AGC's Insights - Education Technology (2025)

We are pleased to share with you our latest report on the Education Technology market.

After a period of pandemic-driven acceleration, EdTech has settled into a new phase of strategic consolidation and selective growth. Global education spending is on track to surpass $10T by 2030, with EdTech expected to account for $542B of that total—doubling from today’s ~$254B. While private placements have cooled, M&A activity remains steady, driven by large-scale platform plays across K-12 and higher ed.

The market is evolving rapidly in response to five major forces: hybrid learning models post-COVID, declining confidence in traditional higher education, increasing institutional investment, the persistent teacher shortage, and continued advancements in software and connectivity. Together, these dynamics are expanding the EdTech opportunity set well beyond traditional LMS and SIS, touching everything from microlearning and gamification to corporate upskilling and language learning.

AI—particularly generative AI—is emerging as both a driver and a disruptor. It’s powering personalized learning experiences and reducing educator admin burden but also raising questions about the future of content delivery and student engagement. Meanwhile, public EdTech stocks continue to trade below peak multiples, yet the strategic value of many assets remains high, especially for consolidators looking to scale efficiently in a fragmented market.

M&A continues to be dominated by PE-backed platforms such as PowerSchool, Renaissance, and Instructure, with PE buyers accounting for the majority of recent take-privates. On the financing side, investors remain highly selective, backing businesses like Pathify, Speek, and GoStudent with clear ROI and product-market fit.

With over 590 companies mapped across AGC’s EdTech ecosystem, we believe the sector is entering a compelling new phase—one marked by realignment, recalibration, and renewed focus on outcomes.