Key subsectors in EdTech

The digitisation of society, changing life phases, massive labour automation and more fluid job markets are changing the way we live and work. This has created a need to rethink our existing educational structures so that they are better aligned with the 21st century economy. Today, there are companies that are using technology to disrupt and redefine education (“EdTech”) so that it is able to better accommodate the digital, societal and demographic shifts we are seeing around the world. In this piece, we take a look at the four sub-sectors that define the EdTech ecosystem.

1. Pre-K
2. K-12
3. Higher Education
4. Workforce

Pre-K

Companies in the Pre-K sub-sector include those which develop products, services, games and software systems for the purpose of learning, specifically aimed at children between the ages of zero and six years old, and which are delivered direct-to-consumer. Examples include digital storybooks and numeracy games, play-based learning apps, parenting support tools. Also included are companies that support Pre-K educational organisations, such as childcare centres, through digital products and services such as digital curriculum and education resources, technology or management systems. Examples of companies in the Pre-K sub-sector are: Bright Horizons Family Solutions, which provides child care and early education services and educational advisory services; and, AcadeMedia, a European pre-school provider.

K-12

Companies in the K-12 sub-sector provide online education programs to individuals between the ages of 11-18, and to schools in areas such as maths, language and literacy, and STEAM learning. Online tutoring, test preparation, language learning models are also included, as are software platforms such as learning management systems (LMS), student information systems (SIS), social learning platforms, exam software and digital curriculum aimed at schools and school age learners. Examples of companies in the K-12 sub-sector are: Koolearn Technology, which provides online extracurricular education services in China; K12 Inc., which provides online curriculum, software systems, and educational services to facilitate personalised learning; and, Arco Platform, that provides a learning platform and services to private schools in Brazil.

Higher Education

Companies in the Higher Education sub-sector include those which offer accredited degree programs through digital delivery, as well as companies that deliver digital services to higher education institutions and students through the learner lifecycle, such as university discovery, matching and enrolment platforms, learning support applications for research, writing and examinations through to digital, adaptive and immersive learning content. Learning environments and digital teaching/learning tools, student institutional management systems and higher education online enablement companies are also included in this subsector. Examples of companies in the Higher Education sub-sector are: Chegg, which operates direct-to-student online learning support, homework help and tutoring services; 2U, which partners with universities to build, deliver, and support online degree programs; and, IDP Education, an international education platform and English Language Test provider.

Workforce

Companies in the Workforce sub-sector include those which deliver digital education and training in vocational and professional contexts, e-learning platforms, online testing and exam preparation for professional certifications. The workforce sub-sector also includes digital skills assessment and upskilling in areas such as technology, compliance, finance, health and other topics directly related to, or required for career outcomes. Companies in this sub-sector also include online managed training services, and technology companies delivering simulation training for vocations and professions. Examples of companies in the Workforce sub-sector are: Pluralsight Inc., which provides technology skill development solutions including skill and role assessment and a digital ecosystem of on-demand courses in technology subject areas; Afya, a medical education group in Brazil, providing educational products and services, including medical schools, medical residency courses, and programs for lifelong medical learners; and, Rosetta Stone providing digital language-learning, literacy, and brain fitness solutions.

References

1. HolonIQ, “Education Technology and Digital Learning – Global Classification”, Page 4.