The global EdTech market is projected to generate $998.4 billion revenue by 2030, advancing at a CAGR of 17.3% during 2021–2030. This will be on account of the improvements in connectivity infrastructure, rising smartphone penetration, introduction of the 5G technology, and growing investments by private equity and venture capital firms.
Increasing student engagement is becoming the top priority for educators. Market participants are responding to such concerns by introducing advanced interactive whiteboards and transitioning from projector-based displays to touchscreen displays. Such initiatives promote active learning and the development of critical thinking skills in students. Furthermore, both educators and students can access student information systems (SIS), with the primary goal of creating comprehensive student profiles that allow educators to make informed decisions to improve the performance of each student.
The K-12 sector is expected to lead the market with around 30% share in 2030. This is attributed to the growing trend of game-based learning in this sector. The majority of K-12 teachers support gamification initiatives to improve students' math learning skills, through the integration of practical, project-based work in the classroom.
Furthermore, incorporating digital technologies in this sector allows for immersive content and experiences, such as virtual field trips and complex lab-based experiments, thus resulting in enhanced engagement. For instance, in April 2020, Tencent Classroom, a Chinese e-learning center, announced that over 80% of the K-12 students (approximately 730,000) in Wuhan attended their classes through the Tencent K-12 Online School.
Moreover, the offerings provided by online tutoring and e-learning entities drive the category’s growth. The increasing youth population is set to intensify the market growth further, as these services are mostly opted for by parents as supplementary education for their children.
In 2021, APAC held the majority revenue share, of around 45%, in the market. The market in APAC is mainly driven by the rising usage of the internet and smart devices. APAC is witnessing an expansion of services and technology businesses. This has led to the adoption of new education and training methods, such as video-assisted learning, AI, and AR, by vendors engaged in learning and content creation.
Companies operating in the market have been involved in partnerships to remain competitive. For instance, in November 2020, Ambow Education Holding Ltd., a provider of educational and career enhancement services in China, announced a partnership with Cisco Systems Inc. The two companies are providing online courses as well as authoritative certification of information technology (IT) and the internet to college students and industry professionals all over the world.
The major players operating in the global EdTech market are Think and Learn Private Limited (BYJU'S), Blackboard Inc., Chegg Inc., Coursera Inc., Edutech, edX Inc., Google LLC, Instructure Inc., Microsoft Corporation, and Udacity Inc.