EdTech: Crossing $100 billion soon

Education Tech | December 20, 2018

EdTech: Crossing $100 billion soon

Education fuels global transformations, but what is transforming Education? Education Technology, EdTech is about to cross the $100 billion mark and we at Kognetics have captured this market information leveraging our domain expertise and proprietary AI platform.

We are sharing our perspective, key insights and predictions with you after analyzing a total of 4285 global companies in EdTech. With total funding of $97.8 Billion and an average funding of $5 million, EdTech is shattering records and emerging as the most attractive Tech sector for investments and acquisitions.

EdTech is the next Fintech

To understand this sector and the opportunities it offers to startups, corporates, VCs, PEs and IBs we cover the following aspects of EdTech:

  1. EdTech Landscape
  2. Funding Predictions
  3. Acquisition Predictions

In this article, we will share the various segments in EdTech and zoom into one of the most lucrative segments to demonstrate various business models that exist in EdTech. In subsequent articles we will talk about Funding Predictions and Acquisition Predictions.

EdTech Landscape

After a comprehensive research Kognetics has developed the market landscape view of the sector by categorizing the companies into 16 segments and identifying a total 113 business models across these segments. The granular view of the sector allows further analysis and predictions on 3 levels- across different tech sectors, segments and business models, using AI and machine learning capabilities of Kognetics.

The market landscape below has been coloured by the number of companies in each segment. This is only a high level view of the sector. For a more granular taxonomy you can reach out to us.

EdTech Industry Landscape

The market landscape of EdTech provides some interesting insights into how the sector is organized and the audience it caters to. Segments catering to K12 and Higher Ed have seen some gradual evolution over time. On the other hand segments like EdTech Marketplace, Career Advancement, Self Learning and Corporate Learning are seeing growth at much faster rate. Business models in these growing segments cater to consumers and corporate market and taking out the education institutions from the equation providing easy access to education content across the globe and at a much lower cost than institutions.

Self Learning has the highest number of companies ie 1736. This segment also has new business models emerging and growing at a high rate. Few other high growth segments are Corporate Learning and Learning Platforms. We will take you deeper into the Self Learning and give you a glimpse of the granular view.

Zooming into Self Learning

Self Learning platforms and tools enable students and professionals to directly access education material and resources online without the need of an institution (like school, college, company, etc) catering to the growing consumer market.

Self Learning Industry Overview

With high growth prospects the segment is seeing a rapid increase in the number of companies and business models making this a highly lucrative segment for investments and acquisitions. Angel investors and and Venture Capitalists are increasingly investing in this sector while corporates and PEs have been actively making acquisitions.

Virtual Tutoring Assistant with Embryonic industry maturity is one of the emerging business models across EdTech. Increasing emphasis on AI and chatbots has led to rise of such business models that cater to end consumer offering them user friendly applications with low business costs.

Other business models like Language Learning Platform are already gaining a lot of attention with 275 companies already functioning in this business model. This can be attributed to increase in demand for business diversification across geographies and cultural infusion in developed countries.

Conclusion

EdTech is where money is flowing into. If you are a bull investor, buy stocks in EdTech companies. If you plan to initiate a startup, assess various opportunities opening up in EdTech. If you already have a startup or a midsize company, this is the time to seek investments from Angel Investors and VCs. If you are a Private Equity this is where you should acquire companies, either for value creation or as bolt-on to strengthen your portfolio.

Kognetics is an Intelligence Augmentation (IA) platform for enterprise decision making. Our platform and solutions are designed to dramatically transform M&A and investments decision making. If you would like us to showcase the platform, or if you would like to know more details about Kognetics, please do reach out to us here.

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