A Closer Look

Education and Training – The digital disruption is pervasive

With the compound annual growth rate of education and training expenditure projected at 7 to 9 percent globally over the next few years, and with only 2 percent of overall education spend designated as digital, private companies have invested an estimated $4.5 billion in education-technology companies in 2015.

In response to massive demand for more affordable and modular education—fueled by the projection of one billion more digital-native millennial students worldwide over the next 20 years2 —and pressure on funding sources, many disruptions in education have focused on creating lower-cost digital supply systems.

We believe, however, that digital’s potential in the education and training sector is more far-reaching, and points to a transition to a digital lifelong learning and training ecosystem.

To understand that opportunity better, we’ve found it useful to examine the changing nature of both supply and demand in multiple education segments. Exhibit 1 depicts a simple framework identifying six dimensions of change. The upper half is linked to moderate degrees of change.


via Enabling seamless lifelong learning journeys–the next frontier of digital education | McKinsey & Company

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