The education sector in the United States is a vast and intricate ecosystem that encompasses various levels, from K-12 to higher education, and covers a lifetime of learning. In 2023, the US education market is set to reach a substantial value of USD 1.1 trillion, with a projected growth rate of USD 2.3 trillion by 2028, reflecting a compound annual growth rate (CAGR) of approximately 4.5%. Higher education comprises three main categories: public universities, private universities, and community colleges. Recent years have witnessed a significant shift towards online and distance learning, accompanied by a heightened focus on educational technology integration in the classroom.
TRENDS & CHALLENGES
The increasing number of students enrolling in K-12 and higher education drives the demand for educational services and products. Government agencies are providing greater financial support, enabling schools and institutions to enhance facilities, hire new teachers, and adopt new technologies.
The integration of technology in classrooms has created new opportunities for educational services and products. Furthermore, global competition for jobs and economic growth has placed a greater emphasis on education and skills development, further driving the demand for educational services and products.
The EdTech market has experienced substantial growth and attracted significant investments. According to a report, the US EdTech market exceeded $18 billion in 2020 and is projected to grow at a CAGR of over 10% from 2021 to 2028. Globally, the EdTech & Smart Classroom market generated $73.9 billion in 2019 and is expected to reach $210.3 billion by 2026, with a CAGR of 15.8% from 2020 to 2026.
The COVID-19 pandemic has accelerated the popularity of online education. According to a global report by Zion Market Research, the global online education market was valued at $29.45 billion in 2019 and is projected to surpass $205.4 billion by 2026, with a CAGR of approximately 32.7%. The global online tutoring market was valued at $5,477.1 million in 2020 and is expected to reach $17,817.7 million by 2028, with a CAGR of 16.1% from 2021 to 2028. These trends and statistics underscore the significant size and complexity of the US education market and its ongoing transformation in response to demographic shifts and technological advancements.
Disclosure: These key performance indicators are based on industry averages for a company with $10 million in revenue. The KPIs are not specific to the operational performance of your company or your sub-sector.
The information contained has been obtained from different sources deemed reliable, including DealStats, Deloitte, Dun & Bradstreet, and Business Reference Guide. Pacifica Advisors does not make any representation or warranty as to the accuracy of the data. PA is a mergers and acquisitions (M&A) advisor and business broker.