Small tech suppliers are winning in the UK EdTech market

It can sometimes be a struggle for SMEs to break into the public sector, but this is certainly not the case for small tech companies who provide services to UK universities.

Our analysis, as part of a recent event with our partners techUK, looked at all direct contract awards in the UK EdTech market and revealed some remarkable statistics. For example:

• SMEs were awarded almost half of all direct tech awards

• They also won more than a third of all contracts in 7 of 8 contract categories analysed

• In the 'virtual learning' category they won 70% of all contracts (by value)

• They featured prominently in the top 10 suppliers

It's worth bearing in mind that this analysis does not include subcontracted awards (via larger 'prime' technology providers), or instances where SMEs work as partners to other tech firms, so in reality, their share is likely to be even higher.

Read on or click the button below to get detailed insight on:

• the value of the higher education tech contracts awarded since 2015

• contract awards by category

• the top buyers and suppliers, and

• expiring contracts, which can help you to plan ahead for future tender opportunities.

Procurement in the UK EdTech market (Dec 2020)

Questions Tussell will answer

1. How big is the public sector EdTech market?
2. What's the breakdown by sub-sector?
3. How concentrated is the market?
4. Where do SMEs find success?
5. How can I position my firm for future rebids?

Please note: the data in this report is based on direct contract awards (including published framework call-offs) only.

Key findings

• The market is unconsolidated and is likely to provide easy access for new entrants
• The majority of contracts relate to general, rather than specialist, IT products and services
• SMEs dominate EdTech across the majority of category areas

EdTech procurement in the UK 2020 - key statistics

The public sector EdTech market is consistently worth about £160M per year – except for a splurge in IT investment in 2019.

General IT contracts are still the main requirement in EdTech, worth c.£800m, or three quarters of market value, since 2015.

Contracts that are more education-specific make up the remaining portion of the market, with data management systems dominating.

The distribution of awards shows that EdTech is an unconsolidated market, offering ample opportunity for new entrants.

Unlike most of the public sector, SMEs win almost half of the published contracts in EdTech.

EdTech is an excellent marketplace for small businesses – with seven of eight categories awarding more than a third of contracts, by value, to SMEs.

With 350 awards worth £134m expiring over the next two years, firms who plan early for rebids are likely to be well positioned.

Understand your market, know your customer, plan ahead

All the data in this presentation came directly from Tussell Insight, our online market intelligence platform. To learn more, email Gus at contact@tussell.com or book a demo.