Education Tech Expenditure
To create a growth strategy for international expansion by researching the school expenditure on education tech in China, Japan, and Korea, along with companies generating revenue from these schools in these countries.
- The Chinese Education Market Report predicted that China's education market will reach $572.51 billion in 2023. Factors to this increase include urban growth, accelerated household wealth, rising government spending on education, and the incline in preschool enrollment.
- China increased its spending on education in 2018 to $685 billion.
- Since most Chinese students attend public schools, their parents spend more on education tech outside of school. Parents have been willing to invest more than 20% of their own income on edtech.
- STEMEdu is a major player in the edtech industry in China. Two other major companies are TAL and New Oriental.
- As of 2018, 7 of the 10 world's largest edtech companies were started in China.
- Initial research found that in China, much of the spending on edtech comes from parents for after-school lessons. However, the Chinese government is investing in edtech as well.
- In 2010, the Korean Ministry of Education implemented a 5-year plan to incorporate Information and Communications Technology (ICT) into schools.
- A few edtech companies that are trying to take advantage of this area are Knowre, Langtree Korea, Colango, Bapul, Becos, and IAMCOMPANY. Startups that are making an impact include SmartStudy, Mathpresso, and Riid.
- Total government spending on education in South Korea has tripled since 2000 and was said to be increased by another 10.5% in 2019.
- Japan spends less on education than other developed countries at only 3.3% of its total GDP.
- The Economy, Trade, and Industry Ministry in Japan encouraged schools to implement edtech into schools, such as IT and AI.
- The Japanese edtech industry faces an uphill battle due to population decline and low birth rate. However, there are a few Japanese edtech startups that have done well including Cerego, Quipper, and Arcterus.
- An article by Edsurge stated that most teachers in Japan said schools view technology in the school as more of a distraction and thus restrict the use of it. However, the Prime Minister has stated that they plan for major changes to education including computer-based testing and online platforms.
Summary of Initial Research
- Initial research found information regarding the edtech industry for each country. However, there was little information on how much money schools are spending on it since many of the schools in these countries are government-funded. We were able to find information on what the governments are spending on education, but not on edtech specifically.
- Research indicated that who spends the most on edtech in these countries is actually the parents themselves and not the schools. Most students are attending classes outside of normal school hours.
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