Education Services

Germany is Europe's largest education services market. 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 core area of education, which means that new business models such as e-learning have great potential.

LAST UPDATE

01/10/2021

TYPE

Executive Summary

CONTRIBUTORS

Felix Engelhardt, CFA

Current Developments

E-learning as the main 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

+7.0%

2021

+8.0%

2022

+8.0%

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)

86

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.

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.

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

Sector Update

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