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Explore the latest trends and actionable insights on the EdTech market to inform business strategy and pinpoint opportunities and risks

Edtech Leaders: China, India, and the US

Industry: Technology
Current: Other Industry Indicators

The Global Edtech market reported $123.8 billion in revenue in 2019 and is expected to grow at a CAGR of 14.3% between 2019 and 2030
With a bustling Edtech startup culture, China, India, and the US have emerged as the leaders in the Edtech domain
Edtech market has grown significantly due to the adoption of online and digital modes of education during the pandemic

Edtech Leaders: China, India, and the US

The field of education has a rapidly growing market that underwent a digital transformation and familiarized itself with the online learning format due to the COVID-19 pandemic, bringing about an Edtech revolution. According to GlobalData, the Global Edtech industry reported $123.8 billion in revenue in 2019. China, India, and the US have been the leaders in the Edtech industry, with startups and private companies being at the forefront of the Edtech industry in these countries. With strong financial support from investors, the Edtech market reported of several deals, as companies seek to acquire smaller firms to transform their business models.

China

The education technology (Edtech) industry in China registered exponential growth, with a focus on the business-to-consumer (B2C) market model. In China, for their children to ace the Gaokao and Zhongkao exams, which are national college entrance examinations, parents shell out large amounts of money, aiding the popularity of Edtech products and services.

But in July 2021, the crackdown by the Chinese government led to disruption in the Edtech industry. The government introduced the Double Reduction policy, which refers to a reduction in money, time, and effort required for the schooling and training programs by effectively banning for-profit tutoring of school subjects and foreign-based tutors. Government review and government approval are now mandatory for institutions to continue online subject-based training. Companies such as Yuanfudao, Zuoyebang, and VIPKID would be forced to rethink their business model and explore other business options.

India

The Edtech industry in India grew swiftly to meet the demand for online learning products and services following the nationwide lockdown after the outbreak of the COVID-19, and the discontinuation of classroom teaching. The Indian government, in response to online and digital education, introduced the 2020 National Education Policy, which recognized the need for online education and remote learning. The policy also helped establish the National Educational Technology Forum (NETF), a platform for the deployment, induction, and use of technology in the education sector.

Edtech startups such as Byju’s, Vedantu, and Unacademy that only had an online presence are now venturing into hybrid instruction by offering offline classes and offline experience centers. As reported earlier, merger and acquisition deals in the Indian Edtech industry have increased.

United States of America

The COVID-19 pandemic made Edtech a permanent fixture in the K-12 education segment in the US. The American government announced stimulus packages for funding public schools during the pandemic, but the spending was limited due to the schools being shut during the pandemic. Schools in the US have reopened and they are now financially well equipped to buy products and services from these Edtech companies, which enable them to continue with the digital method of teaching.

Edtech companies in the US have expanded into newer markets globally, made acquisitions, and expanded into other segments of the Edtech market. Udemy, an American online teaching and learning platform, has entered into a partnership with Woongjin ThinkBig, a Korean education company. This partnership helps bring Udemy’s products to more learners and instructors in South Korea. 2U, a Software-as-a-service (SaaS) platform, acquired the Harvard and MIT-founded edX, which is an online learning platform, for $800 million. With this acquisition, 2U will add university-level massive open online courses (MOOC) to its existing digital transformation portfolio.

Explore the latest trends and actionable insights on the EdTech market to inform business strategy and pinpoint opportunities and risks Explore the latest trends and actionable insights on the EdTech market to inform business strategy and pinpoint opportunities and risks Visit Report Store