Across all sectors, the COVID-19 pandemic has accelerated digital transformation. It has changed education, with schools, higher education, corporate training, and lifelong learning forced to shift online at a pace at odds with the typical feet-dragging. For all education providers, online teaching is now a crucial part of their tuition mix.
This report provides an overview of the edtech theme.
It identifies the key trends impacting growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
It includes comprehensive industry analysis, including forecasts for edtech revenue to 2030.
It contains details of M&A deals driven by the edtech theme, and a timeline highlighting milestones in the development of edtech.
The detailed value chain shows comprises four core segments: learning materials, tools and enablers, learning platforms, and education providers. Leading vendors are identified for sub-categories across three of these segments.
From the start of the edtech revolution, the driving forces have been start-ups and private companies in China, India, and the US. Investors have heavily backed China’s after-school tuition companies, but their incessant advertising and spiraling prices have prompted political action few could have foreseen.
The Chinese government’s new regulations require tutoring companies to be non-profit, effectively barring foreign investment. The impact ends the immediate IPO ambitions of companies like Tencent-backed Yuanfudao and VIPKid and Alibaba-backed Zuoyebang. It has also wrecked the market capitalizations of Chinese education players listed in the US. The likely outcome is that foreign investment will switch to India, where Byju’s –the most valuable edtech start-up worldwide – will IPO within 18 months. Byju’s has already made nine acquisitions to date in 2021.
In the US, the higher education sector is changing. The June 2021 announcement that edX, the massive open online course (MOOC) created by Harvard and MIT, was being sold for $800m to 2U, a software as a service (SaaS) platform that helps run online universities, rocked Big Ed. The ructions will continue for some time amid a continued digital transformation drive.
According to GlobalData forecasts, global edtech revenues will reach $538.5bn by 2030, having grown at a compound annual growth rate (CAGR) of 14% between 2019 and 2030.
Reasons to Buy
Few good things have come out of the pandemic, but greater adoption of technology for education purposes by schools, higher education institutions, and individuals may well be one.
As the virus’s severity became apparent, governments worldwide had to enforce lockdowns that severely limited learners’ ability to meet in indoor spaces. For schools, higher education institutions, businesses, and lifelong learners, COVID-19 and its social and economic implications necessitated new approaches to education.
Edtech has helped re-establish engagement between teachers and lecturers and their students. The pandemic has acted as a catalyst for education providers’ greater adoption of hardware, software, and services.
This report provides a clear and comprehensive overview of the edtech theme and explains the conditions driving its growth. It also includes details of the key technologies changing the education industry and the leading vendors across all aspects of the edtech market.
Houghton Mifflin Harcourt
Ping An Insurance
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