Introduction
Education is approximately a $6.5 trillion industry, and the EdTech market continues to expand. In 2021, the global market size for education technology was valued at $183,4 billion. By 2026, it is anticipated to increase by $410.2 billion at a CAGR (Compound Annual Growth Rate) of 16.0%. Also, the global EdTech expenditure will surge to $404 billion by 2025, indicating that more businesses, governments, and customers will be willing to invest in learning and skill development using the latest technology. Thus, high demand for high-quality EdTech products will create new opportunities for both large and small businesses.
According to Global Market Insights, the e-learning market will surpass $1 trillion by 2028. In the long term, education technology trends continue to grow and will remain in demand. The forces that drive profound changes in the EdTech market are advancing technology and shifting student requirements. That is why studying the industry and learning the leading trends is essential before you make decisions about the next move.
So, what technological trends will lead the educational sector in 2023 and satisfy the learners’ demand for a more dynamic environment? We’ve brought them together in this article.
What Is Edtech?
The term EdTech has a broad vision. It is a combination of the terms education and technology that contributes to improving learning experiences. Edtech, or Educational Technology, is digital technology designed to enhance or aid teaching and learning, utilizing computer hardware, software, and educational theory to enrich learning experiences.
The term encompasses all aspects of computer-assisted education, such as virtual lessons, microlearning programs, and community-driven social learning platforms. Using apps and technological devices, students can enjoy distance education.
Educational technology creates more engaging, inclusive, and individualized learning environments. These EdTech technologies help build a sense of inclusiveness and enhance students' learning capacities. Thus, EdTech improves the overall quality of education.
What Was Happening in the EdTech Market in 2022?
In 2022, the EdTech industry had ups and downs. EdTech and other sectors were devastated by falling wages and rising inflation across Europe. These situations could have been more conducive to inspiring investor confidence. As a result, venture capital (VC) investments worldwide stalled. For the first time since 2014, annual funding decreased dramatically from $20.8 billion in 2021 to $10 billion in 2022, a fifty percent decrease.
The United States dominated EdTech venture capital investment, despite having to reduce funding to $3.9 billion. Europe held more robust financing patterns investing. Due to new regulations, the steepest decline, $5 million, was recorded in China.
Despite challenges, many EdTech companies survived and substantially enhanced their positions. Sequoia Capital, Owl Ventures, and Agility Ventures were among the nearly twenty investment companies that announced they would focus their new fund rounds on the EdTech business. So, although the segment appeared underfunded, there was hope for a brighter future and more financing flows. ByJu’s, Yuanfudao, and Zuoyebang were recognized to have the highest value among other EdTech unicorns. Their total capital was valued at $46 billion, while the remaining seven unicorns were worth $26.85 billion. So, domain leaders reinforced their positions, making it more difficult for new businesses to find their place under the sun and bring in new financing flows.
What other changes did 2022 bring to the EdTech sector?
Let's examine shortly:
The value of public and private EdTech companies has reached $375 billion.
Six new EdTech unicorns emerged on the market in 2022, like Paper ($1.8 billion value), Multiverse ($1.7 billion worth), Domestika ($1.3 billion worth), and ClassDojo ($1.25 billion worth).
The leading EdTech players that shaped the market in 2022 were 2U Inc, BoxLight, Byju's, Blackboard, Udemy, Coursera, Chegg, Duolingo, Udacity, and Unacademy.
Due to the country's regulatory challenges, China's famous EdTech companies Udacity, Coursera, and edX have lost their attractiveness to investors, and this increased interest in the EdTech market in India.
A McKinsey survey found that students in 2022 EdTech want value-added services (one-to-one tutoring, job search assistance) and a sense of community. Several businesses have implemented a comprehensive user interface in response to this new need.
5 Top Edtech Trends for 2023
Here are the top trends coming your way in 2023 and what they mean for your business.
1. Micro and Nano-learning
The world is rapidly changing, and traditional learning is becoming less competitive each year. Employers notice that higher education does not result in better outcomes since courses frequently fail to keep up with changing industry trends and demands. This impracticality of traditional education resulted in the emergence of a new category of learning: micro-learning and nano-learning, such as:
edX’s MicroMasters
Udacity’s Nanodegrees
As university degrees become less and less relevant, the popularity of micro-learning that provides condensed knowledge will continue to rise. In contrast to standard learning formats, microlearning lessons are kept under 10 minutes – generally, they’re around 30- to 60-seconds long. Short-form YouTube lessons, TikTok rec-university degrees become less valuable pipes, and Instagram DIY reels.
What do these individuals have in common? They provide learners with engaging, highly addicting content that makes learning enjoyable. The evidence speaks for itself – researchers found that over 60% of people learn new things from TikTok, YouTube, or Instagram content.
Mobile-first microlearning is now the option for learners requiring rapid, straightforward content that helps them learn on the go. Microlearning will emerge as the most important educational technology for students in 2023.
For course creators, this Edtech trend is a clear call to action to start making content that’s mobile-friendly and extra easy to absorb. Shorter content is less expensive, quicker, and easier to generate, making it an obvious choice for your 2023 content strategy.
2. Gamification
Gamification is an excellent method for engaging pupils in learning, and it involves using pre-made games and transforming the entire instructional process into a game.
The game-based approach to learning has demonstrated its superiority over traditional techniques in recent years and will continue to conquer the market in 2023. Gamified learning experiences maintain student engagement and reduce stress by appealing to our competitive drive.
Both passive and active gamification models will keep growing over the following years.
Passive gamification includes gamification that’s more in the background as an add-on, such as Dulonigo’s streaks and Brainly’s ranks system.
Active gamification is about making the whole learning experience a game, like Minecraft — Education Edition.
Games are used in all fields of education because individuals of all ages enjoy them. They are utilized in secondary and higher education and for staff development in companies and online school students. Taylor and Francis reported that 67% of students prefer gamified courses over traditional course delivery methods because they find them more motivating. Educational games can also be used in the workforce, i.e., for training staff. Due to the game, routine tasks become exciting, and complex tasks become simple. Involvement in games facilitates information processing and perception. With an expected yearly growth of 27%, gamification will keep shaping the EdTech industry.
The most widely used features right now are those that boost learners' desire to study new content. The requirement for scalability and quick changes is the primary hindrance to their implementation. Developers can choose from various programming languages for the learning management system when selecting a technology base for gamification components in Ed-Tech software to incorporate the most suitable and viable gamification features.
3. Augmented Reality (AR) and Virtual Reality (VR)
The education industry was undergoing a significant shift, and augmented and virtual reality are two key technologies driving this change. It facilitates successful learning by engaging learners with motivating techniques. It is also recognized to enhance educational comprehension, personalize the learning experience, increase possibilities for experimentation, reduce reliance on learning by rote, empower educators and learners, and promote active learning. Virtual tools in a controlled setting facilitate simplifying complicated topics for trainees.
The global virtual reality in education market size was valued at USD 656.6 million in 2018 and is estimated to reach USD 13,098.2 million by 2026, expanding at a CAGR of 42.9% over the coming years.
Learning in VR/AR is getting more and more attention in particular niches. In particular, this is relevant for subjects that cannot be learned in front of a computer screen. This type of learning is typically highly costly (e.g., surgeon training).
Immersive learning shines in these areas. Labster, for instance, offers virtual laboratories to universities and secondary schools, enabling the practical study of biology and chemistry without the need to construct an entire laboratory. Also among the successful cases of VR/AR usage in the EdTech sector are the following companies: Vonderscope, Mondly, and JigSpace. Because of VR and AR technologies, companies can implement virtual classrooms and homework, among other benefits.
The benefits it offers for students and other individuals associated with learning:
Allowing students to enhance their memory and knowledge retention power;
It acts as a building block for improvising communication and collaboration skills;
AR/VR technologies lift student’s excitement and engagement in the classroom;
It shapes the emotional awareness and intelligence of students;
Improving students’ learning outcomes.
As immersive technology advances, more individuals will have access to this type of practical training. An education that is too expensive right now to be accessible for everyone.
4. AI-enabled Learning
Artificial intelligence becomes more intelligent each year, and we discover new methods. According to Verified Market Research, the market size for artificial intelligence in education will increase from $1.10 billion in 2021 to $21.52 billion in 2028.
In addition, Microsoft's analysis demonstrates educators' unanimous approval of AI. In the following years, 99.4% of respondents believe AI will give their organization a competitive advantage, while 15% view the new education technology as a game-changer. Unquestionably, these findings present new prospects in the EdTech sector for new players and established organizations with a vast customer base.
Most EdTech organizations use AI in their services. For example, Elsa assists English language learners in improving their speaking. The online tutor driven by AI delivers immediate student pronunciation feedback. Learners get a high level of customization with Century-Tech, as AI algorithms offer the right level of information at the right time and fill in knowledge gaps. An algorithm may know more about a pupil than the student's teacher. It helps provide users with personalized learning that maximizes comprehension while minimizing the friction students experience.
ChatGPT has dominated educational news in the past two months, raising primary challenges about teaching and evaluating student learning. ChatGPT can be used as a teaching tool to assist students in learning and practicing their language abilities through conversational interactions with the chatbot.
ChatGPT can generate customized reading comprehension questions based on the provided content. Beginning in 2023, educators frantically rewrote class plans and abandoned traditional writing tasks. For the coming years, ChatGPT will be the dominant theme in EdTech.
The global AI in education market size was valued at USD 1.82 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 36.0% from 2022 to 2030. 51% of U.S. professors are more confident about online education than before the outbreak, according to a survey published by the University Professional and Continuing Education Association in 2021.
AI has boosted the education industry by incorporating Augmented Reality technologies and simulations into a holistic framework. One of the most significant changes it has brought is the automation of administrative tasks, which allows trainers to enhance student engagement.
Concerning other benefits, AI is helping the educational sector in many ways:
Artificial Intelligence promotes personalized learning by enabling students to get individualized learning approaches based on their needs. AI makes learning more engaging by providing elements such as individualized learning programs, games incorporating AI, etc., to facilitate effective learning.
AI automates tasks like checking homework, organizing research papers, maintaining reports, creating practical notes, etc. It maintains a positive educational environment by upskilling students' abilities using AI & ML-powered applications. It properly comprehends the human learning process and automatically automates it.
5. Blockchain Technologies
Blockchain is a digital proof of skill and professionalism that any interested party can verify. On such a basis, you can build many of the workflows needed in EdTechs.
Some online education platforms issue diplomas for completing educational courses or use Ethereum smart contracts for knowledge sharing.
In addition, this technology offers secure storage for various information, such as the courses a teacher has read and the grades they have gotten from pupils. In addition, students can use blockchain as a secure storage tool for their academic accomplishments and credentials, which they can share at any time. In addition, the rise in cyber threats affecting educational institutions suggests that more EdTech enterprises must utilize the blockchain to protect sensitive data.
Blockchain will continue to be a popular trend in EdTech in 2023. According to the Grand View Research report, the global blockchain technology market reached $5.92 billion in 2021 and is expected to grow at a CAGR of 85.9% from 2022 to 2030.
The most common features to add when integrating Blockchain into an e-learning platform include ID authentication, file verification procedures, tokenized mechanisms for improved affordability, etc.
Among the several benefits blockchain has offered to the education business are the following:
Both students and educational institutions can improve data security and efficiency.
Enable simple centralization of data and information and reduces extra storage costs by providing vast cloud storage.
Allow easy automation of the task, courses, and lesson execution, i.e., teachers can quickly assign tasks, and students are notified and rewarded upon task completion.
It makes learning self-acquired for students, enabling them to fully own or control the knowledge through access to course certificates, gained skills, and more.
Ensures data/content posting on time and secures and maintains content against piracy.
Final Thoughts
Incorporating technology and tools in the education system has significantly impacted society, and technological learning continuously evolves toward free understanding.
This is not a complete list of the forces shaping EdTech in 2023, and it highlights significant trends that illustrate how society will employ technology to enhance learning. In the upcoming years, the EdTech industry is projected to expand and evolve, partly due to the arrival of digitalization and the trends mentioned above.
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