Technology simplifies the process of teaching and learning. Moreover, growing proliferation of learning-friendly apps and hardware is making education more accessible and enjoyable.
Given the scenario, tech giants like Alphabet’s GOOGL Google, Microsoft MSFT, Apple AAPL and Amazon AMZN are leaving no stone unturned to cash in on the booming edtech space, which per a report from Research and Markets is expected to see a CAGR of 15.4% between 2018 and 2024.
These companies are integrating AI, AR/VR, ML and IoT technologies into the education sector to deliver an enhanced learning experience.
However, initiatives by the above-mentioned companies are intensifying the battle for edtech space domination.
Online Education, Learnings Apps, Software: Key Catalysts
Google recently unveiled the iOS version of Socratic, which is a mobile learning app acquired by the company last year. Although Socratic is best known for Mathematics, it can efficiently handle Science, Literature and Social Studies, to name a few. Additionally, the app offers guidance on more than 1,000 higher education and high school topics.
It is aimed at guiding high school and university students with their educational queries outside the classroom. The search giant is set to launch the Android version of Socratic this fall.
Further, Google rolled out an educational app called Bolo in the Indian edtech space which holds immense opportunities. Bolo aims to inculcate the habit of reading among elementary school students.
The company’s Workbench buyout, which provides an online library of lessons and projects to be used in classrooms, remains a major positive.
Notably, this Zacks Rank #2 (Buy) stock offers several third-party learning Android apps via Play Store. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Further, the company’s G Suite tools are cloud-based and scale easily across classrooms.
However, Google is facing stiff competition from Microsoft, which is gaining traction on the back of its Flipgrid buyout. The startup is an interactive social learning app for teachers and students with a collaborative approach.
Additionally, the company offers various professional education courses via third-party apps like edX and Coursera, among others.
Further, Microsoft collaborated with 10 higher educational institutes of India, including BITS Pilani, BML Munjal University and SRM Institute of Science & Technology to launch AI-backed digital labs in the country.
Moreover, this Zacks Rank #2 stock has come up with a special version of Windows 10 for students.
E-commerce giant Amazon has been eyeing the edtech space for some time now. This Zacks Rank #3 (Hold) company offers a reading app for children called Amazon Rapids.
Also, the company recently launched an IIT JEE preparation app, JEE Ready, which is in beta stage currently. This will expand its presence in India’s edtech space.
Moreover, AWS offers an open education resource platform, Amazon Inspire, which is a warehouse of digital resources for teachers, parents and students.
Apple also supports mobile learning and enables students and teachers to share and distribute education-related materials through iTunes U. Further, the iPhone-maker, which carries a Zacks Rank #3, offers a wide range of third-party learning apps through its App Store.
Year-to-Date Price Performance
Education Hardware Gaining Traction
Google is also dominating hardware edtech, courtesy of Chromebook laptops, which have been gaining traction among students owing to user-friendly features. Apart from laptops, Google offers Chrome OS-based tablets for schools.
Recently, the company rolled out Chromebook App Hub, which is designed to provide a centralized way to find educational tools and apps that can be used in classrooms. Further, the hub comes with content from Epic!, Adobe, Khan Academy and others. Google also introduced advanced features in Quizzes in Google Forms, Classroom, Course Kit and more.
Meanwhile, Microsoft’s Surface laptop is posing tough competition to Google. The former has come up with a lower-priced Surface laptop for students. Further, it launched Surface Go tablet in order to fast penetrate the edtech market.
Moreover, Apple’s refreshed iPad and MacBook are making it more popular among students. Further, its 9.7-inch iPad, with Pencil support and a better A10 processor, is expanding its presence in classrooms.
Virtual Assistants Coming Mainstream
Virtual assistants embedded with AI techniques are becoming mainstream in the education market. Per a report from HolonIQ, education technology expenditure is expected to hit $341 billion by 2025 due to proliferation of AI techniques in the education space.
Amazon has taken a number of initiatives to strengthen the educational skill set of Alexa. Further, Google and Apple are innovating the skill set of Google Assistant and Siri, respectively, to make their way into classrooms.
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