10 charts that explain the Global Education Technology Market

30 Jan 19. Everything you need to know about the Global Education Technology Market in 10 charts

HolonIQ Global EdTech Spend
HolonIQ Global Expenditure

1. Education is a $6T industry growing to $8T by 2025.

Expenditure on education and training from governments, parents, individuals and corporates continues to grow to historic levels and is expected to reach USD$10T by 2030.

Source: HolonIQ

HolonIQ Population Growth

2. Driven by 350m more secondary and 150m more post secondary students by 2025.

By 2025 there will be half a billion more school and university graduates in the world than today, driven primarily by population growth in developing countries. How will current models of education deliver to the scale, quality and speed required?

Source: Wittgenstein Centre

HolonIQ Population Growth
HolonIQ Global vs Education Capital Flows

3. However, education is starved of capital compared with other sectors.

Innovation requires capital. Governments are struggling to fund education to previous levels and education is not drawing on enough private capital to fund the innovation that’s needed. Public-Private Partnerships will be critical to supporting future growth, innovation and access to education.

HolonIQ Digitisation

4. It is also grossly under digitised, with less than 3% of global education expenditure on technology.

As a sector, education is a digital laggard with less than 3% of overall expenditure allocated to digital, presenting a serious challenge given the scale of what’s to come.

Source: HolonIQ

HolonIQ Digitisation
HolonIQ Global EdTech Spend

5. Digital spend is changing fast, though - forecast to grow to $342b by 2025.

In 2018, education spent $142b on digital. While this is forecast to grow to $342b by 2025, it is still less than 5% of overall expenditure.

Source: HolonIQ

HolonIQ Advanced Tech Market Size

6. Advanced technologies will embed into education delivery and learning processes.

Applications of advanced technology in education and learning will begin to hit their strides by 2025 with AR/VR and Artificial Intelligence becoming increasingly integrated into core education delivery and learning processes. Most likely starting in the corporate and non-accredited sectors.

HolonIQ Advanced Tech Market Size
HolonIQ Global VC 2018 Total

7. At the same time, Venture Capital invested $8b in 2018, up from $2b in 2014.

Venture Capital investors can see the favourable dynamics of the global education and training market, investing $8b in 2018, up from $2b in 2014. This is set to grow, but is not evenly spread across the globe.

Source: HolonIQ

HolonIQ Global VC 2018

8. A key driver of growth in VC investment is China, making up over 50% of all Global VC investment in 2018.

China, with the largest education market in the world, has led education VC investment growth over the past five years. China now makes up over 50% of all Global VC investment in education, the USA 20%, India, 10% and Europe 8%.

Source: HolonIQ

HolonIQ Global VC 2018
HolonIQ Listed Education Companies

9. VC investment drives IPOs. We expect 100+ education companies with Market Cap’s > $1B by 2025.

Venture Capital investment ultimately drives more exits in the form of public listings. In 2015 there were 10 listed education companies with Market Cap’s > $1B, growing to 30 in 2018 and expected to be 100+ by 2025.

Screenshot 2019-01-30 15.35.28

10. However, the devil is in the detail when it comes to education.

Education is a complex system. When it comes to understanding market dynamics and which technologies, business models and parts of the sector are likely to grow or shrink, it pays to understand the nuance. The Global Learning Landscape taxonomy, consisting of 50 clusters of innovation helps to unpack this complexity.

Source: globallearninglandscape.org

Screenshot 2019-01-30 15.35.28

Where did this data come from?

At HolonIQ, we are building the world’s smartest source of global education intelligence to power decisions that matter. Join our worldwide community of clients who access global education innovation and technology trends and data, insights about new models, investment and the future of learning and work.

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Screenshot 2018-07-24 14.21.58

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