What is the real market size of the EdTech market?
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In our EdTech market deck, you will find everything you need to understand the market
The EdTech market has gone through a dramatic reset after the pandemic boom, with venture funding falling 89% from its 2021 peak.
Yet the fundamentals remain strong: 264 million higher education students worldwide and 44 million new teachers needed by 2030 keep demand growing.
AI is now reshaping the competitive landscape, with the AI-in-education segment growing at over 40% annually.
And if you want to better understand this new industry, you can download our pitch covering the EdTech market.
Insights
- EdTech unicorns dropped from 43+ at peak to just 14 in early 2025, collectively valued at $39.9 billion, signaling a major market correction in educational technology.
- Canvas now controls 47-50% of the US higher education LMS market by enrollment, making it the dominant platform for university digital learning.
- Private equity executed $82 billion in EdTech deals from 2020-2024, with firms like KKR and Bain Capital acquiring market leaders at reset valuations.
- Teachers using EdTech daily jumped to 79% in 2024, up from much lower pre-pandemic levels, showing permanent adoption of digital learning tools.
- India's EdTech market is growing at 19-29% annually, making it the second-largest e-learning market globally after the United States.
- Corporate training spending hit $340 billion globally, with the corporate e-learning segment alone projected to grow at 21.7% CAGR through 2030.
- 92% of university students now use AI tools for learning, nearly double the 66% rate from just one year earlier, transforming how students study.
- China's "Double Reduction" policy shut down 95% of offline tutoring institutions, but AI learning device sales surged 136.6% as the market pivoted.
- Duolingo generated $748 million in 2024 revenue with 40.5 million daily active users, proving freemium language learning can reach massive scale profitably.
- The EU AI Act classifies educational AI as "high-risk," requiring compliance by August 2027, creating new regulatory hurdles for EdTech companies.
How do we define the EdTech market?
We define the EdTech market as technology-based products and services that directly support teaching, learning, assessment, or credentialing.
We include tools and content for schools and universities, online courses and tutoring, and platforms for adult and workforce learning and skills development.
We exclude generic productivity software, telecom and network infrastructure, and hardware that is not specifically designed for or bundled with learning experiences.
We also use this definition when we make and update our pitch covering everything there is to know about the EdTech market.
In our EdTech market deck, we have collected signals proving this market is hot right now
What is the size of the EdTech market in 2026?
What results can we find on the internet?
As you probably know already, many firms regularly publish (sometimes conflicting) estimates of the EdTech market size, using different definitions, scopes, and years.
We have consolidated their results here. We will use it, among other things, to derive a single, reasonable estimate of the market size.
| Research Firm | Market Size (USD) | Year | Scope and Alignment |
|---|---|---|---|
| Grand View Research | $212B | 2026 | Covers K-12, higher education, and corporate learning. Aligns closely with our definition. |
| Fortune Business Insights | $214.58B | 2026 | Similar scope including all education segments. Matches our definition well. |
| HolonIQ | $404B | 2025 | Includes digital infrastructure and management systems. Broader than our definition. |
| Straits Research | $169.37B | 2024 | Covers core EdTech products and services. Aligns closely with our definition. |
| Markets and Markets | $197.3B | 2025 | Includes smart classroom hardware. Slightly broader than our definition. |
| IMARC Group | $250.16B | 2024 | Covers teaching and learning technology. Similar to our definition but higher estimate. |
| Market Research Future | $167.02B | 2024 | Focuses on education technology solutions. Aligns with our definition. |
| Future Market Insights | $108.25B | 2024 | Core EdTech products only. Narrower than our definition. |
What can we conclude, then?
The estimates that align best with our definition (Grand View Research, Fortune Business Insights, Straits Research) cluster between $165 billion and $215 billion for 2024-2026.
We should exclude HolonIQ's $404 billion figure because it includes infrastructure we exclude, and Future Market Insights' $108 billion appears too narrow.
Based on aligned sources and applying their 13-16% growth rates to 2024 figures, our first estimate for the EdTech market in 2026 is around $200-215 billion, which we will refine further.
In our EdTech market deck, we help you understand how the market is structured
What if we try to make our own estimate?
We don't have to rely only on external analyses to estimate market size.
We will try to build a first-principles, bottom-up calculation, then run a few sanity checks to see whether we can reliably estimate the size of the EdTech market.
Useful data about the EdTech market
Here is some useful and reliable data we have collected, they will help us estimate the size of the EdTech market:
- Total global education spending reached $5.8 trillion in 2022 (World Bank)
- There are 264 million higher education students globally as of 2023 (UNESCO)
- US K-12 enrollment totals approximately 54.2 million students (US Census)
- Corporate training spending globally reached $326-340 billion in 2024 (SkyQuest)
- 84% of US schools now have one-to-one device access for students (Benton Institute)
- 79% of teachers use EdTech tools daily in 2024 (Classter)
- The EU has 94.5 million students across all education levels (Eurostat)
- MOOC platforms serve over 220 million learners globally (EntrepreneursHQ)
Method and calculation to get the size of the EdTech market
Let's build up from the major segments. K-12 digital learning tools represent approximately $78 billion as of 2023, growing at 12.5% annually.
Higher education platforms, including LMS systems and online courses, account for roughly $35-40 billion. Corporate and workforce learning adds another $100-110 billion in technology spending.
Online tutoring contributes around $12-15 billion. Language learning apps add approximately $7-8 billion to the total.
Test prep and assessment technology brings in another $8-10 billion. Early childhood EdTech adds around $15 billion.
Summing these segments gives us a 2026 total of approximately $195-210 billion. This aligns well with our research firm estimates.
Sanity checks
Global education spending is $5.8 trillion. If EdTech represents 3.5-4% of total education spending, that yields $200-230 billion.
This percentage is reasonable given digital transformation trends. High-income countries spend more on technology per student than developing nations.
Looking at major public companies helps too. Pearson ($4.5B), McGraw Hill ($2.1B), Coursera ($695M), Duolingo ($748M), and Udemy ($787M) alone represent $9+ billion.
These five companies capture perhaps 4-5% of the total market. That math suggests a market size around $180-225 billion, consistent with our estimate.
The corporate training segment also checks out. With $340 billion in total corporate training, around 30% being technology-based equals roughly $100 billion.
What's our final guess then?
Based on research firm consensus, bottom-up calculations, and sanity checks, the EdTech market is worth approximately $205 billion in 2026.
This figure sits comfortably in the $200-215 billion range suggested by aligned research sources. It reflects realistic technology penetration rates across all education segments.
For context, the EdTech market is now comparable in size to the global video game market (around $200 billion in 2026). It is larger than the global music industry ($30 billion) but smaller than global advertising ($750 billion).
The EdTech market in 2026 represents roughly 3.5% of total global education spending. This share will likely grow as digital adoption continues across developing regions.
We are confident that $205 billion represents a reasonable central estimate for the global EdTech market size in 2026.
In our EdTech market deck, we will give you useful market maps and grids
Is the EdTech market mature, competitive, fragmented?
The maturity score of the EdTech market in 2026 is 45/100
The EdTech market remains in a growth phase rather than maturity. Adoption rates are still climbing, with 79% of teachers using EdTech daily, up from much lower pre-pandemic levels.
However, certain segments show maturity indicators. The LMS market has consolidated around Canvas (50% share), and pricing models are well-established.
AI integration is creating entirely new product categories, keeping the overall market in evolution. Emerging markets like India and Africa are just beginning their EdTech adoption curves.
The competitive intensity score of the EdTech market in 2026 is 70/100
Competition in EdTech is fierce but varies by segment. The LMS space has consolidated significantly, while tutoring and language learning remain highly contested.
Private equity acquisitions have intensified competition through operational improvements. KKR, Bain Capital, and Vista Equity are pushing portfolio companies to gain market share.
AI capabilities are now a key competitive differentiator. Companies without AI-powered features risk losing ground to more innovative competitors.
Barriers to entry remain high due to 12-18 month school procurement cycles and data privacy regulations.
The fragmentation score of the EdTech market in 2026 is 60/100
The EdTech market shows moderate fragmentation with clear leaders in each segment. The top 10 EdTech companies account for 54% of total usage in US schools.
Consolidation is ongoing but incomplete. Over 2,000 M&A deals occurred from 2020-2024, yet thousands of startups and small players remain active.
Geographic fragmentation adds complexity. Regional leaders like Physics Wallah in India and TAL Education in China dominate their home markets.
In our EdTech market deck, we turn research findings into simple, useful visual summaries
How much bigger will the EdTech market be in 10 years?
What are the different forecasts for the growth rate of the EdTech market?
One more time, let's check what other market research firms have to say.
| Research Firm | Annual Growth Rate | Until Year | Comments and Adjustments |
|---|---|---|---|
| Grand View Research | 13.3% | 2030 | Matches our definition closely. Reliable baseline for projections. We will use this as our conservative estimate. |
| Fortune Business Insights | 13.45% | 2034 | Similar scope to our definition. Long forecast period adds uncertainty. Good confirmation of the 13% range. |
| Straits Research | 17.1% | 2032 | Aligns with our definition but higher growth estimate. May reflect optimistic AI adoption. Upper bound reference. |
| Technavio | 15.9% | 2029 | Includes some hardware we exclude. Shorter forecast period is more reliable. Supports mid-range growth scenario. |
| IMARC Group | 11.86% | 2033 | Similar scope but conservative growth rate. Long-term projection to 2033. Lower bound reference for estimates. |
| Markets and Markets | 12.3% | 2030 | Slightly broader definition with smart classrooms. Conservative estimate useful for risk scenarios. Mid-range reference. |
| Market Research Future | 15.5% | 2035 | Matches our definition well. Very long forecast period. Optimistic growth rate reflects AI acceleration potential. |
What can we conclude about the growth rate of the EdTech market?
The consensus CAGR for the EdTech market falls between 13% and 16% through 2030-2035. This is faster than the global economy but slower than pure software sectors.
We believe a 14% CAGR is a realistic baseline for the EdTech market through 2036. This balances conservative estimates (12-13%) with optimistic AI-driven projections (16-17%).
At 14% annual growth, the EdTech market will roughly double every five years. By 2030, the market would reach approximately $395 billion.
Looking further out, the EdTech market in 2036 would reach approximately $760 billion at this growth rate. That represents roughly 3.7 times the 2026 market size.
For comparison, the global SaaS market grows at 11-13% annually. Healthcare technology grows at 15-18%. EdTech sits comfortably in this range of technology-driven sectors.
The AI-in-education segment growing at 42% CAGR could push overall EdTech growth higher. If AI adoption accelerates, the market could exceed $800 billion by 2036.
Conversely, if funding constraints persist and economic conditions weaken, growth could slow to 11-12%. This would still yield a market over $550 billion by 2036.
And if you're curious about what's happening in this (really interesting) market, we publish a quarterly update on the activity in the EdTech market here. We also have a monthly update here.
In our EdTech market deck, we turn research findings into simple, useful visual summaries
What is the projected CAGR for the EdTech market?
At New Market Pitch, we like it when the information is clear and easy to digest, as you will see in the pitch about the EdTech market. That's also why we have made this clear summary table.
| Year | Worst Case (11% annual growth rate) | Realistic (14% annual growth rate) | Best Case (17% annual growth rate) |
|---|---|---|---|
| 2027 | $228B | $234B | $240B |
| 2028 | $253B | $267B | $281B |
| 2029 | $281B | $304B | $329B |
| 2030 | $312B | $347B | $385B |
| 2031 | $346B | $395B | $450B |
| 2032 | $384B | $451B | $527B |
| 2033 | $427B | $514B | $616B |
| 2034 | $474B | $586B | $721B |
| 2035 | $526B | $668B | $844B |
| 2036 | $584B | $762B | $987B |
What would it take for the EdTech market to be worth $1 trillion?
For the EdTech market to reach $1 trillion by 2036, several conditions would need to align. This represents the optimistic scenario requiring sustained 17% annual growth.
AI tutors and assistants would need to become standard in most classrooms worldwide. Today only 25% of learning and development programs use AI. That share would need to exceed 75%.
Emerging markets would need to dramatically accelerate their EdTech adoption. India and Africa currently represent under 10% of global EdTech spending. They would need to reach 25-30%.
Corporate learning budgets would need to shift heavily toward digital solutions. Currently about 30% of the $340 billion corporate training market is technology-based. This would need to reach 50%.
Governments would need to maintain or increase education technology funding. The US Senate added $2.3 billion for early learning in FY2025. Similar investments globally would accelerate growth.
Regulatory barriers like the EU AI Act would need streamlined compliance pathways. Overly burdensome requirements could slow AI adoption in education.
The venture funding drought would need to reverse. EdTech VC funding dropped to $2.4 billion in 2024. A return to $8-10 billion annually would fuel more innovation and market expansion.
Finally, the 272 million out-of-school children globally would need access to low-cost EdTech solutions. Mobile-first platforms in developing regions could unlock this massive underserved market.
In our EdTech market deck, we have designed useful charts to give you full market clarity
Where is the money in the EdTech market?
What are the categories and how much do they generate?
Corporate and workforce learning dominates the EdTech market at approximately 45% of revenue in 2026. This segment includes learning management systems, online training platforms, and professional development tools.
K-12 digital learning tools represent about 30% of the EdTech market. This includes curriculum content, classroom management software, and student information systems.
Higher education platforms account for roughly 15% of EdTech revenue. MOOCs, university LMS systems, and online degree programs drive this segment.
Consumer learning apps make up the remaining 10% of the EdTech market. Language learning, tutoring platforms, and test prep fall into this category.
Corporate learning commands the largest share because companies have substantial training budgets. The average US company spends $1,254 per employee on training annually.
How will it evolve?
By 2030, corporate learning will likely maintain its dominance at around 43% of the EdTech market. AI-powered upskilling tools will drive continued investment.
K-12 will grow slightly to 32% as schools complete digital transformation initiatives. Personalized learning platforms will capture increasing share.
Higher education may decline to 12% as traditional universities face enrollment pressures. However, alternative credentials and micro-learning could offset some decline.
Consumer learning will grow to 13% by 2030. AI tutors and language apps will attract more direct-to-consumer spending.
By 2036, we expect corporate learning at 40%, K-12 at 33%, consumer at 16%, and higher education at 11%. The shift reflects growing consumer AI adoption and K-12 personalization.
Where to spend your energy as an investor or a builder in the EdTech market then?
AI-powered tutoring and assessment tools offer the highest growth potential. The AI-in-education segment grows at 42% annually compared to 14% for overall EdTech.
Early childhood education technology remains underpenetrated. This segment is growing at 15.3% CAGR with relatively few dominant players.
Workforce upskilling and reskilling tools address a massive need. Companies struggle to keep employee skills current as technology evolves rapidly.
Emerging markets offer geographic arbitrage opportunities. India's EdTech market grows at 19-29% annually, far outpacing developed markets.
Special education and accessibility tools serve an underserved population. Regulatory requirements for inclusive design create tailwinds for compliant solutions.
And if you're curious about where investors are putting their money right now, we publish a quarterly update on the fundraising activity in the EdTech market here. We also analyze long-term funding trends in the EdTech market here.
In our EdTech market deck, we show you long-term trends so you can make better decisions
What is the geographical revenue breakdown for the EdTech market?
North America
North America accounts for approximately 38% of the global EdTech market in 2026. The United States alone represents the vast majority at $74-91 billion.
Strong venture capital presence and advanced digital infrastructure drive this leadership. 84% of US schools now have one-to-one device access for students.
By 2030, North America's share will likely decline to 35% as emerging markets grow faster. The region will maintain absolute growth but lose relative share.
By 2036, we expect North America at 30% of global EdTech revenue. Mature adoption rates limit growth potential compared to developing regions.
Europe
Europe represents about 29% of the EdTech market in 2026 at approximately $48-60 billion. The EU's 94.5 million students create substantial demand.
GDPR and the EU AI Act create compliance requirements that favor larger players. Lifelong learning initiatives drive corporate EdTech adoption.
Europe will maintain roughly 27% market share through 2030. Regulatory leadership may slow some AI adoption but ensures data privacy standards.
By 2036, Europe's share will likely settle around 24%. Slower population growth and mature markets constrain expansion potential.
Asia-Pacific
Asia-Pacific holds approximately 25% of the global EdTech market in 2026. India and China drive most of this activity despite China's regulatory constraints.
India's EdTech market grows at 19-29% annually with 829 million internet users. China has pivoted to AI learning devices after the tutoring crackdown.
By 2030, Asia-Pacific will reach 30% of global EdTech revenue. India alone may represent 8-10% of the global market by then.
By 2036, Asia-Pacific could command 35% of the EdTech market. Massive student populations and rising incomes fuel sustained growth.
Latin America
Latin America accounts for roughly 5% of the EdTech market in 2026 at $10-12 billion. Mobile learning and education equity initiatives drive adoption.
Brazil and Mexico lead regional EdTech development. Infrastructure gaps and economic volatility create challenges alongside opportunities.
By 2030, Latin America will likely reach 6% of global EdTech revenue. Continued mobile penetration supports digital learning expansion.
By 2036, the region could reach 7% market share. Government digital education initiatives will accelerate adoption in underserved areas.
Middle East and Africa
Middle East and Africa represent approximately 3% of the EdTech market in 2026. Youth demographics create enormous long-term potential.
Government investments in education technology are increasing across the Gulf states. Africa's EdTech funding grew 169% in Q1 2025.
By 2030, this region will likely reach 4-5% of global EdTech revenue. Infrastructure improvements will enable broader digital learning access.
By 2036, Middle East and Africa could reach 6-7% market share. This represents the fastest regional growth rate in EdTech globally.
In our EdTech market deck, slides and data are updated quarterly
What other interesting data are there regarding the EdTech market?
For investors in the EdTech market
- EdTech companies trade at 14.4x revenue multiples on average, nearly double the 8.1x multiple for general SaaS, reflecting premium growth expectations (Reach Capital)
- Private equity firms executed take-private deals totaling over $12 billion in 2024 alone, including PowerSchool ($5.6B) and Canvas ($4.8B), signaling value in mature EdTech assets (HolonIQ)
- K-12 education support services capture roughly one-third of remaining venture investment, making it the most active category for early-stage EdTech deals (Reach Capital)
- Morgan Stanley projects generative AI could create $200 billion in value for global education by 2025, representing massive upside for AI-first EdTech companies (Morgan Stanley)
- Duolingo's stock rose significantly as the company proved freemium language learning can generate $748 million in annual revenue with strong unit economics (Duolingo Investor Relations)
- Only 14 EdTech unicorns remain from 43+ at peak, creating potential acquisition opportunities as valuations reset to sustainable levels (HolonIQ)
For builders in the EdTech market
- Teachers using EdTech daily reached 79% in 2024, meaning product-market fit now depends on ease of use and integration rather than convincing teachers to adopt technology (Classter)
- MagicSchool AI reports 88% teacher satisfaction rates, demonstrating that AI assistants solving administrative burden (lesson planning, grading) find eager adoption (AWS Public Sector)
- School procurement cycles run 12-18 months with RFP processes favoring incumbents, so startups should target direct-to-teacher or direct-to-parent channels initially (FasterCapital)
- 67% of EdTech unicorns now incorporate AI in their products, making AI capabilities table stakes rather than a differentiator for new market entrants (HolonIQ)
- The EU AI Act classifies educational AI as "high-risk" with compliance required by August 2027, creating first-mover advantage for startups building compliance into their products now (FasterCapital)
- 44 million additional teachers are needed globally by 2030 according to UNESCO, creating massive opportunity for AI tools that extend teacher capacity and effectiveness (UNESCO)
- Canvas achieved 50% LMS market share by prioritizing user experience over feature bloat, proving that simplicity wins in EdTech product design (On EdTech)
In our EdTech market deck, we answer all the common questions from investors and entrepreneurs
Related blog posts
- What are the latest news in the EdTech market?
- What are the latest funding news in the EdTech market?
- What is the latest update in the EdTech market?
