The state of global EdTech
EdTech's market size was expected to grow rapidly (by 16% per year), but not equally in all countries. This is due to the fact that many developing countries are moving very slowly in this direction, while in developed countries growth is too fast. China The Chinese market of educational technologies is leading in the world. It attracts investors because it is actively and consistently developing. Its growth began in 2014, and in 2019, 40% of global venture capital transactions in this segment came from companies from China. The leaders of Chinese EdTech offer solutions for the school curriculum and English language learning. In 2020, the Chinese market saw the biggest deals thanks to leading education innovators: Yuanfudao, a platform for live courses and tutoring, raised $ 1 billion in March, followed by Chinese startup Zuoebang, an artificial intelligence platform for elementary and secondary schools, which raised $ 750 million in June. India The EdTech market in India did not exist until recently. That all changed in 2018, when it became the most attractive to international investors thanks to the proliferation of smartphones and openness to foreign investment. In the third quarter of 2020, Indian companies raised about $ 1.6 billion and ranked second in the world in terms of investment, ahead of the United States. Last year, Indian educational tutoring app Byju became the first EdTech "Decacorn" worth more than $ 10 billion. USA In the US, the main niches of the EdTech industry (secondary and higher education) already covered by unicorn companies. At the moment, the American market includes more than 2000 EdTech tools and products. This is why companies are forced to compete with each other through new technologies and services (artificial intelligence solutions, deep data analytics), as well as by entering new segments such as humanities and edutainment (educational entertainment) with a focus on culture and the arts. Latin America and Asia The EdTech market is expected to grow in Latin America and Asia, where traditional forms of education are inaccessible to a large number of people, either because of the distance or because of the high cost. Last year, Sanar, a Brazilian company that provides online training for healthcare professionals, raised about $ 11 million to develop its platform. Their success was probably due to the fact that they were on the border of the two hottest topics – online education and health. As of January 2021, there were 19 EdTech unicorns worldwide, which together have raised more than $ 13.7 billion in total funding over the past decade. Among them, 8 are from the United States, 8 are from China, 2 are from India, and 1 is from Canada. All these statistics suggest that the pandemic has given new life to online education. But how long will this growth last?