Education technology solutions have become one of the hottest topics of discussion among parents and educators around the world. Nowadays students are thriving to get new knowledge while using modern educational technology tools and top trends in digital education technology.
The education technology industry is focusing on solving different challenges in education. For example, EdTech allows you to obtain skills in non-traditional and creative spheres - like a car designer. In that case, the digital classroom contains all the necessary multimedia tools for effective digital learning. One such example is InkTank Academy - a digital learning platform for everyone who is eager to learn how to design a car.
The aim of the article is to shed light on the EdTech market. Working with over 50+ EdTech startups, we were operating with loads of data consisting of market analysis and competitors' research. Therefore, we have compiled the latest data on market size and market potential, so you can have a deeper understanding of the EdTech market perspective.
What is EdTech?
Education Technology (the short form is EdTech) could be applied to the area of technology dedicated to the development of digital tools (including software, hardware, and processes) intended to enrich the educational experience and improve educational methods.
Although EdTech is in the early stage of development, yet it shows a great promise of revolutionizing the traditional approach to learning. Since different students have different abilities and interests, digital learning proposes a method of customizing the curriculum by introducing new content at a pace that would be more natural for students.
You can define several types of educational technologies, such as:
- Synchronous and Asynchronous
- Linear Learning
- Collaborative Learning
EdTech has already had a huge effect on education. With the development of advanced technologies, the boundaries of educational methodology have been expanded. It is fair to say that educational and technological advances are combined together with a new revolutionary landscape in the traditional market of educational possibilities. EdTech not only allows educational institutions to serve a larger and more diverse audience but also enables both teachers and students, to foster relationships in an interactive fashion.
Why is EdTech Important?
Every year more and more corporations adopt EdTech while a lot of entrepreneurs start their small businesses using education technology. Since most people acknowledge the existing benefits of EdTech for the present and future students, it’s not a surprise that the global education technology market is expected to grow to $40.9 billion by 2022.
The main goal of EdTech is not to substitute the current practices, but rather simply change the approach of educational delivery. We are not talking about changing the education material from books to digital form. Hence, it’s a much more deep integration of innovative solutions to the education system by improving the pedagogy and learning process.
Therefore, there are only a few of the benefits that digital learning platforms can bring to the age-old education process:
- Build strong student engagement by using all the necessary multimedia for more convenience;
- Students, parents, and teachers can easily track the progress of learning;
- Students have the ability to collaborate with other students, teachers or influencers, consequently gaining the practical experience;
- Input to sustainable development, since there are no paper books so EdTech doesn't affect the deforestation;
- Everyone can improve their digital literacy.
As we continue to move forward, it is clear that digitization of education is becoming more of a significant factor in the educational sector. We truly can be optimistic about the future of education since there are hundreds of thousands of options out there following the top educational technology trends. Cloud computing, virtual and augmented learning experience, 3D printing are all available nowadays and are increasing exponentially every year while creating a custom learning experience for every student.
Global EdTech Market Potential
Therefore, the global EdTech and e-learning market is forecasted to grow at 5.08 percent CAGR by 2022 making the total worth a whopping $243 billion. Observing this massive growth even the investors are lured to fund education startups while more and more entrepreneurs are eager to develop EdTech startup.
Educational technology is moving fast, and some level of digital adoption and tech solutions are required to be implemented now. However, not all EdTech companies stick to the smart plan of adopting innovative technologies. Some of the companies choose to stick with “tried and true” technologies and subsequently risk to be left in the dust as other, more forward-looking companies develop new, more engaging teaching and assessment tools.
By the same time, living in the swirl of endless opportunities, modern solutions, and advanced technologies, it’s important to navigate the process of new product development. So, companies that leap into new educational technologies without thoroughly understanding market potential and limitations may run into serious problems as their products fail to deliver educational value. In this case, the first thing to do is market research. Consequently, it will help in framing your product/market fit and overall business strategy to become a leader in the specific market niche.
The global education statistics in 2017 reached skyrocketing $4.5 billion funding 813 EdTech companies. As you can see there was a steady increase in global education venture capital investment over several years. However, in 2018 EdTech shattered its previous records with $8.2 billion in investment in the first half itself, funding a total of 437 companies.
Such a jump could be explained that today’s digitally connected generation of students strives to get a unique way of delivering learning practice. That is why multimedia and interactive course content are predominant features of every digital learning platform.
The market snapshot of the advanced education technology suggests that it will begin to hit the strides by 2025 with AR/VR and Artificial Intelligence becoming increasingly integrated into core education delivery and learning processes. It’s most likely that such a process will begin in the corporate and non-accredited sectors.
At the same time, digital spending is changing fast. Comparing the two years (2018 and 2025) the growing percentage of digital spending is vivid. In 2018, education spent $142 billion on digital technologies. It is suggested that spending on digital education technology will reach $342 billion by 2025.
The global education technology industry analysis shows that market share crossed $17.7 billion in revenue in 2017 and is expected to grow to $40.9 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 18.3%.
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