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The global online education tools market is estimated to cross US$ 4,000 Mn by the end of 2027. The market is forecast to see a compounded growth rate of more than 28%. Online education or e-learning has given impetus to the market. Moreover, technological awareness among individuals and increasing investments in education for collaborative & personalized learning environments is projected to drive the online education tools market.
The education industry witnesses an increased adoption of e-learning due to its easy accessibility and high effectiveness. E-learning modules attract more users apart from regular campus attendees' students such as drop-outs, transfer learners, full-time employees, among others. These users are increasingly relying on E-learning training and education to upgrade their skills. The overall E-learning industry is estimated to cross $243 billion by the end of the year 2022. E-learning is gaining high growth due to the increasing penetration of massive open online course (hereinafter, MOOC) options. The MOOC enrolment data registered a substantial growth of 29% annual and in recent scenario approx. all top universities in the United States offer online courses.
Implementation of SaaS-based Solutions:
Software-as-a-Service (SaaS) is a type of delivery model of cloud computing. In the education sector, SaaS applications include hosting various management systems for educational institutes, corporate offices and managing other activities. Cloud-based storage has minimized the requirement of physical storage, and universities and colleges have been able to expand their geographical presence; thus, allowing students and learners to access the classroom training remotely. Cloud technology has added value to many sectors and using SaaS in the education sector is highly beneficial in the case of E-learnings or online education and E-delivery of study material to students. SaaS is a majorly used cloud computing service in education to manage a range of technology, educational and administrative systems. The survey conducted by Hitachi Data Systems that includes respondents from colleges and universities stated the usage of SaaS in the form of various applications such as customer relations management, human resource management, video management, and others.
Increasing IT spending on cloud infrastructure in education:
Education institutes and organizations are rapidly moving towards cloud-based services to save an intensive IT infrastructure cost and boost the efficiency of operations. Major higher education institutions reported that their spending on cloud computing is witnessing growth and is anticipated that there will be ~60% of cloud-based higher education applications by 2021. In a survey conducted by MediTalk amongst 300 education, local, state and federal cloud adopters, 60% of higher education institutes are focusing to integrate cloud computing in their IT strategies.
Regional Overview: E-learning Industry
North America is estimated to hold the highest share of the market owing to high IT spending in the education sector. Spending on higher education in the U.S and Canada in 2018 was US$ 78 Bn and US$ 39.5 Bn, respectively. Additionally, many international IT organizations opting for E-learning in their training courses having presence across the globe are headquartered in the U.S. Thus, adoption of online education is higher in the country. Asia Pacific is however estimated to show the highest growth rate due to the rising number of students opting for online or distant learning courses.
Competition Landscape of Online Education Tools Market:
Several emerging online education tools vendors include names such as Microsoft Corporation, Nearpod, Pear Deck, Inc., Blackboard Inc., Google, Inc., BYJU'S, Kahoot, Animoto, ClassDojo, The CK-12 Foundation, edshelf, TED Conferences LLC, ThingLink, and Socrative (Showbie Inc.)
The current market has an oligopoly nature but is shifting towards fragmented nature due to the entry of several new players in the market. Through extensive research, it is found that market players have adopted strategies such as product innovation, client retention, and acquisition for increasing their market share within the market. Most of the leading players and their investments are concentrated in China, the U.S., Germany & India due to the rising adoption of cloud computing in the education sector.
Online Education Tools Market Segmentation:
The Global Online Education Tools Market is segmented into the following categories.
By Enterprise Size