Document summary
USD 4.6 trillion is spent every year on education globally, second only to healthcare, and more than defence and R&D combined. Most of the money goes into salaries, making education an underinvested space. The global investable market cap is USD 70 billion, versus USD 4.0 trillion in healthcare and USD 370 billion in defence. This report explains why a U-turn may be near.
In this report, Kepler Cheuvreux' research team shows how an unaffordable system is forcing governments to experiment with new solutions to do more with less. The US market is the world’s largest, and its educators are increasingly committed to delivering better outcomes at more reasonable prices. This is opening up new pockets of growth.
Technology is the enabler of this long-term transformation. A flurry of new services has come to the market from established companies such as Pearson (rating upgraded from Reduce to Buy), as well as newcomers. The report provides investors with a roadmap to navigate their way through the changes and spot the best-positioned investments.