10 Reasons the EdTech Industry is Growing so Fast
- By Alina Guzik & Kasia Pruska
- Published on April 18
10 Reasons the EdTech Industry is Growing so Fast
Education is one of the largest market sectors in the world. Technology has been in the forefront of this industry for several years. In 2020, Venture Capital investments in EdTech (educational technology) doubled compared to 2018 and amounted to $16 billion. The size of the global EdTech market was valued at a record $89 billion in 2020. We expect it to grow to $377 billion over the next 7 years!
It's no secret why this is the case:
1. The education market is as big as the global population
The potential market for the EdTech industry is enormous. There are over 1.2 billion students in the world, and if you add more than 6 billion learners over the age of 18, these numbers are impressive to even the most cold-blooded entrepreneur. Many companies are sharpening their teeth to eat at least a piece of this "educational cake." In addition, access to education and customers has never been so quick and easy – over 5 billion people (over 60% of the population) have access to the Internet, and over 3.5 billion have a smartphone.
2. The pandemic has accelerated the adoption of technology in education by a good dozen or so years
The sudden pandemic also helped the industry grow. In an instant, it moved from school desks to the digital world. Although specialists in EdTech have been campaigning for years to support technology adoption in education, nothing has ever done so much for this industry as a tiny virus the size of one-millionth of a millimeter. While many industries have struggled to survive the pandemic, the EdTech market is doing great and has even found its way into mainstream education.
3. Employers are looking for employees who are nowhere to be found
There is a lot of talk in the world about the crisis in education. Employers openly say that they are seeking skills and qualifications from employees that school graduates do not have. It is for this reason that the industry is pushing the government to make changes to education. Where changes are being made, you can really earn good money!
4. Recruiters are ceasing to ask about school
If you are a programmer or know a programmer, you are probably aware that the question about where you graduated has been removed from the interview scenario, especially for EdTech software companies. More and more often, knowledge, experience, and emotional intelligence have started to count. There has been a sudden development of e-learning, and online education platforms – everything that can help in self-development – and these are also slowly replacing hours spent behind school desks.
5. Students and teachers have begun to tap their feet
Modern students are perhaps even less immune to boredom than back in the day. Less and less often do they forgive outdated teaching methods, well-worn lectures, and monotony. Teachers know this, which is why they increasingly use online tools, applications, games, and interactive content. And all this is great for EdTech, which continues to come up with new solutions to support active learning.
6. Parents have stopped beating around the bush
If you have recently attended a parent-teacher meeting at school, you must have met people there who openly demanded an increase in the quality of education, pointed out to teachers their shortcomings or pointed out the failures of the curriculum. All this has resulted in the acceleration of the adoption of modern educational solutions and the search for new learning methods.
7. The learning process is the same on the Nile, Amazon, and Mekong
The learning process is roughly the same for all people, regardless of race, status, or where they live. Contrary to appearances, education has many common global features, which makes international business expansion much easier.
8. People love a flexible approach to work and study
Learning and studying when you have the strength, time, and will to do so is no longer treated as a whim. The future of education lies in Learning on Demand solutions and, although we appreciate the benefits of being close to another person, the proportions between studying in the classroom and learning from home will change significantly, whether we like it or not.
9. World full of IT needs, edu full of tech
Technology is an important part of our lives, so we need people who understand it well, can use it, create it, and manage it. It is not surprising that technology is being introduced to schools on a larger scale. This is a natural step in our development.
10. Education has an impact on the fate of the world, which opens the right wallets
In a knowledge-based economy, it is the knowledge that drives development. Education is also the most effective weapon in the fight against poverty and social exclusion. Whoever has knowledge can decide the fate of the world. Governments, investors, donnors, and high-net-worth individuals (HNWI) know about the power of education, opening their wallets to be able to participate in something that has a great impact on our future and possibly our entire civilization.
The EdTech industry is going through a golden age. If we open our eyes, we can easily see a new EdTech startup appearing in the arena every day. Along with the development of companies, the demand for employees is increasing.
According to Manpower Group's calculations, there are now over 15,000 open vacancies for positions in the industry and this number will grow year by year.
If you are a content developer, software developer, marketer, or manager and you are looking for an industry with potential, in which you can make an impact, then EdTech is for you.