EdTech solutions are likely to evolve with the advancements in technologies such as IoT and AI. The integration of AR and VR in these solutions allows for a more-interactive learning experience for students. It aids students to cope with abstract concepts and produce better results. Asa result of these benefits, the worldwide education technology market size was $237.6 billion in 2021, which is expected to reach $998.4 billion by 2030, at a CAGR of 17.3% during 2021–2030. Moreover, many countries have been emphasizing smart classes, especially during the pandemic.
The hardware had around 60% revenue share in 2021 due to the rising importance of digital classrooms in the education industry. For example, the popularity of interactive whiteboards has swelled as they offer a better experience. They include dry-erase surfaces, digital pens, communication software, and other multi-touch choices. Users save and share notes across a variety of digital devices, including tablets, smartphones, and laptops, which has allowed to uninterrupted education during the COVID-induced lockdowns.
Rising Usage of Internet and Smart Devices Driving APAC Market
APAC region has a major share in the education technology market because of the growing usage of the internet and smart devices. Furthermore, the rising investment in developing countries, such as India and China, aids in widening the accessibility of digital devices for students. The rising number of vendors providing remote learning services correspondingly drives the market growth. China has the most-extensive education system, with 282 million students and 17.32 million teachers in over 530,000 schools.
Moreover, as per the IBEF, the Indian EdTech industry was valued at $750 million in 2020, and it is predicted to reach $4 billion by 2025. The country’s education technology market received investments of over $1.43 billion across 100 deals in 2020. The COVID-19 pandemic and the succeeding lockdowns compelled both parents and educational institutions to implement tech-enabled learning solutions, making EdTech the most funded sector. Out of the total funding, Byju’s is the leader with 57%, followed by Unacademy (10.5%) and Vedantu (9.5%).
Hardware Is Highest Revenue Generator in the Market
The growing demand for EdTech solutions is a reflection of the rising awareness of their potential in taking economies forward. The pandemic has compelled many investors and EdTech companies to evolve in the new digital learning model. The stalwarts have expanded their product offerings using digital technologies, to ensure uninterrupted learning. The pandemic encouraged many students to improve their skills and augmented their reliance on educational technology. It helped the education technology market grow and ensure that education remains non-disrupted even during COVID-19.
In recent years, the major players in the market have been collaborating and partnering for attaining a significant position. For example, in July 2020, McGraw Hill initiated a partnership with TutorMe LLC to offer college students one-on-one tutoring sessions absolutely free. TutorMe live tutors are available round the clock and help users comprehend and become fluent in related subjects. The total number of registered subscriptions by college students was more than 4.3 million in 2020. With the partnering of stalwarts, the education technology market will continue to offer opportunities worldwide.
The market has progressed by leaps and bounds since the outbreak of the pandemic, with the transformation of the education sector by virtual platforms.
In 2021, the edtech market hit $237.6 billion revenue, and it is expected to advance at a rate of 17.3% from 2021 to 2030, to reach $998.4 billion by 2030. This is chiefly attributed to the increased emergence of the artificial intelligence and digitalization in the edtech industry. Advanced technologies such as IoT and the incorporation of augmented reality and virtual reality facilitate the enhanced interactive learning experience for students resulting in the market boom.
The impact of the COVID-19 with the announced lockdown by governments worldwide has resulted in the booming of the education technology market, attributed to the increased demand for EdTech solutions. The situation highlighted the potential of the advanced education technologies to facilitate remote learning resulting in a market boost. The market players are focusing on expanding product offerings to offer interrupted learning.
Read More: EdTech Market Analysis and Demand Forecast Report
APAC holds the most-significant share in the edtech market, of 45%, attributed to the rising internet penetration led by smart devices. The financial aid provided by governments to digitalize education has also resulted in market proliferation. Developing countries such as India and China have invested in facilitating the accessibility of digital devices to students, resulting in market expansion. For example, the Indian government placed around 20,000 digital boards in Delhi.
Moreover, the emergence of advanced technologies, the rising number of vendors facilitating remote learning services, and the surge in students leads to edtech market expansion. Furthermore, the worldwide most expensive education system belongs to China, with the presence of around 500,000 schools, 280 million students, and 18 million teachers.
North America is the next significant contributor after APAC to the edtech market, holding a 20% revenue share, attributed to the high investments made in the education sector in India and increased participation of companies aiming to expand the geographical reach to cater to large customer base. For example, Class Technologies raised more than $100 million in the B series funding to expand geographically outside the U.S.
K-12 Is the Highest Revenue Generator in the Market
Under the type segment, hardware is the most significant contributor to the edtech market, amounting to 60% of revenue, attributed to the increased sales in the emerging economies. The booming sales of hardware equipment such as interactive displays, laptops, tabs, and secure digital (SD) cards propel the market. Tabs have witnessed massive sales, followed by laptops. The Apple Inc. contributed significantly to the sales of tabs amounting to 40%, leaving behind its competitors such as Samsung Electronics Co. Ltd., Amazon.com Inc. and Lenovo Group Ltd.
The growing popularity of digital classrooms propels the education technology market, ascribed to increased hardware demand. The key players aim to expand the digital classroom platforms, attributed to the rising importance of digital classrooms. For example, in February 2022, VR headsets were offered to Smt. GDS Sr. Sec. School by Veative Labs, in India to facilitate the virtual learning experience to students in subjects such as Science.
Advancements in Technologies Driving the Education Technology Market Growth
Under the end user segment, individual learners are contributing majorly to the market growth, generating over $100 billion in revenue in 2021, attributed to the inclination toward acquiring new skills and high budget allocation in the education sector. For example, the Indian Union Budget allocated INR 1,04,278 crore to the education sector for the 2022–2023 session. The rising investment to enhance digital connectivity to facilitate high-quality education resulted in the market boom.
APAC accounted for the largest Education Technology market share, of around 45%, in 2021. This is mainly driven by the rising usage of the internet and smart devices. Additionally, the large-scale financial aid by governments in developing countries, such as India and China, combined with the increase in accessibility of digital devices for students, is helping the market advance.
Education Technology Market Size Breakdown by Segment
The report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.
Type
- Hardware
- Software
- Services
Application
- K-12
- Higher Education
- Competitive Exams
- Certifications
End User
- Individual Learners
- Institutes
- Enterprises
Geographical Analysis
- North America
- U.S.
- Canada
- Europe
- Germany
- U.K.
- Italy
- France
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Latin America (LATAM)
- Brazil
- Mexico
- Middle East and Africa (MEA)
- Turkey
- Saudi Arabia
- South Africa
