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The global higher education technology market size was valued at USD 77.66 billion in 2020 and is projected to grow from USD 85.43 billion in 2021 to USD 169.72 billion in 2028, at a compound annual growth rate (CAGR) of 10.3% in the 2021-2028 period. Based on our analysis, the global market exhibited a significant growth of 9.9% in 2020 as compared to the average year-on-year growth during 2017-2019. The global impact of COVID-19 has been unprecedented and staggering, with higher education witnessing a negative impact on demand across all regions amid the pandemic. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Higher education institutes combine technology with theory and practical studies to identify the best method to achieve the defined learning objective and outcome. Many institutes and universities worldwide adopt different tools and modes to transform their teaching, such as laboratory workshops, into an online, blended delivery method. Some of the universities are seeking help from tech giants by joining hands or partnering with them. For instance,
Temporary Closure of Institutes Reduced Educational Hardware Demand and Increased Online Learning
The COVID-19 pandemic has temporarily shut down most educational institutes across the world. As per the Boston College Center for International Higher Education report, in April 2020, around 220 million students have been affected globally, as tertiary education institutes and universities have temporarily shut down in 170 countries and communities. Also, as per the National Student Clearinghouse Research Center Report, the number of college student enrollments has fallen to 1.3%, with the loss of about 231,000 students compared to the year earlier.
Traditional education learning system’s approaches have suddenly shifted to virtual, distance, and blended learning systems through remote learning platforms. For instance, in March 2020, the Chinese Ministry of Education started providing flexible online learning to over 270 million students through the “Disrupted Classes, Undisrupted Learning” program. Institutes are adopting advanced solutions to make infrastructures more responsive, engaging, and insightful than ever before. Thus, this unprecedented growth in the demand for education technologies during the present crisis fuels the growth of this market.
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Increasing Investments from Venture Capital Firms in Education-Technology to Surge Market Opportunities
Over the past ten years, education-technology (EdTech) deals have exploded in value and number, reaching approximately 300 transactions by 2020. In parallel, the number of venture capital (VC) investing in EdTech companies is increasing dramatically.
Similarly, prominent companies such as Owl Ventures, Kapor Capital, Exceed Capital, and others are investing in many educational technologies to improve the education system. Thus, growing funding for transforming the education system will drive advanced higher education technology market opportunities.
Increasing Proliferation of Online Teaching to Aid Market Growth
Online learning has started to gain much pace in the higher education sector. The availability of high-speed internet, increasing usage of personal computing devices, and governments’ initiative towards digital learning are the key factors responsible for driving the popularity of online learning platforms.
The trend of distance learning across North American countries has significantly accelerated online teaching-learning approaches. Several institutes have started enrolling students for partial or fully online educational programs at the institutional level.
Apart from this, the COVID-19 pandemic has strengthened the support for online coaching. Thus, the crisis is also expected to considerably expand the usage of distance education platforms for higher type of education is driving the higher education technology market growth.
Insufficient State Funding and Higher Tuition Fees to Limit Enrollments
Many countries are facing incapability in adopting advanced learning solutions owing to the lesser availability of dedicated funds. Besides, the rapidly transforming educational culture is forcing institutes to increase their expenses to modernize their services and infrastructures. Thus, several universities, colleges, and institutes have started generating revenues from students' tuition fees rather than government funding. However, the rising need for increasing tuition charges puts tremendous strain on students. This factor is likely to affect the number of enrollments and, thus, restrain the growth of the market for higher education technology.
Substantial Spending on Learning Software to Drive Market Growth
Based on components, the market has been classified into hardware, solutions, and services.
Among these, the hardware segment is presently holding a major share of the market for higher education technology, while the solutions segment is likely to exhibit substantial growth during the forecast period. This is attributable to increased demand for projectors, interactive whiteboards, printers, PCs, laptops, tablets, smartphones, and other personal computing devices, that have become essential components of modern educational systems. For instance, a report published in April 2019 by the Government of the UK, stated that each year, schools in England spend about USD 13 billion on non-staff expenses, and out of these, USD 608 million is spent on learning hardware equipment.
The solutions segment is further classified into student information systems, learning management systems, student response systems, campus management, performance management, and others. Among these, the student information systems and performance management sub-segments are holding a commanding market share. The need to record and maintain detailed information about students is accelerating the growth of student information systems. Progressive approaches towards online training and learning support the demand for other systems such as advanced higher education technology.
Similarly, the increasing adoption of software tools is anticipated to drive the demand for training and consulting services during the forecast period.
Robust Flexibility of Online Learning to Increase Its Popularity
Based on the learning mode, the market is segmented into offline learning and online learning.
Offline learning captures maximum share due to the high preference for traditional teaching-learning methods. However, the amalgamation of digitalization such as e-learning or smart learning in the traditional teaching methods. Incorporating advanced learning methods has reduced the faculty’s workload by automating various educational processes, and it is encouraging organizations to adopt these technologies.
The online learning segment is likely to witness remarkable growth during the forecast period. This is owing to the rise in funding for online education programs. For instance, as per a national survey conducted by Higher Ed and Gallup in 2019, 56% of college and university chief academic officers (CAOs) agreed that they have planned to allot significant funds to online programs in 2019. Besides, the scalability and flexibility offered by online learning platforms are likely to aid segmental growth in the forthcoming years. In January 2020, the United Arab Emirates-based Khawarizmi International College deployed an open-source LMS system to enhance its educational landscape.
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Growing Private Educational Institute to Fuel the Demand for Advanced Learning Software
By end-user, the market is categorized into private colleges, community colleges, and state universities.
The state universities segment has captured the maximum higher education technology market share. According to the ‘All-India Survey on Higher Education (AISHE)’ conducted by the HRD Ministry, in September 2019, total higher educational institutions in India have grown from 49,964 to 51,649 universities from 903 to 993 during 2017-2019.
The private colleges segment is likely to exhibit significant growth. This growth can be attributed to the increasing number of private institutions and universities.
The community colleges segment is likely to exhibit slow growth as the enrollments in community colleges have slumped in the past decade.
North America Higher Education Technology Market Size, 2020 (USD Billion)
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Geographically, the market is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
North America to dominate the market share during the forecast period. This dominance has been attributed to the significant spending on the education sector in the region. The United States is considered an education hub with the highest number of institutions and universities globally. Significant investments in educational technologies are fueling market growth across the United States. In addition, governmental efforts to broaden the education landscape at the international level propels the demand for higher education technology in the region.
Europe is expected to capture a substantial share in the global market as the region is experiencing a notable rise in the number of institutions. European institutions have adapted their teaching and learning approaches in response to the changing demand and societal and technological developments. Progressive prospects towards advanced learning approaches are expected to drive market growth across Europe. For instance, in February 2021, the German Chancellor & Education Minister launched Digital Education Initiative to strengthen learning.
Asia Pacific is likely to experience tremendous growth in the global market during the forecast period. This is owing to the increasing importance of higher education in the region. Education has become a vital element for Asian countries to support economic and sociological development. Ongoing digitization across various countries is stimulating the demand for advanced teaching-learning approaches in Asia Pacific. Governments, including Japan, India, Australia, and Malaysia, are supporting online learning methods, further augmenting market value across the region.
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The Middle East & Africa to showcase steady growth during the forecast period. As per the ‘Understanding Middle East Education’ report of 2018, Egypt enrolled 2.4 million students in 2016. This is expected to fuel market opportunities in the region. Similarly, Latin America is creating excellent opportunities for education providers, and rising investments have stimulated a favorable environment in the region’s education industry.
Highlighting Customized Learning Solution to Boost Market Presence
Key companies in the market are continuously focusing on evolving their existing product and service portfolios. Vendors are launching customized solutions as per the requirements of institutes and students. Also, advanced technologies such as artificial intelligence, machine learning, and deep learning are helping key players to develop innovative solutions. Besides, partnerships and collaborations with educational institutes help vendors to expand their business portfolios.
September 2020 – 2U, Inc. and Colgate University partnered to provide students with a rich and engaging online learning experience during the COVID-19 pandemic. This partnership aims to offer college faculties unique opportunities for skill-building and retool the existing approaches to expand their current teaching methods.
July 2020 – Blackboard, Inc. launched a data-driven, scalable, and proactive student retention solution that enables institutes to facilitate personalized coaching and early student intervention.
An Infographic Representation of Higher Education Market
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The global higher education technology market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
Value (USD Billion)
Component; Learning Model; End User; and Geography
By Learning Mode
The market is projected to reach USD 169.72 billion by 2028.
In 2020, the market was valued at USD 77.66 billion.
The market is projected to grow at a CAGR of 10.3%.
The hardware segment is likely to lead the market.
Increasing proliferation of online teaching to aid market growth
Oracle Corporation, Astera Software, CollegeDegrees.com, LLC, Bain & Company, Inc., Dell Inc., VMware, Inc., Xerox Corporation, CDW LLC, and Cisco Systems, Inc. are the top market players.
North America is expected to hold the highest market share.
The state universities segment is expected to grow with a remarkable CAGR.
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