Leading Economies & The Edtech Boom : A post pandemic scenario

September 23, 2020

iauro Team

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EdTech in the Global Market

Effectively, the COVID-19 Global Pandemic has set into motion what has been long coming – a thorough boom in the requirement of online, or technology-based educational systems.

Right now, students are not able to attend normal classes. This has caused major disruptions in the flow of education and certification throughout the world.

Even if some plans have been set into action, there is still a gaping hole in the delivery system like half-day or batch-wise schooling. Not to mention, that every institution has already lost a few months when it comes to following the regular academic-year period.

Fortunately, much of this void can and is being filled by increased applicability and usage of technology-based education i.e. EdTech.

On a global scale, several Governments, public, private, start-ups, and non-profits have entered the playing ground and met with the newly presented challenge of the COVID-19 Pandemic head-on.

These big global players have and are investing huge amounts of money into the increased research, analysis, development, and deployment of EdTech throughout the world.

Some of the main segments that EdTech is increasingly being invested, innovated & employed are in – K-12 (Kindergarten to Grade 12), language training courses, professional skills courses, vocational courses, university courses, training & development courses, school/college courses, basic/extensive online courses, MOOCs, etc.

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Some highlights of the EdTech Industry in the Global Market

EdTech is growing at 16.3% and will grow 2.5x from 2019 to 2025, reaching $404 billion in total global expenditure. Source – https://www.holoniq.com/

EdTech started the decade with $500M of Venture Capital investments in 2010 and finished 14x higher at $7B in 2019, down 18% off a 2018 high of $8.5B in VC funding. China made up 52% of the last decade’s EdTech VC funding.The USA represents 33%, followed by Europe, India, and the Rest of the World, each investing about 5% of the global funding total. Source – https://www.holoniq.com/

EdTech in USA, Japan & India

EdTech in the USA

With the onset of the pandemic and the literal closure of every school in the country, there has been revealed an overall lack of a knack of technology usage by educational institutes in the country.

Although this has been applied to several industries, the educational industry has been among the hardest hit. This has been a wake-up call to everyone associated with education and the industry in the country.

Today, because students and everyone else are forced to work from home, there has been a major shift of funding/investment towards technology in education, and, the companies that create and provide it.

With increased funding, research, and innovation, students are now being able to continue learning from their homes.

According to EdSurge, In the first half of 2020, Private U.S. Education Technology companies raised more than $803 million in Venture Capital. A lot of these are companies that create technology that supports educators and learners across PreK-12, postsecondary, and workforce education.

Several Venture Capital firms have also claimed that they’ve been receiving an increased number of pitches from EdTech companies in the country. This trend shows that several more companies, many of which hadn’t yet tapped into the EdTech industry, are now showing a keen interest to not only diversify their functional capacities but to also enter into this high-potential marketspace.

This overall rise of interest and investment is a great sign for the EdTech market in the coming future for all educators and learners in the USA.

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iauro Systems

Challenges for EdTech in the USA

Shift in spending habits/trends of parents
Student/learner privacy concerns

Some highlights of the EdTech Industry in the USA

Jeff Lieberman, an M.D. at Insight Partners, a private equity firm that has backed 20+ education companies, says – “With COVID-19 jeopardizing in-school learning, we expect the widespread adoption of EdTech software to continue, and this is not a short-term trend. Further, “Software will reshape learning both in the classroom and out well beyond the pandemic.” Source – https://www.edsurge.com/

In the first week of July 2020, two higher-education companies accounted for $250 million in Venture Capital. On July 15th, CampusLogic, a provider of student financial aid software to colleges, secured $120 million. Two days later, Coursera, which provides online courses to higher-ed institutions, businesses and government agencies, raised $130 million. Source – https://www.edsurge.com/

EdTech in Japan

Japan is among many of the countries that were badly hit because of the onset of the COVID-19 Pandemic. A country that has deeply believed in the traditional – ‘in-class’ or ‘in-school – form’ of education remained unchanged for more than a century. The gaping hole in the overall EdTech industry was visible to everyone.

Although it is well-known in the world for its vast array of technological solutions across several industries and sectors, Japan realized its own ignorance and inefficiency when it came to the EdTech industry.

Japan takes its education extremely seriously, especially when it comes to that of its children. So, when the schools closed in March, and it was left with a conundrum and disruption, it quickly started investing and making progress on fulfilling the need for major developments and enhancements within the EdTech sector.

The government, along with some private and public companies,has been of immense help when it came to dealing with the agenda at hand. Students all around were continually encouraged by all to engage with teachers through online classrooms. Most of the engagement took place through platforms like YouTube (where students could watch lesson videos as much as they wanted and whenever they wanted) and Zoom (where students and teachers conducted online classes).

However, a few months down the line, and with many schools reopening, the realization and need for progress in the EdTech sector has not diminished one bit. In fact, if anything, it has only made it stronger.

Japan, its educators, and its students have realized the power of knowledge-based learning that technology-based education can offer. And, all they want to do now is to create a more holistic system of digitized/online/technology-based education that wouldn’t be as affected ever again.

Because the EdTech industry in Japan is still in a nascent stage, there is huge potential for investors and inventors alike, to really scale-up their operations in the country.

iauro Systems
iauro Systems

Challenges for EdTech in Japan

Teachers in Japan are ‘extremely busy’ or overworked already Lack of IT/technological skills in educators Strong belief in the traditional form of education i.e. in-class or in-school

Some highlights of the EdTech Industry in Japan

In Japan, private expenditure on educational institutions as a percentage of GDP on primary to tertiary education from the final source of funds is relatively high. (1.2 %, rank 9/36, 2017). Source – https://gpseducation.oecd.org/

In Japan, the percentage of 25-64-year-olds who attained a bachelor’s or equivalent tertiary education degree is one of the highest among countries with available data. (31.3 %, rank 3/46, 2019). Source – https://gpseducation.oecd.org/

1883 hours a year are worked by Japanese teachers in public schools, over 200 hours more than the OECD average. Source – https://www.oecd.org/japan/

100% of children aged 5 to 14 are enrolled in education, ranking Japan number one in this area among OECD countries. Source – https://www.oecd.org/japan/

Less money is spent in the Japan education system than in any other developed country. 3.3% of Japan’s GDP is invested in education, compared to the OECD average of 4.9%. Japan spends $8,748 per student at the elementary school level, compared to the $10,959 in the United States, meaning Japan spends its money wisely. Source – https://tokyoesque.com/

“There are several good EdTech services already being used in some schools. Seeing these successful cases, other schools are also interested in introducing those educational technology services. But, progress is quite slow in the educational environment, even though the technology is changing quite rapidly.” says Miho Orimo, Principal at Boston Consulting Group, which runs the “Learning Innovation” Project commissioned by the Ministry of Economy, Trade and Industry in Japan. Further, “With EdTech services, the teacher’s role changes from teacher to coach and then teachers can put more focus on students who are behind and can support to develop capabilities of who are ahead. Overall, average class scores also improve.” Source – Google For Education

iauro and EdTech


By bridging the gap between Development & Operations, through a range of consolidated and effective processes, iauro has made huge strides in reinforcing the monolithic movement towards a sustainable form of EdTech.

DevOps is a well-known set of processes that are being used in many parts of the world to aid technologically-driven companies to ramp-up their approach.

iauro works tirelessly in-guidance with the DevOps methodology to help companies completely automate their processes, reduce time and money spent on extra overheads, and deliver round-the-clock high-quality solutions.


iauro employs its sophisticated and modernized microservice stacks & systems to help EdTech companies move ahead in a more efficient and faster manner.

iauro does this by managing all of the micro-tasks of a particular company whilst also allowing for a thoroughly open exchange of information, so any & every concerned department may use the information as when they need to. 

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EdTech has great potential to reinvigorate and revolutionalizethe present and future state of the education sector in India.

With a never-seen-before kind of pressure, educational institutes, governing bodies, investors, and innovators have to continually be on top-of-their-game to keep the flow of education delivery steady.

The ongoing lockdown has presented several governments, start-ups, non-profits, private and public sector institutions with a huge opportunity to really (re)invent, innovate, improvise, and in-turn – deploy their most effective technological aids so quality education in our country can continue to thrive.

The best way to come out of this victorious would simply be to have a mindset of – ‘Very less room for errors or mistakes and more room for invention and innovation.


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