EdTech Market

The demand for education is increasing. At the same time, there are significant problems with existing modern school systems. According to PISA surveys, the test results in reading comprehension, mathematics and science had a negative development in the OECD countries during the period 2000-2018. In addition, teaching is generally based on standardized methods and materials, which means that the degree of individualization is low, and in Sweden, Albert's main market, there is a shortage of teachers.

All this entails a demand for complement to traditional classroom teaching. Private tuition is one such example, but it often involves a significant cost that not all parents can afford. For many, digital education services - EdTech - will instead be an attractive alternative.

The global EdTech sector is expected to grow from about 3.6 percent to about 5.2 percent of total global expenditure for education and training during the period 2020 – 2025, while total expenditure is expected to increase by a compound annual growth rate of 6 percent during the same period (according to data from HolonIQ). Gross global revenues from app-based digital education services are expected to increase particularly strongly. Gross revenue in this part of the market, which includes Albert, is expected to increase from USD 1.5 billion to USD 2.6 billion during the period 2020 - 2022, corresponding to an average annual growth rate of approximately 32 percent (according to data from SensorTower).

In the European EdTech market, where Albert operates, there is fragmented competition – this refers to several markets where the established pedagogy cannot be applied to a large number of students, or as in Sweden where there are a number of established operators, but whose content primarily is aimed at teachers. Here, Albert sees good opportunities to take up more space in Europe with his position.