EdTech and Smart Classroom Market Size, Share & COVID-19 Impact Analysis, By Instructional Aids (Smart Classroom, and Mobile Learning), By Hardware (Interactive Projectors, Interactive whiteboards) By Educational Tools (Admission Automation Tools, Administration Tools (ERP & CRM), Learning Management Tools), By Technology (Gamification, Analytics, Enterprise Resource Planning (ERP)), By End-User, and Regional Forecast, 2020-2027

The global edtech and smart classroom market size was USD 74.33 billion in 2019. The education industry has exhibited both negative and positive impacts worldwide post the outbreak of the novel coronavirus. The pandemic has disrupted the higher education sector, a major concern for a country’s economic future. Such disruptions due to COVID-19 have forced the policymakers to drive effective learning solutions to ensure student engagement. Based on our analysis, the global market will exhibit a stellar growth of 15.4% in 2020. The market is projected to drop from USD 85.76 billion in 2020 to USD 251.78 billion in 2027 at a CAGR of 16.6% in the 2020-2027 period. The sudden fall in CAGR is attributable to hinder the adoption of smart classroom solutions across the globe.

The global market is expected to showcase exponential growth during the forecast period. Government-funded projects & digital programs, substantial private capital investments, increasing smartphone penetration, and high demand for mobile learning solutions are some of the factors anticipated to drive the growth of the edtech market. The integration of advanced technologies such as artificial intelligence, big data, and machine learning with education tools is also expected to be a prominent trend prevailing in the global market. The COVID-19 pandemic is set to show both positive and negative impacts on edtech and smart classroom adoption.

The Outbreak of COVID-19 Pandemic to Transform the Educational Industry Worldwide

Governments of various countries are driving online digital learning platforms and learning management software to conduct online teaching classes.  This has led to a downturn in the global smart classroom market. However, it has driven mobile learning towards a higher growth trajectory.

The crisis has further stimulated the research and innovation activities of industry experts in educational technology. Distance learning solutions are developed to support the continuity of education, including the global education coalition convened by UNESCO. To mitigate the impact of COVID-19, governments across the globe are raising funds. For instance, in August 2020, Google collaborated with the Government of Maharashtra to enable a digital learning platform. The collaboration aims to drive blended learning for students and teachers across the region.

LATEST TRENDS

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Artificial Intelligence and its Applications in Education Technology to be the Most Prominent Trend

Artificial intelligence (AI) and machine learning (ML) are expected to enhance the traditional learning methods by driving personalized and streamlined education. Education is increasingly becoming mobile, attributed to the widening cluster of connected devices, the proliferation of smart devices, and other digital tools. The big data generated through these devices has led to personalized learning and effective interventions in the education industry. Augmented reality (AR), virtual reality (VR), and mixed reality are more likely to create several learning opportunities to engage students.

DRIVING FACTORS

High Capital Fundings Globally to Drive Growth

The outbreak of the COVID-19 pandemic has accelerated the adoption of novel technology in the educational sector. As a result, companies across the globe are making substantial investments in edtech to gain more profits. As per the Edsurge database of publicly announced funding deals, in the first half of 2020, in the U.S., several education technology companies raised approximately more than USD 803 million in funding in venture capital. The Edtech companies support students and educators across K-12 and pre K-1 sectors. Such high capital funding is expected to fuel edtech and smart classroom adoption.

Government Initiatives and Programs to Foster Research and Development across the Edtech Industry

Government initiatives and funded programs for online courses and digital learning programs are likely to boost the development in the edtech industry. For instance, in 2020, the U.K. Association for Learning Technology (ALT), on behalf of the Department of Education, provided an opportunity to schools and universities to be a part of the national Edtech strategy by using technology.

Similarly, in January 2018, the Government of Japan announced to implement artificial intelligence and information technology in the education sector comprising elementary and high schools. This shows that the Economy, Trade, and Industry Ministry of Japan is encouraging schools and universities to use advanced technologies to offer more enhanced learning experiences.

RESTRAINING FACTORS

Cybercrime to be a Significant Threat for the Education Sector

The education sector is increasingly subjected to cyber threats and cybercrimes that are more likely to impede the adoption of these solutions. For instance, in March 2020, a malicious phishing scam was experienced at the University of Arizona, United States. The hacker asked the user to enter credentials to install a code on the user’s system. Similarly, in June 2020, the University of Oxford and cyber assets of Samsung Canada experienced phishing attacks. The above incidents show that the increasing number of cyber-attacks is likely to impede the adoption of edtech as well as smart classroom solutions.

SEGMENTATION

By Instructional Aids Analysis

Mobile Learning Segment to Gain Traction Backed by Implementation of Online Learning Programs

Based on the instructional aids, the market is classified into smart classroom and mobile learning. The smart classroom segment is expected to hold a major market share. However, due to the shutdown of schools, universities, and other educational institutions, the global smart classroom market is expected to show a downturn in terms of revenue. 

The mobile learning segment would gain traction in the coming years. As a part of the security measures, governments across several countries have implemented mandatory online learning programs, examinations, and distance learning programs for students to mitigate the impact of the COVID-19 crisis on the education system. These factors would surge the adoption of mobile learning services. Also, the increasing adoption of mobile learning tools is more likely to create lucrative opportunities for edtech & smart classroom solution providers.

By Hardware Analysis

Interactive Whiteboards Segment to Be Driven by Ongoing Technological Advancements

The edtech and smart classroom market by hardware is segmented into interactive projectors, interactive whiteboards, and others. The other segment includes interactive displays, tables, and audio systems. Interactive projectors are the most preferred solutions for classrooms & collaborative office meetings. Interactive whiteboards, also called smart boards, are gaining popularity due to the ongoing advancements in technology. They are used to deliver collaborative experiences to facilitate interactive learning.

By Educational Tools Analysis

Learning Management Tools Segment to Grow Immensely Stoked by Integration with AI

By educational tools, the market is divided into admission automation tools, administration tools (ERP & CRM), learning management tools, alumni management tools, placement management tools, and library management tools. The learning management tools segment is expected to hold a major market share attributed to their integration with AI-enabled capabilities. The admission automation software segment is also set to exhibit high growth owing to the increasing student enrolment across the globe.

The administration software solution constitutes customer relationship management (CRM) and enterprise resource planning software (ERP). Administration software solutions are primarily used in premier educational institutions to effectively manage their regular operations. The overall educational tool segment is expected to grow, including library management tools, alumni management tools, and placement management that provide integrated features.

By Technology Analysis

Rising Adoption by Universities to Propel the Advanced Technology Segment

By technology, the market is classified into gamification, analytics, enterprise resource planning (ERP), advanced technology (AI, AR, VR, robotics, and Blockchain), and others. Technologies such as artificial intelligence, augmented reality, and virtual reality are expected to drive the next-generation edtech and smart classroom solutions to equip students for a better future. These technologies are expected to be potentially adopted by universities and higher education providers. Analytics is at the core of advanced technology and integration of analytics with these solutions is likely to see significant growth in the coming years

Gamification is expected to be the preferred technology for K-12 and kindergarten. Edtech companies offer customized gaming solutions for a particular age group. Kindergarten is expected to be the potential customer for game-based learning methods. Similarly, other technologies, such as ERP, school, and campus security, are likely to show considerable growth. Integration of advanced technologies such as artificial intelligence, analytics with educational tools is more likely to drive the application of advanced educational tools in edtech and smart classrooms.

By End-user Analysis

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High Investments and Fundings to Contribute to Growth of Higher Education Segment

By end-user, the market is divided into higher education, K-12, and kindergarten. The higher education segment is expected to hold the major share attributable to high investments and fundings in Edtech technology. Higher education institutions are also investing in advanced technologies such as artificial intelligence, machine learning, and others. K-12 is a potential customer of learning management tools. The outbreak of the COVID-19 pandemic has also surged the adoption of Edtech tools across the K-12 segment.

REGIONAL INSIGHTS

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Based on the geography, the global market is analyzed across five major regions, including North America, South America, Europe, the Middle East and Africa, and Asia Pacific. North America is anticipated to be the largest market in terms of size. The United States is expected to contribute to the major EdTech and smart classroom market share in the regional and global market. The increasing demand for distance learning is set to further drive the demand for edtech as well as smart classroom solutions across the region. EverFi, Hero K12, Grammarly, Coursera, and Wonder Workshop are some of the significant fundraisers for edtech as well as for smart classrooms across the U.S.

Asia Pacific is expected to show explosive growth by the end of 2027, mainly driven by China and India. The potential growth in the region is backed by the rising investments in education technology by numerous edtech and smart classroom companies operating across the region. The market growth in the region depends upon several micro and macro-economic factors such as increasing population, literacy rate, mobile penetration, and digital initiatives by governments.

The Middle East and Africa is estimated to show remarkable growth, followed by Asia Pacific. The region is observed to be an upcoming Edtech & smart classroom market. The growth depends upon educational reforms across countries and foreign investments. Governments are allocating 15 to 20 percent of the budgets to the education industry to mitigate the impact of COVID-19 on the industry.

Europe is expected to show significant adoption of edtech and smart classroom solutions. According to Bett Innovation Index 2018, from a survey of 1000 teachers across Europe and the United Kingdom, 87% of teachers believe that artificial intelligence has a positive impact on learning outcomes. This shows that advanced technologies such as artificial intelligence and its applications are more likely to generate high market growth across Europe.

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South America is expected to show moderate growth during the forecast period. Brazil’s private education sector has exhibited significant growth over recent years. The growth is fueled by high-profile investments, favorable regulatory policies, and other macroeconomic factors. In April 2018, Kroton Educacional SA, a private educational organization headquartered in Brazil, acquired Somos Educação S.A, a provider of digital education services, for USD 1.80 billion. Such consistent high-profile investment activities are likely to make Brazil one of the most attractive marketplaces for edtech & smart classroom companies.

KEY INDUSTRY PLAYERS

Key Players to Embrace Strategic Partnerships and Collaborations for Driving Online Learning Solutions              

Edtech and Smart Classroom solution providers are embracing strategic partnerships and collaborations to offer enhanced online learning solutions and increase their shares. They are also introducing new products and advanced features to their existing portfolios for mitigating the impact of the COVID-19 pandemic on the education sector. For instance,

• July 2020- IBM Corporation and the Central Board of Secondary Education (CBSE), a national level board of education in India, collaborated to announce the integration of artificial intelligence (AI) in the high school curriculum for the year 2020-2021.


• November 2020 – Blackboard Inc. released Blackboard Assist, a new feature to its cloud learning management system (LMS). Blackboard Assist provides easy access to support services such as wellness, academic, career, social life, and social services within a centralized location.

LIST OF KEY COMPANIES PROFILED:

• SAP SE (Walldorf, Germany)


• Apple Inc. (California, United States)


• IBM Corporation (New York, United States)


• Alphabet Inc. (California, United States)


• Cisco Systems Inc. (California, United States)


• NetDimensions (Holdings) Limited (Hong Kong)


• Amazon.com Inc. (Washington, United States)


• Microsoft Corporation (Washington, United States)


• SMART Technologies ULC (Calgary, Canada)


•  Dell Inc. (Texas, United States)


• Cornerstone On-demand Inc. (California, United States)


• 2U, Inc. (Maryland, United States)


• Fujitsu Limited (Tokyo, Japan)


• Anthology Inc. (Boca Raton, Florida)


• Ellucian Company L.P. (Virginia, United States)


• Discovery, Inc. (New York, United States)


• Blackboard Inc. (Washington, D.C., United States)


• Jenzabar, Inc. (Massachusetts, United States)

KEY INDUSTRY DEVELOPMENTS:

• September 2020 – 2U, Inc. partnered with Colgate University to deliver an enriched hybrid learning experience for courses. Through this collaboration, 2U Inc. will provide critical help support for faculties at Colgate University to deliver an enhanced online learning experience for students.


• November 2020 – Anthology Inc. acquired xRM.com LLC’s Foundation and matching software solution. Through this acquisition, the company aims to combine Campus Management labs and iModules and streamline alumni engagement capabilities.

REPORT COVERAGE

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The Edtech and smart classroom market research report offers qualitative and quantitative insights on the product and an exhaustive analysis of market size & growth rate for all possible segments in the market.  Along with this, the report comprises a detailed analysis of market dynamics, emerging trends, and the competitive landscape.

The main insights included in the report are the trends in the adoption of individual segments, recent developments in the industry, such as mergers & acquisitions, integrated SWOT analysis of key players, alliances, Porter's five-force analysis, business strategies adopted by major market players, key industry trends, macro, and micro-economic indicators.

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