Definitely there is a big market. Definitely there is lots of scope for small players. We yet haven't crowned any player in education (no dominant player like google).

Knewton is going to large publisher. But if you see there is lot of scope in open education as well, lots of potential in offering analytics services to small time content developer, working with not for profit / NGOs or social sector corporations needs lot of data crunching.

Learning analytics has just started to grow. We have immense opportunities in front of us.

I can tell you detailed opportunities across different segments of education. I can tell you what each player is contributing to the market and where are they expected to reach and which market is still untouched.

We can schedule a call if you want more information.
Thanks.

8+ years exp in Education.