In this article, we will be analyzing various aspects of the EdTech industry while covering the 20 biggest EdTech companies in the world. If you want to skip our detailed analysis, you can go directly to the 5 Biggest EdTech Companies in the World.

What is EdTech?

Educational Technology, abbreviated as EdTech, refers to the use of technology for the purpose of teaching, learning, and education. The widespread use of tablets, online learning platforms, interactive boards, artificial intelligence, and mobile apps depicts the ongoing adoption of technology in the domain of education. 

EdTech Industry Analysis

According to an industry analysis report by Fortune Business Insights, the global EdTech market size was valued at $115.80 billion in 2022. The industry is projected to grow from $133.55 billion in 2023 to $433.17 billion by 2030, at a compound annual growth rate of 18.3%.

Currently, North America dominates the EdTech industry as a result of its high adoption rates for gadgets. This region generates the most regional revenue for the global EdTech industry, incorporating recent technological trends such as Virtual Reality to facilitate educational learning for students as well as academics. 

The Asia Pacific region qualifies as the second rapidly growing region in educational technology. It has shown exponential growth in government-led programs for the promotion of e-learning in rural areas. Recently, the National Digital Library of India was recognized as a fully digitized library for online learning during the Festival of Libraries. The MEXT program in Japan also provides online education for different levels.

Outside North America and Asia, Europe stands out in the industry as e-learning services have become common in the UK, Germany, France, and Scandinavia. The CAGR for the European region is expected to show exponential growth in the future. Last but not least, the Middle East and Africa have been forecasted to dominate the EdTech industry by growing significantly in the near future.

The EdTech industry encompasses smart classrooms and mobile learning as its two basic mediums for instruction. Smart Classrooms have transformed the educational landscape through interactive projectors and whiteboards.

An Ever Growing Market

The EdTech market has gained more popularity following the COVID-19 pandemic due to a rise in the trend of distance learning, switching from on-campus classes to online modes of instruction in the form of online classes via social apps, chatrooms, and e-books. As mentioned above, the penetration of mobile phone technology has further aided this industry to step forward in mobile learning.

According to an article by McKinsey, published in November 2022, private companies and startups are generating high revenues for the EdTech industry. Venture capitalists have been inclined to invest in startups considering online learning and view it as a profitable market opportunity. 

The EdTech innovation has progressed so much that, on August 14, Tech & Learning reported that the Florida Institute of Technology’s Center for Advanced Manufacturing and Innovative Design recently tested teaching a group of students in a hologram, an enclosed visual space showing a 3D view of people or things. Since the literacy rates have been booming in third-world countries like India, international players such as Udacity, Coursera, and edX have shifted their focus to the Indian market considering the regulatory environment in places like China where an additional translation of content from English to Chinese is required.

A Competitive Landscape

There are various notable names in the global EdTech industry, Coursera (NYSE:COUR) being one of those.  Coursera, Inc. (NYSE:COUR) gives access to a wide range of courses, degrees, and even professional certifications online. On July 27, the company reported $153.7 million in revenue, up 23% from $124.8 million a year ago. With 5 million learners adding to the user base for the 11th consecutive quarter as of 2023, experts anticipate Coursera, Inc. (NYSE:COUR) to grow its consumer segment revenue by another 20%.

Taking into account the intensity of rivalry in EdTech, the company faces competition from Udemy, Inc. (NASDAQ:UDMY). Udemy (NASDAQ:UDMY) is an online learning platform that offers 20,000 free courses in collaboration with teachers and professionals around the globe. On June 21, Udemy, Inc. (NASDAQ:UDMY) reported that it has been capturing more attention of viewers toward AI-based courses since Artificial Intelligence is said to be the future. Emphasizing the importance of skill development especially those relevant to AI, the vice president of EMEA at Udemy said:

Chegg, Inc. (NYSE:CHGG) is another online education provider popular among students. Services like online tutoring and book rentals are available through subscription to the company. On May 2, Reuters reported Chegg, Inc. (NYSE:CHGG) decided to come up with its own AI model ‘CheggMate’ for student assistance in the near future. This was in response to the threats the company faced from free chatbots like ChatGPT currently setting records for the fastest-growing user base of 100 million only 2 months after its release.

Now that we have an idea of what is happening in the industry, let's take a look at the biggest EdTech companies in the world which include Pearson plc (NYSE:PSO), New Oriental Education and Technology Group Inc. (NYSE:EDU), and Duolingo, Inc. (NASDAQ:DUOL), among others.

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Methodology

For this list, we have considered both public and private companies. Our ranking is based on market capitalization as a metric for quantifying the size of public companies and similarly estimated valuation or the next available financial metric for private companies. For further authenticity, we have counter-checked the rankings by doing a manual search on the biggest edtech companies including public and private companies. Finally, we have arranged our list in ascending order, with public companies ranked by market capitalization and private companies ranked by estimated valuation.

The market cap for public companies is measured as of August 9 and we sourced our estimates for private companies from Growjo and CBInsights.

20 Biggest EdTech Companies in the World

20. Skillshare

Estimated Annual Revenue: $140.9 million

Skillshare is an online learning platform based in the United States. It offers 30,000 diverse courses to almost 20 million subscribers. Important skills on topics such as coding, design, and fashion are taught through videos and discussion forums. Members are asked to complete a project online to learn a particular skill at an affordable price, ranging from $19 to $99. As of 2023, Skillshare’s estimated annual revenue is $140.9 million.

For investors looking to increase their exposure to the EdTech market, some interesting stocks to look up include Pearson plc (NYSE:PSO), New Oriental Education and Technology Group Inc. (NYSE:EDU), and Duolingo, Inc. (NASDAQ:DUOL).

19. 2U, Inc. (NASDAQ:TWOU)

Market Cap: $274.23 million

2U, Inc (NASDAQ:TWOU) is an American program management platform which partners with non-profit educational institutes to help them conduct their degrees online. These institutes include many prestigious universities including Yale and MIT.  Thus, 2U, Inc. (NASDAQ:TWOU) provides the technology required for remote learning in education. The company acquired edX back in 2021 as its learning platform for offering free courses and certifications. As of August 9, 2U, Inc. (NASDAQ:TWOU) is worth $274.23 million.

18. Blackboard.

Estimated Annual Revenue: $700.1 million

Blackboard is a US-based EdTech platform that serves as a learning management system. It provides online program management, hosting and student learning. Although these services are used worldwide, Blackboard particularly caters to 75% of colleges and universities in the United States. As of 2023, BlackBoard’s estimated annual revenue is $700.1 million.

17. Chegg, Inc. (NYSE:CHGG)

Market Cap: $1.23 billion

With an aim to give every student the same access to education that too at an affordable rate, Chegg, Inc. (NYSE:CHGG) works in the EdTech market. Primarily, it solves problems for students online and rents out books at cheap rates. Supplementary services like career advice and live help from professors are also available. Thus, Chegg, Inc. (NYSE:CHGG) has transformed the way students conventionally seek help in academics by being remotely available at a premium quality. As of August 9, Chegg, Inc. (NYSE:CHGG) is worth $1.23 billion on the open market.

16. Udemy, Inc. (NASDAQ:UDMY)

Market Cap: $1.62 billion

Udemy, Inc. (NASDAQ:UDMY) is a popular EdTech company that conducts both academic and professional tutoring in more than 60 different languages. For academic education, it offers self-paced college courses. For students looking forward to learning professional skills to land jobs, Udemy, Inc. (NASDAQ:UDMY) provides technical certifications. Its business customers include more than 50% of the Fortune 100 companies. As of August 9, Udemy, Inc. (NASDAQ:UDMY) is worth $1.62 billion.

15. Coursera, Inc. (NYSE:COUR)

Market Cap: $2.29 billion

Coursera, Inc. (NYSE:COUR) is a US EdTech firm currently providing different courses and certifications online. The company being one of the biggest EdTech companies in the world, offers Master's Degrees in data science, entrepreneurship, and MBA in affiliation with University of Michigan and California. Students can also do a live chat with professionals or discuss with peers on the discussion forum.  As of August 9, Coursera, Inc. (NYSE:COUR) is worth $2.29 billion.

14. ApplyBoard

Estimated Valuation: $3 billion

ApplyBoard is a private Canadian company operating in the EdTech industry. It provides international students an opportunity to apply for postgraduate studies in Canada. It spreads over Australia, Brazil, China, India, and many other countries. Deloitte has also recognized it as one of the highest growing tech firms. As of 2023, ApplyBoard is valued at approximately $3 billion.

13. Unacademy

Estimated Valuation: $3.4 billion

Unacademy is an Indian Edtech company that enables students to prepare for examinations like Chartered Accountancy, UPSC, and GATE. It also provides a wide variety of online learning programs related to various skills like coding or photography. Recently in June, Graphy by Unacademy acquired Singapore-based community building platform Scenes in order to expand a community of creators who are motivated to create digital products such as online courses. As of 2023, Unacademy is valued at $3.4 billion, making it one of the biggest EdTech companies in the world.

12. Zouyebang

Estimated Valuation: $3.5 billion

Zouyebang specializes in K-12 education by offering a multitude of services like answer guides to common problems, online courses, and practice questions for a better learning experience. Founded in 2015, the startup has grown to be a leader in China’s after-school education market. One of the largest online databases of 3 million questions is available on the website. As of 2023, Zouyebang is valued at approximately $3.5 billion.

11. Articulate

Estimated Valuation: $3.8 billion

Articulate functions in the educational technology industry as a company which develops e-learning software. It aids teachers from 172 different countries to work with an interactive and user-friendly interface through which they can design curriculums, upload tests and review student progress. Almost 120,000 schools and universities employ this software for managing academics efficiently. As of 2023, this EdTech firm is valued at $3.8 billion.

10. Guild Education

Estimated Valuation: $4.4 billion

Guild Education is a private EdTech business that works to provide online learning to corporate employees. Guild Education also assists Fortune 1000 firms to enable their employees to undertake educational programs. In a recent interview with the Chief People and Purpose Officer Dean Carter, HRDTV has reported that Guild Education is striving to unlock an opportunity to learn for the workforce which it never formally had before. As of 2022, Guild is valued at $4.4 billion.

9. TAL Education Group (NYSE:TAL)

Market Cap: $4.47 billion

TAL Education Group (NYSE:TAL) also known as ‘Tomorrow Advancing Life’, is one of the leading Chinese EdTech firms. It specializes in providing after-school education online. Almost 10 million students are currently enrolled on the company’s website. A separate mobile app helps students learn core subjects like Mathematics and English. It also offers courses for standardized tests for applying abroad. As of August 9, TAL Education Group (NYSE:TAL) is worth $4.47 billion.

8. VIPKid

Estimated Valuation: $4.5 billion

Headquartered in Beijing, VIPKid is a Chinese EdTech company that aims to transform education in China. It connects Chinese students with international tutors so they can learn verbal, written, or business English. Video tutorials and live chats make this learning journey more engaging. Thus, VIPkid tries to bridge the gap between almost 700,000 Chinese students and some top-notch English institutes around the world. As of  2023, VIPKid is valued at $4.5 billion.

7. BetterUp

Estimated Valuation: $4.7 billion

BetterUp is one of the world’s biggest virtual coaching startups launched by the world-famous Prince Harry which helps individuals to analyze their behavior and discover their strengths. It drives purpose and direction in the workforce through personalized coaching programs and detailed career advice. As of 2023, Better Up is valued at $4.7 billion.

6. Bright Horizons Family Solutions Inc. (NYSE:BFAM)

Market Cap: $5.37 billion

Bright Horizons Family Solutions Inc. (NYSE:BFAM) has transformed education by assisting parents from their child’s early childhood. It provides early school education, both on campus and online. Their full-time and part-time virtual courses help students develop social and academic skills. The company also gives virtual consultations to parents regarding the career choices they should make for their children. Regular feedback is also communicated online. As of August 9, Bright Horizons Family Solutions Inc. (NYSE:BFAM) is worth $5.37 billion.

In addition to Bright Horizons Family Solutions Inc. (NYSE:BFAM), other prominent players in the EdTech space include Pearson plc (NYSE:PSO), New Oriental Education and Technology Group Inc. (NYSE:EDU), and Duolingo, Inc. (NASDAQ:DUOL).

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Disclosure: None. 20 Biggest EdTech Companies in the World is originally published on Insider Monkey.