edtech report education market global growth edtechxglobal
Global Report Predicts EdTech Spend To Reach $252bn By 2020EdTechXGlobal releases key market drivers in global EdTech review andhighlights changing nature of the workforceLeading education technology-focused conference, EdTechXGlobal has todayreleased its forecast for the biggest trends set to impact the EdTech industryin 2016, from a report produced in partnership with IBIS Capital. Ahead of theannual summit in June, the report also demonstrates how the EdTech market haschanged dramatically, with a growing realisation of the impact EdTech ishaving on the way skills are acquired and developed for the 21st Centuryworkforce.The report finds EdTech market acceleration will be hugely dictated by theglobal education expenditure market, as education becomes increasingly moreexpensive. In fact, the market is now over $5tn, 8x the size of the softwaremarket and 3x size of the media and entertainment industry, yet education isonly 2% digitised. With the market expanding rapidly, so too is the annualsummit, which will this year take place over two-days in London, with thelaunch of an inaugural Asian event in November.“We expect a long rising tide rather than an avalanche, and as such, we needto manage our expectations accordingly,” explained Benjamin Vedrenne-Cloquette, Co-Founder, EdTechXGlobal. “We estimate that the speed ofdigitisation in education will be up to five times slower than has been seenin other sectors, due primarily to the increased number of gate keepersinvolved in digital transition decisions, teachers, institutions, governingbodies, districts and policy makers amongst a few”.Education technology is becoming a global phenomenon, and as distribution andplatforms scale internationally, the market is projected to grow at 17.0% perannum, to $252bn by 2020. To date, the US has set the trend and pace of theEdTech market. Asia is now experiencing the world’s fastest growth ininvestment into the sector, and Europe has seen increases in M&A; however,this region remains a largely under-invested and fragmented market.Mobile penetration, particularly smartphones, will be a game-changer towardsdelivering and supporting learning, and driving growth. The report notes thatNorth America, Europe and the commonwealth states lead in internet and mobilepenetration, while substantial growth is expected across emerging markets,with mobile being a catalyst for delivering and supporting learning. With 90%of the world’s population under 30 already being in emerging markets,education and vocational training in the area will be led by mobile firststrategies.Population growth will be a key challenge for the EdTech sector. By 2035,there are expected to be 2.7bn students worldwide, and in order to meet highereducation demand under the current structure; two universities need to bebuilt per day, over the next twenty years. As such, the report states thatthis is leading education providers to seek ways to capitalise on growth byexpanding their brand to export markets so individuals can accessinternationally recognised qualifications.With the recognition of online education qualifications long representing achallenge for the industry, the report indicates that MOOC job conversionrates are increasing, largely driven by demand from employers for skilledworkers. Although monetisation still remains unclear, the report draws upsolid examples of successes in this respect with Coursera, an educationaltechnology company that offers MOOCs, sited as being set to reach $30m inrevenues per year thanks to its steps to solve marginal cost and positiveimpacts at a massive scale.The report predicts a global workforce crisis powered by extreme automation.The ‘Fourth Industrial Revolution’ will see an increase in workforceautomation to include not only highly repetitive low-skill jobs, but alsohighly routine medium-skill jobs. This will accelerate disparity between thesupply and demand of candidates and force employees to learn new skills, bothwithin the workplace and in educational establishments.Benjamin continues, “in a rapidly evolving economy where skill sets continueto progress at an accelerated pace, digital models offer a way to capturethese changes and offer new routes for re-skilling as well as addressingwidespread labour shortages, 50% of current jobs won’t exist in 2025, andconsequently, there will be a growing need to re-train the workforce in orderto address current skill gaps and increase the use of continuous learning.”The report’s findings will be discussed in detail at the summit on 15th-16thJune, during which more than 800 delegates and over 150 speakers are expectedto come together to engage in keynote speeches, fireside chats and paneldiscussions, to share knowledge and champion growth in the EdTech sector.Formally known as EdTech Europe, the London event has grown exponentially overthe last three years, undergoing a branding overhaul in 2016 to reflect aburgeoning interest from international delegates. Now, along with the newlylaunched EdTechXAsia event, EdTechXEurope will sit under the EdTechXGlobalumbrella of events, to provide a truly worldwide platform for global EdTechexperts, investors and innovators.To see the full report from EdTechXGlobal or to find out more about upcomingsummits, visit www.edtechxeurope.com.