Global edtech market will grow despite economic slowdown, says report
What's the story
The year 2022 has been a mixed one for the global edtech industry.
While the industry experienced a slowdown in India and China, it showed an upward trend in North America, South-East Asia, and the Middle East.
According to a recent report by Blume Venture, despite the slowdown in some parts of the world, the industry is poised to touch $300 billion in 2029.
Context
Why does this story matter?
The pandemic was bad for many but not for edtech companies. It wouldn't be wrong to call the two pandemic years the golden era of edtech.
However, things have changed now, which means edtech companies have to change themselves. They need a new approach to keep growing in the world that is back outdoors.
The report suggests they will adapt and grow.
India
India's edtech market grew from $4bn to $6bn
Per the report titled 'Indian Edtech in 2022,' India's edtech market grew to $6 billion in 2022 due to the positive impact of COVID-19. In 2021, the industry was worth $4 billion.
In India, K12 remains the biggest sector with a $2.7 billion market share, followed by college and upskilling courses with a $1.6 billion market share.
Expansion
Indian edtechs have garnered interest in other countries
The report said that Indian edtech start-ups have expanded beyond India. "Edtech start-ups in India have proved that their total addressable market is not just limited to dollars spent by Indian parents and institutions but also global spends," it said.
Edtechs have garnered interest in North America, South-East Asia, and the Middle East. Access to these markets increased their ARPU (average revenue per user).
Post-COVID
Upskilling and 21st-century skills will drive the next edtech movement
As the effects of the pandemic wear off, Indian edtechs will move beyond the conventional educational space, said the report.
The next big opportunity would be in education for children under eight, new-age skills, upskilling, and financing.
The report specifically highlighted the opportunity in a hybrid model for small children that involves learning and space for personal development.