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Research: Non-Hardware Ed Tech Spending up 3.5 Percent

• By Joshua Bolkan
• 12/19/12

The PreK-12 non-hardware education technology market in the United States grew by 3.5 percent in 2011, reaching $7.76 billion from $7.5 billion in 2010, according to a new report from the education division of the Software and Information Industry Association (SIIA).

"This year's report shows a strong response from content companies but also from companies offering testing and assessment and professional development products and services," said SIIA Vice President of Education Karen Billings in a prepared statement. "We are encouraged by the $2.6 million estimated growth for the industry."

The findings come from the 2011 U.S. Education Technology Industry Market: PreK-12 Report, which was prepared by Consulting Services for Education (CS4Ed) and based on data collected from 105 service providers, publishers, and developers.

Other key findings of the report include:

• Spending on instructional support, the largest market segment included in the data at 43.7 percent of revenue, was up 12 percent over the previous year;
• Digital content was the second-largest segment examined and accounted for 39 percent of revenues with the bulk coming from reading and language arts resources and math resources;
• The largest single spending category in 2011 was testing and assessment;
• Platforms and administration spending rose 17 percent; and
• Spending on tools for central offices, student information systems and class scheduling tools, and content management was also up from 2011.

"We're excited to see the overall market grow in these trying economic times," said John Richards, CS4Ed president, in a prepared statement. "We're happy to see more of the effects of the print-to-digital transition."

Representing more than 500 software and information companies, including more than 180 in its education division, SIIA "is the principal trade association for the software and digital content industry," according to information released by the organization.

More information about the report, including an executive summary, is available at siia.net. Learn more about SIIA's education division at siia.net/education.