The size of the global edtech market will approach $1 trillion by the end of this decade, according to one forecast. As for market share, edtech’s slice of the pie will increase to $133.05 billion by 2026, accelerating at an annual growth rate of nearly 18%, another analysis found.
The size of the global edtech market was about $238 billion in 2021, and artificial intelligence, virtual and augmented reality and the internet of things will be the biggest propellants of growth over the next several years, according to the latest analysis by Research and Markets. Many schools are adding VR and AR to create more interactive learning experiences for students, the report asserts.
Ever-expanding connectivity, bandwidth and speed, surging smartphone penetration, and growing investments by private equity and venture capital firms will also drive edtech demand.
Hardware accounted for approximately 60% of edtech revenue in 2021 while individual learners generated more than $100 billion due, in part, to the spread of smart classes such as the broadcasts that were provided to hundreds of thousands of students by Los Angeles USD and PBS during COVID lockdowns.
Government assistance in developing countries, such as China and India, is also giving the edtech market a boost. China, for example, has 282 million students and 17.32 million teachers in more than 530,000 schools.
Microsoft Corporation is the biggest player, holding an 8.1% share of the edtech and smart classrooms market, followed by Dell Technologies Inc., Oracle Corporation, Apple Inc., SAP SE, Anthology Inc., Cisco Systems Inc., IBM Corporation, Alphabet Inc., and Lenovo, a report by The Business Research Company found.
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Blackboard Inc., Chegg Inc., Edutech, Coursera Inc., edX Inc., Instructure Inc., Udacity Inc., and Think and Learn Private Limited are among the other global heavyweights, Research and Markets noted.
3 edtech market movers
Three key market drivers, trends and challenges are detailed in the market share forecast by Technavio:
- Driver: More and more learners are reading increasingly flexible and adaptable ebooks as instructors distribute texts via the internet. These shifts are supported by e-readers that allow annotations and bookmarks and that provide interactive dictionaries.
- Trend: Increased demand for distance learning that exploded during the early phase of COVID will continue, particularly in the realm of higher ed, where more students and professionals (including teachers) can take online courses from a growing range of colleges and universities.
- Challenge: Open-source learning content is one impediment to edtech market growth. Educational institutions, particularly in more impoverished countries, are offering curriculum either free or at a minimal cost.