Through the year 2023, the global higher education market is expected to grow at a compound annual growth rate of more than 12%. There are several factors driving positive growth in this sector, from the high demand for technological innovations to the surge of internationalization.
Higher education is considered an under-digitized industry. Consequently, there is healthy competition in the market for new technology products. In fact, the global education technology expenditure is expected to reach $341 billion by 2025 and with the speed of digitization even surpassing the healthcare industry. The ed-tech market saw a significant increase in venture capital investments last year, reaching a record $8 billion.
The integration of artificial intelligence (AI) is also a key element in this growth. The education AI market is estimated to reach $6 billion by 2025. AI allows learning to be adaptive to each individual student’s strengths, weaknesses, and goals. Institutions are also turning to immersive learning solutions such as virtual reality and augmented reality technologies to enhance education.
Higher education software is also a growing market, with the United States, Europe, and China leading the development of these products. This market is forecasted to register a 10.5% compound annual growth rate in terms of revenue over the next five years. It is also predicted that the leading education software companies will likely consolidate their market shares and continue spending on research and development. These top companies are expected to maintain dominance by emerging into new markets worldwide and capitalizing on the growing need for educational innovations.
Other technology trends in education that investors are watching closely this year include the increase in implementation of cloud services, mobile learning, gamification, blockchain, and personalized learning management systems.
Aside from technological advancements, the internationalization of higher education is a popular trend that is fueling growth in the market. The process encourages the recruitment of students from wealthy countries in order to raise the international profile and reputation of the institution, and increase profits. It also includes the development of international branch campuses, exchange programs, and research and education partnerships between institutions. Additionally, there are a growing number of students who have a need or desire to prepare themselves for international careers. This is one more contributing factor driving the rise in demand for internationalization.
When we look at the global education market, Asia currently leads the world in fastest growth in investment in this sector, specifically China and India. The United States was previously dictating the pace of growth, now slightly lagging behind, with Europe remaining under-invested. Africa is expected to see a spike in growth due to a recent surge in updated infrastructure and the emergence of mobile learning solutions.
If you are interested in exploring new opportunities in growing markets, contact Benchmark International for comprehensive business strategy guidance.
Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkCorporate.com
Europe: Carl Settle at +44 (0)161 359 4400 / Settle@BenchmarkCorporate.com
Africa: Anthony McCardle at +2721 300 2055 / McCardle@BenchmarkCorporate.com
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