Education Technology Market Trends

Growth Drivers

• Surge in mobile learning and BYOD policies: The growth in BYOD policies in the education systems is expected to drive the use of online education software solutions. As per the analysis by the Global System for Mobile Communications Association (GSMA) in 2025, 5G services have reached over half of the world’s population (54%), and 4G is available to 93% of people. The rise in smartphone penetration is also boosting the demand for mobile-friendly EdTech platforms. Asian countries are modernizing their education systems, and the favorable policies are accelerating the demand for mobile education technologies. Furthermore, in Europe, more people are using their own devices for work or school, owing to the high levels of mobile device ownership, easy availability of public Wi-Fi, fast home internet, and strong connectivity networks.

• Government-backed digital education initiatives: The robust capital spending on the modernization of education infrastructure is poised to boost the sales of online learning technologies worldwide. The PM eVidya program by the government of India is bridging digital access in K-12 education. The India Brand Equity Foundation (IBEF) reports that India’s EdTech sector is estimated to surpass USD 29 billion by 2030. The continuous technological innovation and collaborations with public entities are set to offer high-earning opportunities for education technology producers.
• Technological innovations: The technological advancements are set to uplift the profit shares of EdTech companies in the coming years. The modernization of education systems fuels the sales of innovative digital skilling solutions. The integration of AI and ML is also poised to boost the productivity and effectiveness of the EdTech platforms. The tech-savvy end users are set to lead the sales of AI and ML-powered online learning software systems in the years ahead. In July 2025, the American Federation of Teachers (AFT), together with the United Federation of Teachers, Microsoft Corp., OpenAI, and Anthropic, launched the National Academy for AI Instruction. This USD 23 million program is set to offer free AI training and resources to all 1.8 million AFT members, starting with K-12 teachers. Thus, technological innovations are expected to be the game changers for the Ed Tech market.

Challenges

• Unstable pricing models: The fluctuating tariffs and currency exchange are hindering the sales of advanced education technologies. The shifts in the taxation and subscription licensing laws lead to instabilities in the pricing of the online learning solutions. The most affected products are SaaS-based platforms, due to consistent regulatory hurdles and a single pricing model internationally. This instability also affects operational efficiency and limits the adoption rates of new education technologies.
• Poor digital infrastructure: The infrastructure gaps are hampering the adoption of online learning platforms. The budget constraint education technology (EdTech) market are lacking in advanced education infrastructure and internet connectivity. According to an analysis by the International Telecommunication Union (ITU), around 38% of Internet penetration was reported in Africa in 2024. Due to this, many education technology companies are deterring from investing in these regions.