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, at a CAGR of 17.3% during 2021–2030. This is ascribed to the emergence of AI and digitalization.

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

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

The incorporation of advanced technology has resulted in a 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, have 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.

Hardware Is Highest Revenue Generator Compared to Software

Hardware accounted for around 60% revenue share in 2021, attributed to the rising importance of digital classrooms throughout the education industry. For instance, interactive whiteboards have grown in popularity as they provide a better experience. They include dry-erase surfaces, digital pens, communication software, and other multi-touch choices. They also let users save and share notes across a variety of digital devices, including tablets, smartphones, and laptops.

Hardware includes interactive displays, secure digital (SD) cards, laptops, and tabs. The purchase of tabs has witnessed snowballing growth, followed by that of laptops. Apple continued to lead, with a 38% market share in tab sales, which was an increase from the 36.6% market share in 2020. It was followed by Samsung (15.9%), Lenovo (10%), Amazon (7.9%), Huawei (5.5%), and others (22.8%).

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Individual Learners Hold Largest Revenue Share

Individual learners generated more than $100 billion revenue in 2021. Individual learners are more inclined toward garnering new skills. Their highest revenue is attributed to the high federal budgetary allocations in the education sector.

For instance, the Indian Union Budget FY23 has allocated INR 1,04,278 crore to the education sector, an increase of 11.86% 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.

Additionally, institutes are set to show the highest CAGR, of over 15%, in the forecast period. This will be on account of the strong collaborations with EdTech players, owing to the rise in the competitiveness among students to seek admissions and the growing disposable income of parents. In March 2022, WooStudy, an AI-powered EdTech marketplace, launched its operations in India. The company aims to onboard more than 100,000 students by 2024, via partnerships with over 5,000 institutes and support from over 500 counsellors in the country.

Universities such as Harvard University, Massachusetts Institute of Technology, Stanford University, Purdue University, and Caltech are collaborating with EdTech companies in India. The collaborations have decreased the need to pay huge amounts to foreign universities.

Rising Usage of Internet and Smart Devices Driving APAC Market

APAC accounts largest share in the market. The education technology market in APAC is mainly driven by the rising usage of the internet and smart devices. Additionally, the high government financial aid in developing countries, such as India and China, combined with the growing accessibility of digital devices for students, is aiding the market advance. The rising number of vendors providing remote learning services also drives the market growth in the region, as does the high number of students and rising adoption of advanced technology. As per a UNICEF report, China has the most-expansive education system in the world, with 282 million students and 17.32 million teachers in over 530,000 schools.

COVID-19 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. The pandemic impelled many students to improve their skills and increased their reliance on educational technology. With a widening user base for diverse EdTech applications, the pandemic has disrupted traditional learning techniques. As the number of people using various EdTech tools grew, so did the demand to go digital in the short term.

During the pandemic, numerous EdTech players offered their products at a discounted price or for free for a limited period. Additionally, the rising number of mergers and acquisitions boosted the market growth. For instance, in July 2020, CampusLogic announced that it has acquired RaiseMe, a social enterprise focused on expanding the access to higher education, especially among low-income and first-generation students. This acquisition empowered universities and colleges to enroll, engage, and retain more students, at a time when these numbers were susceptible to the pandemic.

Recent Strategic Developments of Key Players

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

• In July 2020, McGraw Hill began a partnership 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 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 Application

• 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