Around the world, the global education industry remains shaped by population growth and access to education, and driven by new technologies and service offerings.
- Solutions for professional education, teacher development, improved online and adaptive learning, and language training (especially English) are always in demand.
- Online learning technology and the need for corporate workforce training drives increases in corporate spending on outsourced training programs.
- Smartphone-only Internet users are reshaping learning models.
- Enrollment in pre-primary education continues to rise as it has proven to show positive long-term results.
- In primary and secondary education, technology investments directly impact school expenditures.
- Higher education is being forced to adapt in the wake of changes to jobs, skills and increasing student debt.
- Learning Management Systems are shifting the teaching focus away from content and onto learners.
- Newer offerings include cloud-based student information systems, digital tools and learning platforms, and data reporting and analytics.
The global education market is expected to be valued at $10 trillion USD by the
In today’s digitized society, as education becomes more globalized, it presents newforms of private, for-profit involvement. In the global education industry, less than three percent of overall education expenditure is spent on technology. This is expected to increase in the future, yet at an alarmingly slow rate, giving investors a favorable position to get in on
Mergers and acquisitions opportunities are heavily influenced by the possibilities created by new innovations in digital education, instruction, and credentialing. The global education sector’s biggest strategic performers are diverse companies that continue a shift towards digital services and away from print. Target companies within the education landscape that are in drawing investment include those that provide adaptive learning solutions and assessment products, such as software that facilitates testing and scoring. Other areas that appeal to buyers include education-market-focused infrastructure software and English language learning solutions.
Education Infrastructure Software
Modern education-focused infrastructure software has the power to transform learning environments for students and teachers both inside and outside the classroom by balancing technology across all locations. The approach is comprised of cloud computing, enhanced privacy and security, connectivity, storage, and manageability. Additionally, virtual infrastructure not only simplifies troubleshooting, but it can reduce costs for institutions by reducing overhead through the reduced impacts of having to frequently replace hardware. With support of more devices, teachers can better tailor learning experiences to students learning needs, and a more collaborative learning environment can be created.
Global English Language Learning Market
The global English language learning market is expected to exceed $22 billion USD by the end of 2025. These programs are in growing demand due to globalization, urbanization, and an appetite for improved education and job opportunities. The escalating numbers for student enrollment in graduate schools in English-speaking countries is deemed to be a primary contributing factor to growth in this market. In higher education, universities in the United States, the United Kingdom, Australia, and Canada require applicants to pass language tests such as the Test of English as a Foreign Language (TOEFL), Graduate Record Examination (GRE), and International English Language Testing System (IELTS). This drives students to enroll in English language training programs, leading to notable demand for them in countries (such as an India and China) where the number of graduates relocating to English-speaking countries for advanced studies continues to grow at a significant rate.
The global market for digital English language learning is comprised of both regional and international manufacturers. As the international companies expand their reach, improve quality, and lower prices, the regional firms struggle to compete. Such an intensely competitive market for innovation and service extensions increases the number of M&A transactions.
An Industry Continuing to Evolve
Innovation in education requires capital and government funding is limited even in the wealthiest, most developed countries. Private equity and M&A can strategically create and grow companies of scale in the education sector. Larger size means more attractive acquisition opportunities, more prevalence, and more potential for transformation in the industry and its subsectors.
Advancements that are impacting and will continue to impact this industry include:
- Artificial Intelligence, virtual reality, and unified data solutions
- Online education
- Specialized curriculum start-up companies
- Improved curriculum storage and peer-to-peer sharing platforms
- International schools
- Digital classrooms
- Chat bots and voice enabled hardware
- English language training
- Enhanced admissions management and student retention
- Global school networks
- Improved vocational training
- Alternate university models
- Online program managers
- Job training boot camps
- Primary education mobile apps
- Increasing availability and free access to academic publishing resources
- STEM and coding
- Gaming and simulation
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