School & District Management

PreK-12 Ed-Tech Market Estimated at $7.5 Billion

By Ian Quillen — November 29, 2011 2 min read
  • Save to favorites
  • Print

The Software and Information Industry Association intends a new report that estimates the overall domestic market for PreK-12 non-hardware education technology at $7.5 billion to be the first of an annual series.

The report, authored by the Consulting Services for Education (CS4ED) for the SIIA, is the product of a survey of 81 vendors who completed it in exchange for free data from the study, as well as a promise that each individual company’s data would be anonymous. (The goal is to reach 200 respondents for a second edition next year.)

Authors then combined information from that survey with knowledge of the industry at large—estimated at 400 companies—to estimate the $7.5 billion figure, with 42 percent of that revenue coming from content-related products, 35 percent from instructional support services, and 23 percent coming from platforms and administrative tools.

The survey responders actually drew 56 percent of their revenue from content-related products in fiscal year 2010, with the estimate for the total industry revised downward based on who did and didn’t respond. The hope is that the quality of the finished product will ease concerns of some vendors—including bigger ones like Adobe, Microsoft, and Oracle—that their individual business figures will be exposed or easily deduced from the document.

“If we can get more of the industry to participate so this becomes definitive and not an extrapolation, we would feel a lot better about it,” said John Richards, a study author and an analyst for CS4ED, in a press briefing today at the SIIA Ed-Tech Business Forum in New York.

Karen Billings, the vice president of SIIA’s education division, said the report helps fill a need for her members and other ed-tech vendors who want to understand and compare their own revenues against the market. She also admitted it makes her job easier.

“I get asked every week what is the market for ‘x’ software or whatever, and we simply didn’t have the data,” Billings said.

The survey found that of the content revenues reported, 52 percent of it was not focused toward a particular grade level, and that which was focused on a specific grade was spread fairly evenly across grades K-12. The 81 participants reported $1.37 billion in total revenues from software and digital resources, and Billings suggested that revenue might be skewed to smaller companies who were driven to respond in part because of the promise of free research.

Despite concerns about obtaining data from more vendors, Richards supported the choice to use company data.

“We believe that this vendor source is much more accurate than a survey of schools,” Richards said. “I think there’s several reasons for this that is worth talking about, not the least of which is they don’t know they’ve spent money on technology.” Richards added that other ambiguities, such as the use of non-technology specific funding for technology purposes, or the inclusion of technology add-ons for free such as CD-ROM discs to go with textbooks, would be more likely to be recorded by vendors than by schools.

The report is available for $750 for SIIA members and $1,500 for non-members. Additionally, the SIIA and CS4ED are now collecting contact information for companies to be surveyed next year, as well as for an accompanying survey about the higher education ed-tech market.

Related Tags:

A version of this news article first appeared in the Digital Education blog.


Commenting has been disabled on edweek.org effective Sept. 8. Please visit our FAQ section for more details. To get in touch with us visit our contact page, follow us on social media, or submit a Letter to the Editor.


Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Teaching Webinar
6 Key Trends in Teaching and Learning
As we enter the third school year affected by the pandemic—and a return to the classroom for many—we come better prepared, but questions remain. How will the last year impact teaching and learning this school
Content provided by Instructure
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
Ensuring Continuity of Learning: How to Prepare for the Next Disruption
Across the country, K-12 schools and districts are, again, considering how to ensure effective continuity of learning in the face of emerging COVID variants, politicized debates, and more. Learn from Alexandria City Public Schools superintendent
Content provided by Class
Teaching Profession Live Online Discussion What Have We Learned From Teachers During the Pandemic?
University of California, Santa Cruz, researcher Lora Bartlett and her colleagues spent months studying how the pandemic affected classroom teachers. We will discuss the takeaways from her research not only for teachers, but also for

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

School & District Management Some Teachers Won't Get Vaccinated, Even With a Mandate. What Should Schools Do About It?
Vaccine requirements for teachers are gaining traction, but the logistics of upholding them are complicated.
9 min read
Illustration of a vaccine, medical equipment, a clock and a calendar with a date marked in red.
iStock/Getty
School & District Management A Vaccine for Kids Is Coming. 6 Tips for Administering the Shot in Your School
Start planning now, get help, and build enthusiasm. It's harder than it looks.
11 min read
Cole Rodriguez, a 15-year-old student at Topeka West, gets a COVID-19 vaccine Monday, Aug. 9, 2021 at Topeka High School's vaccine clinic.
Cole Rodriguez, a 15-year-old student, gets a COVID-19 vaccine at Topeka High School's vaccine clinic.
Evert Nelson/The Topeka Capital-Journal via AP
School & District Management Letter to the Editor School Mask Mandates: Pandemic, ‘Panicdemic,’ or Personal?
"A pandemic is based on facts. A 'panicdemic' is based on fears. Today, we have both," writes a professor.
1 min read
School & District Management How 'Vaccine Discrimination' Laws Make It Harder for Schools to Limit COVID Spread
In Montana and Ohio, the unvaccinated are a protected class, making it tough to track and contain outbreaks, school leaders say.
4 min read
Principal and District Superintendent Bonnie Lower takes the temperature of a student at Willow Creek School as the school reopened, Thursday, May 7, 2020, in Willow Creek, Mont.
Bonnie Lower, a principal and district superintendent in Willow Creek, Mont., checks the temperature of a student as Willow Creek School reopened for in-person instruction in the spring.
Ryan Berry/Bozeman Daily Chronicle via AP