Ambient Insight 2014
The 2013-2018 Worldwide Game-based
Learning and Simulation-based Markets
Key Findings from Recent Amb...
Ambient Insight 2014
Agenda
 Introductions - Research Taxonomy
 Worldwide Simulation-based Learning
Revenues
 Worldwide...
Ambient Insight 2014
Partial List of Ambient Insight’s Clients
 Adobe
 Amazon
 Amplify
 Apple
 Blackboard
 BrainPOP
...
Ambient Insight 2014
Ambient Insight’s Learning Technology Research Taxonomy
Have Eight Buyer Segments
From Six Types of S...
Ambient Insight 2014
Game-based Learning is a Subset of the Learning
Technology Industry
 Ambient Insight defines Game-ba...
Ambient Insight 2014
2013-2018 Global Market Forecasts for Game-based
Learning and Simulation-based Learning
 Ambient Ins...
Ambient Insight 2014
Pedagogical Definition of Game-based Learning
 Game-based Learning is a knowledge transfer method th...
Ambient Insight 2014
There are distinct pedagogical differences between Game-based
Learning and Simulation-based Learning....
Ambient Insight 2014
Gamification Versus Game-based Learning
 SpongeLab on Game-based Learning versus Gamification:
 “Ga...
Ambient Insight 2014
2013-2018
Worldwide Simulation-based
Learning Revenue Forecasts
Ambient Insight 2014
2013-2018 Worldwide Simulation-based Learning Market
The five-year compound annual growth rate (CAGR)...
Ambient Insight 2014
UK-based Immerse Learning's English for Oil and Gas simulation-based
product developed for a Kazakhst...
Ambient Insight 2014
2013-2018 Worldwide Simulation-based Learning Market
Ambient Insight 2014
Sophisticated Mobile Healthcare Education Simulations Now
on the Market
http://www.3d4medical.com/
Ambient Insight 2014
2013-2018 Worldwide Simulation-based
Learning Five-year Growth Rates by Region
0%
10%
20%
30%
40%
Nor...
Ambient Insight 2014
2013-2018
Worldwide Game-based Learning
Revenue Forecasts
Ambient Insight 2014
2013-2018 Worldwide Game-based Learning Market
The Worldwide Game-based Learning market reached
$1.7 ...
Ambient Insight 2014
2013-2018 Worldwide Game-based Learning
Five-year Growth Rates by Region
0%
5%
10%
15%
North
America
...
Ambient Insight 2014
Buying Patterns: 2013-2018 Worldwide Game-based
Learning Market by Buyer Segment
Consumers dominate t...
Ambient Insight 2014
Buying Behavior is Different in Each Country and Each
Buyer Segment
 The top buying countries for mo...
Ambient Insight 2014
Buying Behavior is Different in Each Country and Each
Buyer Segment
 The use of edugames in the inte...
Ambient Insight 2014
Buying Behavior is Different in Each Buyer Segment
 Government agencies are increasingly paying deve...
Ambient Insight 2014
The Road to Revenues is Different in Each Country -
China
 Hardware and Data
 Most of China is on 2...
Ambient Insight 2014
Longitudinal Analysis: The Global Game-based
Learning Market Enters Mature Phase
0%
5%
10%
15%
20%
25...
Ambient Insight 2014
 Sweden-based Toca Boca launched
their first app in March 2011 and
by November 2013 had reached
over...
Ambient Insight 2014
Worldwide Game-based Learning
Investment Patterns
Leading Indicators
Ambient Insight 2014
Investment Patterns: 2013-2018 Worldwide
Game-based Learning Market
Knowledge Adventure (an industry ...
Ambient Insight 2014
Game-based Learning Catalysts
 Game-based Learning companies garnered $85.1
million in private inves...
Ambient Insight 2014
Success: one teacher at a time.
Dreambox Learning obtained $14.5 million in funding in
2013 – They ha...
Ambient Insight 2014
Acquired Kids Games Club in 2013 and Chinese edugame
company Coco Play in May 2014. Building a catalo...
Ambient Insight 2014
Edugame Incubators/Accelerators
 In 2013, Zynga.org and NewSchools Venture Fund,
launched co.lab—"an...
Ambient Insight 2014
 Kidaptive obtained $10.1 million in funding in 2013:
 One of the first companies selected by the C...
Ambient Insight 2014
Fingerprint obtained $10.5 million in funding in June 2014 (from
DreamWorks) – They have garnered $20...
Ambient Insight 2014
What Gets Funded and What Sells?
 Free private investment tracking sites identifies
company, funding...
Ambient Insight 2014
There are differences in buying behavior in each store across the planet.
What Sells? July 10, 2014 B...
Ambient Insight 2014
Q & A
This deck is posted in Ambient Insight’s Free Resource Library
at:
http://www.ambientinsight.co...
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Tyson Greer - The 2013-2018 Worldwide Game-based Learning and Simulation-based Markets

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This session will present key findings from Ambient Insight’s latest market research. This presentation provides an overview of the current global Game-based Learning industry including revenue forecasts, technology trends, innovations, business models, market catalysts and inhibitors, and buying behavior in specific segments. The demand for Game-based Learning is different in each buyer segment in specific countries in the world and the audience will learn about innovations that appeal to specific buyers. Special attention will be given to North America and Asia due to the substantial revenues being generated in those regions. Identifying the buyer can be a daunting task in the Game-based Learning market and this session will provide a breakout by buying segment for these two regions.

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  • Ambient Insight founded in 2004 by Microsoft Training and Certification veterans that built the Microsoft Online Institute (MOLI)
    International “boutique” analysis firm specializing in quantitative analysis, learning technology forecasts, M&A analysis, and competitive intelligence
    Ambient Insight tracks learning technology buying behavior across the planet. We have buying behavior profiles for over 100 countries
    Ambient Insight…
    Does not evaluate, compare, or rank the effectiveness of learning technology products
    Does not endorse or promote companies or products

    We are the only analyst firm that whose focus is entirely on Learning Technologies – produce syndicated and custom reports. We don’t compare or rank, award or reward, endorse or promote – any company or product.

    WHO ARE YOU?
    - DEVELOPER? EDUCATORS, PUBLISHERS,
    OUTSIDE US
    Who came the furtherest?

  • Ambient Insight does not include high-end military, aviation, and heavy equipment simulator revenues in our forecasts. The barriers to entry are quite high to develop and market these machines and only a handful of suppliers can compete in the simulator market.

  • Tyson Greer - The 2013-2018 Worldwide Game-based Learning and Simulation-based Markets

    1. 1. Ambient Insight 2014 The 2013-2018 Worldwide Game-based Learning and Simulation-based Markets Key Findings from Recent Ambient Insight Research Serious Play Conference 2014 July 22, 2014 Tyson Greer, Chief Executive Officer Ambient Insight
    2. 2. Ambient Insight 2014 Agenda  Introductions - Research Taxonomy  Worldwide Simulation-based Learning Revenues  Worldwide Game-based Learning Revenues and Buying Behavior  Game-based Learning Investment Patterns
    3. 3. Ambient Insight 2014 Partial List of Ambient Insight’s Clients  Adobe  Amazon  Amplify  Apple  Blackboard  BrainPOP  British Council  Cambridge University Press  Chungdahm Learning  Cisco  Dell  Disney  Hasbro  Houghton Mifflin Harcourt  IBM  John Wiley & Sons  McGraw-Hill  Macmillan  Microsoft  Oxford University Press  Pearson  Rosetta Stone Ambient Insight is an integrity-based market research firm that uses predictive analytics to identify revenue opportunities for suppliers.
    4. 4. Ambient Insight 2014 Ambient Insight’s Learning Technology Research Taxonomy Have Eight Buyer Segments From Six Types of Suppliers That Buy Eight Types of Digital Learning Products Packaged Content Consumer PreK-12 Corporations - Businesses Higher Education Federal Government State - Local Government Associations & Non-Profits Healthcare Custom Content Cloud-based Tools & Platforms Value Added Services (VAS) Installed Tools & Platforms Learning Devices Digital Video, Text, & Audio Reference Self-paced eLearning Courseware Collaboration- based Learning Simulation- based Learning Cognitive Learning Mobile Learning Social Learning Game-based Learning These six supplier types map directly to the six subcategories of learning technology products Seven International Regions North America Latin America Eastern Europe Western Europe Asia Africa The Middle East
    5. 5. Ambient Insight 2014 Game-based Learning is a Subset of the Learning Technology Industry  Ambient Insight defines Game-based Learning as one of the eight distinct types of learning technology products  We do not approach Game-based Learning as a subset of the global videogame industry, but rather as a subset of the global learning technology market  In the context of the global learning technology market, isolating Game-based Learning products is relatively straightforward  There is only one hardware-based learning technology product type and that is Personal Learning Devices (PLDs) Ambient Insight’s 2014 Learning Technology Research Taxonomy
    6. 6. Ambient Insight 2014 2013-2018 Global Market Forecasts for Game-based Learning and Simulation-based Learning  Ambient Insight separates Game-based Learning revenues and Simulation-based Learning revenues  There are distinct pedagogical differences between Game-based Learning and Simulation-based Learning  Our definitions are based on the definitions developed by Alessi and Trollip Global Revenues by Learning Product Type*** 2013 Revenues in US$ Millions 2018 Revenues in US$ Millions Five-Year CAGR 2013-2018 Simulation-based Learning $3,022.42 $7,188.33 18.9% Game-based Learning $1,739.55 $2,404.12 6.7% Total $4,761.97 $9,592.44 15.0% *** Does not include hardware
    7. 7. Ambient Insight 2014 Pedagogical Definition of Game-based Learning  Game-based Learning is a knowledge transfer method that utilizes "gameplay," which includes some form of competition (against oneself or others) and a reward/penalty system that essentially functions as an assessment method.  Game-based Learning products (edugames) have explicit pedagogical goals  A user "wins" an edugame when they achieve the learning objectives of the gameplay There are distinct pedagogical differences between Game-based Learning and Simulation-based Learning. Ambient Insight’s 2014 Learning Technology Research Taxonomy
    8. 8. Ambient Insight 2014 There are distinct pedagogical differences between Game-based Learning and Simulation-based Learning.  There are four types of Simulation-based Learning:  Physical Object and Environmental  Process  Procedural  Situational Allessi and Trollip compressed these four into two instructional strategies: learning about something (physical and process), and learning to do something (procedural and situational). Pedagogical Definition of Simulation-based Learning Ambient Insight’s 2014 Learning Technology Research Taxonomy
    9. 9. Ambient Insight 2014 Gamification Versus Game-based Learning  SpongeLab on Game-based Learning versus Gamification:  “Gamification is the application of videogame rules, mechanics and conventions to a non-gaming situation. Put simply, if a student is playing a videogame and learning from it, we aren’t witnessing gamification - the student is experiencing game-based learning. An educational game hasn’t been ‘gamified’ - because it’s a game already!”  Game elements are often “bolted on” to legacy training products  Badgeville sells gamification add-ons for corporate training  Course Hero has online courses that use Bunchball’s game mechanics  Oxford University Press and Scholastic use SecretBuilder’s game platform to “gamify books”
    10. 10. Ambient Insight 2014 2013-2018 Worldwide Simulation-based Learning Revenue Forecasts
    11. 11. Ambient Insight 2014 2013-2018 Worldwide Simulation-based Learning Market The five-year compound annual growth rate (CAGR) of the Worldwide Simulation-based Learning market is 18.9%. Revenues reached $3.0 billion in 2013. Revenues will more than double to $7.1 billion by 2017. *** Includes custom content services and authoring tools revenue Simulation-based Learning by Region*** 2013 Revenues in US$ Millions 2018 Revenues in US$ Millions Five-Year CAGR 2013-2018 North America $1,596.63 $2,951.48 13.1% Latin America $143.70 $740.82 38.8% Western Europe $558.82 $1,083.19 14.2% Eastern Europe $68.66 $156.43 17.9% Asia $542.85 $1,918.46 28.7% The Middle East $15.97 $51.65 26.5% Africa $95.80 $286.29 24.5% Total $3,022.42 $7,188.33 18.9%
    12. 12. Ambient Insight 2014 UK-based Immerse Learning's English for Oil and Gas simulation-based product developed for a Kazakhstan oil company. "While students are learning English, they walk around a virtual version of the equipment that they are being trained to work on." 2013-2018 Worldwide Simulation-based Learning Market
    13. 13. Ambient Insight 2014 2013-2018 Worldwide Simulation-based Learning Market
    14. 14. Ambient Insight 2014 Sophisticated Mobile Healthcare Education Simulations Now on the Market http://www.3d4medical.com/
    15. 15. Ambient Insight 2014 2013-2018 Worldwide Simulation-based Learning Five-year Growth Rates by Region 0% 10% 20% 30% 40% North America Latin America Western Europe Eastern Europe Asia Middle East Africa 2013-2018 Growth Rates by Region
    16. 16. Ambient Insight 2014 2013-2018 Worldwide Game-based Learning Revenue Forecasts
    17. 17. Ambient Insight 2014 2013-2018 Worldwide Game-based Learning Market The Worldwide Game-based Learning market reached $1.7 billion in 2013. The global growth rate is 6.7% and revenues will reach $2.4 billion by 2018. *** Includes custom content development services revenue Game-based Learning by Region*** 2013 Revenues in US$ Millions 2018 Revenues in US$ Millions Five-Year CAGR 2013-2018 North America $421.96 $607.24 7.6% Latin America $42.20 $77.73 13.0% Western Europe $109.71 $118.41 1.5% Eastern Europe $20.25 $33.40 10.5% Asia $1,115.89 $1,523.01 6.4% The Middle East $8.44 $9.72 2.9% Africa $21.10 $34.61 10.4% Total $1,739.55 $2,404.12 6.7%
    18. 18. Ambient Insight 2014 2013-2018 Worldwide Game-based Learning Five-year Growth Rates by Region 0% 5% 10% 15% North America Latin America Western Europe Eastern Europe Asia Middle East Africa 2013-2018 Growth Rates by Region
    19. 19. Ambient Insight 2014 Buying Patterns: 2013-2018 Worldwide Game-based Learning Market by Buyer Segment Consumers dominate the global Game-based Learning market Global Game-based Learning by Buying Segment 2013 Revenues in $US Millions 2018 Revenues in $US Millions Five Year CAGR 2012-2017 Consumer $1,287.26 $1,586.72 4.3% PreK-12 $191.35 $336.58 12.0% Higher Education $17.40 $48.08 22.5% Government $86.98 $144.25 10.6% Corporate $52.19 $96.16 13.0% Healthcare $69.58 $120.21 11.6% NGOs & Non-Profits $34.79 $72.12 15.7% Total $1,739.55 $2,404.12 6.7% Revenues concentrated in edugame content Revenues concentrated in custom services
    20. 20. Ambient Insight 2014 Buying Behavior is Different in Each Country and Each Buyer Segment  The top buying countries for mobile edugames in 2013 were the US and China. By 2018, China will be the top buyer  Gaming consoles finally legal in China as of January 2014  Massive adoption of tablets in the schools across the planet is a major catalyst for Mobile Learning and mobile edugames  In the US, Game-based Learning is ubiquitous in the early grades but starts to taper out in upper middle school  New Gamesandlearning.org survey on use of edugames in K-8:  http://www.gamesandlearning.org/2014/06/09/teachers- on-using-games-in-class/#howtochoose  Companies are making volume purchasing and device provisioning easier for the schools:  Google Play for Education for tablets and Chromebooks  Apple’s Volume Purchase Program for Education
    21. 21. Ambient Insight 2014 Buying Behavior is Different in Each Country and Each Buyer Segment  The use of edugames in the international corporate segment has always been problematic  Healthcare edugames usually designed for patient education  NGOs fund the development of edugames for disease prevention, social engineering, and the environment  HopeLab developed Re-Mission 2 with funding from Vivendi, Livestrong Foundation, the Entertainment Software Association, Cigna, Genentech, and the Annenberg Foundation. HopeLab
    22. 22. Ambient Insight 2014 Buying Behavior is Different in Each Buyer Segment  Government agencies are increasingly paying developers to create edugames (web-based and mobile) for mHealth, literacy, and language learning  The US State Department paid The SuperGroup to develop the web-based Trace Effects edugame: “Gamers interact and solve puzzles in a virtual world filled with diverse English- speaking characters.”
    23. 23. Ambient Insight 2014 The Road to Revenues is Different in Each Country - China  Hardware and Data  Most of China is on 2G, although 4G is growing  Data fees are high  Smartphone sales rising: 97.5 million shipped in Q2 2014  Monetization:  Premium apps not popular in China  Google Play not authorized to receive payments  Publishing:  Must have a Chinese partner to publish PC or Android app (illegal to do otherwise)  iDreamsky and Yodol provide localization, manage updates, and publish via their alliances with Tenent, Baidu, and Beintoo  Visibility: more than 200 Android app stores in China  Promotion: cannot use Twitter or Facebook
    24. 24. Ambient Insight 2014 Longitudinal Analysis: The Global Game-based Learning Market Enters Mature Phase 0% 5% 10% 15% 20% 25% Compound Annual Growth Rates by Eight Forecast Periods Data based on Ambient Insight’s Game-based Learning reports from 2006 to 2014.
    25. 25. Ambient Insight 2014  Sweden-based Toca Boca launched their first app in March 2011 and by November 2013 had reached over 50 million downloads  Ranked as the number one top selling educational app in both the Apple app store and in Google’s app store in June 2014 Toca Boca  Mobile Edugames now outsell PC/Console edugames  15 of the 24 Game-based Learning companies funded in 2013 were mobile edugame developers and all of them were developing edugames for young children  Early childhood learning edugames consistently rank in the top ten bestselling mobile apps in almost every country  Learning apps designed for young children usually include gameplay All Roads Lead to Mobile
    26. 26. Ambient Insight 2014 Worldwide Game-based Learning Investment Patterns Leading Indicators
    27. 27. Ambient Insight 2014 Investment Patterns: 2013-2018 Worldwide Game-based Learning Market Knowledge Adventure (an industry pioneer) obtained $26.8 million in funding in 2013 and another $13 million in May 2014 Game-based Learning companies garnered $290.8 million in private investment funding between 2010 and 2013
    28. 28. Ambient Insight 2014 Game-based Learning Catalysts  Game-based Learning companies garnered $85.1 million in private investment funding in 2013  There were 392 Game-based Learning startups listed on the AngelList site as of July 20, 2014:  https://angel.co/educational-games  The Big Players are interested again:  Rosetta Stone launched their game-based Kids Lingo Letter Sounds in September 2013 and the Arcade Academy edugame in October 2013 - “ The first gamified language- learning app for adults”  Houghton Mifflin Harcourt acquired Curiosityville in May 2014. Curiosityville develops games “that teach math and literacy skills to children ages three to eight”
    29. 29. Ambient Insight 2014 Success: one teacher at a time. Dreambox Learning obtained $14.5 million in funding in 2013 – They have raised $25.5 million since 2010 Investment Patterns: 2013-2018 Worldwide Game-based Learning Market
    30. 30. Ambient Insight 2014 Acquired Kids Games Club in 2013 and Chinese edugame company Coco Play in May 2014. Building a catalog by acquisition TabTale obtained $13.5 million in funding in 2013 – They have over 200 mobile apps for young children. Investment Patterns: 2013-2018 Worldwide Game-based Learning Market
    31. 31. Ambient Insight 2014 Edugame Incubators/Accelerators  In 2013, Zynga.org and NewSchools Venture Fund, launched co.lab—"an accelerator that works with startups that are leveraging the power of digital games to build transformative educational technologies.“  http://playcolab.com/  Pearson Catalyst for Education:  http://catalyst.pearson.com/  Kaplan EdTech Accelerator:  http://kaplanedtechaccelerator.com/#et-overview
    32. 32. Ambient Insight 2014  Kidaptive obtained $10.1 million in funding in 2013:  One of the first companies selected by the Co.lab incubator  Includes parental controls (Parent's Pad) and “tips on how to improve learning hurdles, like difficulty in color or shape recognition.” Investment Patterns: 2013-2018 Worldwide Game-based Learning Market
    33. 33. Ambient Insight 2014 Fingerprint obtained $10.5 million in funding in June 2014 (from DreamWorks) – They have garnered $20.1 million since 2011  Platform open to third-party developers and brands: “businesses can use it to break into the rapidly growing mobile playfield.”  Has parental controls (“Mom-Comm technology”)  Samsung Kids’ Mobile Network Powered by Fingerprint – “games with an educational twist for kids ages 3 to 7.” http://www.fingerprintplay.com/callforcontent Investment Patterns: 2013-2018 Worldwide Game-based Learning Market
    34. 34. Ambient Insight 2014 What Gets Funded and What Sells?  Free private investment tracking sites identifies company, funding amount, and the investor:  Crunchbase:  http://www.crunchbase.com/  Education VentureBeat:  http://venturebeat.com/category/education/  Free ranking sites track the top selling educational apps and edugames by all platforms and by each country:  App Annie:  http://www.appannie.com/top/iphone/united-states/education/  Distimo:  http://www.distimo.com/leaderboards
    35. 35. Ambient Insight 2014 There are differences in buying behavior in each store across the planet. What Sells? July 10, 2014 Bestselling Educational App Snapshot from App Annie for Canada, the US, and the UK
    36. 36. Ambient Insight 2014 Q & A This deck is posted in Ambient Insight’s Free Resource Library at: http://www.ambientinsight.com/News/PublishedContent.aspx Tyson@ambientinsight.com

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