The global pandemic accelerated growth in the academic e-learning and education technology (EdTech) market. Analysts say that the Covid-19 crisis was only part of the driving force. As such, the uptrend has every reason to continue post-pandemic.
According to the research data analyzed and published by Definanzas.com, the worldwide e-learning market is poised to grow at a compound annual growth rate (CAGR) of nearly 18% between 2021 and 2025. In that period of time, the sector’s incremental growth will be an impressive $184.52 billion. For the year 2021, the research estimates growth at 16.92%.
North America is the dominant player in the sector. In 2020, the region accounted for a 42% share of the global market.
Growth in the US will accelerate at nearly the same pace as the worldwide sector through the forecast period. Technavio estimates the 2021 year-over-year (YoY) growth rate at 15.95%. Between 2021 and 2025, it will grow at a CAGR of 17%, equivalent to $36.54 billion.
On the other hand, the global EdTech market is projected to grow at a CAGR of 19.9% in the period between 2021 and 2028. Based on a study by the Grand View Research, the sector was worth $89.49 billion in 2020 and by 2028, it is projected to reach $285.2 billion.
Solutions in the burgeoning space are expected to evolve in tandem with technological developments. These include advances in areas like artificial intelligence, virtual reality, augmented reality and the internet of things. The integration of these technologies in EdTech solutions is poised to contribute significantly to the growth.
EdTech Venture Capital Hits Nearly $4 Billion in Q1 2021
Asia Pacific is forecast to be the fastest growing region in the EdTech market, accelerating at a CAGR of 22.6% through 2028. Rising adoption of smart devices and growing internet use are among the factors set to contribute to this growth.
North America was once again the dominant player in the EdTech market in 2020, accounting for a 37% share of global revenue. During the forecast period, it is expected to retain dominance. Part of the reason for its prominent role is the abundance of investments from private equity investors and VCs in the US sector. Startup companies in the US EdTech market raised an estimated $2.2 billion in funding in 2020. As the sector continues to mature, it is poised to attract higher funding.
Investors worldwide are taking note of the sector’s massive growth potential. According to education researcher HolonIQ, venture capitals poured in $16.1 billion into the global EdTech market in 2020. That was 32 times higher than the $500 million posted in 2010, and it doubled the previous record set in 2018.
According to Pitchbook, the sector’s median post-money valuation was $21.2 million by the end of Q1 2020. That was nearly double the figure at the end of Q1 2019.
Global EdTech venture capital hit nearly $4 billion in Q1 alone according to HolonIQ. The figure translates to an average of more than $300 million every week.
Coursera, one of the sector’s most widely known names, debuted on the New York Stock Exchange at the end March 2021. From its last private market valuation of $2.57 billion, the company closed its first day of trading with $5.86 billion in market capitalization.
Investors hope that the company’s debut is the first of many in the sector. According to analysts from HolonIQ, education technology unicorns will grow to more than 100 by 2025. Over the past decade, EdTech companies have raised over $16 billion in collective funding and hold a cumulative value of $74 billion.
Education Demand Pushed Chromebook Shipments Up by 275% in Q1 2021
Equipment makers are also reaping huge from the boom in the EdTech sector. According to the latest data published by Canalys, Chromebook sales led a revival in the global PC market in Q1 2021.
The overall market saw shipments surge by 53.1% YoY to 122.1 million units. Chromebook shipments posted a stunning 274.6% uptick in the period, a total of 12.0 million units. Tablets were also in high demand, posting 51.8% growth in shipments, totaling 39.7 million units.
According to the IDC, schools across the globe previously preferred the tablet due to easy manageability and low cost. However, Chromebooks are overtaking tablets in popularity in numerous education markets. These include the US, Western Europe and Japan.
Among the factors preventing them from becoming mainstays worldwide is their dependence on cloud services and price. Regardless, all of the top five vendors in the Chromebook segment sold over 1 million units each. HP took the lead with 4.36 million shipments, up by 633.7% YoY. Samsung, which ranked fourth posted the highest growth, up by 2,233% YoY.