EdTech

The United Kingdom’s EdTech (Educational Technology) sector is currently more appealing to overseas investors than ever before, with the country capturing a significant portion of investment in educational technology in Europe. In fact, the UK secures nearly half (41%) of all investment in EdTech in the European market. This demonstrates the sector’s robustness and the confidence of investors in its potential for growth and innovation.

The United Kingdom offers a fertile ground for EdTech (Educational Technology) opportunities, featuring a vibrant landscape with over 1,000 companies providing educational platforms for learners of all ages, from children to adults. Additionally, the UK’s thriving research and development scene further supports innovation and growth in the EdTech sector, making it an excellent base for those seeking opportunities in the field of educational technology.

Opportunity highlights

The EdTech (Educational Technology) sector in the United Kingdom is witnessing significant developments and trends, including:

Artificial Intelligence (AI)

AI is playing a pivotal role in reducing teacher workloads and enhancing classroom efficiency. Automated self-learning algorithms are streamlining administrative tasks such as homework and test assessment, feedback provision, and attendance tracking. The UK’s AI market is poised for substantial growth, with machine learning projected to contribute £630 billion to the UK economy by 2035.

Massive Online Open Courses (MOOCs)

MOOCs are experiencing increased enrolment as individuals seek to expand their skillsets during their free time. These online courses offer flexibility and customised learning experiences, with the percentage of people enrolling in online courses growing from 4% to 17% between 2007 and 2019.

Cloud-based Learning Management Systems (LMS): LMS offers a promising investment opportunity, as more schools adopt cloud services for educational resource delivery. This transition facilitates remote access to learning materials and homework, consolidating them in a single platform. The global LMS market is anticipated to grow from £11 billion in 2021 to £28 billion by 2026, with a compound annual growth rate of 19.1%.

Cybersecurity

The integration of technology in education has led to heightened concerns about online privacy and security. Cybersecurity is a top priority for EdTech service providers and educational institutions, especially in light of a reported 93% increase in cyberattacks targeting the UK’s education sector in 2021. The UK has a substantial cybersecurity workforce, with over 300,000 professionals employed in this field in 2021.

These trends reflect the dynamic and evolving nature of EdTech in the UK, offering opportunities for innovation, investment, and growth in the educational technology sector.

Commercial maturity

The United Kingdom’s EdTech (Educational Technology) sector is the largest in Europe and has witnessed a surge in investment, driven by the demands of remote learning brought about by the 2020 coronavirus (COVID-19) pandemic. In 2021, TechNation reported that investment in the sector increased significantly, rising from £17 million in the second quarter of 2020 to £26 million in the final quarter.

Furthermore, it is estimated that UK schools already allocate approximately £900 million annually to educational technology. This figure is expected to continue growing, particularly with the adoption of blended learning approaches that have been embraced following COVID-19 restrictions. The pandemic has accelerated the integration of technology in education and has reinforced the importance of EdTech, making it a vibrant and expanding sector in the UK.

UK assets

The United Kingdom is home to several prominent EdTech hubs, each offering unique advantages and opportunities:

London

London is a major EdTech hub in Europe and hosts two of the world’s largest EdTech industry events, EdTechX and Bett Show. University College London offers a postgraduate course specialised in EdTech, and its EDUCATE Knowledge Lab fosters research and innovation in the field.

Northern Ireland

Belfast provides a strong foundation for EdTech companies, with over 21,000 people employed in the broader tech sector. The region boasts over 20 EdTech firms, including Antrim-based Texthelp, a market leader in educational software that partners with tech giants like Google, Microsoft, and Apple to serve 30 million users.

Northern Powerhouse (Manchester)

Manchester, home to MediaCityUK, is the UK’s top Digital Tech City and hosts several progressive EdTech providers. Frog Education, a global leader in gamifying STEM subjects with 12 million users worldwide, is among the notable EdTech companies in the region.

South of England

The University of Oxford’s Critical Digital Education Research Group brings together an interdisciplinary team of academics and postgraduate researchers to explore technology’s applications in education. Their initiatives include GoGirl, a coding project for young women from non-traditional educational backgrounds aged 16-21.

These hubs reflect the diverse landscape of EdTech in the UK, offering a range of opportunities for innovation, research, and collaboration in the educational technology sector.

R&D capability

The United Kingdom boasts a thriving research and development landscape within the EdTech sector, supported by various initiatives and organizations:

EdTech UK: EdTech UK serves as a national network and advisory forum for EdTech businesses. It provides research and evidence to assist companies in future-proofing their EdTech offerings. Additionally, EdTech Hubs in Humber and Greater Manchester offer professional expertise centers that drive innovation in the sector.
EdTech Hub: In 2019, £20 million was allocated to establish the Research and Innovation Hub on Technology for Education (EdTech Hub). This collaborative research project involves six partners, including the University of Cambridge. It focuses on studying how technology can be appropriately utilized to enhance learning outcomes in low-income countries and deliver significant social returns on EdTech investments.
EDUCATE Programme: The EDUCATE Programme is the UK’s leading EdTech research accelerator, jointly operated by F6S, BESA, and EDUCATE Ventures Research Ltd. It plays a vital role in assisting EdTech start-ups in gaining access to research necessary for developing effective educational solutions. Moreover, the programme supports SMEs in increasing their investment in research and development.

These initiatives and organisations provide a strong foundation for research and innovation in the EdTech sector, promoting the development of cutting-edge educational technology solutions and advancing the field’s knowledge base.

Business and government support

The United Kingdom offers various forms of support to businesses, including those in the technology and innovation sectors:

Knowledge Transfer Partnerships (KTPs): KTPs are available to businesses of any size in the UK. These partnerships are funded by UK Research and Innovation and offer grants to help companies innovate, grow, and develop. They also facilitate collaborations with academic partners to address specific innovation challenges. KTPs provide a framework for knowledge exchange and can be highly valuable for businesses seeking to leverage academic expertise and resources.
Science and Technology Facilities Council (STFC): STFC plays a pivotal role in driving innovation within the technology sector. It acts as a bridge between businesses and cutting-edge scientific research, offering support to tech start-ups. This support includes business incubation programs, access to specialized facilities, expertise, and networking events. By connecting tech start-ups with relevant resources and expertise, STFC contributes to the growth and development of innovative technology companies.

These support mechanisms underscore the UK’s commitment to fostering innovation, research, and development across various industries, creating opportunities for businesses to thrive and drive technological advancements.