Sizing the Global EdTech Market. Mode vs Model

D2C vs B2B. Hardware, Software, and Services. EdTech is growing fast as modes and models compete for growth around the world.

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Whether Direct to Consumer (Learner/Parent), Business to Business (School /University /Enterprise) or Hardware vs Software vs Services, COVID initiated dynamic changes in the EdTech spending landscape.

Governments, employers and consumers together will spend over $7T a year on education and training by 2025. Post COVID, we see significant growth in early childhood and workforce education, tuition deflation in higher education and K12 growth driven primarily by emerging markets. The fastest-growing ingredient for the future of education however is very clearly, technology.

While technology has had a limited role in education until recently, in Pre-K, parents are now looking for activities and educational tools and tips to stimulate and accelerate their child’s development. In K-12, schools are aggressively adopting technology to more effectively and efficiently manage their operations, support learners and communicate with parents. Higher Education and the broader post-secondary landscape has had to immediately and abruptly transition to online delivery, as have workforces looking to up-skill and engage their employees remotely.

EdTech is growing at 16.3% and will grow 2.5x from 2019 to 2025, reaching $404B in total global expenditure. Even at this level, EdTech and digital expenditure will only make up 5.5% of the $7.3T global education market by 2025.

HolonIQ’s updated global market size for EdTech is a $63B upgrade to our pre-COVID estimates. We now expect total global EdTech expenditure to reach $404B by 2025 representing a 16.3% CAGR, or 2.5x growth, between 2019-2025.

A short term surge in EdTech spending brought on by COVID-19 is expected to re-calibrate to a longer-term integration of digital technologies and transition to much higher adoption of online education over the coming years. Part of this transition includes a significant ‘infrastructure catch-up’ required for managing learning, data and administration as most schools and colleges are still at the very start of a long digital maturity journey.

In addition to EdTech’s primary role supporting the formal education sector, B2C EdTech models are also on the rise as students, parents and workers increasingly seek learning support and up-skilling for supplemental and/or more direct academic and career outcomes.

Underpinning the transition to digital, for incumbents and new models alike, are broader consumer technology expectations with respect to mobility, personalization, social and gamified learning.

Mode vs Model

Our market sizing methodology for technology mode (Hardware, Software, Services) and business model (D2C and B2B) is built from the bottom up and draws on HolonIQ’s proprietary data and open source Global Learning Landscape taxonomy.

After building the global market from our ‘top-down’ education economic model combined with ML-driven revenue estimates for tens of thousands of institutions and firms, we size education technology within each of the 50 clusters of the Global Learning Landscape for each major market, and then globally.

Based on the business model and technology mode of organizations in each of the 50 clusters, we then build D2C/B2B and hardware/software/services cuts within each cluster, then combine these modes and models vertically to estimate model/mode sizes for each major market and globally.

The dominant business model and the revenue estimate for tens of thousands of companies allocated to the Global Learning Landscape forms the foundation of HolonIQ’s Market Sizing methodology. Below gives an indication of the way in which organizations are allocated for sizing purposes:

B2C. Q&A Platforms, Question Banks, Digital and Online Pre K, K12, HE, Bootcamps and Apps, Advanced Tech Voice & Chat, Language Learning and Testing, Discovery, Teacher Support, Study Notes, After School, Tutoring, Test Prep, Career Planning, UpSkilling and Mentoring.

B2B. Knowledge Discovery, Curriculum, Education Resources, SIS, LMS, Classroom Technology, some financing, MOOCs, Online Learning, OPMs, XR, Robotics, AI, STEAM, Assessment, Portfolio, Credentialing, Career Planning, Skills Verification, Workforce Planning.

Hardware. Classroom Technology and Institutional Devices. Does not include consumer purchased and BYOD/family/home/work hardware. Does not include library technology. Desktop plus Mobile and Handheld Devices. Not including projection or TVs, monitors, or interactive whiteboards etc. May include VR, XR and simulation.

Software. B2B and B2C SaaS, Marketplaces, Peer to Peer Learning, Coaching and Mentoring Networks, Apps, Cloud-based management systems and tools (LMS, SIS, CRM etc).

Services. All online forms of Pre K, K12 and HE, Tutoring and Test Prep, OPMs and Bootcamps, Digital Internships, Apprenticeships and Mentoring.

Access to Market Sizing

HolonIQ is the world’s leading source of global education intelligence. Our global market sizing and forecasting combines our ‘top-down’ global education economic model, powered by insights from market experts from around the world, with cutting-edge ‘bottom-up’ machine-learning driven revenue estimates for tens of thousands of institutions and firms.

500+ discrete market sizes and forecasts are available through our Market Sizing Heatmaps on HolonIQ’s Global Intelligence Platform. We size the four major sectors globally and by eight major economies for 2019 and 2025 including CAGRs. We deep dive into our eleven sub-sectors for the same markets and then into the 50 clusters of our open-source taxonomy for the future of learning, the Global Learning Landscape. The complete dimensions for our global market sizing are as follows:

Time. 2019, 2025 and CAGR in USD

Markets. Global, US, Canada, UK, France, Germany, China, India and the Nordics.

Sector. Pre K, K12, Post Secondary, Workforce

Sub Sectors. Advanced Technology, Digital Content, International Education, Language Learning, Management Systems, Online Learning, STEAM (Science, Technology, Engineering, Arts, Math), Testing, Tutoring, Workforce

Cluster. Each of the 50 Global Learning Landscape Clusters

Model. B2B vs D2C

Technology. Hardware, Software, Services

HolonIQ’s entire market sizing dataset and Interactive Heatmaps are available immediately and on-demand through the Global Intelligence Platform with the opportunity for Q&A through analyst hours with HolonIQ’s Education Intelligence Unit. Request a Demo for more information.

Blurred screenshots below of the Market Sizing Heatmaps from the platform are of randomized demo-data only.

Where is this data coming from?

HolonIQ is the world's leading impact intelligence platform. We support governments, institutions, firms and investors, with data insights to power decisions that matter. If you are not already a client, request a demo to learn more about our platform.
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