SIIA: EdTech Market is $7.8 Billion & Growing

EdTech, Platforms & Data / by

The Software and Information Industry Association (SIIA) released it’s annual EdTech report this week. Based on a survey and related research, they estimate the U.S. institutional market for education software and digital content/resources at $7.76 billion.

Trends noted in the report include:

  • The overall market increased 3.5% from $7.5B in 2009 – 2010 to $7.76B in 2010— 2011.
  • Content revenue decreased just over 2%.
  • Spending in Instructional Support (up 12%), and Platforms and Administration (up 17%) increased significantly.
  • Testing and assessment was the largest single category.
  • Central office, SIS/Class scheduling, and content management all increased.

The 2011 U.S. Education Technology Market: PreK-12 report suggests there are unique opportunities in such areas as testing and assessment, infrastructure, and from specialized funding such as Race to the Top grants. In our judgment, there are several reasons for these investments:

  • States and districts are beginning to prepare for the Common Core State Standards (CCSS) and related assessments. There will be need for aligned content and much more demand for formative data and data analytics.
  • Districts are beginning to prepare for the switch from print to digital state assessments, student preparation for which also requires digital curriculum.
  • A significant rise in “Bring Your Own Device” (BYOD) leading to speedier adoption of one- to-one classroom models requires district investment in platforms and administrative and IT infrastructure.

Funding constraints from a weak economy and a decline in government spending on education loom as a potentially significant challenge. This will particularly impact new companies trying to gain a foothold in an uneven, but highly promising, education technology market.

Tom Vander Ark

Tom Vander Ark

Tom Vander Ark is founder and CEO of Getting Smart. He is also a partner in Learn Capital and a director of iNACOL, Digital Learning Institute, Imagination Foundation, Charter Board Partners, Strive for College, and Bloomboard.

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