Edtech has been one of the biggest beneficiaries from the pandemic. After schools and colleges shut and lakhs of people lost jobs, many enrolled in online courses to upgrade their academics as well as learn new technologies to grow in their careers.
Although the industry has been seeing gradual growth over the years, it received a major boost post pandemic. The country is following a growth trajectory, similar to China. Here, we are capturing how India’s edtech is poised to grow in the coming years.
1. China’s online education and lifelong market to grow upto $295M by FY25
Overall, Online Higher Education & Lifelong Learning Market Size
USD Mn, FY 20 – 25F
1. USD 1 = CNY 6.51
China has shown significant market potential in the edtech sector over the last years. The market stood at $250 million in FY20 and is expected to grow upto $295 million by FY25. Further, the lifelong learning market is poised to grow at a CAGR of 19.6% till FY2027. And the good news is, India is following a similar trajectory on the growth path.
2. India’s online higher education & lifelong userbase to grow at a CAGR of 50% till FY25 respectively
Note: Others include workers (Formal + Informal) and students preparing for higher education
A key indicator of any industry remains the growth userbase. In this case, the userbase consists of the students and other categories including professionals with varying experiences, entrepreneurs among others. In India, it is expected to grow from 90 million individuals in FY20 to 133 million individuals by FY25. The paid users are expected to increase from 1.2% to 8.1% by FY25.
3. The market in India will grow 10x over the next 5 years to reach $5 billion by FY2025
Note: 1) Includes sales by EdTech firms in India and B2C (direct to consumer) sales only; excludes revenue from international geographies by EdTech firms and any institutional/ B2B sales. 2) USD 1 = INR 70
The market is expected to grow at 10x over the next 5 years to reach $5 billion by 2025. It will grow driven by new reforms set forth, including the increase in public spending (targeted at 6% of the nation’s GDP), relaxation in regulations governing degrees, supply side capacity gaps, need realization among students and professionals and transition to credit system.