Leading advisory firm Arizton has published its EdTech Market Global Outlook and Forecast for the years 2022-27, predicting the global market to increase by $350.60 over the next five years.
The market value currently sits at $254.80 and is expected to reach $605.40 by the year 2027, growing at a CAGR (compound annual growth rate) of 15.52%. The global market holds an absolute growth of more than 130% during the forecasted period.
The report reflects on the shift education has seen during recent years to a more standardized version of digital learning, which has positively impacted the e-learning market with its benefits to a wider user base of learners spanning age, socio-economic status, and geography.
Mixed reality learning is also predicted, with technologies like AI (artificial intelligence) and AR (augmented reality) expected to drive the digital learning market through gamification and hybrid models. These factors are likely to attract investors to inject funds into the edtech market over the course of the forecasted period.
Key forecasts include:
- The market for hardware products is growing owing to increases in the use of interactive whiteboards and simulation-based learning hardware. The presence of these display boards is witnessed across the globe and is widely accepted to display content, images, and video. This is driving the smart classroom market across the globe.
- Despite technology disruption, the demand for K-12 is expected to strongly be supported by the government policies mainly fulfilling the national priorities. The data-rich ecosystem will enable to capture of data for learning activities. The integrated technology benefits are expected to offer significant benefits to schools and enhance the outcomes of the users in the market.
- The growing demand for hybrid learning has also increased the demand for schools and universities to partner with many EdTech companies. Universities like Harvard, Massachusetts Institute of Technology, Stanford, Purdue, and Caltech collaborate with EdTech companies in India as such universities hold a larger impact on the educator and knowledge extenders.
Factors that are most likely to contribute to the growth of the edtech market have been predicted as:
- Growth in gamification
- Adoption in hybrid model
- Enhancement in connectivity infrastructure and smartphone penetration
- Introduction of 5G technology
- Growing investments by private equity and venture capital
Other key highlights of the report include:
- The demand for digital learning from the vocational learner segment accounted for $19.20bn in revenue in 2020. It is driven by job seekers that are looking to upgrade language and functional skills to meet professional requirements within the country and beyond.
- An Abu Dhabi-based EdTech company Alef Education is known for its AI-powered Alef Platform, which has been adopted by the UAE Ministry of Education for usage in all public schools in the UAE encouraging budding start-ups to compete in the EdTech space in the Middle East.
- Online certification platforms are now being appreciated and accepted by companies when candidates apply for jobs. Most of the players have emphasized certifications by industry like Google, LinkedIn, and other popular universities like Harvard, MIT to name has gained huge popularity in the market.
- Content providers like Pearson and Himalaya publications S.Chand are looking to leverage their brand and position themselves strongly in digital education. This is to capitalize on the rapid growth of these supplementary innovative digital offerings.
- Players like Coursera, Khan academy have adopted the freemium model by making their products directly available to the end-users without many intermediaries.
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