The Global EdTech market segment of the learning industry is estimated to grow from approximately $190 billion USD in 2016 to over $590 billion by 2021, at a CAGR of 25%.
Key reasons for the strong growth include:
- Continued improvement in the connectivity of handheld devices
- Increased collaboration between hardware vendors and educational content providers
- Increasing importance of e-learning in the corporate and academic segments
- Technological advancements, and
- Widespread government initiatives in this growing market.
However, lack of knowledge and expertise among end users, along with lack of resources and infrastructure in developing global markets continue to restrain growth in this segment.
Based on the learning software market, the LMS market is expected to have the largest market share during this forecast period. This call-out is because of the features and benefits associated with this segment such as course content management, reporting and assessment, feedback management, video and audio-based content management, and user management.
As always, the corporate user segment is expected to grow at the highest rate and will continue to have the largest market share during the forecast period. This projection is due to corporate organizations seeking solutions that help to provide training to their increasingly mobile employee base, and doing that in efficient and effective manner.
With the widespread initiatives taken up by the government in the region and huge technological advancements and adoption, APAC is expected to grow at the fastest CAGR in the EdTech market segment during this forecast period. However, North America is expected to continue to hold the largest market share during the forecast period due to the increase in adoption of tablets and smartphones by users for academic and business purposes.
For these and other reasons, such as the increasing presence of e-learning providers such as Udemy, Coursera, Lynda.com, and many others, the forecast continues to look strong.