How the Covid pandemic has helped the EdTech industry grow
The global EdTech sector is expected to grow from $12.8 billion in 2020 to $81.2 billion in 2030. This is an annual growth (CAGR) of 20.5% from 2021 to 2030 (source: Allied Market Research), stimulated by technological developments and changes in the education sector. Online education is playing an increasingly bigger role, especially since the Covid pandemic, offering new data for new insights.
EdTech is on a fast track
The Covid pandemic has fast tracked the acceptance and adoption of online education. Even now that schools have reopened for on-site education, technological developments continue, with online learning being recognised for offering many advantages over, but also in addition to, traditional learning methods.
The arrival of new technologies, including Artificial Intelligence (AI) and Virtual Reality (VR), has also played a key role in the emergence of digital education. These technologies use algorithms to offer personalised content to make digital learning substantially more efficient. This is not only less time consuming and more cost efficient, but also promotes information availability.
Investments in EdTech in 2022
The EdTech market is developing at great speed, particularly when it comes to technology, clearly a growth market. The interests are considerable, reflecting education’s crucial role in society. This has resulted in great demand for innovative digital learning platforms, making this a highly attractive market for investors.
The EdTech market potential is clear. In 2021 almost 21 billion dollars of venture capital funding went to EdTech businesses globally, up from 7 billion dollars in 2019. The EdTech market also proved popular amongst investors in the first six months of 2022, attracting more than 11 billion of funding. The United States account for the majority of these investments, but the European market is the fastest grower.
Developments in the European EdTech sector
Businesses in the UK, Benelux and Scandinavia have proven particularly fast adopters of education technology. Education teaching practical skills and expertise useful in every-day activities is considered a valuable addition to the current education market. Traditional education has proven incapable of meeting the needs of our society’s labour markets. EdTech is being recognised as a sound addition to traditional education. With funding by and interest from investors, the B2B EdTech share in businesses is expected to show considerable growth over the coming years.
EdTech set to continue to grow for now
Education is key in our society. Technological developments play a key role and demand for software for digital education is growing. The EdTech M&A market is a dynamic one. To build a strong position in this key market, it is worth considering the development of a clear EdTech strategy. If you would like to know more, please do not hesitate to contact Ramon Schuitevoerder.