Education & Training Services | Industry Report
Our latest Education & Training Services industry report highlights trends in the Education & Training Services industry, emphasizing the disruptive impact of AI and large language models. The transformation has been driven by the rise of blended learning models, universal datafication, and e-learning due to the global pandemic. We expect the industry to grow further due to the necessity for lifelong learning and technological progress that enables new learning experiences such as gamified and hyper-customized education.
Education & Training Services industry trends and drivers
AI Applications
Large Language Models paired with generative AI applications are transforming education. Digital twins of learners and AI agents will enable higher customizability, making learning more efficient.
E-Learning
In response to the global pandemic impact, institutions and corporations have embraced e-learning, including blended learning and hybrid models that combine the advantages of both online and in-person formats. This shift applies not only to education but also to corporate settings, spanning onboarding processes, training modules, and workshops.
Datafication
The utilization of learning data is experiencing a surge. The next phase focuses on implementing compliant data collection methods alongside advanced analytics. AI Agents play a big part in the process of utilizing the power of big data. This evolution deepens the understanding of learners’ preferences, allowing for hyper-individualization.
Lifelong Learning
Accelerated technological progress and social change make lifelong learning a necessity for pursuing a career of 30 to 40 years. Promoting and committing to continuous personal growth along the journey becomes a new standard for employees, enterprises and public institutions.
Gamification
Leveraging gamification techniques is enhancing the training and learning landscape. Incorporating game-like elements into educational content contributes significantly to increased motivation and sustained interest among learners, resulting in more effective and enjoyable learning journeys.
Public Valuation Environment
Public Trading Multiples of Education & Training Services Companies
EV/ EBITDA Performance of Education & Training Services Companies
Valuations of publicly traded Education & Training Services providers have decreased over the last three years in line with a deterioration of general capital market sentiment driven by increased interest rates, geopolitical tensions and high inflation. B2C education preserves a significant premium to B2B training, reflecting higher margins.
European Environment
European Education & Training Services M&A on the Rise
Deal activity in Education & Training Services has been on a long-term growth trajectory and has risen to a new level since 2021. Average valuations peak in years with strong macroeconomic setting but rarely drop to single-digit EBITDA multiples.
