1. Philippines’ education system was reeling with myriad of challenges even before the pandemic hit, post the pandemic these challenges aggravated

The education system in the Philippines has been marred with various bottlenecks. Some of these bottlenecks are

  • Low govt. spending on education •Lack of good quality educators
  • High disparity in rural vs urban education
  • Mismatch between education

Reasons such as employment, marriage/family matters, and lack of personal interest have emerged as the top reasons for dropout rates in secondary and higher education.

Note: 1. Surveyed people in the age group of 6-24 years

2. Philippines witnessed a plethora of online education platforms emerging in the last few years with differentiated offerings

In the past few years the Philippines witnessed the emergence of various Ed-tech platforms that focus on the various segments of the Ed-tech market.

Unlike other markets like Indonesia where the market consists of a large number of players with similar offerings, Philippines has fewer players with differentiated offerings thus catering to the varying demand of the different cohorts.

Player Overview, Major Players

Note: 1. Total funding received by Quipper. Not specifically for Philippines

3. A look at the top parameters such as internet penetration, edtech usage, funding and willingness to pay point towards strong growth in the segment in the near term

To assess the future growth of Edtech in the Philippines we have looked at 4 key parameters:

1) Household internet penetration
2) Ed-tech usage
3) Philippines Edtech funding
4) Consumer willingness to pay

Strong internet penetration combined with growth in funding and increasing adoption (primarily driven by Covid-19 lockdowns) is expected to fuel the exponential growth of the segment soon.

Consumer willingness currently remains moderate but is expected to improve as the market matures. 

4. Platforms need to work on striking the right chord in order to capture this growth

It becomes really important to focus on the key areas to make the most out of the exponential growth that the segment is expected to witness in the near term.

For Edtech players in Vietnam focus on bridging the gaps in content quality, lack of effective school/college management systems, lack of vocational training and career planning, and poor overseas employability of the Filipino workforce will continue to be key areas. Focus on addressing these need gaps will help in improving overall education quality and ensuring growth for players in the near term.