2021 Global Education Outlook

HolonIQ’s annual analysis of the global education market and expectations for 2021 and beyond.

Education Intelligence Unit

calendar image
January 25, 2021

Powered by our Global Market Intelligence platform, the 2021 Outlook is now available to HolonIQ customers, providing the most comprehensive analysis of the global education market, and containing 150 pages of data, reflections on 2020 and expectations for 2021 and beyond.

About the 2021 Outlook

HolonIQ’s global market data and analysis through the year powers our Annual Outlook for education, and is available exclusively for HolonIQ customers. The 2021 Outlook provides over 150 pages of expert analysis and insights into the underlying dynamics of change for education, how and where investment is supporting innovation, and commentary about the models and teams that are shaping the future.

The Outlook provides HolonIQ’s expert analysis and key data points on the global education market  and insights into future areas of growth.

Download Preview

Screen Shot 2021-01-25 at 4.16.19 pm

Global Education Outlook

Governments, employers and consumers together will spend over $7T a year on education and training by 2025. Post COVID, we expect to see significant growth in early childhood and workforce segments, deflation in higher education and K12 growth driven by emerging markets. Meanwhile, education technology will double in size relatively quickly. Regulation will tighten before easing as digital learning becomes mainstream, public-private partnerships gradually accepted and credentials will become more diverse.

New models, new capital and new players will enter the education market and the post- secondary landscape will gradually re-shape. Emerging markets are positioned to adopt leapfrog approaches to innovation.

Screen Shot 2021-01-26 at 10.49.16 am

Investment Trends

2020 saw a massive $16.1B of education venture capital and over $20B of M&A activity in a surge of growth capital & consolidation. Asia’s billion-dollar mega-rounds crowded out record late-stage venture funding, increasing the total of EdTech Unicorns to nineteen. Private Equity and corporate consolidation dominated M&A with a record ‘Go Private’ trend offset by a SPAC kick-off.

While Asia-based K12 B2C investments represent the largest dollars invested in EdTech through 2020, almost half the volume of VC transactions in EdTech (number of deals) through the year were focused on Workforce, illustrating the underlying dynamic at play as the world moves through significant workplace and demographic change.

Screen Shot 2021-01-26 at 10.18.48 am

Capital Markets

270 education stocks closed 2020 with a $296B market cap, up $75B over the full year with now 44 stocks with over a $1B market cap. 2020 saw two ‘take privates’ complete, 16 IPOs, with 5 SPACs ready for launch on top of a massive organic K12 APAC gain, driving the lift in total value. We expect high-profile IPOs in 2021 and SPACs racing the clock to acquire targets.

16 IPOs added another $7.5B+ of value to finish the year with a combined $296B Market Cap for all education stocks. 17zuoye was the standout, leaving the list of startups Unicorns and finishing the year with a $2.4B market cap.

Screen Shot 2021-01-26 at 10.14.02 am
No items found.

Advanced Technology

Advanced Tech will grow 5x through to 2025 and reach over $20B of annual expenditure in that period. Artificial Intelligence continues to embed more deeply into learning processes and Blockchain technology is increasingly used for recognition of learning through credential systems.

The global AR/VR market in education is expected to reach $12.6b by 2025. In 2020, there were ten $10M+ venture capital rounds in the education-related AR/VR segment, a strong indication that the use of augmented and virtual reality is accelerating to become more mainstream in learning processes.

Screen Shot 2021-01-26 at 11.01.41 am

Global Giants

Giant education brands, publishers and more recently technology platforms cast long shadows across the global education sector. Their reach affords significant influence, but as trust declines with mega-brands and as new players enter the fray, giants are having to rethink their strategies.

2020 saw publishing giants continue to actively pursue digital strategies and investments, while Tech giants see the opportunity in the education vertical and move closer to delivering technology focused upskilling, either in partnership or through their own increasingly recognized credentials.

Screen Shot 2021-01-27 at 1.46.53 pm

Regional Outlooks

All markets experienced significant challenges to their education systems during 2020, with COVID-19 exposing shortfalls in digital infrastructure and skills.  Changes in policy across many regions cleared the path for online learning and demand for B2C EdTech solutions were sought by governments, schools and universities as the world pivoted to online delivery.

Notable markets in Asia include India, whose new National Education Policy will support substantial innovation and change over the next ten years, and Indonesia, which is set to become the next tech-driven powerhouse in the region. The US remains the largest market for diversity of innovation, while China’s huge investments in technology will no doubt deliver continued growth in K12 and vocational education.

The Outlook contains summaries for twelve regional markets globally including key transactions and market activities.

Screen Shot 2021-01-27 at 1.48.52 pm
No items found.
No items found.

Latest Insights

Global Insights from HolonIQ’s Intelligence Unit. Powered by our Global Impact Intelligence Platform.

Newsletter
Newsletter
2024 Back to School
2024 Back to School
North America EdTech 200
North America EdTech 200
2024 Paris HE Summit
2024 Paris HE Summit
2024 San Juan Speaker
2024 San Juan Speaker
Indices
Indices
Cities
Cities
2023 Back to School Featured Speaker
2023 Back to School Featured Speaker
New York
New York
2023
2023
Webinar
Webinar
Economics
Economics
Draft
Draft
Platform
Platform
2022
2022
Digital Transformation
Digital Transformation
MedTech
MedTech
Global Impact Summits
Global Impact Summits
Impact 3000
Impact 3000
Nuclear
Nuclear
Mobility
Mobility
Electric Vehicles
Electric Vehicles
2021
2021
2020
2020
Sub Saharan Africa
Sub Saharan Africa
Nordic Baltic
Nordic Baltic
North America
North America
South Asia
South Asia
East Asia
East Asia
ANZ
ANZ
Market Sizing
Market Sizing
Augmented Reality
Augmented Reality
Blockchain
Blockchain
Virtual Reality
Virtual Reality
Regions
Regions
Markets
Markets
Mobile
Mobile
Client Report
Client Report
Publishers
Publishers
Labor Markets
Labor Markets
Global Landscape
Global Landscape
10 Charts Series
10 Charts Series
R&D
R&D
LMS
LMS
United Kingdom
United Kingdom
Executive Panel
Executive Panel
Language Learning
Language Learning
Russia
Russia
Israel
Israel
Germany
Germany
France
France
Media and Press
Media and Press
Climate Tech
Climate Tech
MENA
MENA
South Korea
South Korea
Japan
Japan
Southeast Asia
Southeast Asia
Health Tech
Health Tech
Global EdTech 1000
Global EdTech 1000
Unicorns
Unicorns
MOOCs
MOOCs
Global Giants
Global Giants
Client Note
Client Note
Capital Markets
Capital Markets
Advanced Technology
Advanced Technology
OPM
OPM
International Education
International Education
India
India
China
China
Canada
Canada
Venture Capital
Venture Capital
Bootcamps
Bootcamps
Online learning
Online learning
Notes
Notes
Europe
Europe
Asia
Asia
Africa
Africa
LATAM
LATAM
Brazil
Brazil
Robotics
Robotics
Education in 2030
Education in 2030
Artificial Intelligence
Artificial Intelligence
SDG 17
SDG 17
SDG 16
SDG 16
SDG 15
SDG 15
SDG 14
SDG 14
SDG 13
SDG 13
SDG 12
SDG 12
SDG 11
SDG 11
SDG 10
SDG 10
SDG 9
SDG 9
SDG 8
SDG 8
SDG 7
SDG 7
SDG 6
SDG 6
SDG 5
SDG 5
SDG 4
SDG 4
SDG 3
SDG 3
SDG 2
SDG 2
SDG 1
SDG 1
Climate Tech 1000
Climate Tech 1000

Sign Up for our Newsletters

We provide you with relevant and up-to-date insights on the global impact economy. Choose out of our newsletters and you will find trending topics in your inbox.

Weekly Newsletter

Climate Technology

Weekly Newsletter

Education Technology

Weekly Newsletter

Health Technology

Weekly Newsletter

Higher Education

Daily Newsletter

Chart of the Day

Daily Newsletter

Impact Capital Markets