EdTech’s Impact: 5 Transformative Trends in Education
TL; DR: In pursuit of enhancing learning, EdTech companies play a crucial role in revolutionizing education. They develop products that increase accessibility, promote remote learning, provide data-driven insights, and foster professional growth. This article explores the significant changes triggered by EdTech companies and the emerging trends in their field that are shaping the future of education.
Known as educational technology companies, EdTechs have continuously brought a wave of transformation to the field of education, harnessing technology to enhance learning experiences and reshape traditional practices.
Right after COVID-19 started to spread across the globe, students were compelled to study remotely, giving rise to numerous EdTech startups. Aiming to replace traditional classroom education, this surge in demand resulted in a substantial increase in investment, reaching a record of $20.9B in 2021 — three times higher than pre-pandemic levels. This substantial investment propelled the industry years ahead, unlocking its untapped potential. As of 2023, there are currently 30 EdTech “unicorn” companies worldwide, which are valued at a total of $89 billion.
Dedicated to leveraging technology in education and developing a wide range of products and solutions, EdTech companies are transformative businesses.
Today, I’ll outline this revolution, highlighting five of the latest trends in this industry.
How Technology Has Changed Education: Increased Access with New Processes and Enhanced Tools
EdTech has significantly increased educational accessibility for students around the world. People can now watch pre-recorded video lessons, study at their own pace, and access content mostly from any device and location. These innovations help bridge the gap between education and accessibility.
Recognizing that traditional learning methods may not cater to the diverse needs of every learner, education technology companies develop products and services to make education more inclusive.
A notable example in this area is our partner Pixorize, a New York-based startup we supported in their efforts to offer an “innovative visual e-learning platform that uses mnemonics to help thousands science and medical students improve their memorization.”
As per Pixorize’s offer, “Nursing and MCAT students improve their memorization skills by turning complex facts into easy-to-remember visual stories.” To achieve this, “Pixorize’s catalog offers brightly colored interactive images and step-by-step videos to make the learning experience more enjoyable and sustainable, as well as increase memory efficiency up to three times when compared to similar methods.” The company is a great example of how diverse means of education can foster improved performance for students worldwide.
EdTech Company Types
In the dynamic world of EdTech, various types of companies are catalyzing transformative changes. Learning management systems, for instance, with platforms like Schoology, are leading a revolution in educational administration. In the pursuit of inclusivity, Macmillan Learning and similar companies are actively dismantling obstacles to provide broad access to a diverse range of educational resources. Our brother company Uruit’s compelling case study highlights their collaboration in empowering Macmillan Learning’s Achieve platform, representing a significant stride towards integrating technology with digital educational systems and fostering greater accessibility in education.
Furthermore, analytics-driven platforms like Pearson‘s MyLab & Mastering are making significant strides, offering personalized educational experiences.
Drawing parallels to the disruptive forces of Airbnb and Amazon in their respective sectors, these multifaceted EdTech innovations are redefining the landscape of education, thereby empowering learners and educators alike.
5 Edtech Trends: What the Future Holds for Students and Companies
To shed further light on the panorama of EdTech around the globe, here are the most innovative EdTech trends that are disrupting the education sector in 2023 and will continue to do so in the years ahead:
Ed Learning: Trends for Students
- Tailored Learning: A Highly Customized Experience
EdTech enables teaching methods and learning material customization, allowing educators to adapt the learning experience to each student’s pace and individual needs in several ways. Through adaptive learning platforms and intelligent algorithms, students receive targeted instructions and support, ensuring they fully understand concepts before moving on with more knowledge.
- Immersive Experiences and Hands-On Exercises
By providing immersive experiences through VR and AR technologies, students can explore historical events, visit faraway places, or delve into complex scientific concepts, enhancing their understanding and engagement in the process.
Additionally, interactive exercises and simulations allow students to apply their knowledge in practical, real-world scenarios, which promotes critical thinking and problem-solving skills.
- Digital Workplace Alignment
EdTech methodologies align with the digital nature of the modern workforce, as well. By integrating technology into the learning process, students can better develop digital literacy skills, become familiar with digital tools, and gain experience navigating online resources. Doing so prepares them for evolving job markets, where proficiency in digital technology and communication is already essential.
Related Read: Remote Team Collaboration: Tips for the Post-COVID Era
EdTech Trends for Companies
- Higher Capital Inflow
With our rapid technological development worldwide and increasing corporate digitalization, companies are actively seeking to improve employee skills. At the same time, distance education technologies are becoming more sophisticated.
As a result of the above, the EdTech sector has experienced a significant boom, attracting substantial investment. According to HolonIQ, venture capitalists poured $10.6 billion into the global Edtech Industry in 2022, and by 2025, spending on augmented and virtual reality alone, for example, is expected to reach $12.6 billion.
- Partnering to Gain Scale and Efficiency
Financial statements also show that sales and marketing costs at several of the largest EdTech companies have ranged from 20 to 60 percent of revenue in recent years. Like any other business, EdTech companies naturally want their customers’ lifetime value to exceed their cost of acquiring them.
As they seek sustainable ways to drive down the industry-wide problem of high customer acquisition, some companies turn to mergers and acquisitions in hopes of scaling in controlled or more profitable ways.
Tech Partners Can Help Growth and Scaling
Seizing considerable investment allocated to a sector that has recently spiked in use worldwide, it’s clear EdTech companies are in the know about very profitable opportunities. Being able to share knowledge around the world, they also count on great tools that are only getting more and more imaginable and innovative. This is where partnerships with tech companies can become crucial for companies in any sector, but EdTech in particular.
With the state of the EdTech sector and other industries where they are, we at Nearsure work with North American-based companies to accelerate and scale their businesses so they can thrive in a highly competitive market.
As a nearshore outsourcing and IT staff augmentation provider, we operate across 18 countries with a network of over 20,000 of the savviest Latin American developers to specialize in assisting different companies overcome challenges, which especially includes EdTech partners.
For us, partnerships are key to user experience enhancement, meeting scalability and security requirements, protecting data and optimizing results across diverse products, services, and other offers.
Are you looking for a great partner to take your business to the next level? Let us know how we can help.