Research: Non-Hardware Ed Tech Spending up 3.5 Percent

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.

About the Author

Joshua Bolkan is contributing editor for Campus Technology, THE Journal and STEAM Universe. He can be reached at [email protected].

Featured

  • elementary school boy using a laptop with a glowing digital brain above his head and circuit lines extending outward

    The Brain Drain: How Overreliance on AI May Erode Creativity and Critical Thinking

    Just as sedentary lifestyles have reshaped our physical health, our dependence on AI, algorithms, and digital tools is reshaping how we think, and the effects aren't always positive.

  • robot brain with various technology and business icons

    Google Cloud Study: Early Agentic AI Adopters See Better ROI

    Google Cloud has released its second annual ROI of AI study, finding that 52% of enterprise organizations now deploy AI agents in production environments. The comprehensive survey of 3,466 senior leaders across 24 countries highlights the emergence of a distinct group of "agentic AI early adopters" who are achieving measurably higher returns on their AI investments.

  • tutor and student working together at a laptop

    You've Paid for Tutoring. Here's How to Make Sure It Works.

    As districts and states nationwide invest in tutoring, it remains one of the best tools in our educational toolkit, yielding positive impacts on student learning at scale. But to maximize return on investment, both financially and academically, we must focus on improving implementation.

  • blue and green network lines

    HPE Intros Agentic AI Enhancements to Mist Platform

    HPE recently introduced new capabilities for its Juniper Mist platform that leverage agentic AI to enable more autonomous, intelligent, and proactive network operations.