As the sector evolves, five key trends are emerging. These trends are already shaping the world of EdTech and education — and will continue to do so for years to come for hundreds of millions of people around the world.

Inexorable rise of automation, Artificial Intelligence (AI) and digitization is reshaping the job market. As a result, upskilling and reskilling the workforce have become imperative. According to the OECD, nearly 1 billion jobs worldwide will undergo significant changes due to technology within the next decade.

Public sentiment indicates that traditional higher education often falls short, emphasizing the need for accessible, flexible learning solutions. With a surge in demand across all tiers of the job market, platforms like Degreed, Interplay Learning, and Workera — all EdTech enterprises — are becoming pivotal in empowering individuals for success in the swiftly evolving job market.

This trend, of people using EdTech platforms to upskills for a changing job market, shows no signs of abating.

AI is ushering in a new era of education, offering personalized and efficient learning experiences. AI in the education market is set to skyrocket, with estimates predicting a global increase of approximately $21 billion by 2028.

AI is being implemented in essentially every education technology company and will have a profound impact on business models and learners. Innovative solutions such as Amira Learning, Sizzle AI and Workera AI are market leaders in using AI in education, leveraging AI to provide 1:1 support, skills intelligence and enhanced productivity, revolutionizing education.

Digitization and AI have unleashed top-tier talent into the EdTech sector. Accomplished professionals from tech giants are founding EdTech companies, recognizing the immense potential of this market. Entrepreneurs like Kyron’s Rajen, Sizzle’s Jerome Pesenti and Maximal Learning’s Eran Megiddo bring a wealth of experience to capitalize on the opportunities and forge new innovations in the EdTech space.

As the world transitions beyond the pandemic, the spotlight on mental health support in education is intensifying. Alarming statistics from the CDC’s Youth Risk Behavior Surveillance Data underscore the urgency of the matter. Organizations like Hazel Health, Panorama Education, Thrive Global and Woebot, dedicated to addressing mental and socio-emotional challenges facing K-12 students and promoting healthier, happier lives are truly at the forefront of this work.

In the EdTech sector, the prioritization of impact and outcomes is critical. It is essential for building enduring businesses and driving effective education. Without robust outcomes data, assessing what works for end-users is challenging.

In K-12 education, a lack of data on product implementation and outcomes leads to districts trying an average of 2,591 EdTech tools annually, hindering efforts to address ongoing and pandemic-induced learning loss. Similarly, in workforce training, the US spent $101.8 billion in 2023. In today’s market, where there are millions of unfilled jobs and more that need to be upskilled, understanding the impact of investments is key.

To dig deeper into the importance of impact measurement, read the 2023 Education Outcomes Report by Owl Ventures.