Education Technology Market 2020 and Forecast 2021-2027

                                          
Report Overview: Education Technology Market


The global education technology market size was valued at USD 75.3 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 17.0% from 2021 to 2027. The industry is primarily driven by the proliferation of smart devices and seamless internet connectivity. Additionally, increasing awareness pertaining to the advantages of technology integration in the education sector is stimulating market growth. In recent years, there has been a tremendous shift taking place in the education sector from conventional exam-oriented learning to a personalized and interactive learning approach. Digitization is increasingly penetrating the education sector with technologies used to deliver education, skills, and knowledge in new and creative techniques. The use of such technologies has enabled learning and development to a lifelong process. Digital education is predicted to thrive with a wide array of beneficiaries across the geographical regions, age, and socio-economic conditions.

The education sector is on the cusp of a digital revolution. In the age of digitization, automation, and artificial intelligence (AI), the conventional teaching methods of educating the students is not the only available option. The implementation of technology in education is enabling schools and institutions to offer innovative solutions, such as e-books, immersive content via Augmented Reality (AR)/Virtual Reality (VR), and online courses with accreditation from recognized universities. Numerous companies, including start-ups as well as established players, are perceiving this as an enormous business opportunity to tap.

Growing adoption of education technology (EdTech) tools across both the academic as well as non-academic sectors is anticipated to impact the market growth positively. The K-12 and higher education sectors have witnessed increased adoption of EdTech solutions and offerings. Apart from formal education, there is an increasing role of digital learning in supporting adults to scale up their skill sets throughout their career. Technology is anticipated to play a integral role in supporting adults in overcoming several challenges, such as enabling students the flexibility to learn the new skills without being restricted to a specific geographical location or availability of resources.

EdTech is expected to play a crucial and significant role in creating jobs for future generations. Education across the globe is shifting towards student-centric and more inclusive learning. A key component of making an inclusive learning environment is implementing assistive technologies in an attempt to better cater to students with special needs. In recent years, technology has revolutionized education significantly with the implementation of EdTech solutions, such as Student Information System (SIS), smartboards (whiteboards and interactive boards), and test prep software.
 Sector Insights

The K-12 segment accounted for the largest revenue share of 42.0% in 2019. Game-based learning is anticipated to be a growing trend in the K-12 sector. Majority of the teachers in the K-12 sector support gamification initiatives to develop the students’ math learning skills with the integration of practical, project-based work in schools. Additionally, incorporation of technologies in this sector is enabling immersive content and providing experiences, such as virtual field trips and complex lab-based experiments, resulting in an engaging learning experience.

The preschool segment is expected to register the highest CAGR of almost 20.0% from 2021 to 2027. Technological advancement is enabling educators to collect assessment data directly on mobile devices, reducing the conventional use of paper and pen. Some of the assessments are eliminating data entry and letting children respond directly through touch-screen enabled devices. Leading players operating in the marketplace are providing various solutions to their customer base, such as app-based learning with videos and curated content, specifically for the early childhood segment.

End-user Insights: Education Technology Market

The business segment accounted for the largest share of 70.3% in 2019. The upsurge in the partnerships between EdTech firms, educational institutes, and content developers is anticipated to create significant growth opportunities for the digital education sector. As a result, partnerships and collaborations are increasingly becoming a critical part of this developing ecosystem.

The consumer segment is predicted to foresee significant growth in the coming years. Growing awareness among parents and students pertaining to the shift from traditional education towards digital formats is expected to drive the segment. Lifelong learning is becoming a growing trend among adults and corporate workers as it offers flexibility concerning time and location to gain additional knowledge. Additionally, Massive Open Online Courses (MOOCs) are gaining increasing prominence across the globe owing to inexpensive online education to the consumers.

Type Insights: Education Technology Market

Based on the type, the market has been segmented into hardware, software, and content. The hardware segment accounted for the largest share of 42.7% in 2019. One of the major factors positively impacting market growth is the growing prominence of digital classrooms across the education industry. As a result, this trend is anticipated to boost the adoption of hardware components, such as laptops, desktops, tablets, and recently introduced interactive whiteboards and AR/VR headsets.

The content segment is anticipated to witness significant growth in the coming years. The EdTech sector is witnessing innovation in content delivery with the incorporation of advanced visualization technologies. This trend is enabling an enhanced learning experience for both students as well as teachers. Additionally, the advances in data analytics, cloud computing, and connectivity are enabling content creating and convenient sharing.

Regional Insights: Education Technology Market

North America accounted for the largest revenue share of 38.2% in 2019 and is expected to maintain its lead over the forecast period 2021-2027. The EdTech sector in the U.S. is witnessing plenty of investments from venture capitalists and private-equity investors. In 2018, the EdTech companies in the country raised funding of more than USD 1.50 billion. As the sector matures, companies with substantial revenue growth are expected to attract greater funding and differentiate themselves from the newly entered market players.

Asia Pacific is anticipated to register the highest CAGR of 20.7% from 2021 to 2027. This growth can be attributed to the rising prevalence of computing and smart devices among the masses. In recent times, developing countries such as India have witnessed a wave of affordable broadband connectivity, resulting in numerous companies to reach out to the population. This trend is anticipated to enable users to experience education learning with the assistance of internet connectivity. In addition, education stakeholders in developing areas are increasingly considering technology to bridge the gap between educational infrastructure and teaching resources.

Key Companies & Market Share Insights: Education Technology Market

The market is highly fragmented with the presence of numerous local and international players. Numerous start-ups within the marketplace are receiving funding from investors owing to the lucrative outcomes. The market players are providing users with gamification elements, such as timers, points, and level-enhancement badges, in video lessons in an attempt to boost student engagement and enhance knowledge acquisition. Governments worldwide mandating STEM in the K-12 curriculum is compelling the market players to position themselves to offer full-stack solutions. Some of the prominent players in the education technology market include:

Key companies Profiled: Education Technology Market Report

 	
BYJU’S
 	
VIPKid
 	
iTutorGroup
 	
Udacity

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global education technology market report on the basis of sector, end-user, type, and region:

Sector Outlook (Revenue, USD Million, 2016 - 2027)

 	
Preschool
 	
K-12
 	
Higher Education
 	
Others

End-user Outlook (Revenue, USD Million, 2016 - 2027)

 	
Business
 	
Consumer

Type Outlook (Revenue, USD Million, 2016 - 2027)

 	
Hardware
 	
Software
 	
Content