The New Global Forces Shaping Ed-Tech Demand

The global education sector is witnessing a significant shift in demand for Ed-Tech products, driven by a confluence of factors such as the COVID-19 pandemic, the rise of remote learning, and the increasing adoption of emerging technologies like AI, VR, and AR. These forces are reshaping the Ed-Tech landscape, creating new opportunities and challenges for investors and stakeholders alike.



The COVID-19 pandemic has accelerated the shift towards digital learning, with schools and universities quickly adopting online platforms to continue teaching and learning. According to HolonIQ's 2025 Global Education Outlook, the global education market is set to reach almost $10T by 2030, with EdTech playing a critical role in this growth. However, investment levels in EdTech remain low, indicating a 'back to basics' mentality among investors. This presents an opportunity for investors to capitalize on the growing demand for Ed-Tech products while focusing on practical implementation and innovation.

Emerging technologies like AI, VR, and AR are significantly influencing the demand for Ed-Tech products and driving growth in specific sub-sectors. AI is revolutionizing learning experiences by offering personalized and efficient solutions, with the global AI in education market expected to reach approximately $21 billion by 2028, growing at a CAGR of 33.7% during the forecast period (2021-2028). VR and AR are transforming educational experiences by immersing students in interactive, engaging, and realistic learning environments, with the global VR in education market expected to grow at a CAGR of 37.1% during the forecast period (2021-2028), reaching $6.8 billion by 2028, and the global AR in education market expected to grow at a CAGR of 36.6% during the same period, reaching $11.6 billion by 2028.



Regional differences in Ed-Tech product demands are also impacting investment strategies in the sector. North America, with its mature and well-established Ed-Tech market, is focusing on innovative companies that leverage AI, AR, and VR to create engaging and personalized learning experiences. Latin America, driven by government initiatives and increasing access to technology, is prioritizing upskilling and reskilling platforms to address workforce needs. Europe, with its competitive Ed-Tech market, is emphasizing personalized learning experiences and mental health support. The Asia Pacific region, with its rapidly growing Ed-Tech market and large student population, is focusing on accessibility and language learning.

In conclusion, the new global forces shaping Ed-Tech demand present both opportunities and challenges for investors and stakeholders. As the Ed-Tech market continues to grow and evolve, driven by emerging technologies and regional differences in demand, investors must stay informed and adapt their strategies to capitalize on these trends. By understanding the shifting landscape and focusing on innovation and practical implementation, investors can make informed decisions and contribute to the growth and success of the Ed-Tech sector.