As a sector, education is a digital laggard with less than 4% of overall expenditure allocated to digital, presenting a serious challenge given the scale of what’s to come.
In 2020, education spent $227b on digital. While this is forecast to grow to $404b by 2025, it is still barely 5% of overall expenditure.
While the longer-term impact of COVID-19 on education models is yet to play out, over the next few years we expect an upswing of spending on digital infrastructure in education and greater spending over the long term in new digital models.
There is a digital revolution rapidly unfolding in education and workforce development. This revolution is creating a historic opportunity to invest in companies that are disrupting and improving the $7 trillion global education market.
Venture Capital investors can see the favourable dynamics of the global education and training market, investing $16.1B in 2020, up from $8.2B in 2018.
Investment in EdTech is on track to hit ~$50B by 2030.