Education Technology Market Report: By Type (Hardware, Software, Services), Application (K-12, Higher Education, Competitive Exams, Certifications), End User (Individual Learners, Institutes, Enterprises) - Revenue Estimation and Demand Forecast to 2030

Market Overview

The global education technology market size stood at $237.6 billion in 2021, which is expected to reach $998.4 billion by 2030, advancing at a CAGR of 17.3% during 2021–2030. This is ascribed to the emergence of AI and digitalization in education technology.

Rising Usage of Internet and Smart Devices Driving APAC Market

APAC accounted for the largest 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. For instance, in January 2022, the Indian government set up around 20,000 digital boards in Delhi to increase the education level in the country.

In addition, the rising number of vendors providing remote learning services, the increasing number of students, and the surging adoption of advanced technologies are driving the regional market growth. Furthermore, China has the most expansive education system in the world, with around 280 million students and around 18.0 million teachers in over 500,000 schools.

Moreover, North America accounted for the second-largest share, of around 20%, in 2021 in the market, mainly driven by the high investments in the education sector of the U.S. and the active involvement of companies to expand their geographical reach. For instance, Class Technologies Inc. raised over $100 million in its series B funding for its geographical expansion outside the U.S.

Hardware Is Highest Revenue Generator in the Market

Hardware like interactive displays, secure digital (SD) cards, laptops, and tabs accounted for around 60% revenue share of the education technology market in 2021, due to the surge in their sales in developing countries. The sales of tabs have witnessed snowballing growth, followed by that of laptops. Apple Inc. generated the largest share in the tab sales of around 40%, followed by Samsung Electronics Co. Ltd., Lenovo Group Ltd., and Amazon.com Inc. Moreover, the rising adoption of digital classrooms throughout the education industry also drives the market growth in this category. For instance, interactive whiteboards have gained popularity, owing to the interoperability of these boards with digital devices like laptops, tablets, and smartphones.

In addition, the growing eminence of digital classrooms in schools is propelling the demand for hardware. Considering the importance of digital classrooms, companies are putting several efforts to expand digital classroom platforms, globally. For instance, in February 2022, Veative Labs offered its VR headsets to Smt. Godavari Devi Saraf Senior Secondary School in India to provide virtual experience in classes like science.

Individual Learners Hold Largest Revenue Share

In comparison to institutes, individual learners are supporting more growth in the market and generated over $100 billion revenue in 2021. This is because individual learners are more inclined toward garnering new skills and the high federal budgetary allocations in the education sector. For instance, the Indian Union Budget 2022–23 has allocated INR 1,04,278 crore to the education sector, an increase of approximately 12.0% from the 2021–22 gross allocation of INR 93,223 crore. The high investment is for the improvement of digital connectivity and to ensure high-quality education, to subsequently acquire resource competitiveness. This has broadened the access to digital resources for young people in India.

Whereas, the institutes category is set to show the highest CAGR, of over 15%, in the forecast period. This is on account of the active involvement of EdTech companies in different mergers and acquisitions. For instance, in January 2022, Teachmint Technologies Pvt. Ltd. announced the acquisition of My Class Campus, which is an education enterprise resource planning company, to provide its EdTech services to schools and various institutions. Similarly, in July 2020, CampusLogic Inc. announced the acquisition of RaiseMe, to expand access to higher education, especially among low-income and first-generation students.

K-12 Is the Highest Revenue Generator in the Market

The K-12 category accounted for the largest share, of around 35%, in the EdTech market in 2021, on account of the gamification trend in this sector for the enhancement of math skills among students. This offers an immersive experience in classrooms and provides exposures like lab-based experiments and virtual field trips to students. For instance, in September 2021, Matific launched an AI-powered math learning platform, through gamified experience.

COVID-19 Impact

The COVID-19 pandemic has increased the demand for EdTech solutions and highlighted the potential of education innovations enabled by EdTech companies. The breakout of COVID-19 has compelled many investors and EdTech companies to evolve in the new digital learning paradigm. Players have expanded their product offerings, using digital technologies, to ensure learning is never interrupted. During the pandemic, numerous EdTech players offered their products at a discounted price or for free for a limited period.

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Advancements in Technologies Driving the Market Growth

EdTech solutions are expected to evolve in parallel with the advancements in technologies such as IoT and AI. The incorporation of AR and VR in these solutions allows for a more interactive learning experience for students. It enables students to explore and seamlessly connect with abstract concepts, thereby increasing their engagement.

Additionally, the incorporation of blockchain technology enables users to store and secure records of students and learners, thereby allowing educators to analyze the consumption patterns of materials offered and make data-driven decisions.

In addition, the improvements in connectivity infrastructure and smartphone penetration, the introduction of the 5G technology, and the rise in investments by private equity & venture capital firms drive the education technology market growth. The increasing use of smartphones has enabled students to easily access content and learning materials. In both developed and developing countries, the rise in disposable income and the high internet penetration have increased the demand for mobile learning platforms.

The incorporation of advanced technologies has resulted in the revolution in the education industry, making it more convenient for people all over the world to read and learn, thus resulting in a greater reliance on devices such as smartphones and tablets to pursue skills. The decrease in internet data rates in developing countries, as well as the increasing consumer income and socioeconomic changes, has driven the demand for the internet. As a result of the ease of access to information, the demand for tech-based education is expected to rise significantly.

Recent Strategic Developments of Key Players

In recent years, players in the EdTech market have been involved in partnerships, in order to attain a significant position. For instance:

• In July 2020, McGraw Hill partnered with TutorMe LLC to offer college students one-on-one tutoring sessions free of charge. TutorMe live tutors are available 24/7 and help users understand and become fluent in relevant subjects. McGraw Hill registered more than 4.3 million college student subscriptions in 2020.
• In March 2020, the Los Angeles Unified School District (LAUSD) signed a partnership agreement with the Public Broadcasting Service (PBS). This partnership provided 700,000 LAUSD students with educational resources via television broadcasts, to counter school closures.

Key Players in the Education Technology Market Are:

• Think and Learn Private Limited (BYJU'S)
• Blackboard Inc.
• Chegg Inc.
• Coursera Inc.
• Edutech
• edX Inc.
• Google LLC
• Instructure Inc.
• Microsoft Corporation
• Udacity Inc.

Market Size Breakdown by Segment

The report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Type

• Hardware
• Software
• Services

Based on Sector

• K-12
• Higher Education
• Competitive Exams
• Certifications

Based on 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