The future of edtech: Key trends shaping the industry in India and globally

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By Arnab Ray

The edtech (educational technology) industry is undergoing a dramatic shift, with projections estimating its global market size to reach $605.40 billion by 2027, growing at a compound annual growth rate (CAGR) of 15.52%. This evolution has been driven by both global developments and regional innovations, particularly in countries like India. As the industry matures, several trends are shaping the future of education.

This article delves into the key trends that will shape the edtech industry in the years to come, backed by data, figures, and real-world examples.

Hybrid learning models are here to stay

The hybrid learning model, which blends online and offline education, has emerged as one of the most transformative changes in the post-pandemic world. This model offers flexibility for students while still providing the benefits of in-person interaction. According to a 2022 survey, 73% of higher education institutions worldwide are planning to continue hybrid models even after the pandemic subsides.

In India, traditional educational giants like Allen and Aakash, long known for their physical coaching classes, have launched robust online platforms to reach students beyond their physical locations. Allen, for instance, has expanded into digital education through its “ALLEN Digital” initiative, which now serves thousands of students across the country. This has allowed them to expand their market share and cater to students who were previously unable to access their services due to geographic limitations.

Globally, the hybrid learning model is proving effective in higher education and K-12 institutions, especially in regions with reliable internet infrastructure. For example, Coursera, one of the world’s largest edtech companies, partners with universities globally to offer hybrid learning options that combine online content with in-person engagement.

Artificial intelligence in personalized learning

Artificial intelligence (AI) is transforming the way education is delivered, offering students a personalized learning experience that was once impossible to scale. The global AI in the education market is projected to grow at a CAGR of 40.08% from 2021 to 2028, reaching a market size of $20.3 billion by 2028.

In India, companies like BYJU’s, Unacademy, and Vedantu have embraced AI to provide personalized learning experiences. For example, BYJU’s uses AI-powered algorithms to adapt the learning content based on a student’s pace and understanding, offering tailored quizzes and feedback in real time. Their platform now serves over 150 million registered students, and personalized learning has been a key driver of their success.

Globally, companies like Squirrel AI are at the forefront of AI-driven education. Squirrel AI, a Chinese edtech company, offers an adaptive learning platform powered by AI that identifies students’ weaknesses and adjusts the content accordingly, allowing students to focus on areas they need to improve the most. This AI-based approach has resulted in significantly improved learning outcomes.

Expanding edtech to non-metro and rural areas

In India, the rural and non-metro regions present a vast untapped market for edtech platforms. With around 65% of the Indian population living in rural areas, reaching these students is a priority for many edtech companies. According to the Internet and Mobile Association of India (IAMAI), rural India now has over 351 million active internet users, and this number is rapidly growing.

Several Indian edtech platforms are making significant strides in reaching students in rural areas. For example, Simplilearn, an Indian online learning platform, has introduced affordable subscription models and low-data usage options to make learning accessible to students in remote locations. Similarly, companies like Vedantu are offering content in regional languages to cater to diverse linguistic groups.

Globally, the focus on making education accessible to underserved communities is also growing. Platforms like Eneza Education in Kenya are leveraging mobile technology to provide educational resources to students in rural areas, even without access to high-speed internet. Eneza uses SMS-based learning tools, allowing students in low-connectivity regions to access educational content through basic mobile phones.

Skill development and lifelong learning

The demand for industry-relevant skills is reshaping the education sector, with edtech platforms focusing on providing students and professionals with the tools they need to succeed in a rapidly changing job market. According to a report by LinkedIn, 74% of learning and development leaders believe that upskilling their workforce is a top priority.

India’s edtech sector has responded to this demand by offering an array of courses focused on emerging technologies such as data science, AI, and machine learning. UpGrad, for example, offers professional certification courses in collaboration with top universities and has over 2 million learners across 50 countries. In 2023, UpGrad reported a 100% increase in its revenue driven by its focus on upskilling programs.

Globally, platforms like Udemy and Coursera have become synonymous with professional development. Coursera’s partnership with over 275 leading universities and companies, including Google and IBM, has enabled it to provide certificate programs tailored to industry requirements. With more than 113 million learners worldwide, Coursera has become a global leader in skill development and lifelong learning.

New approaches to assessment and feedback

Continuous assessment and real-time feedback are becoming central to the modern learning experience. Traditional assessment methods, like final exams, are increasingly being supplemented by AI-powered adaptive assessments that provide more nuanced insights into student performance.

In India, edtech platforms like Toppr and BYJU’s are utilizing AI to offer real-time feedback to students, helping them track their progress and understand their weaknesses. Toppr, which serves more than 15 million students, provides students with a personalized study plan based on adaptive learning technology. This approach ensures that assessments are not just tests of memory, but comprehensive evaluations of understanding and skills.

Globally, companies like Knewton are pioneering adaptive learning technology. Knewton’s platform adjusts the difficulty of the content in real-time based on student performance. This method of continuous assessment and personalized feedback helps students stay engaged and allows educators to intervene when necessary.

Edtech’s role in corporate and workforce training

Edtech is increasingly being used to upskill and reskill employees in the corporate world. According to a study by Deloitte, 94% of business leaders report that a significant skills gap exists, and 90% of them are working to address this through corporate learning platforms.

In India, companies like Simplilearn and Great Learning have emerged as leaders in corporate training. Simplilearn, with over 2 million learners globally, has partnered with organizations like Microsoft, Amazon, and Facebook to provide certification programs that align with the needs of the modern workforce. In 2023, the company reported a 30% growth in its enterprise business, driven by demand for employee upskilling.

Globally, LinkedIn Learning has become one of the most widely used platforms for workforce training, offering over 16,000 courses in areas like leadership, project management, and digital skills. LinkedIn Learning’s corporate customers include organizations such as Adobe, Amazon, and Deloitte, who use the platform to keep their employees competitive in a rapidly changing environment.

Conclusion

The future of edtech is shaped by innovative trends that are making education more accessible, personalized, and flexible. The hybrid learning model, AI-driven personalized learning, expanding access to rural areas, skill development, new approaches to assessment, and corporate training are all key drivers of this transformation.

In India, the rapid growth of internet connectivity and mobile penetration, coupled with a young, tech-savvy population, creates fertile ground for edtech innovation. Companies like BYJU’s, Unacademy, and UpGrad are leading the charge in transforming education for millions of students across the country.

Globally, the demand for accessible and flexible learning solutions is only set to grow, with edtech platforms continuing to redefine how we learn. As we move into the future, the education landscape will be driven by technology, inclusivity, and the evolving needs of learners worldwide. The future of education, in many ways, is already here.

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