DEVELOPMENTS IN THE EDUCATION ECOSYSTEM

DEVELOPMENTS IN THE EDUCATION ECOSYSTEM

9 July 2014

Global Trends, Universe Spend and Market Outlook

Presenters: Mike Fisher

Colin Messenger

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THE FUTURESOURCE FOCUS

|

Futuresource Introduction

|

Key Developments In Hardware Adoption

|

Online Content – Developing Market Segmentation

|

The Rise Of Education Apps

|

Ecosystem Developments

|

Conclusions

GLOBAL EDUCATION TECHNOLOGY SPEND

0 2 4 6 8 10 12 14 16 18 20 2011 2012 2013 2014 2015 2016 2017 2018 Complementary Devices Classroom Displays Mobile PCs

Total Market Value – Billions $

Total 2013 Worldwide spend on education hardware – US$13 billion

US $ bi lli on Mobile PCs +14% $12.6 $19.0 CAGR 2013 to 2018 Complementary Devices -15% Classroom Displays -16%

HARDWARE MARKET DEVELOPMENTS IN 2013

1M

1 Million IWBs Shipped in 2013 Globally

28%,

Growth in Year On Year Sales of Mobile PC to

22 Million Computers to K-12 Globally

22M

Large Scale New 1:1 Initiatives In Thailand,

Malaysia, Mexico, India (Utter Pradesh)

1:1

23%

Chromebook reached 23% of US K-12

Education Market in Qtr 4 2013

37% Of Classrooms in China Have a Display Device Installed

China is the Largest Interactive Display Country Market

THE EDUCATION ECO SYSTEM REMAINS FRAGMENTED

CONTENT SOFTWARE HARDWARE

Interactive Display Traditional Publishers Classroom Management

Collaboration

LMS ‘MOOCs’

Personal PC/Tablet

Voting/Student Response Digital ‘Start Ups’

Online Assessment & Adaptive Learning

FUTURESOURCE SEGMENTATION OF ONLINE CONTENT – 8 SEGMENTS

E-book Virtual Libraries

Sector Example Providers

Online Video/ Podcast Libraries Project Based Online Software

Online Interactive Educational Resources Online Assessment &

Personalised Learning Software Online Courses &

MOOC’s

Online Educational Games

Social Networks As Virtual Learning Environments

• Bug Club (Pearson)

• Oxford Owl (OUP)

Full list of Example Providers provided in report

• Khan Academy

• Conquermaths.com

• Purple Mash (2Simple)

• Espresso Coding • BrainPop • MindTap (Cengage) • Mathatletics (3P Learning) • MyLab/Practice (Pearson) • English Town • Udemy • Ludwig • McGraw-Hill Practice • ePals • Livemocha

EDUCATION APPS GAINING POPULARITY

2.1% 2.4% 2.5% 2.6% 2.7% 2.8% 2.8% 2.8% 3.4% 4.9% 5.1% 5.4% 7.8% 8.2% 8.2% 10.5% 18.3% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Medical Finance News Photography Health Care and…Reference

ProductivitySports Music Travel Books Utilities Entertainment LifestyleBusiness EducationGames

Most popular Apple App Store categories in March 2014

EDUCATION IS ONE OF THE LEADING PAID FOR CATEGORIES ON ANDROID

0 20 40 60 80 100 120 Th ou sa nd s

Most popular apps downloaded from Android – Nov 2013

All Apps Free Apps Paid Apps

CHILDREN ACCESSING EDUCATION APPS ON CONNECTED DEVICES

25.5% 26.3% 30.0% 31.7% 26.6% 24.1% 25.0% 25.7% 25.7% 24.7% 10.5% 10.8% 10.7% 8.3% 6.2% 6.5% 6.7% 7.8% 7.7% _6.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Boys Girls Boys Girls Boys Girls Boys Girls Boys Girls

How often children access educational apps on connected devices

Don't Know Everyday 2-3 a week 2-3 a month < 1 a month Never

3-4 Years 5-6 Years 7-8 Years 9-10

Years 11-12 Years

Thinking about devices that are connected to the internet, how often does your child do the Source - Kids Tech Panel Wave 2, May 2014.

EDUCATIONAL APPS – POPULAR APP SECTIONS

Toddler/Pre School

Is A Key Market

Language Learning

Apps

Astronomy Apps

Still Popular

Test Preparation

Apps

MANY PROVIDERS SEEKING TO OFFER SINGLE SIGN ON SOLUTIONS

SOFTWARE PLATFORMS

CONTENT PRODUCERS

| Frequent reports drilling down into the micro level trends facing the industry and connecting market segments.

| Reports focused on key industry developments and market sizing analysis

Forthcoming publications include:

1. Hardware quarterly market sizing (Quarterly) 2. Online content within the education sector (July) 3. The educational app market (July)

Reports In Development include:

1. Developments in connectivity within the education sector

FUTURESOURCE : EDUCATION REPORTS

About Futuresource Consulting

Futuresource Consulting is a specialist research and knowledge-based consulting company with a heritage stretching back to the 1980s.

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