Powered by our Global Market Intelligence platform, the 2021 Outlook is now available to HolonIQ customers, providing the most comprehensive analysis of the global education market, and containing 150 pages of data, reflections on 2020 and expectations for 2021 and beyond.
About the 2021 Outlook
HolonIQ’s global market data and analysis through the year powers our Annual Outlook for education, and is available exclusively for HolonIQ customers. The 2021 Outlook provides over 150 pages of expert analysis and insights into the underlying dynamics of change for education, how and where investment is supporting innovation, and commentary about the models and teams that are shaping the future.
The Outlook provides HolonIQ’s expert analysis and key data points on the global education market and insights into future areas of growth.
Global Education Outlook
Governments, employers and consumers together will spend over $7T a year on education and training by 2025. Post COVID, we expect to see significant growth in early childhood and workforce segments, deflation in higher education and K12 growth driven by emerging markets. Meanwhile, education technology will double in size relatively quickly. Regulation will tighten before easing as digital learning becomes mainstream, public-private partnerships gradually accepted and credentials will become more diverse.
New models, new capital and new players will enter the education market and the post- secondary landscape will gradually re-shape. Emerging markets are positioned to adopt leapfrog approaches to innovation.
Investment Trends
2020 saw a massive $16.1B of education venture capital and over $20B of M&A activity in a surge of growth capital & consolidation. Asia’s billion-dollar mega-rounds crowded out record late-stage venture funding, increasing the total of EdTech Unicorns to nineteen. Private Equity and corporate consolidation dominated M&A with a record ‘Go Private’ trend offset by a SPAC kick-off.
While Asia-based K12 B2C investments represent the largest dollars invested in EdTech through 2020, almost half the volume of VC transactions in EdTech (number of deals) through the year were focused on Workforce, illustrating the underlying dynamic at play as the world moves through significant workplace and demographic change.
Capital Markets
270 education stocks closed 2020 with a $296B market cap, up $75B over the full year with now 44 stocks with over a $1B market cap. 2020 saw two ‘take privates’ complete, 16 IPOs, with 5 SPACs ready for launch on top of a massive organic K12 APAC gain, driving the lift in total value. We expect high-profile IPOs in 2021 and SPACs racing the clock to acquire targets.
16 IPOs added another $7.5B+ of value to finish the year with a combined $296B Market Cap for all education stocks. 17zuoye was the standout, leaving the list of startups Unicorns and finishing the year with a $2.4B market cap.
