Rise of Ed-Tech Business during the Pandemic

Call centre trends for 2021
Introduction

Online education via Ed-tech platforms has been around much before Covid-19. But the Covid-19 pandemic has been a significant catalyst in enhancing the learning process for students and educators, and investors. Student enrolments and investments into the sector have both surged rapidly. The pandemic has led to a new-age Ed-Tech experience for students all over the world.


What is Ed-Tech?

Ed-tech is an abbreviation of the phrase "education technology". Ed-Tech is the combination of IT tools and educational practices aimed at facilitating and enhancing learning. It introduces IT tools into the classroom to create a more engaging, inclusive and individualized learning experience.




Shutting the schools, colleges and coaching centres have accelerated the growth of Ed-tech. Over the past few months, as students remain confined to home, digital education has developed as the only way to continue learning. Also, full-scale return to schools doesn't look plausible in this academic year. It will continue to push online as a primary medium of instruction, especially for primary and secondary levels.




According to Broadcast Audience Research Council (BARC) data, Digital Education took 116, 11,480 seconds (784 Hours) from March 21 to October 16, 2020, as against 28,22,565 (3225 hours) during March 16 - October 11, 2019, at an increase of 311%.




The major factors driving the growth of the Ed-Tech and Smart Classroom Market include :-

  • Increasing penetration of mobile devices.

  • Easy availability of internet users.

  • Growing demand for Ed-Tech solutions.

  • Impact of COVID-19 pandemic.

  • Growing online teaching-learning models to keep the education system running.



Some Ed-Tech Companies to watch:

  • Ed-Tech platform upGrad reached a million users recently. It grew 100% in 9 months from the start of the financial year and is targeting Rs. 2,500 crore in revenue for FY21-22.

  • India-based online tutoring firm Byju’s raised more than US$1 billion from January through September 2020. It is the first company in the Ed-Tech domain to reach a valuation of US$10.8 billion. Over 6 million users have downloaded this app across India.

  • The China-based Yuanfudao, is an online live course platform, which raised US$1 billion in March 2020 from Hillhouse Capital (China-based private equity firm) and Tencent Holdings (Chinabased technology conglomerate).

  • UK-based Ed-Tech MyTutor, a leading platform for online interactive one-to-one tuition for secondary school-aged pupils, also raised around €4.4 million.

  • In India, 14 Ed-Tech start-ups have concluded a round in the past few months amidst the economic disruption caused by COVID-19.


While many players in Ed-Tech sector could capitalize on the need for education during the pandemic, not all digital learning platform providers will stick around. In the long term, players with a clear-product concept and a well-defined monetization policy will emerge winners.


Advancing Sectors in Ed-Tech

Today, 19 Ed-Tech companies worldwide have collectively raised funding of over $10 billion over the past decade. China, USA and India have emerged as the home for Ed-tech innovation, perhaps owing to the size and demographic of their populace.


Digital Learning will be fundamental to the future students of the world in the age of modern technology. It will be as essential as air is for breathing. In the next 25 years, there will be multiple trillion-dollar digital learning companies. These Ed-Tech moguls of tomorrow will create digital learning companies that will enable most people to participate in the future by increasing access to high quality, effective education.


Some of the most advancing sectors in Ed-Tech are :
  • Solutions based on artificial intelligence (AI), augmented and virtual reality (AR/VR), and Blockchain is likely to gain more momentum and integrate into core education delivery.

  • Technologies that will see a spike include robotics (expected to grow from US$1.3 billion to US$3.1 billion during the six years) and Blockchain (expected to grow at a CAGR of 34.8% from US$0.1 billion to US$0.6 billion).

  • 64% of the growth in the Online Education market will originate from Content.

  • Upskilling apps will see increased interest because of the recent layoffs worldwide and the need for new skills in the post COVID world.





Learning Management System (LMS) sector to grow at the highest CAGR from 2020- 2025

The Ed-Tech sector doesn't depend on education alone. A learning management system (LMS) is a software application for the administration, documentation, tracking, reporting, automation and delivery of educational courses, training programs, or learning and development programs.


They allow institutions to access educational Content online, enabling students to view materials using the web browser. A wide range of systems deals with management training and academic records, facilitating blended and online courses for collaboration between teachers and students.




Conclusion:

While the world still battles the Coronavirus outbreak, the Ed-Tech business can expect significant growth as more people turn to digital education and solutions. The current pandemic has sped up the transformation of the education and technology business sector. Investments and expenditure in Ed-Tech will grow exponentially. Ed-Tech is here to stay, and the way students learn will never be the same. CogentHub will provide you with cost-effective, innovative, qualitative and on-time solutions that your Ed-Tech Business requires. Partnering with us, will help you reach new heights in this flourishing market.


Debarpita

Debarpita has completed her post-graduation in Applied Geology from Presidency University, Kolkata, India. Her key areas are Content writing and Research. She is in this industry for one year. Her areas of interest include palaeontology, writing, travelling and listening to audiobooks.


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