What is the size of the US market for 3-7 year old education hardware and software?

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What is the size of the US market for 3-7 year old education hardware and software?

Since there are no preexisting industry studies available for the public on the market size pertaining to education hardware and software for 3-7-year-olds in the United States, the presented market size data was based on triangulation derived from available and reliable statistics and industry reports. In order to qualify for the age range of 3-7 years old, this study considers those in the preschool (3-4 years old) up to kindergarten students (5-7 years old). For the purpose of this research, education hardware and software was also considered as "smart education".

MARKET SIZE ESTIMATIONS AND CALCULATIONS


According to MarketsandMarkets report, the global "smart education and learning market size is expected to grow from USD 193.24 Billion in 2016 to USD 586.04 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 24.84%." This market size includes education hardware and software together with service and educational content. North America has a market share of 29% ($56B in 2016).

According to the latest data released by NCES, about a total of 132,800 public and private schools are in the United States — 98,200 public schools and 34,600 private schools for kindergarten or higher grades. Based from a survey released by GoodEReader, it stated that "80% of US schools use e-books or digital textbooks" while 4 out of 10 (or 40% of these schools) use these tools as part of their curriculum. Using this given percentage, we can assume that 105,600 schools in the US use educational hardware and software.

132,800 * 80% = 105,600 (schools that use education hardware and software)

Given the market size for North America and using this to calculate for average revenue per school;

$56B / 105,600 = $530,300 (estimated average revenue per school)

The same report from NCES reveals that there are about 71.1 million students from all levels. The calculated average number of students per school is 536 and if there are about 3.6 million teachers, the average number of teachers per school is 27.

Estimated average revenue per teacher is calculated as:

$530,300 / 27 = $19,640.70

From DataUSA database, there are currently 575,136 preschool and kindergarten teachers who teach these 3-7 years old students in the United States. A report from Deloitte survey stated that 66% of teachers who teach PreK-2 use educational apps and software as part of their teaching.

575,136* 66% = 379,590 (PreK-2 teachers that uses educational apps and software)

Using the calculated average revenue per teacher, we can now calculate the market size for the required age range.

Market size = $19,640.70 * 379,590 = $7.45 billion

DIGITAL EDUCATION TRENDS


From a survey report, the device used for digital content for e-learning in the U.S. classrooms are laptop (used by 56%), desktop computer (54%), tablet (51%), interactive whiteboard (45%), smartphone (28%), Chromebook (23%), dedicated e-readers (5%) and wearables (3%). These devices are "used in the classroom with more than half of teachers saying each is used at least weekly, or 42% of teachers say that at least one digital device is used every day."

The digital learning materials that are used in the PreK-5th grade classrooms are online educational videos (used by 67%), educational apps or software (65%), websites for research (56%), games that are focused on specific content or skills (52%), eBooks (17%), simulations/virtual reality like virtual science labs (13%), and eMagazines (2%).

Another study reveals that "student-computer ratios in most U.S. schools have reached 5:1 (five students per computer), with almost all teachers having access to at least one computer in their classroom." Initiative programs like "one-to-one laptop programs, which provide every student with a computing device, have spread across multiple states."

CONCLUSION


Overall market size for educational hardware and software (which are commonly known as smart education) in the United States has a market share of $56 billion, and considering the estimated market size specific for preschoolers and kindergartens (3-7 years old) which is at $7.45 billion, or a percentage share of about 13% from total U.S. market. The devices most commonly used are laptops, desktop computer, and tablets while the digital learning materials that are commonly used are online educational videos and educational apps or software.

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