Why Asia is the Emerging as the World's EdTech Laboratory

Asia as the World’s EdTech Lab:What It Means and Why it Matters

Todd MaurerMarch 19, 2015

China Online Conference 2015 - Maurer

Education and Learning 2.0

“Middle Income” Drives Higher Education Demand

Source: UNESCO Institute of Statistics, accessed 2015

2005

138 million

2025E

270 million

Students Enrolled in Tertiary Education, 1999-2012

Venture Funding of Education Companies: 1997-2014


M&A Transactions in Education: 2010-2014

5

In the past few years, global education companies have emerged as the leading source of strategic investment and acquisition valued at $100m +

Source: Educated Ventures LLC


Emerging Higher Education 2.0

Source: Educated Ventures


Comparative K12 Enrollments v Affordability

K12 Enrollments (in millions) in Asia and Per Capita GDP (US$, PPP)

Pre-Primary Education: Enrolments (GER) and Percentage Private by Age

OECD avg. = 81% US avg. = 69% China avg. = 54%

Asian variance at early childhood participation level with growing private alternatives for families

Source: UNESCO Institute of StatisticsNote: Country age ranges for this data set displayed in brackets

Pre-Primary Education Activity

Student Projections to 2030Tertiary enrolments are growing rapidly with significant runway to 2030 from relatively low historical levels

Percentage of Students Aged 15+ with Tertiary Education (1970-2030)

Source: Asia Development Bank

Asia and Global E-Learning Leadership

Asia’s leading growth markets on 5 year projected basis include: Vietnam (+45%), China (+30%), Thailand (+34%), and Malaysia (+39%)

Asia is driving e-learning revenues across content and services, projected to reach $11.5 billion by 2016.

Global Location and Percentage Growth in E-Learning (Self Paced) (2011-2016)

Mobile Learning by Region (2011-2020 in USD Billion)

Asia (esp. Emerging Asia) will drive market value to exceed $12B by 2020.

Mobile Connectivity and M-Learning

ASIA K12$500-700B

PRIVATE$50B

INTL SCHOOLS $4B

ELL$27B

STUDY ABROAD

$30B

Sources: Ambient; GIA; British Council; Educated Ventures estimates

Aggregate = $750B +Growth to 2020 significant

Market Sizing in USD by Sub-Segment

Asia as Epicenter of English Language Training

“Serious” Games

World Revenues for Game-Based Learning and Simulation Learning (2012 and 2017F)

64% of Global Games-Based

Learning

27% Simulation

ASIA in 2017

N. AMERICA in 2017

25% of Global Games-Based

Learning

41% Simulation

Youthfulness of Online Audiences Build to Future

Over 75% of Indian internet users under age 35 (China = 57%, US = 48% ).

Asia’s youthful pipeline creates greater capacity for overall growth in connectivity.

Demographic Composition of Online Audience in Asia-PacificSurvey 2013 (Aged 15+)

Source: ComScore


Labor Market Pressures to 2025

India will require 300 million new jobs through 2050 (Pakistan, Bangladesh and Indonesia area also likely see expanding operations).

In Asia, employment quality and demand will drive demand going forward


The Increasing Use of Corporate E-Learning

54 ％ of Fortune 500 firms using some form of online or belnded learning.

50% of this training by value occurs in US companies.

In 2013, total revenue:

US$300 BILLION

As Global R&D shifts abroad, the needs of corporate training are increasing amongst multinational firms and Asia-based congolmerates

Source: trainingindustry.com;

Venture Capital in Education: Now Active in Asia

17

With overall VC volumes up worldwide, Education sector VC investments in the US reached with more than $1.5 Billion or xxx the level in China, which was approximately $300 million.

VC Investment in Asia-Pacific ($US Million) , 1994-2014

VC Investment in EDUCATION in US and China1994-2014 ($US Million)

Source: AVCJ

Recent EdTech Start-Ups in Asia

18

Asia-based education start-ups are expanding rapidly across with region, to tackle local educational challenges of access, quality and affordability.

Education Businesses and Investment: The Road Ahead

Source: GSV Advisors

After rapid growth, “education capital” still remains a fragment of other industries in the US (eg. Healthcare) despite its large proportion of total GDP, with even lower representation overseas.

Why Asia is the Emerging as the World's EdTech Laboratory

Education

Transcript of Why Asia is the Emerging as the World's EdTech Laboratory