A lucrative market
Germany spends a lot on public education – approximately EUR 147.2 billion or 4.2 percent of its GDP. Since 2010, the sector has enjoyed annual gross value-added growth of around 3.6 percent, outpacing the overall economy, which grew at 3.4 percent. Worldwide, educational technology or “edtech” accounted for only 2.6 percent of total education spending in 2019, but the amounts spent on digital solutions are expected to more than double by 2024. Longer term, the edtech market could be worth up to USD 2.7 trillion.
A digital pact for schools
Austria-based Fox Education is another edtech company seizing the opportunities currently arising in Europe’s biggest learning market. Its collaboration tools SchoolFox and KidsFox for schools and kindergartens, respectively, facilitate the exchange of texts, pictures, short messages and contact details between teachers, parents and students, while also providing cloud storage, video conferencing and group chat. “German schools are prohibited from using WhatsApp but need the functions of modern communication tools,” says Fox Education CEO Stefan Siegl.
Fox Education was launched all over German-speaking Europe in 2015, with Germany becoming its main market last year. Hundreds of new contracts were signed between the company and German municipalities during 2020. “The Digital Pact for Schools, under which Germany is making more than EUR 5 billion available over a period of five years to bring schools’ infrastructure into the digital age, is a key underlying factor for the growth in demand for software solutions,” Siegl explains.