Blockchain, VR in education poised for growth: report

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A new report has predicted a spike in the market capitalization of blockchain in education, tipping the industry to reach over $7 billion by 2032.

The report, compiled by HTF Market Intelligence, projects that blockchain applications in education will rise from its present level of $2.2 billion in 2025 to an all-time high of $7.2 billion in 2032. The projected ecosystem growth represents a compound annual growth rate (CAGR) of 15.6%, driven by various factors.

According to the 143-page document, the march to over $7 billion market capitalization will be powered by the need to improve global education standards. For starters, several use cases will be keen to achieve enhanced data integrity and security standards for learning institutions.

Blockchain provides a tamper-proof solution to tackle the menace of degree forgery while providing a decentralized alternative for secure data storage. Decentralized learning platforms and skill-based education tracking are also seen to significantly impact the ecosystem.

As educational institutions seek improved productivity, blockchain-based solutions around smart contracts are expected to make their cameos, automating fee payments and promoting transparency.

The report makes a case for non-fungible tokens (NFTs) in education via applications in digital certificate issuance, tokenized learning, and gamified applications. A group of surveyed respondents opines that blockchain-based scholarships will take center stage by the decade’s end, revolutionizing the landscape for educational funding.

Other adoption drivers are digital ID applications for students, the potential for a peer-to-peer (P2P) educational model, and student-owned records for easy transferability between institutions.

In terms of regional analysis, North America and Europe will hold a clear lead over others, but Southeast Asia is projected to experience rapid adoption levels by the end of the decade. Africa and Latin America are currently at the lower end of the spectrum but are anticipated to make significant progress in adoption in the coming years.

The push toward a double-digit CAGR is fraught with challenges around scalability and regulatory issues. Blockchain solutions have to walk the fine line between security and scalability, while unclear legislation in certain jurisdictions threatens the full applications of Web3 in education.

The report highlights the downside of interoperability with existing systems and other next-gen technologies like artificial intelligence (AI). Early applications in India, Kazakhstan, and the Philippines yield impressive results, providing a blueprint for institutions keen on making the big leap.

Virtual reality in education

Blockchain is not the only technology gaining attention in the education sector, as a new report emphasizes the potential growth of virtual reality (VR) in educational applications.

The market for virtual reality (VR) in education is projected to grow significantly, reaching a value of $25 billion by 2032. This growth is driven by rapid innovation and new practical applications. Currently, the industry is valued at only $4 billion, and forecasts indicate a remarkable CAGR of 28.5%.

The industry has seen significant activity recently, allowing for a non-conventional approach to learning, accentuated by remote, immersive, and interactive learning experiences. By leveraging VR headsets, learners can participate at their own pace without the traditional limitations of conventional classrooms.

Higher institutions are expected to become the biggest drivers of adoption for the emerging industry. The report also stated a growing need for “immersive virtual worlds” for interactions between students and teachers in addition to the perks of personalization.

Integration with emerging technologies like blockchain, AI, and machine learning (ML) is expected to tailor individual participants’ needs. Furthermore, the report mentions the emerging trends of extending VR applications to K-12 education, introducing a younger demographic to the technology. Use cases in primary and secondary schools are expected to be a major driver of adoption in the near future, potentially pushing market capitalization to new heights.

While North America and Europe will be the biggest contributors to the market capitalization, the Global South will record the highest levels of CAGR by 2032. The push in these regions will be driven by the need to close the developmental gap with the rest of the world, providing world-class education to students in developing regions.

By component, hardware has a lead that is expected to be surpassed by software and content. Major players in the field include Google (NASDAQ: GOOGL), EON Reality, Avantis, Immersion, and Alchemy Immersive, with the report predicting the rise of new disruptors.

Several challenges threaten the growth of VR in education, with hardware prices considered to be the major stumbling block for the fledgling industry. However, the report predicts a dip in VR headset prices in the future, but the long-term health effects of prolonged use on adolescents remain.

Another hurdle for VR in education is the issue of Internet connectivity and computing power. LG is braving the challenges with a novel offering for Yonsei University, while the Chinese and South Korean governments are sinking funds to advance use cases and innovation.

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