In this unprecedented period, there is one field that continues to see exceptional development: education. Since the end of March, the coronavirus has locked India’s cities, resulting in incredible growth in online education and e-learning platforms. Not unexpectedly, a whopping 1.5 billion students were grounded nearly overnight while the cities were locked up and schools closed down.
Within six months, Edtech companies accomplished their long-term market objectives during the COVID 19 lock-down at the national level. In the future, stakeholders in the sector see the potential for more sustainable and mature strategies as they continue to reach multiple income groups and special needs for learning.
Education and Edtech market size
Education expenses amount to just over 6 percent of GDP or about 1.2 trillion dollars in the United States. Like the healthcare sector, government at all levels has a substantial impact on the education market. There exists a significant gap between education and Edtech spending.
The majority of education costs go towards work (teachers and administrators) and physical facilities. The HolonIQ company reports less than 3% of educational expenditure is spent on technology.
Edtech industry – What it comprises?
The global Edtech market is a broad and rapidly expanding industry with a vast pathway across the entire business cycle, from start-ups to midsize companies to publicly traded firms. Not only longtime company veterans but also general investors are even paying close attention to it. Technology is infused in learners’ lives across the three primary education (PreK-12, post-secondary and corporate training). Experienced investors know that within the Edtech market, each category acts as its sub-segment. Each category has different end-users, buyers, and frameworks for financing.
Due to different methodological and classification differences, various publications have published investments that will help us triangulate and understand the scale, scope, and growth of the Edtech market.
Sarvesh Kanodia, an associate supporting investment at Omidyar Network India, has noted that the targets for mid-2021 have already been met. The quality after-school program space was gaining momentum and recovered. Technology implementation has also been introduced in schools and colleges, which must be noted. In the B2C and B2B spaces, this will generate several new opportunities.
Experts see potential in courses beyond formal training for improving life skills within the after-school learning category. Investors can see this demand both from government and private companies with the National Education Policy (NEP) outlining to concentrate on extra-curricular growth. “Tonnes of capital is flowing into the educational environment, so even B2B demand for these courses is high. We will also see the traction across professional ability courses such as data analytics and healthcare, “Kanodia said.
India usage of Coursera zoomed ahead of its other education markets on the global e-learning platform. For university students over 700,000 users in the past six months, Coursera has offered over 4,000 free courses. In the last few months, professional skills have gained a worth of scale in almost five years.
Upskilling – Quite evident
By making higher and technical training more available (for those who may not follow this in their academic years) and promoting working professionals’ upgrading, Edtech players can play a vital role in ensuring job safety for several professionals.
Although the country has robust market size criteria, creativity, and macroeconomic stability, it remains mostly in staffing skills (107th place), including technical training, digital skills, and the ability to find skilled employees. India also positions 120th in Information and Communication Technology (ICT) adoption amid the rise of the Internet industry.
Edtech will make India’s workforce more competitive for adults – either in vocational, tertiary or higher education or managerial growth skills. Edtech top platforms like Simplilearn, Vedantu, UpGrad, and Dronstudy plan to create at least three thousand new jobs in the year ahead.
Other ed-tech start-ups showing growth
Great learning, a start-up firm, said that its annual income increased by Rs 325 crore by 150% because of coronavirus’s lock-down increased demand for learning new courses, which equip professionals with new skills.
Mohan Lakhamraju, at a Gurugram-based start-up, said during lock-down, there was a growing demand for upgrading digital skills such as Data Science, Analytics, Artificial Intelligence (AI), MachineLearning (ML), Cloud Computing, Cybersecurity, and the digital sector.
In April 2020, the Unacademy Edtech platform reported massive growth and exceeded all previous sales, video views, and watch time. A co-founder, Gaurav Munjal’s twitter posting, said that the Unacademy’s April 2020 revenue was more significant than the past three years combined.
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Though some businesses and innovations have struggles and failures, today’s innovators continue to seek ways to improve the learner’s experience by cutting-edge technology.
AI & ML in Edtech market: While previous adaptive learning attempts such as Knewton have failed to meet high expectations, new players are raising new resources to build solutions for unique niches in Edtech. These AI-based tools, including Kidaptive, Querium, KidSense, and Quizlet, are used for improving education with machine learning tools.
TOGAF in the education sector: The Open Group Architecture Framework (TOGAF) is the world’s leading enterprise architecture field. To “demystify” the architecture development process, TOGAF plays a vital role in enabling IT users to build genuinely open systems-based solutions to their company needs. Earning TOGAF certification is undoubtedly worth today.
TOGAF allows organizations to align IT priorities with overall business goals and coordinate cross-departmental IT initiatives, as with other IT management frameworks. TOGAF helps organizations identify and coordinate needs before starting the project and keeps the process fast going, with few mistakes.
Edtech is a broad and dynamic sector with a great deal of potential in the entire business lifecycle. However, investors should remain at the forefront of ongoing risks (regulation, financing cycles, and competitiveness). Advances in online learning and new technology are expected to continue progress results in education. Ultimately, those who put students in the center are the best companies, investors, and influencers in this learning space. Discovering ways to minimize costs, provide quality education, and show impactful performance will prove to be the long-term winners as the Edtech industry evolves and matures.