Education Technology Market Size, Share & Trends Analysis Report By Sector (Preschool, K-12, Higher Education), By End User (Business, Consumer), By Type (Hardware, Software), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global education technology market size was valued at USD 89.49 billion in 2020 and is expected to witness a compound annual growth rate (CAGR) of 19.9% from 2021 to 2028. Digital technology can improve access to education. Learners are increasingly shifting toward eBooks that can be accessed online from anywhere across the globe. Digital content is comparatively easy to generate than printed content, which tends to incur higher production costs. Moreover, digital books are available in different languages and can be easily translated and retrieved by a wider user base. In addition, learners, especially with physical disabilities, can listen to the educational content in an audio format to improve their vocabulary and encourage better interpretive reading.

Education technology (EdTech) solutions are expected to evolve in line with the advances in the latest technologies, such as the Internet of Things (IoT), Artificial Intelligence (AI), Augmented Reality (AR), and Virtual Reality (VR), and contribute significantly to the market growth. The integration of AR and VR in EdTech solutions helps offer an interactive experience to the learners. It allows learners to explore and seamlessly connect with abstract concepts, and subsequently driving student engagement. On the other hand, the integration of blockchain technology allows end-users to store and secure records of students and learners, thereby enabling educators to analyze the consumption patterns of the material offered to the learners and make data-driven decisions.

Enhancing student engagement is emerging as a prime concern for educators. Hence, market players respond to such concerns by introducing advanced interactive whiteboards and shifting from projector-based displays to touchscreen displays. Such initiatives are encouraging active learning and developing critical readiness skills in the learners. Furthermore, both educators and learners can access Student Information Systems (SIS) with a primary focus to generate comprehensive student profiles that can enable educators to make informed decisions with a particular focus on enhancing every individual student’s performance.

However, given that EdTech solutions also store learners’ personal information, market players must abide by the copyrights and data privacy norms while introducing any new EdTech product. All the universities receiving funds from the U.S. Department of Education (DOE) have to abide by the requirements falling under the FERPA and PPRA acts. FERPA aims to protect student records while PPRA puts a strong emphasis on safeguarding students’ personal information gathered through surveys. In the European Union (EU), EdTech companies also fall under the purview of the General Data Protection Regulation (GDPR), limiting the access and processing of users’ data by all types of organizations involved in handling large volumes of information.

Sector Insights

The K-12 segment led the market in 2020 accounting for a revenue share of over 41% and will retain the leading position expanding at a steady CAGR from 2021 to 2028. The high share can be attributed to the growing trend of game-based learning in the K-12 sector. The 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. In addition, incorporating technologies in this sector enables immersive content and provides experiences, such as virtual field trips and complex lab-based experiments, resulting in an engaging learning experience. For instance, in April 2020, Tencent Classroom, a Chinese e-learning center, reported that over 80% of K-12 students (approximately 730,000) attended their school classes through the Tencent K-12 Online School in Wuhan, China.

The preschool segment is expected to register the fastest CAGR from 2021 to 2028. Technological advancement enables 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 market 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

The business segment led the market in 2020 accounting for over 69% share of the global revenue. The high share can be attributed to the upsurge in partnerships among EdTech firms, educational institutes, and content developers to create significant opportunities for the digital education sector. As a result, partnerships and collaborations are increasingly becoming a critical part of this developing ecosystem. For instance, in November 2020, Ambow Education announced a partnership with Cisco International; Cisco International operates in Career Education, training, and certification. This initiative was aimed at providing high-quality online courses and certification of the internet and IT for industry professionals and college students.

The consumer segment is predicted to register the fastest CAGR over the forecast period. Growing awareness among parents and students about the benefits of digital formats over traditional education 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. In addition, Massive Open Online Courses (MOOCs) are gaining increasing prominence across the globe owing to inexpensive online education to the consumers.

Type Insights

The hardware segment led the market in 2020 accounting for over 42% of the global revenue share. The high share can be attributed to the increased prominence of digital classrooms across the education industry. For instance, interactive whiteboards have become widely popular and provide a more improved experience. They incorporate a wide range of features, such as dry-erase surfaces, digital pens, communicating software, and other multi-touch options. Also, they allow users to save and share notes among other digital devices, such as tablets, smartphones, and laptops.

The content segment is anticipated to witness the fastest growth rate during the forecast period. The EdTech sector is witnessing innovation in content delivery with the incorporation of advanced visualization technologies. It can be attributed to the availability of numerous e-learning portals offering better-quality educational content in the form of study notes, test-prep materials, question banks, and learning videos. For instance, the Western Cape Government (South Africa) offers an e-learning portal containing different types of resources available in Afrikaans and English for use by teachers and students. Also, the Ministry of Education of the People’s Republic of China offers the National Cloud-Platform for Educational Resources and Public Service that provides free educational resources for primary and secondary school students.

Regional Insights

North America dominated the market in 2020 and held over 37% share of the global revenue. The regional market will retain its dominance throughout the forecast period due to the plenty of investments from venture capitalists and private-equity investors in the EdTech sector in the U.S. For instance, education technology start-up companies in the U.S. reportedly raised funding worth approximately USD 2.2 billion in 2020. As the sector matures, companies with substantial revenue growth are expected to attract greater funding and differentiate themselves from the new market entrants.

Asia Pacific is anticipated to register the fastest CAGR of 22.6% from 2021 to 2028. This growth can be attributed to the rising usage of the internet 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 reaching out to the population. Moreover, education stakeholders in developing areas are increasingly considering technology to bridge the gap between the educational infrastructure and teaching resources.

Key Companies & Market Share Insights

Key companies in the market focus on expanding their customer base and gain a competitive edge through various strategic initiatives, including partnerships, mergers & acquisitions, collaborations, and new product/technology development. For instance, in July 2020, McGraw Hill, an American education company, partnered with TutorMe, LLC, a U.S.-based education services provider, to offer free on-demand tutoring services to college students. In March 2020, the Los Angeles Unified School District (LAUSD) partnered with Public Broadcasting Service (PBS) to offer students customized educational programming on three over-the-air broadcasts and a range of digital options. Some of the prominent players in the global education technology (EdTech) market include:

• BYJU’S

• Blackboard, Inc.

• Chegg, Inc.

• Coursera, Inc.

• Edutech

• edX Inc.

• Google LLC

• Instructure, Inc.

• Microsoft

• Udacity, Inc.

• upGrad Education Pvt. Ltd.

Education Technology Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global education technology market report on the basis of sector, end user, type, and region:

• Sector Outlook (Revenue, USD Million, 2017 - 2028)

  • Preschool

  • K-12

  • Higher Education

  • Others

• End-user Outlook (Revenue, USD Million, 2017 - 2028)

  • Business

  • Consumer

• Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Hardware

  • Software

  • Content

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

  • Middle East & Africa (MEA)