Digital Education Market

[230 Pages Report] The Global Digital Education Market size to grow from USD 19.4 billion in 2023 to USD 66.7 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 28.0% during the forecast period. Development of platforms by companies that provide personalized learning experiences for students, provision that offer data-driven insights to educators, access to education making it more affordable and convenient, self-paced learning courses, digital learning platforms offering a wide range of courses, ranging from basic literacy to advanced professional skills development, and rising demand for microlearning are expected to be the major driving forces in the growth of the Digital Education Market.

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Recession Impact on the Global Digital Education Market

Digital education companies have been hit the hardest of all startups, as funding dried up due to the recession, among other factors, forcing them to workforce downsizing. According to a survey, Indian startups have laid off nearly 10,000 workers between July 2022 and March 2023, accounting for roughly one-third of those in the digital education sector. The rising digital education boom across the globe may not be sufficient to withstand the economic downturns caused by a recession. Economic insecurity and job losses can reduce spending on digital education infrastructure, such as laptops, mobile phones, and tablets, eventually reducing revenue streams for digital education companies. As a result, it is more important than ever for digital education companies to develop a resilient and adaptable business model to combat the recession. Thus, digital education companies are expected to focus on the government sector and educational institutes instead of targeting individual customers and enterprises. Further, the companies are also offering free courses to individuals to upskill themselves during testing times.

Digital Education Market Dynamics

Driver:  Ever-growing internet penetration

An internet connection is a necessity for digital education. Internet penetration has increased globally in recent years, with distinct growth in mobile subscriptions and broadband connections. The penetration of mobile internet is one of the critical factors that has connected people even in remote places. According to GSMA Intelligence, in 2018, almost 300 million people were connected to the internet for the first time. A GSMA report (State of the Mobile Internet Connectivity – 2022) stated that, by the end of 2021, 4.3 billion people were using mobile internet, an increase of almost 300 million quantifiable customers/users since the end of 2020.

Restraint: Health concerns alert owing to increase in screen-time

Most of the parents are concerned about the health hazards of having their children spend so many hours staring at a screen. This increase in screen time is one of the biggest concerns and disadvantages of online learning. Sometimes learners also develop bad posture and other physical problems due to staying hunched in front of a screen. Excessive screen time can lead to many physical ailments, such as poor posture or headaches. But it can also be a personal issue for learners who struggle with learning from or focusing on screens, primarily since the internet is geared to distract learners with social media and entertainment. Some online learning platforms and software have tools and features to keep learners engaged.

Opportunity: Growing inclination towards adaptive learning

Adaptive learning is an educational system that modifies the content based on the student’s performance. The adaptive learning system makes use of AI to alter the content. AI helps online education providers to provide more personalized courses to students. Adaptive learning offers a more personalized learning experience for students. Students opting for online courses have different backgrounds, different levels of proficiency in the subject, and different levels of aptitude. Matching the pace of each student is difficult in a traditional system; however, with adaptive learning, online course providers can provide more appropriate content. Adaptive learning represents a significant opportunity for digital education providers in the upcoming years.

For students, adaptive learning respects their prior knowledge, responds to their learning needs, and reduces gaps in their understanding. By ensuring that students reach mastery before moving on, adaptive learning avoids “teaching to the middle” and understands students’ learning experiences from scratch. Meanwhile, instructors can more easily monitor which students need assistance, measure curriculum performance, and maximize learning outcomes. Instructors can better understand content areas where students are struggling, and system metrics enable intervention before individual students are at risk of withdrawal or failure in those areas. In these ways, the role of the instructor changes from the content provider to the learning facilitator. For the institution, adaptive learning enables the delivery of personalized learning at scale, contributing to greater academic success for more students cost-efficiently while reducing cheating because the content and assessments can vary for each student.

Challenge: Urge for additional training

Instructors must deeply understand the different approaches to teaching and learning to avoid the direct replication of the physical class environment and miss out on all the added advantages and tools that online and blended learning offer. Instructors also require effective and efficient training to tackle the technical aspects of online learning, such as the use of video & audio recording equipment, virtual classroom & lecture capture software, smart learning system, and learning management software (LMS). These new skills represent a steep learning curve for the instructor; however, thoughtful investment in proper training will pay off for the institution, the instructor, and the learners.

By Type, the Instructor-led Online Education segment to have higher CAGR during the forecast period

This mode involves instructor-delivered content: the instructor directly instructs students individually or in groups. All courses that include an instructor-led component are considered under this segment. Workshops, seminars, crash courses, and any other form of training activity led by a live instructor can be termed instructor-led online education. It enables the trainer to build assessment sections into the training program. These assessment sections are electronically conducted through an LMS, which can store learners’ responses, process them into meaningful reports, and present them to trainers. The LMS can also store the training content, which means trainers can provide learners with a repository or supporting training content, simplifying and engaging learners.

By Course Type, Science and Technology Courses segment to have the highest CAGR during the forecast period

Under Course Type, the Science and Technology Courses segment is expected to have the highest CAGR during the forecast period. Science and technology courses include courses for computer science, health and medicine, engineering, chemistry, physics, and many others. Computer science and programming courses involve the experimentation and engineering of computational systems comprising algorithms. The increasing adoption of IoT in various enterprises demands a skilled workforce to handle the data through various tools, techniques, and computer languages. Companies have started relying on digital education platforms to upskill their workforce. Hence, the computer science and programming course has witnessed increased adoption in recent years.

By Region, Asia Pacific to record the significant growth during the forecast period

The Asia Pacific Digital Education Market is estimated to have strong growth in the future. In the Asia Pacific education sector, distance education, vocational course, correspondence course, and eLearning are becoming more popular due to the growing internet penetration and electronic appliances usage. The region has the highest student population, and with advancing technologies, there is a growing demand for eLearning and distance education. This region is also receiving foreign investments to boost the online learning sector. Thus, the digital education solution vendors need to continuously innovate to meet the diversified educational requirements of learners across various countries, such as Australia and New Zealand (ANZ), Japan, China, Singapore, South Korea, India, Indonesia, Hong Kong. Educational institutions in this region are encouraging the implementation of digital solutions to make the learning process more engaging for young minds and help them retain information longer with accessibility. The region has broadly embraced different K-12 approaches and advanced education organizations to offer better learning experience to users. Numerous Asia Pacific schools and colleges took COVID-19 pandemic as an opportunity to be more productive and competitive by adopting online training and teaching classes, as well as for developing professional skills. Additionally, the ease of convenient teaching is enhanced by the smart classrooms, which is anticipated to positively impact the market in the region during the forecast period. Due to this progress, South Asia is entering into learning assessment collaborations. The significant advantages of regional assessment intervention are such as the aid in research and knowledge sharing, development of tools, periodical instructor skills training, national and international assessments, and research projects on enhancing the digital education in the region. Several countries in South Asia are somewhat lagging in integrating systematic monitoring and evaluation of education, which permits them to measure their education programs and policies' implications. The Asia Pacific region has great growth opportunities for digital education solutions providers.

Key Market Players

The report includes the study of key players offering Digital education solutions and services. It profiles major vendors in the global market. The major vendors in the Digital Education Market include Coursera (US), edX (US), Pluralsight (US), Udemy (US), Udacity (US), Edureka (India), Alison (Ireland), LinkedIn Learning (US), Jigsaw Academy (India), Iversity (Germany), Miriadax (Spain), Intellipaat (India), FutureLearn (UK), Edmodo (US), SWAYAM (India), Novoed (US), Xuetangx (China), Khan Academy (US), Kadenze (US), Federica Web Learning (Italy), My Mooc (France), Treehouse (US), Skillshare (US), CreativeLive (US), CXL (US), Go1 (Australia), Byju’s (India), Datacamp (US), Platzi (US), Thinkful (US). These players have adopted various strategies to grow in the global Digital Education Market.

The study includes an in-depth competitive analysis of these key players in the Digital Education Market with their company profiles, recent developments, and key market strategies.

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Scope of the Report

This research report categorizes the Digital Education market to forecast revenues and analyze trends in each of the following subsegments:

By End User:

• Academic Institutions
• Enterprises and Public Sector

By Type:

• Self-paced Online Education
• Instructor-led Online Education

By Course Type:

• Science and Technology Courses
• Entrepreneurship and Business Management Courses
• Other Courses

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • Rest of Asia Pacific
• Middle East & Africa
  • Middle East
  • Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In February 2023, edX partnered with AWS, with an aim to launch its first Professional Certificate program. The Professional Certificate program in Cloud Solutions Architecture provides the knowledge and skills required/desired to start building a career in cloud architecture and helps prepare learners for the AWS Certified Solutions Architect - Associate exam.
• In May 2022, Coursera launched Clips, a software that offers over 10,000 bite-sized videos and lessons from leading companies and universities; the company seeks to upscale to over 200,000 videos by 2023 end. With Clips, companies can make the most valuable, in-demand skill development content more accessible to their employees, allowing them to begin learning new skills in under 10 minutes. 
• In September 2021, Udemy enhanced its Udemy Business Pro, which will enable business customers to boost their skill development with in-depth learning experiences for employees through new features like Udemy Paths, skills assessments, workspaces, and hands-on labs across critical skills in IT, software development, data & analytics.

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