EdTech

REPORT
Trends for 2024

www.selleo.com 2024
What does the report
include?

EdTech trends for 2024

Recent industry trends that can be implemented to

generate additional revenue streams

Financial trends in EdTech startup funding

Top EdTech Companies of 2024

How big is the opportunity for the EdTech market?

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 EdTech trends for 2024
Generative AI-Enabled EdTech Tools

EdTech companies are rushing to launch generative AI assistants

to enhance learning experiences. These AI-powered assistants,
like ChatGPT, provide instant feedback, explain concepts, and
generate new outputs such as essays. They are reshaping the
landscape of education delivery and posing challenges to
traditional EdTech companies.

Corporate Microlearning LMS Solutions

The demand for corporate microlearning solutions is on the rise

as employers seek efficient ways to upskill their workforce
without disrupting productivity. Companies are developing
mobile-friendly, bite-sized learning modules delivered through
chat apps and social media platforms to cater to learners'
preferences for on-the-go, interactive learning experiences.

Data Science for User Engagement

EdTech companies are leveraging data science to enhance user

engagement and retention. By analyzing user data and
behaviors, companies can identify patterns and drivers of
engagement, personalize learning experiences, and intervene
early to prevent drop-off. Predictive analytics models are being
used to predict student outcomes and optimize learning
interventions.

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Immersive Learning Solutions with AI
VR and AR technologies are gaining traction in the education
sector, driven by their potential to create immersive learning
experiences. AI integration is making immersive learning more
cost-effective and efficient by enabling content generation,
tracking learner interactions, and personalizing learning
experiences based on individual profiles.

New Financing Solutions for Education

Addressing the financial barriers to education, startups are
developing innovative financing solutions such as study-now-
pay-later (SNPL) lending platforms and embedded educational
loan repayment products. These solutions aim to improve access
to education funding for students and alleviate the burden of
educational debt.

Global Support for Digital Transformation in Education

Governments worldwide are increasing support for digital
transformation in education, advocating for the integration of
technology into classrooms. This support, coupled with growing
corporate L&D budgets and learners' interest in digital learning,
is driving sector growth and creating opportunities for EdTech
companies to innovate and expand their offerings.

Source: 8allocate.com

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Recent industry trends that can be implemented
to generate additional revenue streams

Microlearning Modules
Short, focused learning modules are gaining popularity due to
their flexibility and accessibility. Creating and selling
microlearning content on specific topics or skills can appeal to
learners seeking quick, targeted learning experiences.

Subscription Models
Offering subscription-based access to a library of courses or
learning resources provides a steady stream of recurring
revenue. Subscription models can be tiered to cater to different
user needs, with premium tiers offering exclusive content or
features.

Corporate Partnerships
Partnering with corporations to provide customized training
programs for their employees can be a lucrative revenue
stream. Tailoring content to meet the specific needs of corporate
clients and offering enterprise-level solutions can command
higher prices.

Freemium Models
Providing basic access to educational content for free while
charging for premium features, advanced courses, or
personalized learning experiences can attract a larger user base
and encourage upselling to paid offerings.

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Digital Badges and Certifications
Issuing digital badges or certificates upon completion of courses
or assessments can serve as proof of skills attainment. Charging
a fee for certification exams or premium credentials adds value
for learners and creates an additional revenue stream.

Content Licensing and White Labeling

Licensing educational content to other institutions, platforms, or
organizations allows for broader distribution and can generate
royalties or licensing fees. White labeling solutions enable other
entities to rebrand and resell your platform or content under
their own brand.

Gamification and Interactive Experiences

Incorporating gamified elements, simulations, and interactive
learning experiences into your platform can increase
engagement and retention. Charging for access to premium
gamification features or virtual reality experiences can create
additional revenue streams.

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 Financial trends in EdTech startup funding.

The EdTech market is set to hit $136.92 billion by 2024, fueling

intense competition among its 65,000 startups worldwide.

European investors poured $1.2 billion into these firms in

2023, highlighting sustained interest. Despite the return to
physical classrooms, demand for distance learning products
remains strong, with a projected $350 billion market by 2025.

The rise of AI is a significant factor, with startups integrating

the technology and receiving an average funding of $3.5
million in 2023, indicating its potential to shape the sector's
future.

Experts say...

Masha Buther from Day One Ventures sees AI

driving EdTech's future, potentially leading to early
buyouts by tech giants.

Avi Warshavsky of MindCET agrees, emphasizing

AI's role in personalized learning and predicting a
rise in startup acquisitions.

Marieke Gehres of Earlybird Venture Capital

expects increased funding opportunities in the
EdTech sector, noting its resilience even in
turbulent times.

Source: time.com

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 Digital expenditure trends in education

Expenditure on digital resources within the education sector is

estimated to reach $404 billion by 2025, expanding from $227
billion in 2020, constituting a small fraction of overall spending
but expected to increase notably due to the heightened
investment in digital infrastructure and innovative educational
approaches.

Source: www.holoniq.com

6
 Top EdTech Companies
of 2024
Rank Company Website Headquarters
1 Emeritus sg.emeritus.org Singapore
2 Memrise memrise.com United Kingdom
3 Afya afya.com.br Brazil
4 Knowbox knowbox.cn China
5 Vitru Education vitru.com.br Brazil
6 Yellowbrick yellowbrick.co United States
7 Strivr Labs strivr.com United States
8 Civitas Learning civitaslearning.com United States
9 Lottus Education lottus.com Mexico
10 Class class.com United States
11 XuetangX xuetangx.com China
12 bettermarks bettermarks.com Germany
13 Quizlet quizlet.com United States
TAL Education
14 en.100tal.com China
Group
15 Articulate articulate.com United States
16 Learnosity learnosity.com Ireland
17 Fuse fuseuniversal.com United Kingdom
18 Meishubao vip.meishubao.com China
19 Speexx speexx.com Germany
20 Pickatale pickatale.com Norway

Source: Time

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The ranking was prepared by Time and it is based on financial
strength and industry impact.

Eruditus, the top-ranked company, reported close to

$400 million in revenue for the financial year ending
June 2023, with a 75% increase over the prior year.

Eruditus offers online courses from over 80 universities

globally, educating more than 500,000 people across
80 countries.

The U.S. dominates the list, accounting for over one-

third of the slots.

China and the U.K. follow, with 10% and just over 6%
respectively.

Two Brazilian companies, Afya and Vitru Education,

made it into the top 10.

Udemy is ranked 78

Source: Time

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How big is the opportunity
for the EdTech market?
The EdTech market has been experiencing tremendous growth
over the past few years, and its potential continues to expand.

Market Size
The global EdTech market was valued at over $200 billion in
2021 and is projected to reach nearly $400 billion by 2027, with a
compound annual growth rate (CAGR) of around 14%. This
growth is driven by increasing adoption of digital learning
solutions across educational institutions and corporate training
sectors.

Pandemic Acceleration
The COVID-19 pandemic acted as a significant catalyst for the
EdTech market, as it forced educational institutions worldwide to
rapidly transition to online learning. This shift not only
highlighted the importance of technology in education but also
created new opportunities for EdTech companies to innovate
and provide solutions for remote learning.

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Global Reach
One of the most compelling aspects of the EdTech market is its
ability to reach learners anywhere in the world, transcending
geographical barriers. This global reach opens up vast
opportunities for EdTech companies to scale their products and
services to a diverse audience.

Personalized Learning
EdTech offers the potential for personalized learning
experiences tailored to individual student needs. Adaptive
learning platforms, AI-driven tutoring systems, and data
analytics tools enable educators to customize content and
interventions, leading to improved learning outcomes.

Upskilling and Reskilling

As the job market evolves rapidly due to technological
advancements and automation, there is a growing demand for
upskilling and reskilling programs. EdTech platforms specializing
in professional development, vocational training, and lifelong
learning are well-positioned to capitalize on this demand.

Lifelong Learning Trends

There's a growing recognition of the importance of lifelong
learning for personal and professional development. EdTech
platforms catering to adult learners, hobbyists, and enthusiasts
are gaining traction, offering courses on a wide range of
subjects beyond traditional academic disciplines.

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 Wrap up
The EdTech market has witnessed remarkable growth in recent
years, with projections estimating a value of $136.92 billion by
2024, up from approximately $121 billion in 2023.

This growth is fueled by various factors, including increasing

investments from venture capital firms, rising demand for
distance learning solutions, and the integration of artificial
intelligence into educational technologies.

Startups leveraging AI are expected to play a significant role,

with potential for early buyouts by tech giants. Additionally, the
EdTech sector has shown resilience, even during turbulent times,
attracting continued funding opportunities.

Overall, these trends underscore the dynamic and evolving

nature of the EdTech landscape, with technology innovation
driving transformative changes in education delivery and
accessibility.

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Digital Transformation Academy
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