What CEOs Must Know About the Impact of Technology on the Education Sector?
In the past few months, it has become more obvious than ever that digital transformation is the future of the education sector. Various educational institutions and entrepreneurs have drifted away from the traditional business model and have begun embracing the latest technologies into their business processes. At the same time, many venture capitalists have begun showing interest in EdTech startups. In fact, it has been found that VCs funded about USD 1.7 Bn in the edTech market in 2019 across 105 deals.
This has not solely attracted the attention of business enthusiasts who were confused about entering the edTech space, but has also encouraged Entrepreneurs to tweak their existing businesses with the help of cutting-edge technologies.
Assuming that you are someone falling into the latter category, I will be revealing a complete list of technologies changing the education landscape in this article.
But before that, it is wise to take a look at the present scenario of the edTech market so as to get a clarity of the impact of technology on the education industry.
Table Of Content
- An Outlook of the Present EdTech Market
- Top 10 Technologies Ruling the EdTech Domain
- Future Scope of EdTech Segment (& Trends Behind the Innovation)
- How Appinventiv can help integrate a technology into an existing LMS or similar education software?
An Outlook of the Present EdTech Market
1. What was once dominated by blackboards and textbooks is now a market of tech-based solutions. The use of technology in the education sector has increased by more than 3x in the past decade.
2. The United States has the largest number of edTech enterprises in the world, followed by those in India, Brazil, United Kingdom, and China.
3. Around 89% of educators realized that technology is an integral part of their everyday life and so must be integrated into the education business.
4. As per a report by electronics service distributor RS, 50.8% of teachers said they know what edTech is, while 35.6% have heard about it but are not sure about the terminology and another 13.6% are still unaware of the edTech industry. This gives a hint that people are slowly and gradually becoming familiar with edTech and will soon embrace it.
5. Over 89.6% of educators admit tech is an effective way to engage students in the classroom.
6. Nearly 82.7% of educators accepted that tech helps them in improving their jobs.
7. The amount of the school’s budget invested in technology has increased from 3.9% to 15.5% during the period 2018-2020. This clarifies that tech has become the fourth highest spending priority.
8. The number of school leaders saying that the technology impact on education has doubled in the last year – rising from 17.6% in 2018/19 to 40.9% in 2019/20.
9. Entrepreneurs already having mobile apps are focusing on strengthening different aspects of their business model, such as –
10. As per a report by HolonIQ, the global funding in edTech ventures grew from USD 0.5 Bn to USD 7 Bn between 2010-2019. It has been anticipated that the investment will be 3x by the next decade.
11. As per a report by Internet and Mobile Association of India, educational companies are earning money majorly from freemium monetization model. This reflects that the users are willing to pay for good solutions.
Such numbers and reports have encouraged CEOs to look into how technology impacts education and invest in education app development. They have motivated them to look ahead to introducing the cutting-edge technology in the education system, which has further taken their attention towards the top technologies trends for 2020. A list of which we will be covering in the next section of this article.
Top 10 Technologies Ruling the EdTech Domain
1. Artificial Intelligence (AI)
The foremost technology that is revolutionizing the education sector is Artificial Intelligence.
Artificial Intelligence, as already mentioned in our article on the impact of AI on businesses, is aiding in content creation, customization of learning processes, evaluating performances, ensuring real-time communication, automating grading, generating more leads, and so on.
A consequence of which is that the global market for AI in education will be valued USD 3.68 Bn by the year 2023, at a CAGR of 47% during the period 2018-2023.
2. Internet of Things (IoT)
The Internet of Things (IoT) will also gain a huge momentum in the edTech business this year.
The IoT solutions for education will connect every single device and element including the whiteboards and lights to put forth better opportunities like monitoring class pets, getting an idea of when the plants inside the classrooms require water or sunlight, running scientific experiments, and much more. And eventually, the future of IoT in the education market will grow significantly; making it worth USD 11.3 Bn by the end of 2023.
Another technology trend that is going to disrupt the educational system is Blockchain.
The role of blockchain in education domain will expand further; making learners enjoy high-quality educational experience by offering opportunities like –
- Interacting tutors from different parts of the world via an online learning platform.
- Managing and safeguarding the records across the ecosystem.
- Subsidizing cost for learners and others by combining with MOOCs like Coursera.
Augmented reality (AR) and Virtual Reality (VR) also comes under the top educational technologies to watch out in 2020.
When talking about the benefits of VR and AR in the education sector, they are turning realistic scenarios into enticing environments by introducing different virtual elements and situations. This is also helping educators and even students enjoy an opportunity to perform different tasks and even critical surgeries virtually rather than keeping visualizing the theoretical concept and watching video demonstrations.
And this way, the technologies will accelerate the pace of understanding complex subjects and enable top edTech companies to deliver incredible experiences – all with the help of a reputed education app development company.
5. Learning Analytics and Machine Learning
The landscape of machine learning and learning analytics in higher education will also expand dramatically in the coming years.
These technologies will allow teachers, professors, and others to understand and optimize learning experiences, evaluate and report student learning all by the web.
Also, the role of learning analytics and machine learning in the education sector will aid in recognizing and mitigating their academic/behavioral challenges and help them harness their full potential.
6. Cloud Computing
From higher accessibility to resource availability, huge scalability, and enforcing intellectual stimulation, the adoption of cloud computing in higher education is bringing forth various new opportunities and advancements.
The cloud computing in education sphere is also enforcing collaboration between students and teachers worldwide and delivering various other advantages, such as a real-time backup of information, improved file access, better accountability, reduced expenses.
And it is expected to continue the same in the coming years, generating the revenue by USD 25.36 Bn by the year 2021.
Wearable technology is taking education to the next level. It is making it possible for students to learn new concepts right from their smart watches, bracelets, and smart glasses anytime and anywhere. It is also improving student engagement, communication level between edtech companies and students, and the generated revenue. Which is eventually making entrepreneurs interested in Wearable app development.
Gamification, one of the prime factors in success and evaluation of Duolingo-like app development cost, will also go popular in the education technology market.
The gamification technology is adding a wide range of benefits in the education domain by evoking creativity, excitement and imagination in students and encouraging them to remain engaged in the educational environment. It will prevent them from saddling with paper and pencil, and empower them to freely express themselves and develop skills in a new and innovative way.
A result of which is that many more entrepreneurs will look into how does gamification affect learning domain and put efforts to get a slice of its revenue, which is anticipated to be USD 1800 Mn by 2023.
9. Video Learning
When discussing the video learning impact in the education sector, the technology is enhancing edTech businesses to capture the attention of students, reduce the tutor’s workload, enhance learning outcomes, and much more.
[Also Read: Features That Can Make Your On-Demand Tutor Apps]
10. Payment Gateway
Nowadays, various educational platforms are providing online learning courses, books, certificates, and other resources. Students are buying them online with a few taps on their mobile devices – all using the power of Payment gateway integration.
The concept of payment gateway is ensuring quick and seamless cash flow, getting an escape from the traditional payment issues, deriving a comprehensive report of all the earlier payments, accepting payments 24×7, enjoying instant communication, and much more. Something that is fostering the usage of payment gateway in edTech businesses.
While these are the technologies that are prevailing in the present market and encouraging education technology companies like you to bring your team on board and see how to revamp your existing business models, there are many more all set to enter the list. Or better say, bring significant difference in the future of the edtech industry.
Knowing this, it is understandable that taking a deep dive into the educational industry to get familiar with its future scope and the driving factors is a must effort.
So, what are you waiting for?
Let’s explore the future of the edtech segment as a way to ensure lack of market study is not a reason behind your edtech failure.
Future Scope of EdTech Segment (& Trends Behind the Innovation)
1. According to a report, the global edTech market is forecasted to rise from USD 43.27 Bn to USD 93.76 Bn between 2015-2020, at a CAGR of 16.72% during the same period.
2. As per another research by Holon IQ, the spendings on education and training from governments, corporates, individuals, and parents will grow significantly to hit USD 10T by the year 2030.
3. Also, the digital education market is forecasted to rise from USD 152 Bn in 2018 to USD 342 Bn by the end of 2025, which is still less than 5% of the overall spendings in the education market. Something that will highlight that there’s a plethora of opportunities for entrepreneurs and marketers in the edTech sector.
4. What’s more interesting is that this advancement in the digital education market is driven by different technologies like AI, AR/VR, and Blockchain. Many educational institutions and corporates are already incorporating them into the learning process, while many more are expected to hire the best educational app development services providers to integrate the cutting-edge technologies into their processes in the coming years.
Now, while starting a new edTech startup by integrating these technologies is quite easier, it can be challenging to upgrade an existing learning management system (LMS) or another education application. It is advisable to connect with the top education software development companies like ours to ensure a seamless integration and effective results.
How Appinventiv can help integrate a technology into an existing LMS or similar education software?
We, at Appinventiv, are known widely for aiding education business enthusiasts to launch a perfectly innovative and business-centric edTech solution, globally. Our team, with strong market knowledge and experience of creating LMS platforms like Nova, have helped Entrepreneurs beat the traditional/hidden challenges in the education marketplace and get a bigger slice of the market revenue, along with ruling the hearts and minds of the targeted audience. Something that clarifies that handing over your edTech project to us will give you the freedom and opportunity to integrate the finest technologies and tools into your business – and that too without bearing any issue.
So, what’s on your mind now? Connect our education app experts and make your business ‘future-ready’.
[Also Read: What Makes EdTech a Profitable Business Model?]
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