The educational-tech market has enormous potential

Pivotal trends are driving the development of the ed-tech sector, according to recent research by ABGSC
As society’s technological wheels spin ever faster, people are seeking continuous, life-long learning. Education does not end at school, and companies that want to thrive in the marketplace must stimulate their employees to adapt and acquire new skills. Moreover, with Millennials and Gen Zs becoming the largest generations in the workforce, we will for the next 30+ years have global manpower that has grown up with video games as an integral part of life. “These workers are likely to bring their gaming habits with them into their jobs. In addition to its function as a leisure activity, gaming can also function as an excellent tool to stimulate education. This summer, we even saw the first-ever video game approved by the U.S. Food and Drug Administration as a medical treatment for ADHD. We are likely to see much more of this in future; in schools, businesses, and the private market” says, Aksel Engebakken, Equity Research at ABGSC.
We have likely only seen the first glimpse of what ed-tech will contribute to society
The market for digital training is already large: ABGSC has previously estimated the addressable market for the ed-tech company Kahoot at around USD >20bn. “Ten years down the road, this number is likely to be orders of magnitude larger. Schools and corporations can both benefit from improving their educational throughput” says, Aksel Engebakken.
COVID-19 is another catalyst for the sector
When COVID-19 broke out, institutions and companies had to immediately has to adapt to a new reality. Many went from being digital novices to digital power users almost overnight. This created a surge in demand for digital communication and training tools. “In the aftermath of COVID-19, society will likely become much better digitally equipped. People have broken the digital threshold, and the pandemic has demonstrated the value that ed-tech tools can deliver in either a classroom or a corporate setting. COVID-19 could turn out to be the “jet fuel” for an ed-tech sector that was already running close to full throttle” says Aksel Engebakken.