Overview: Recent Education Market Research Reports estimate that the global educational market will be one of the fastest growing markets owing to increased penetration of internet and growing device based accessibility to educational material. As per recent research conducted for the white house report, the education market for the United States alone is estimated to be worth around USD 1.3 Trillion as of late 2016 with a majority of the expenses being made towards the K-12 sector with roughly USD 670 Billion and the Higher education sector taking the second largest expense level of approximately USD 475 Billion. There are about 100,000 public schools, 30,000 private schools, and roughly 4,000 charter or other schools in the K-12 space in the U.S. Education is one of the most significant expenditures to the Government in the U.S and is of high importance, contributing about 9% to the GDP in 2017, it is the second biggest individual market in the U.S, right behind healthcare. Although the market size is large, U.S is one component of the total global educational market which has grown from its value of USD 2.5 Trillion in 2005 to over USD 4.4 Trillion as of 2017. The market is expected to experience high growth rates for the upcoming years as well with a major investment made into EdTech (Educational Technology).
E Learning: The global market for online education has an approximate size of USD 160 Billion as of 2017 and is expected to grow at a rate of 29% for the period 2017-2023. There is massive growth in the Education Technology sector caused by increasing availability of online platforms, higher rates of adoption of technology and growing student based customization offering convenient and effective education to students. The Industry for online education is increasing rapidly with investment into Educational Technology growing year on year. The investment into educational technology is growing with an investment of USD 8.1 Billion in the United States alone for the year 2017. There has been growing investment in China as well with 2017 investments in Educational technology toppling USD 1.2 Billion. Research estimates the Educational Technology Device market to be worth about USD 18 Billion with the total market to be worth USD 275 Billion by the year 2020. By 2025, the global market for E learning is expected to be worth USD 325 Billion with a medium to high growth across different segments. By component, the hardware market is expected to grow with a 27% CAGR. By product type, the content market is expected to grow at 28% CAGR from 2017 to 2023. By application, the market for higher education is expected to grow with a CAGR of 26.71%. Geographically North America dominates the market in terms of value and size followed by Europe although the Asia Pacific is expected to be the fastest growing market.
Trends: The most significant change that is expected to occur is the shift of the classroom form physical to online. There are a majority of online based correspondence and distance courses that exist in a large number of universities today and the number is expected to grow with an increase in courses and better quality material over the upcoming years. There is also an expectation of integrating artificial intelligence and machine learning into the Educational Technology platforms which would provide students with greater customizability and personalization on their courses for better and more effective learning. The rapid growth of platforms is bringing about the Software as a Service (SaaS) model integration into education. Although the largest customer base is in the K-12 Sector, higher education is expected to be the major contributor in terms of customer value and for revenue to the market. There is also an expected increase in the innovations being used for educational purposes with the entry of game changing technology like Artificial intelligence and virtual reality into the learning environment for students and skilled professionals. The final major trend that is expected to boost the growth of the education market is the entry into the sub sector of adult education which is forecasted to be the biggest in terms of opportunity owing to a complete lack of competition in the sector. These developments are expected to boost education into one of the most critical sectors of economic development globally
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Ankur Gupta, Head Marketing & Communications