EdTech: A Billion-Dollar industry

There was a time when education was confined to the four walls of a classroom, with textbooks and chalkboards as its primary tools. But with the advent of technology, the education industry has undergone a major transformation, making learning a dynamic and immersive experience.

In recent years, EdTech has taken the world by storm, revolutionizing the way we learn and transforming the classroom experience. And the support this — the global EdTech market is projected to grow at a staggering rate of 16.5 percent annually, reaching a whopping $410.2 billion by 2026.

The growth of this industry has not gone unnoticed, as existing tech billionaires are eager to invest and expand into the world of EdTech.

But like any burgeoning industry, EdTech faces its fair share of challenges. In this article, we delve into the rise of EdTech, explore the major players in the industry, and examine the challenges that it faces in the ever-growing market.

Growth of the Educational Technology Industry 

The Education Technology Industry has been steadily rising over the years with various products to facilitate better learning for students. It involves using computer programs, educational systems, online courses, e-learning platforms, software apps, and digital content, to provide education. 

However, it is not a new industry. In the 1960s educational institutions were already carrying out trials to use technology to teach spelling and math. 

As the internet became mainstream, online courses rose to the scene. Soon different forms of multimedia and video conferencing programs started dominating the industry making EdTech more accessible. 

The demand for more adaptive, personalized yet effective learning has increased with technological advancements and easy access to digital devices. With a smartphone and high-speed internet handy, people can access educational resources anywhere, anytime. 

While the industry was already growing, the pandemic gave a boost to remote learning and EdTech development. It was the need of the time hence, learning online became a popular demand which education technology fulfilled. 

This also highlighted the need for a personalized approach in the classroom. EdTech can cater to a student’s unique needs and provide an adaptive learning process enabling them to learn at their own pace unlike in a traditional classroom. 

This has led to exponential growth in the EdTech market over the years. 

Since, 2020 and the worldwide lockdown, the use of EdTech in school has increased up to 99 percent. In fact, corporate EdTech is also seeing growth with the industry being valued at $27.5 billion. This enables companies to upskill their employees in less time and expense thus, saving on draining training rituals. 

Around 70 percent or more colleges are looking forward to launching at least one undergraduate program by the coming three years. 

Hence, the demand for EdTech is only increasing day by day making learning easier and more accessible through online means. 

Major Players in the Educational Technology Market

The potential of this industry has led to many tech players seeking out a share of the market. Whether it is using Education Technology for business or students, these players help to facilitate learning and academic success through distance learning. However, they can be equally effective in the classrooms. 

These include: 

• Kahoot! 
• Duolingo
• VIPKID 
• Yuanfudao 
• BYJU’S
• Udemy
• Chegg

… among others 

Kahoot

Image Source: Kahoot!

Kahoot! Is an EdTech tool that enables learning in an interactive way through games, quizzes, and surveys. Teachers can make exit questions and quizzes for every lesson keeping their students engaged while completing their curriculum. 

They can also monitor each student’s understanding of the subject. Thus, Kahoot! Continues to grow with over nine million families and eight billion participants in over 200 countries. Kahoot! facilitates hundreds of millions of students to learn in a better way resulting in its rapid rise in the EdTech industry. 

Duolingo

Image Source: Unsplash

Duolingo is an app that helps users learn up to 38 languages with game-like steps. Users can gain points by fulfilling the challenges and then leveling up to the next stage of the language-learning process. 

Alongside that, Duolingo personalizes each user’s lessons using language science and AI. The app has generated over $250 million in revenue in the year 2021. And it has about 500 million registered users. 

VIPKid

Image Source: VIPKid

VIPKid is a platform connecting students across the globe with online educators present in the United States and Canada. This happens in real-time in an online environment. It is essentially an English language learning platform for Chinese students and has now expanded globally. VIPKid is valued at over $3 billion and has hosted more than 200 million classes. 

Yuanfudao

Image Source: Yuanfudao

Yuanfudao is primarily an online platform for Chinese students. However, it caters to over 400 million users in China, making it one of the major players in the edtech market. Yuanfudao offers varied services such as preschool support, K-12 after-school tutoring, and adult education services. 

BYJU’S

Image Source: BYJUS

BYJU’S is another global EdTech company aimed at providing learning solutions to students. It caters to around 115 million students across the world studying in classes 1 to 12. Students can learn in a self-paced mode using the videos available on the platform. BYJU is valued at $22 billion. 

Udemy

Image Source: Unsplash

Udemy is another household name in the Educational Technology industry that is essentially a marketplace platform with several courses on different subjects. Its courses range from languages to leadership and data science. 

Besides students, Udemy also provides corporate customers with a development platform and employee training with a plethora of courses and the option to host and distribute their own content. Udemy is valued at $3.3 billion.

Chegg

Image Source: Chegg

Chegg is a provider of educational content, physical and digital textbooks, and online tutoring. It contains a library of study materials such as practice quizzes, study guides, and lab notes from top educators worldwide. Chegg’s current net worth is $ 2.05 billion. 

Besides these, there are several other EdTech tools and platforms such as Google Classroom, Seesaw, Remind, Edpuzzle, ApplyBoard, Anchor, and Articulate that contribute to the industry in different ways. 

What are these? Let’s find out! 

Types of Educational Technology

The best forms of Educational Technology aim to keep students focused in the classroom. Even if it involves multimedia, the tools do not distract or deviate from the lesson. Rather, they increase the student’s understanding of the subject. 

Usually, EdTech has a wide array of multimedia such as video, audio, images, text, live, or animation. Using this multimedia in the form of educational technology software, apps, and learning management systems, teachers can improve the classroom experience. 

Learning Management Systems 

Learning Management Systems such as Google Classroom or Blackboard are essentially software applications that enable the delivery of content from teachers to students online. 

These software solutions deliver content in the form of online courses or regular lessons. They also facilitate communication between the teachers and students forming a feedback loop. 

Teachers can prepare knowledge tests and look into the statistics of individual students. All in all, the LMS is for the delivery, tracking, and management of online education whether in the form of courses or real-time lectures. 

Educational Apps 

With a smartphone in their hands, it is easier to access EdTech apps for students. These apps are usually designed to avail learning resources such as quizzes, games, or educational videos. For instance besides being an LMS, Kahoot! also has an app for easy access to young learners. 

Using the apps, students can also access Youtube channels of known educational technology websites such as BYJU’S. 

Gamification 

There has been an increase in retaining students’ interest with the introduction of gamification in the industry. This video game-like format and the achievement system to gain points help students stay engaged. 

Designing problem-solving strategies, and team competitions make the learning experience more fun and interactive. What’s more, gamification can be used for every type of educational content whether it is for primary school kids or university-going adults. 

EdTech websites and apps such as Khan Academy use the leaderboards, point scoring system, and badges as a gamification element to show students they have leveled up. 

Smart Classroom

To integrate technology into classroom education, the classroom needs to be equipped with up-to-date technology such as tablets, projectors, and software, all of which can be integrated into a single system.

An effective way to achieve this is by installing an Interactive Whiteboard (IWB). These touch-sensitive boards are connected to a computer, allowing educators to create a more interactive learning experience. 

With just a touch, teachers can access games, quizzes, and other educational content, making the learning process more engaging for students

Virtual Reality and Augmented Reality

VR and AR are growing trends with a lot of potential in the education industry. These aim at improving the learning environment by providing a more tangible experience. 

The immersive experience allows students to connect with different cultures and civilizations or for architecture, engineering, and even medical training. 

The trends and emerging technologies in Educational Technology are leaning towards Artificial Intelligence and Gamification. Educators can present their learning environment in a gaming format to students. Whereas robotics and AI-powered tools are aiming at providing intelligent tutoring, automating tasks, and personalizing experiences. 

Impact of Technology on Education 

There are more benefits of Educational Technology than its shortcomings for learners. For one, it facilitates remote learning, making it accessible to several students. 

Eager learners can avail lessons from all around the world regardless of where they live. Learning without borders benefits several students to excel in their studies, work, or life. 

What’s more, the students can usually view the study material at their own pace unless it is a real-time class. They can re-learn sections, watch at their own speed and submit their tasks online. Hence, they can personalize their own learning experience. 

Moreover, it is a feasible way to access education. By only using a laptop or tablet and an internet connection, you can step into your classes. Eliminating the lodging and travel costs makes the process much cheaper. 

For teachers, these EdTech apps and tools help them stay organized and facilitate their work. Educators can make interactive teaching material such as quizzes, slide decks, and videos while students watch them in class or at their own pace. 

The material stays more organized in the tools for teachers to access it anytime. Not only that, but teachers can also automate repetitive tasks. 

They do not have to record scores, track attendance, checking tasks completed on their own. Rather, they can get rid of this tedious work and leave it to automation. That helps save time in preparing for other lectures. 

That said, there are still concerns about the digital divide and how shifting classes entirely to the online format can impact several students that do not have the same access to facilities as privileged students. 

Hence, an in-person classroom experience with Educational Technology can be similar for all students but not an online, remote experience. Besides that, there are still concerns about fewer direct social interactions and the faster but not memorable learning approach of technology. 

The Positive Effects of Technology on Students’ Academic Performance

By interacting with a technologically advanced learning environment, students learn some effective skills. Some healthy challenges spring up in the Educational Technology LMS and apps that help students brush up their skills. 

For instance, children can build digital literacy and learn about online document sharing, navigating apps, and using standard software such as spreadsheet workbooks and text editors. 

Alongside that, Educational Technology enhances student engagement in classes which in turn affects their academic performance. Combining traditional classroom methods with advanced technology helps make the classroom more dynamic. 

As a result, there is more attention, engagement, and a better understanding of the subject. 

The introverted, quiet students in the class can show up through technological means, making them an important part of the classroom. 

For instance, if educators want to know the opinion of everyone in the class, how about making a poll, so that shy students also participate. This increases their confidence and motivates them to participate often. 

Moreover, educators can have a direct look at all the stats giving accurate feedback to students. This helps them overcome their shortcomings and know exactly where they need to improve. 

As students get to work at their own pace and revisit the lessons, they are more likely to grasp the concepts and thus, perform better. 

Challenges Faced By the Educational Technology Industry

Not everyone has the same access to technological resources around the world. Hence, the digital divide is an ethical concern between students of lower-income families and their wealthier counterparts where students should all be treated equally in the class. 

In fact, this may reiterate stereotypes and biases regarding socioeconomic conditions, gender, ethnicity, and race. The focus should rather be on making the technology inclusive and accessible. 

Furthermore, if the software is poorly protected, it causes huge privacy risks and security concerns. Especially in the case of a virtual classroom where there are many connected devices, there should be no compromise on security. 

The collection of personal data to target ads or data breaches is another privacy and security risk which could compromise data or student information. Companies should be transparent with users about the use of their data and take security measures such as two-factor authentication. 

There is also a slight challenge of electronic waste (e-waste) which can become a bigger problem in the coming years. Obsolete technology or discarded technological equipment can contribute to greater waste and the focus should shift to more sustainable practices to reduce carbon footprint. 

Future of Ed-Tech Industry

Going by the recent trends, the Educational Industry is bound to expand new innovations and emerging markets. There is potential for growth in AI, VR, and AR markets. 

Extended reality and augmented reality online courses and products may begin appearing in the industry. The amalgam of gamification with Augmented and Virtual reality has a growth potential to make learning more fun, immersive and rewarding. 

These EdTech tools and software may increase the use of Artificial Intelligence and Machine Learning. These two automate tasks such as grading and organization to reduce the burden on teachers. Moreover, they can also provide students with personalized content and feedback based on their learning abilities and preferences. 

With the increase in Artificial Intelligence and Machine Learning comes the risk of reinforcing stereotypes and biases where a human does not act as a moderator. 

There could also be growing risks of privacy, security, and data breaches. Educational Technology companies should only look forward to setting up a more transparent and secure system for the users in the future. 

Final Words 

Educational Technology has rapidly become a multi-billion dollar industry catching the interest of tech giants for expansion. It will only continue to grow, given how distance learning and interactive learning are becoming more common. 

With Artificial Intelligence and Machine Learning dominating many industries, EdTech will be incorporating them fast enough to facilitate more people. 

However, it is still crucial that EdTech companies take a proactive approach in addressing the concerns arising with the use of these technologies so that Educational Technology is accessible and inclusive across the board.