Swedish Edtech 2023: Inflation Effects, AI Fever and consolidation in Industry Report
Our member Swedish Edtech Industry has released its annual industry report, highlighting the latest trends and developments in the sector. Despite serving a considerable number of users, the industry still consists primarily of small and startup companies, with 67.5% of companies having fewer than 25 employees and generating less than SEK 25 million in revenue. However, the report highlights how the industry's optimism has decreased, despite the stable growth of the sector. Many of the member companies are reporting higher supplier prices, development costs, and concerns about customer solvency due to inflation.
The report indicates that there are noticeable differences in the stability of the companies, with "must-have" solutions in the public sector being more stable than companies targeting other sectors. Further, it raises concerns about how political decisions and the ongoing polarized debate about digitalization in schools and the focus on printed learning materials could affect the development of digital tools, especially in the context of educational inequality in Swedish schools. The industry is afraid that schools that have already fallen behind in their digital development might not continue their work, and the investments made in digital learning materials and resources could be at risk of being further reduced, from already low levels.
The theme of the report is digital competence and skills development in light of the AI revolution our society is facing, interviewing the learning researchers in AI and AI literacy as well as representatives for the public and private sector. The Main conclusion is “We need to learn more” which therefore is the name of the report. Radical efforts must be made to increase basic digital skills where Sweden today only reaches 66% with a long way to the goal of 80% in the EU. The report also shows that AI is becoming increasingly important in the industry, with many member companies adopting AI to develop new and innovative educational tools. Alongside it suggests that AI will be an essential factor in the future of the sector and will continue to attract investors, leading to more acquisitions and mergers in the industry. Overall, the report provides an insightful look into the Swedish Edtech Industry, highlighting the challenges and opportunities facing the sector.
Read the entire report here: https://swedishedtechindustry.se/branschrapport-2023-2/