GP Bullhound celebrates Education Technology Day.
As today is Education Technology Day, I wanted to take some time to share some thoughts on what I feel is an unprecedented time for the EdTech space. EdTech has been gaining traction for some time now, and we feel that the market is at a clear inflection point, with global EdTech digital spending already over $250bn, and it is expected to reach $600bn+ by 2027. The emergence of innovative technologies across the education ecosystem has created unprecedented opportunities to improve learning outcomes. Digital transformation in the education sector has shown proven efficacy, and it has enabled outsized growth in select verticals. However, it has also created a need to monitor potential impediments to student growth and optimal learning outcomes.
Education Technology Day arrives at an exciting time for us at GP Bullhound, as we recently have published our inaugural EdTech report. In this report, we take a look at some of the most important trends impacting education technology at scale, and what we expect that the future holds for each of these growth enablers. Each trend we highlighted has been steadily increasing in both importance and prevalence across the EdTech sector. We anticipate that these growth drivers will continue to thrive for the foreseeable future, benefiting from demonstrable efficacy and growing recognition of the mission critical nature of innovation, refinement, and optimization, in order to maximize learning outcomes. I think this will be especially important in the coming years for school districts that are now working to leverage various lessons learned during the pandemic-era, that can be used to optimize the learning experience in both remote and in-person settings, through both synchronous and asynchronous learning modalities.
While we were working to pull together the research leveraged in the report, there were a number of really interesting data points that stuck out to us. For example, just looking at AR software, the market for education and training sat at around $6.4bn in 2021 but it is expected to grow at a 60%+ CAGR to $68.7bn by 2026. This exponential growth in AR alone will have huge implications across the entire EdTech landscape, especially when we look at it in conjunction with gamification and game-based learning. We expect the AR space to continue innovating, refining, and optimizing as it scales, with education spending on tech expected to nearly triple in the next five years. Another great example is the proliferation of social media and collaboration platforms, which have taken some lessons learned from initial market innovators to enhance their offerings and try to capitalize on the emergence of Web 3.0. Education is increasingly becoming more personalized and decentralized which increases the appeal and possibilities of improving learning outcomes through Web 3.0 applications.
At GP Bullhound, we continue to build out our US-based EdTech practice, following our success with the sale of Busuu to Chegg, and Lingoda’s growth investment from Summit Partners. As trusted advisors to technology entrepreneurs and founder-owned businesses, we keep a pulse on the latest trends impacting the education landscape, from early childhood to professional learning. We are always happy to discuss the overall market and potential strategic opportunities in the EdTech space with strong and growing EdTech market players. As a firm, we have a strong and unwavering belief in the transformative power of technology, and education technologies truly play an instrumental part in building a better future. With that said, we would like to wish you a happy Education Technology Day.
For enquiries, please contact:
Jason Nordlicht, Vice President, at firstname.lastname@example.org
About GP Bullhound
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 12 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com.