MOTIV: Global EduTech Market
Summary of the latest trends in the EduTech Industry
The MOTIV Protocol is an educational and decentralized identification platform that provides educational information equally to students, parents, academy managers, and advertisers using blockchain technology in the advent of the Fourth Industrial Revolution. The MOTIV Protocol guarantees reliable security for its users and promises to work tirelessly to offer new solutions for the education field in the digital age.
Welcome to the MOTIV Protocol! Today we’re going to take an in-depth look at the EduTech Market. We will spend time looking at the overall trends, global expenditure, and future outlooks for this growing field. EduTech won’t just affect the classroom, it is making headway in a variety of industries. It’s exciting to think about where this field will go next! Read on to find out more.
Overseas EduTech Market
The latest trends in the EduTech industry are summarized below.
① Increasing interest in “Programming Education”
② Revitalization of foreign language education
③ Expansion of content businesses
④ Diffusion of Bachelor’s degrees and classroom support solutions
According to Holon IQ, an education market research firm, the size of the education service market was estimated to be USD 5.9 trillion in 2019. The forecast before the COVID-19 outbreak predicted the value of the EduTech market to be USD 7.8 trillion by 2025, suggesting a growth of about 4.8% annually. Unfortunately, COVID-19 happened which affected the real and predicted growth of the EduTech market. The 2020 value was USD 5.4 trillion in 2020, down from 2019. The new forecast predicted only USD 7.3 trillion dollars in 2025, and an average annual growth rate of 3.6%. While there was a significant decrease due to COVID-19, the size of the market is still trending upwards.
Global Education Expenditure
As of 2017, the per capita education expenditure of OECD countries was about USD 10,540. Per capita education expenditure for 23 EU countries was about USD 10,854. OECD countries’ per capita education expenditures rose 1.3% annually compared to 2012, and 23 EU countries’ per capita education expenditures increased 1.2% annually compared to 2012.
EduTech Industry Status
Traditional eLearning in both advanced and emerging markets is expected to be quickly replaced by EduTech technology. In developed countries, which introduced traditional eLearning systems first, we will see traditional eLearning technologies be replaced by new EduTech systems that incorporate new technologies. In countries where eLearning is still not fully developed, they will simply leapfrog traditional systems and try to introduce EduTech systems right away.
Investment in EduTech has also increased significantly and is expected to grow significantly in the future. Venture capital investment in EduTech continued to increase between 2010 and 2019. With a USD 500 million investment in 2010 growing more than 10 times reaching USD 8.2 billion in 2018 and USD 7 billion in 2019. By country, China’s investment has increased significantly. From 2010 to 2019, EduTech venture capital funding by country was USD 16.6 billion from China, USD 10.5 billion from the United States, USD 1.8 billion from Europe and India, and USD 1.7 billion from the rest of the world.
Unicorn Companies in EduTech
In addition to the public education market, the desire to “learn something” during the COVID-19 period led to an increase in demand for educational content. This gave rise to a second foreign language learning boom. As a result, companies that can easily teach a second language, such as Duolingo, have grown explosively during COVID-19, becoming unicorn companies.
Duolingo is a language learning app with over 300 million users. During the COVID-19 period, many people who devoted themselves to language learning caused sales to skyrocket. In fact, Duolingo secured USD 35 million in investment in November this year.
Due to the spread of COVID-19, EduTech companies such as Duolingo grew significantly. As of December 2020, eight EduTech unicorn companies have been established. Check them out in the table below.
EduTech companies are growing in various fields such as customized learning, game-based learning, foreign language education, and coding education. Arizona University and Deloitte Research have shown the effects of AI-enabled education. These include a 17% increase in pass rate and a 56% reduction in withdrawal of classes. It even saw 45% of students complete the curriculum earlier than planned. In this way, EduTech will release products and services that allow learners to have a more suitable and unique learning experience with the help of technologies such as AI, AR, and smart devices. This goes beyond just eLearning by moving offline classes online.
Dee, who works for a U.S. market research institute, said in an interview with KOTRA Silicon Valley Trade Center, “Before COVID-19, the U.S. EduTech market was mainly focused on career development. However, due to COVID-19, more opportunities are expected to appear as non-face-to-face online education introduces EduTech to public education areas such as online classes and chatbot services.” In the midst of this change, EduTech, combined with IT technology, has created new possibilities in the market. Now, there is an increasing movement to secure references in the domestic public education market and enter the U.S. based on them.
