Global Education Technology Market to Reach $341B by 2025

24 Jan 2018. Press Release

Education Intelligence Unit

calendar image
January 24, 2019

LONDON, Jan. 24, 2019

Global education market intelligence firm, HolonIQ, released its 2019 Global Education Outlook today in London at the global education conference Learnit. HolonIQ’s outlook includes key market estimates for 2025, critical trend and policy analysis, and assessments on the potential impact from new technologies. The Outlook includes global data demonstrating that even with impressive 11% annual growth, today’s Education Industry will leave 500 million students behind without serious and immediate transformation.

The Outlook finds a grossly under-digitized industry (less than 3% of expenditure), unable to scale and meet the needs of an additional 500 million students around the world by 2025. The half a billion un-served students represent a critical source of human capital for global growth – for developing and developed economies alike. A protracted decline in public funding and ongoing political instability, are producing a significant delay in both reform and innovation policy from many governments around the world.

HolonIQ’s Smart Estimate™ for Total Global Education Expenditure is $8 trillion for 2025. While the formal sector is not expected to change significantly over that period, Education Technology Expenditure, fueled by Artificial Intelligence (AI), is expected to double, reaching $341 billion by 2025, evidenced by the aggressive acceleration in venture capital invested through 2018, which reached a record $8 billion. Education focused AI expenditure itself is estimated to be a $6 billion market by 2025.

“Gradually, then suddenly. That’s how we expect education technology adoption to change through to 2025,” explained Maria Spies, Co-Founder and Managing Director, HolonIQ. “We estimate that the speed of digitisation in education will overtake healthcare, due primarily to the build-up in capability over the past 10 years, and fueled by explosive growth in artificial intelligence with China, the US and India taking the lead on innovation.”

Worldwide Impact: Asia Leading, U.S. Behind, Europe playing catchup.

Education technology is becoming a global phenomenon, and as distribution and platforms scale internationally, the market is projected to grow at 11% per annum, to $341 billion by 2025. The US set the pace for the prior five years and now Asia, led by China and India, are experiencing the world’s fastest growth in investment into the Education sector.

Europe has seen strong grassroots innovation; however, the region remains a largely under-invested and fragmented market, home to the publishers and content giants that dominated the last century. Africa is poised for explosive growth post-2025 as population growth fuels enormous demand for skills and the tech-ready continent of almost half a billion unique mobile subscribers leapfrogs the traditional infrastructure of developed nations, adopting mobile-first learning solutions.

Patrick Brothers, Co-Founder and Managing Director, HolonIQ explained that the growth and innovation in education and training will come from the informal learning and technology-led sectors, driven by consumer and enterprise investment outside of the traditional schooling and post-secondary market. “Pre-K, tutoring, language training, credentialing, professional upskilling, online programs, peer-to-peer and mentoring models are but a few of the innovation clusters which will either augment or displace more traditional, expensive and slower alternatives,” detailed Mr. Brothers.

Population growth will be a key challenge for the Education sector. By 2035, there are expected to be 2.7 billion students worldwide. “In order to meet higher education demand under the current structure, at least two universities need to be built each day, over the next ten years,” Mr. Brothers said. As such, the report finds that leading education providers must seek new ways to capitalize on growth by expanding their brands to export markets, allowing individuals to access internationally-recognized qualifications.

As a whole, Education is very early in the technology adoption stage, giving it the opportunity to leapfrog the typical linear technology path most other industries have followed. This opens the door for Education Technology such as AI, voice interfaces, machine learning and others, to address the student cost, access and ROI challenges and institutional efficiency, effectiveness and growth objectives. With 90% of the world’s population under 30 living in emerging markets, education and vocational training in the area will be led by mobile-first strategies that provide knowledge and skills when and where they’re needed. In other words, the global market for education and training will turn from a supplier-driven to a learner-led market.

“In a rapidly evolving economy where skill sets continue to progress at an accelerated pace, innovative digital models offer a way to capture these changes and provide new routes for re-skilling as well as addressing widespread labor shortages,” Mr. Brothers continued. “An enormous number of new and radically different jobs will emerge by 2025, and consequently, there will be a growing need to continually re-train the workforce in order to address current skill gaps and increase the use of continuous learning.”

The 2019 Global Education Outlook will be discussed in detail at the Learnit education conference in London on 24-25 January, during which more than 1,000 delegates and over 100 speakers from around the world will come together to champion growth and innovation in the education sector.

No items found.
No items found.
No items found.

Latest Insights

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

Summits
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
Health Tech 1000
Health Tech 1000
EdTech 1000
EdTech 1000
EdTech
EdTech
Diversity
Diversity
New Zealand
New Zealand
Australia
Australia
United States
United States
Biotechnology
Biotechnology
Environment
Environment
Infrastructure
Infrastructure
Energy
Energy
Climate
Climate
Workforce
Workforce
K12
K12
Higher Education
Higher Education
Education
Education
Early Childhood
Early Childhood

Sign up for our free weekly newsletters

Join 80,000+ free weekly newsletter subscribers.