By LeiLani Cauthen
U.S. K–12 educational technology spending is projected to rise by roughly $2.4 billion in 2021, increasing total annual expenditure from an estimated $35.8 billion to $38.2 billion. The Learning Counsel’s 2020 Digital Transition Survey captured much of the prior year’s spending patterns and provides the foundation for these projections.
Technology Spend Increase
Spending on hardware and core software systems in U.S. K–12 schools is expected to increase by about $400 million, from $22.7 billion to $23.1 billion. Device shortages in 2020 left many schools with unmet needs; some districts will continue device purchases or replace aging inventory, while others will expand deployments to additional grades.
Digital curriculum expenditures are forecast to jump approximately $2 billion in 2021, growing from $13.1 billion to $15.1 billion. Many schools rolled out devices in 2020 without matching investment in robust digital curriculum, which led to strong sales for digital content providers last year and continued demand this year. A key driver is the adoption of programs that support autonomous learning—reducing reliance on live video instruction as parents and educators report fatigue with excessive video conferencing.
The Learning Counsel’s review of trends and data highlights several important considerations:
Total Revenue and Enrollment Pressure
Not all funds from the CARES Act have been fully spent, and public school revenues will vary by state depending on how funding rules address enrollment declines. Student attrition is a major concern for many districts. Homeschooling has been a rapidly growing segment for years, and it accelerated during the pandemic. In 2019 homeschooling grew roughly 20 percent annually, and in 2020 districts saw average enrollment declines of about 3.6 percent—often much higher in specific locales. At these rates, districts may face significant revenue loss based on state funding formulas.
The estimate that 33.6 percent of students nationwide have opted out of traditional public schools should be considered conservative. Some district leaders expect 5–15 percent of students who left to return after the pandemic, but broader shifts toward personalized learning and parents’ preference for a better “consumer experience” in digital learning suggest many changes may be permanent. The impact on funding will vary; some states reallocate resources so that per-student funding flows differently when enrollment declines.
Budget Shifts Driving Technology Investment
Several budget dynamics are likely to fuel increased technology spending in 2021:
- Additional federal stimulus could inject new funds for K–12 technology.
- Schools are reducing spending on printed materials and paper resources after pandemic-era shifts to digital distribution.
- Districts may reduce instructional staffing costs by not replacing retirees, freeing funds that have historically helped pay for technology investments.
- Planned construction and remodeling projects are being postponed in many places, making capital dollars available that districts might redirect toward technology rather than buildings.
Areas of Increased Investment
Districts and schools are prioritizing a range of devices and software tools to support remote, hybrid, and in-class learning improvements. Some notable trends include a shift from Chromebooks to more powerful laptops in upper grades to support graphic design, coding and other higher-value applications.
Survey respondents reported interest in many specific tools and systems, including:
- 5% considering eSports software and hardware
- 33% considering live tutoring platforms
- 32% considering managed workflow/document systems
- 31% considering social-emotional learning systems
- 29% considering standards tracking or scheduling systems
- 28% considering digital inventory systems for managing subscriptions
- 25% considering virtual reality headsets
- 21% considering new core academic courseware (67% already use some courseware)
- 20% considering new literacy apps (70% already use literacy solutions)
- 16% considering audio enhancement for classrooms to improve hearing with distancing
- 16% considering professional-grade CTE software (graphic design, video editing, engineering)
- 11% considering robotics purchases; 7% considering 3D printers
- 5% considering robotics or digital manipulatives for younger students or science experiments
- 5% considering new interactive whiteboards or tables (90% already have some)
- 4% considering additional headsets (93% already report making headset purchases)
- 2% considering coding apps
- 5% considering drones
Survey Details and Demographics
The Learning Counsel completed the 2020 Digital Transition Survey in October, with 32,827 educators participating online. The survey pool included a broad cross-section of U.S. school types and settings: approximately 25% urban, 29% suburban, 39% rural, and 7% representing education service centers, BOCES, or state-level entities.
About the Author
LeiLani Cauthen is CEO and Publisher of The Learning Counsel. She has deep experience in the digital content ecosystem, software development, adoption strategies, and evolving school delivery models. With two decades of research, media publishing, and market leadership across technology, education, and government sectors, she is an author and media personality focused on the transformation of teaching and learning in this century.