Education is a $7 TRILLION Industry

By Meris Stansbury, Managing Editor, @eSN_Meris
eCampus News

As trends like using multimedia resources for courses and incorporating blended learning classes on campus become ubiquitous, what are the motivating factors behind these trends…and do businesses profit off of them? What are some of the advances in tech spurring digital education’s growth?

According to a new infographic by Knewton, and based off of recent data from the Sloan Consortium, the New Media Consortium, the Gates Foundation, and many other sources (including multiple universities), the rise of digital education is the cause of multiple factors; the main one being the booming business of education.

1. Education is a 7 trillion dollar industry, which is 570x the size of online advertising market and 7x larger than the global mobile industry.

2. Education harnesses all facets of the internet: Commerce (Amazon for textbooks and supplies), multimedia (iTunes for apps and videos), communication (Facebook and Twitter for branding and recruitment), information (Google and Wikipedia), and video (YouTube, TED, et cetera).

3. Digital is seen as one key element for helping the: 30 percent of students in the U.S. who fail out of high school, 33 percent of U.S. college students who require remediation, and 46 percent of college students who don’t graduate, thanks to digital education’s potential to engage students and make learning relevant.

4. 3 new trends are helping the growth of digital education:

  • Digital content—In 2010, digital textbook sales were 1.5 percent of the market. In 2016, it’s projected that it will be 35 percent of the market.
  • Mass distribution—For example, online courses. Enrollments for online courses in 2002 were roughly 1.5 million students; in 2009, there were 6 million enrollments.
  • The belief in personalized learning: 93 percent of teachers believe online tools improve performance; 95 percent believe they engage students.

5. Lower Cost is key: The cost for 1 hour of instruction for 100 students in instructor-led learning is roughly $17K; the cost for eLearning is roughly $9.5K—a 40 percent cost savings.

For more information on the projected growth of blended learning, the characteristics of the future classroom, and who’s delivering digital solutions (a breakdown of higher-ed institution offerings and digital education companies) view the infographic.

infographic_digeduresized

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