$8.38 Billion US Market for PreK-12 Educational Software and Digital Content

The Education Technology Industry Network (ETIN) of the Software & Information Industry Association (SIIA), the principal trade association for the software and digital content industry, today released its “2014 U.S. Education Technology Industry Market: PreK-12 Report.”

The report values the overall PreK-12 non-hardware education technology market at $8.38 billion, compared to last year’s valuation of $7.9 billion.

Data in the report was collected directly from 144 service providers and publishers to show a supply-side view of the market not available through traditional customer data collection techniques. This report contains longitudinal data from the three years of the study and shows key trends within the industry.

• The largest market segment was Content ($3.3B), with Reading/ Language Arts making up the largest Content category, followed by Mathematics/ Arithmetic.
  
• The Instructional Support segment was almost as large ($3.2B). Testing and Assessment ($2.5B) was the largest single category of any market segment.
  

Revenues from Online Courses grew 320 percent with several significant companies reporting revenues in this category for the first time. Testing and Assessment ($2.5B) was the largest single category of any market segment.

2014 Trends

• The overall market for software and digital resources increased 5.1% from $7.97B in 2011—2012 to $8.38B in 2012-2013.
  
• Enterprise Management Systems were up 40%, returning to 2010-11 levels.
  
• Instructional Support was down 2.4% in spite of an almost 16% rise in Testing and Assessment.
  
• Content revenue was down 1.9% with decreases in every area except Online Courses.
  
• Testing and Assessment was the largest single category at $2.5B.
  

“The rapid growth of the testing and assessment market will slow, but remain an important area of investment in school districts and states. Digital assessments and interest in personalized learning contribute to this growing market,” said CS4Ed president John Richards, Ph.D., the principal author of the report. “There was a substantial investment in infrastructure. We attribute this to increased hardware in schools from district investment, BYOD and preparation for digital common core assessments."