Education Services
Germany is one of Europe's largest education and training markets. Annual expenditure in Germany amounts to approximately EUR 220 bn. The extended sector in particular, which is dominated by private-sector players, is becoming increasingly important. Here, there is more freedom to make decisions than in the incumbent areas such as K-12 education. This means that new business models such as e-learning have the potential to revolutionize the way people pursue their education.
LAST UPDATE
28/09/2022
TYPE
Executive Summary
CONTRIBUTORS
Felix Engelhardt, CFA
Current Developments
E-learning as a growth driver
The education market is a global growth market. Population growth, demographic change and, not least, the COVID-19 pandemic are driving the increasing demand for digital education and learning solutions. The proportion of young adults with tertiary education has increased from 35% to 44% in OECD member countries between 2008 and 2018, reflecting the increased global demand for a skilled workforce.
Growth Rates
2020
+2.9%
2021
+2.5%
2022
+2.2%
Trends
Private education providers
The demand for private education and training is continuously increasing. The market holds great potential, especially in the area of e-learning.
Transactions
Our Sector Transactions
0
Highlight Transaction
Verein christlicher Schulen Düsseldorf x Stadt Düsseldorf
Number of M&A transactions - DACH region, 2021 (as of August)
83
Significant Transactions
Kahoot X Clever (2021)
Platinum Equity X McGraw Hill (2021)
Future Trends
Transnational education (TNB) is a global trend that is becoming increasingly important in the higher education market. More and more educational institutions are running their academic programmes in cooperation with branches or franchising arrangements in different countries. Next to TNB, Educational Technology (EdTech) offers some of the greatest growth potential in the education market. International EdTech spending has more than doubled from approximately EUR 135 bn in 2019 to approximately EUR 305 bn in 2020, but to date, it accounts for only 2.6% of global education spending.
People & Voices
Saxenhammer has in-depth technical and industry knowledge and can draw on a broad network of industry experts with many years of transaction experience.
"The demand for digital education and learning is growing enormously. The market holds great potential, which has been confirmed by the developments of the Corona pandemic. Digital learning platforms are enjoying increasing endorsement and are extremely attractive from an investor’s perspective."
Felix Engelhardt, CFA
Managing Director
Our View
The education and training market is a growth market with great potential, especially in the digital environment. The Covid 19 pandemic strongly reinforced the demand for digital learning and education opportunities. Cloud technologies and artificial intelligence will also influence the education market. Global technology companies are increasingly entering the market, triggering a wave of consolidation.
Sector Update
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