Many global industries are being transformed by advances in technology, and education is no exception. According to the latest market research, some of the fastest growing segments in the education market are driven by the rise of online learning, education technology, and the need for digital upskilling in a rapidly shifting economy.
But technology isn’t the only factor to watch. When it comes to K-12 education, many families have increasingly sought out options beyond traditional public schools, whether that means virtual education, homeschooling, or charter schools. This trend was closely connected to the COVID-19 pandemic, but alternate education models may continue to become more mainstream in the future.
1. Ongoing Growth of E-Learning
E-learning is one of the most significant education industry trends in 2023. It’s no secret that online learning exploded during the COVID-19 pandemic, but the need for e-learning has not disappeared.
Currently, the global e-learning market is still on a fast upward trajectory; the market was worth an estimated $332.6 billion in 2022 and is expected to reach $686.9 billion by 2030, rising at a compound annual growth (CAGR) rate of 9.1%, according to the an e-learning report by Global Industry Analysts.
The U.S. e-learning market alone was an estimated $100 billion in 2022. Between 2022 and 2030, China’s e-learning market is expected to grow at a fast 11.6% CAGR, with Germany at 8.2%, Canada at 7.7%, and Japan at 6.7%.
As the demand for online education grows, the market is expected to become even more competitive. Global Industry Analysts identifies 290 different companies operating in this market, including Coursera, edX, Blackboard, Adobe, and many others.
2. Increasing Demand for Edtech Tools
In tandem with the rise of e-learning, the field of education technology (edtech) has been booming as well. The edtech market is forecast to grow at a CAGR of 16% from 2022 to 2026, according to a recent report from GlobalData.
Edtech encompasses varying education levels including PreK, K-12, post-secondary, and corporate workforce training. As of 2021, the K-12 segment accounted for more than 50% of the overall market share.
A variety of sophisticated learning tools are being used to support classroom-level education, including tablets, interactive whiteboards, software-based assessment tools, game-based learning tools, and virtual reality headsets. However, technologically challenged teachers and concerns over data privacy and cyber fraud could hamper long-term market growth.
3. The Need for Digital Upskilling
Another trend that is transforming the education industry is a focus on digital upskilling. With the rapid pace of technological change, employers are increasingly seeking employees with the right skills to keep up. As a result, there is a growing demand for courses that offer practical, hands-on learning experiences, such as coding boot camps and specialized training programs. One well-known company in this niche is Udacity, an online learning platform that partners with companies to offer courses in high-demand fields like data science, artificial intelligence, cloud computing, cybersecurity, and autonomous systems.
Not surprisingly, there is a growing demand for training programs and certification courses that focus on in-demand, high-tech skills that can be learned in a matter of months. From 2022-2026, the global coding bootcamp market is poised to accelerate at a CAGR of 19.31%, while the global online data science training programs market is expected to grow at a 25.1% CAGR during the same period, according to estimates from the market research firm Technavio.
4. Interest in Education Alternatives
In recent years, the U.S. has also seen an increase in charter schools, virtual schools, and homeschooling. According to Simba Information’s report PreK-12 Enrollment and Demographics, 2022-2023:
- Homeschooling exploded during the pandemic: the number of U.S. households homeschooling doubled at the beginning of 2020-2021 school year as compared to the previous year.
- Virtual schools also grew during the pandemic and are expected to have a bright future.
- There were 7,547 charter schools serving 3.4 million students in 2019-2020, up from 1,993 charter schools serving a little over 448,000 students in 2000.
Some of these education alternatives may continue to gain wider acceptance. Homeschooling remained significantly above pre-pandemic levels, only dropping 17% in the 2021-2022 school year.
The growth of charter schools is another trend with staying power. “In the coming years, the industry is expected to continue to expand as their popularity increases. More districts will introduce charter schools as an option for public education,” according to a recent report by IBISWorld.
Future Trends in Education
The education trends highlighted above are just a few of the many that are shaping the industry’s future. As the industry continues to evolve, educators and businesses must stay up to date with the latest developments to remain competitive and offer the best learning experiences to students.
Additional Education Industry Analysis
Need more in-depth education industry research? MarketResearch.com provides insightful, data-packed reports on just about every topic you can think of related to the education industry. We cover every part of the globe and a wide variety of market segments such as pre-K, K-12, higher education, special education, books & materials, e-learning, education technology, and other key areas.
Search the latest education market research reports from leading market research firms such as Simba Information, GlobalData, Global Industry Analysts, IBISWorld, and many more. Find expert information on market size, market forecasts, market share, disruptive trends, opportunities, challenges, and leading companies.
About the author: Sarah Schmidt is a Managing Editor at MarketResearch.com, a leading provider of global market intelligence products and services.