How Geopolitics Are Influencing The Edtech Market
The EdTech market is already quite robust and healthy from a fiscal standpoint, and its foothold in the educational world is only going to increase as the years go on. With EdTech booming all over the world, and exponentially in growing powers such as China and India, there is a wave of geopolitical maneuvering which is cresting alongside the increased proliferation of educational technology.
The global demand for the newest educational technology is shifting the balance of power in interesting ways. With a noted entrenchment and stagnation in enrollment numbers and EdTech investment in the United States, companies are looking globally to expand their footprints and build their clientele.
With that, the specter of geopolitical power struggles looms large as emerging markets look to take the lead in the EdTech sector.
The United States Is In Danger Of Falling Behind
While the United States educational technology market isn’t flagging in the slightest, it’s reached a plateau when it comes to spending and demand for enrollment. Projections for American enrollment numbers in online learning courses are remarkably conservative considering the rapid rise of EdTech.
In addition, spending by United States companies on educational technology seems to be stuck in neutral. Spending has capped in the $1.0 billion to $1.6 billion range over the past five years. It’s not expected to exceed that anytime soon.
This noted stagnation has opened the door for the aforementioned emerging markets, such as India and China, to take the reins of the Ed Tech boom. And seeing that educational technology is only going to grow exponentially by all measures over the next couple of decades, this gives those markets a unique geopolitical upper hand that they may not have had prior.
Is The Balance Of Geopolitical Influence Set To Shift?
Per a report by the folks over at HolonIQ, 70% of the global investment in education technology over the past 12 months has come from just two markets – India and China.
Furthermore, four of the five biggest educational technology deals over the past 12 months happened in China. There are no signs of an impending slowdown, either.
According to the HolonIQ report, “the US and Europe will steadily lose ground to China and India” over the course of the next two decades in regards to control of the educational technology market.
This falls in line with a number of other promising fiscal trends in China and India. There’s an influx of new money in both of these markets and a solid chunk of it is going into educational technology.
With that influx, China and India are bound to gain key geopolitical influence when it comes to both the quality of education of their citizens and the undeniable link between fiscal strength and geopolitical power.
The rise of emerging markets, such as China and India, is extremely apparent in the shift of power with the educational technology sector. The healthier these markets become, the more likely they will be to increase their dominance in the EdTech sector.
And with EdTech becoming an integral sector to the health of the global economy and the citizens contributing to that, the link between EdTech influence and geopolitical power is only set to strengthen.