Edtech Market will touch $1.96 Bn by 2021 as per research conducted by KPMG. Current demand has grown with a CAGR of 60% from 2016. Traditional education graph is going down in terms of learning.
Content segment held the largest market share in 2017, contributing to over 64% of the market. Online test preparation is expected to be the fastest-growing category of online education, estimated to grow at an impressive CAGR of 64% in the next five years.
The education sector in India is a mix of government-operated & privately operated educational institutions and allied education products & services providers. India has a significant young call for a robust education sector to harness the potential for human capital. The sector is highly influenced by various government schemes and policies launched primarily to improve the quality of education and the planned expenditure through several schemes.
Major Industry Segment:
- Test Preparation
- Skill Upgrade
- Online Certification
- Non-academic learning
Revenue is generally received from the following segment content sharing, course subscription, session prices, and advertisement and premium courses.
Reason for the growing market:
- Low cost for an online program in comparison to offline courses
- Exposure to top university experts
- Widely adopted by remote areas
- Growing job insecurity among peers increases the demand for re-skills and technology up gradation
- Government Initiative like SWAYAM, E-Basta, Rashtriya Madhyamik Shiksha Abhiyan(RMSA), Skill India and Digital India has given a double boost to the program.
- Growing internet user is adding thousand to this sector
- EMI facility for any high-end courses
- Availability of content in the regional language
- Reduced travel time and ease of concentrating at home
- Variation of courses with much more logical content in affordable prices
With imminent layoffs and job scarcity, working professionals to have taken to upskilling, reskilling at any and all stages of their careers in order to stay ahead of the automation curve. There can be no doubt about it: online education by edtech startups is here to stay. The New Education Policy which is address the changing dynamics in the education industry is expected to be released mid-2018 will bring some major changes in policy level.