Education plays a critical role in human development and economic growth, providing individuals with empowerment, social mobility, innovation, and creativity. However, challenges such as access, quality, equity, and relevance continue to hinder the global education system. To address these issues, we need to unlock the full potential of education for all.
According to a recent report by Morgan Stanley, the global education market is projected to grow from $5 trillion in 2019 to $8 trillion by 2030, with a compound annual growth rate of 4.5%. This growth is driven by four key factors: demographics, technology, regulation, and consumer preferences.
Demographically, the world’s population is expected to reach 8.5 billion by 2030, with most of the growth coming from emerging markets like Africa and Asia, where there is a high demand for education. Additionally, the global middle class is projected to increase by 2 billion people, providing more opportunities for education spending.
Technology is transforming education by enabling personalized learning, interactive content, adaptive assessment, and data-driven insights, as well as expanding access to education, particularly for remote and underserved communities. Morgan Stanley predicts that online education will account for 25% of the total education market by 2030, up from 3% in 2019.
Governments are recognizing the importance of education and increasing their investment in early childhood development, STEM, and lifelong learning. They are also encouraging private sector participation and innovation in education through policies and incentives.
Consumers are demanding more flexible, affordable, and relevant education options that fit their goals and lifestyles. They are also seeking more quality and accountability from education providers.
The education market is poised to benefit from these trends, with K-12, higher education, corporate training, and lifelong learning being the key segments. Morgan Stanley suggests different business models and strategies to capture value within each segment. Chegg, Coursera, TAL Education Group, and New Oriental Education & Technology Group are the four companies that Morgan Stanley identifies as having strong exposure to the global education market.
The global education market is an enormous and growing opportunity that can generate both social and financial returns. Education providers can leverage technology, innovation, and partnerships to deliver high-quality and accessible education to millions of learners worldwide.
