700,000 LAUSD students with educational aids via television broadcasts, to counter school closures.
- In the same way, the Indian Union Budget FY23 has assigned INR 1,04,278 crore to the education sector, for the advancement of digital connectivity and to offer high-quality education.
- Thus, hardware accounted for approximately 60% of the revenue in the education technology market in 2021, attributed to the strengthening significance of digital classrooms. For example, interactive whiteboards have expanded in popularity as they deliver a more-satisfactory experience. They offer dry-erase surfaces, communication software, digital pens, and other multi-touch options.
COVID-19 has boosted the adoption of advanced education technology and emphasized the prospect of education innovations encouraged by EdTech institutions. The pandemic forced many students to enhance their skills and strengthened their reliance on educational technology. As the number of people utilizing different EdTech tools grew, so did the demand to go digital.
According to Prescient & Strategic Intelligence, big players in the education technology market are Blackboard Inc., Chegg Inc., Edutech, Coursera Inc., edX Inc., Instructure Inc., Udacity Inc., Google LLC, Microsoft Corporation, and Think and Learn Private Limited.