Many investors view the current state of the education market as similar to the healthcare sector 30 years ago – well-established and on the cusp of significant and rapid change. Since an overwhelming majority of global education spending – estimated at $5.5 trillion, of which e-learning represents about 3 percent, or $1.7 billion – is still used for traditional teaching methods within the public sector, the market is developed and ready for distribution presenting an opportunity to modernize the industry and increase efficiency and outcomes.
In recent times, technology in education has played a significant role in educating and connecting students to existing and future learning opportunities. In many impoverished areas, technology has allowed students to experience a world-class education. Education institutions, and more importantly, governments have become very receptive towards the implementation of technology as a learning component.
In today’s technology-enabled knowledge market, many institutions encounter challenges in terms of leveraging technology efficiently. The advent of technology into the learning space and classroom has enabled students and learners to undertake and utilize interactive educational technology for better learning, performance and outcomes.
There are a number of new trends that are creating new opportunities for education providers and learners so that information can be effectively accessed by the end-user. Markets and Markets forecasts the global EdTech market to grow from $43.27 Billion in 2015 to $93.76 Billion in 2020, at a CAGR of 16.72% over that time.
Recently, we saw LinkedIn acquire Lynda.com for a whopping $1.5 billion, and Udemy raised $65 million led by Stripes Group. E-Learning is expected to see considerable growth; outpacing all other categories of learning and growing at an average rate of 23 percent per annum. It is expected to reach $4.8 billion by 2020.
Source: SJF Ventures
If recent industry transactions are indicative of the current state of the education market, then the education technology space is thriving.