The global education market is set to reach almost $10T by 2030, with Early Childhood and Workforce Education the fastest growing segments. Angst around AI in education moves toward practical implementation as generative tools become more deeply embedded into standard applications. Investment levels remain in the doldrums, with a ‘back to basics’ mantra from investors. Governments will turn on the taps for vocational education, and international ed is likely to continue one step forward, two steps back.
The education market is projected to reach almost US$ 10 trillion by 2030, growing at a compound annual growth rate (CAGR) of 4.4%, driven by several key factors.
In the ECE sector, governments are increasing spending through targeted policies and tax incentives. With rising awareness of the long-term benefits of early education and the growing demand for qualified educators, the sector is projected to expand at a CAGR of 7% by 2030. However, workforce shortages pose challenges to this growth.
The K-12 education sector is expected to grow at 3.5% CAGR, supported by higher participation rates in emerging economies and significant investment in digital infrastructure. In developed regions, declining birth rates may limit growth potential in this sector.
Post-Secondary Education is projected to grow at 4% CAGR, driven by the increasing acceptance of online learning and government incentives for vocational education. However, rising competition from alternative credentials, strict immigration policies, and high education costs could dampen this growth.
The 6.5% CAGR projected for the Workforce Training segment is fueled by government investments in skill development and the increasing need for upskilling in response to changing labor market dynamics. Constraints on discretionary spending and economic volatility could slow growth.
According to HolonIQ
Image: HolonIQ