Published date: 1 day ago, September 24, 2024
The global educational technology (edtech) market is experiencing impressive growth and is expected to reach more than $142 billion. At the forefront of this transformation is Instructure, a leading edtech company known for its innovative learning management system (LMS), Canvas.
Strong Financial Profile and Market Leadership
Education models are evolving. 53% of students are engaged in some form of distance learning. Lifelong learning will be a big part of education in the future. Instructure is already the platform of choice for both users and numerous partners. The strategy is simple: by scaling Canvas into the most used LMS platform in the world, growing the ecosystem on the platform, and transforming learning into opportunity with Parchment, Instructure is pioneering and leading a $142 billion industry.
Instructure has demonstrated consistent performance over the years, establishing itself as a financially strong and disciplined company. This stability is particularly notable in the EdTech sector, where many competitors struggle to achieve sustainability. Instructure’s strong financial foundation has earned it the trust and confidence of educational institutions seeking a reliable, long-term partnership.
Additionally, Instructure’s flagship product, Canvas, has seen widespread adoption and market leadership. All of the top 10 universities in the U.S. use Canvas, proving its appeal and effectiveness in higher education. This broad customer base gives Instructure a strong foundation for growth and expansion.
Competitor Blackboard once had a commanding 80% market share. Blackboard’s current market share is 17%. Canvas was able to beat the industry leader for several reasons: Blackboard deployed its solution on-premise for thousands of customers around the world. As an agile SAAS solution committed to open standards, Canvas was flexible and scalable, allowing educational institutions to customize it based on their unique needs. Instructure hired former educators (consistently more than 30% of employees are from the education industry) and built a workforce that understands the needs of educators. Many other factors helped the company flourish.
Instructure has evolved its go-to-market efforts beyond LMS and now serves educators, students and professionals across the entire learner journey.
They are already used by more than half of the nation’s top K-12 institutions, 83 percent of research universities, including all of the Ivy League, and 4 million lifelong learners to master new skills. Google, Apple, AWS, Microsoft and 900 partners have integrated the platform and services.
Canvas: The heart of your learning ecosystem
Canvas serves as the core of the Instructure learning ecosystem, connecting learners, educators, and employers. Its user-friendly interface and comprehensive features make it popular with both students and teachers. Instructure’s focus on user experience has resulted in high customer satisfaction and loyalty.
Widespread adoption of Canvas across education sectors, from K-12 to higher education to professional education, has created a network effect: learners who start using Canvas in elementary school often continue to use it throughout their academic and professional careers. This familiarity and “stickiness” contributes to Instructure’s strong customer retention rates.
The company’s recent trajectory shows that Instructure does more than talk about being a “learning platform.” Building on homegrown solutions and strategic acquisitions, Instructure is building not just the technology but a true ecosystem that supports lifelong learning for learners. Instructure is the most used LMS in K-12 systems in North America and is growing rapidly internationally, not just as K-12 students, not just as higher education students, not just as adult learners, not just as non-traditional learners, but across all segments of the learning journey.
Instructure’s big opportunity is to turn all of these learning experiences into opportunities. For many learners, that means work. Today, many EdTech companies are still focused on one aspect of learning, but Instructure is uniquely positioned to capitalize on this trend and help learners acquire the skills they need to improve the quality of their lives.
Addressing major challenges in education
Instructure is actively tackling some of the most pressing challenges in education today. One such challenge is the need for more accessible and personalized learning experiences. Through its acquisition of LearnPlatform, Instructure provides educators with research-based insights into the effectiveness of various EdTech tools, empowering them to make informed decisions about the solutions that best meet their students’ needs.
Another major challenge is fragmented educational pathways. Students who transfer institutions or want to continue their education throughout their lives often face difficulties transferring credits and finding relevant courses. Instructure’s acquisition of Parchment, a leading provider of credential management solutions, aims to address this issue.
Parchment allows you to create comprehensive learner profiles that include transcripts, diplomas, badges, and other evidence of skill mastery. This rich set of credentials provides a more complete view of learner capabilities and enables smooth transitions between educational institutions and career opportunities.
Instructure’s strong financial performance, widespread adoption of Canvas, and addressing key challenges in education have positioned the company as a driving force in the growing EdTech market. By driving innovation, accessibility, and connectivity within the learning ecosystem, Instructure is transforming lifelong learning and unlocking its vast potential. As the EdTech market continues to expand, Instructure is well positioned to capitalize on new opportunities and shape the future of education.
