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TRANSFORMING LEARNINGTRANSFORMING LEARNINGgrowth in developed regions. Together,these two will account foralmost 80% of the market.Distance tutoring will emerge asa substantial category, particularlyin Asian countries such as SouthKorea, Japan and India, whichhave a strong culture of supplementaryeducation. Three trendswill drive market growth for mEducationproducts.Developing Asia Pacific will growthe fastest, while North Americawill remain the biggest market formEducation products:Developing regions will drivemost of the growth in mEducationbecause of rapid economicdevelopment and a push to spendan increasing share of GDP oneducation. Challenges in educationvary significantly across developedand developing regions,both in terms of access to educationand its quality.This seems likely to change, however, asper capita incomes grow in developingregions, narrowing the gap in educationspend per student. Whilecountries like US and Japan spendan average of US$10,000 to 15,000per student per year from kindergartenthrough college, countrieslike Mexico, Chile and Hungaryspend only US$2,000 to 5,000.Developing regions will also catchup in feature and smart portabledevice penetration, propellingthose markets to grow even fasteras the population gains access toand benefit from a broader varietyof mEducation solutions beyondthose available on basic phones.We therefore estimate the mEducationmarket in developingregions to grow at 50 to 55%CAGR between 2011 and 2020,compared to 25 to 30% for developedregions (Exhibit 5). Atan aggregate level, developedregions will still account for thebulk of the opportunity, withNorth America accounting foraround 40%, followed by Europeat 23% and developed Asia-Pacificat 17%.Higher education and K–12 willrepresent the biggest mEducationproduct opportunities across regions:Global expenditure on educationcan be grouped into fivecategories: preprimary, K-12,higher education, vocational,and corporate learning. Acrossall regions, 55% of total expendituregoes into the K-12 segment,30% into higher education, and15% into pre-school, vocationaland corporate learning.Almost 90% of the product opportunitywill be in content, platformand software:The mEducation product opportunitylies in three main componentsof the value chain: content,platform and software, and connectivity.We define content as allforms of lessons, concepts, testsand assessments. Platform andsoftware include software andadaptive algorithms. We defineconnectivity as all data costs incurredin receiving or sending informationover mobile networkswhile using the mEducationproducts.We estimate that connectivity willrepresent about 10% of the US$38billion value in 2020. The bulk ofthe value lies in either the contentor the platform/software. Servicessuch as e-books and e-courses,test preparation, distance tutoring,games and simulation-basedapplications are predominantlycontent-heavy services, whereasservices like adaptive assessment,learning management systems andauthoring and collaboration toolsare predominantly platform-andsoftware-heavy.The device opportunity alone willbe worth US$32 billion by 2020Education already represents avibrant market opportunity fordevice manufacturers. For example,educational institutesrepresent 10 to 15% of the totalB2B sales for laptops, accordingto IDC. Many governments,such as Turkey, have committedto buying tablets for the classrooms.Dedicated devices, such90 INNOVATION LEADERSHIP INNOVATION LEADERSHIP 91