Online Education Market in India 2022-2027

Online Education Market in India 2022-2027

In the wake of the pandemic, more than 500 million students have been impacted because of intermittent closure of schools and universities. Technological innovations have disrupted traditional education system. Online learning platforms have grown rapidly across educational segments – primary, secondary, higher education, test preparation, and casual learning. The online education market is highly fragmented. There are a few niche players that operate in various segments and start-ups with innovative offering are gradually gaining ground.

Market insights:

In the last decade, technological advancements have enhanced online education. These include the application of information and communications technology (ICT) in classrooms and the use of cloud-based platforms, virtual reality (VR), and augmented reality (AR). In 2021, the online education market was valued at INR 108.79 Bn. It is expected to reach INR 299.18 Bn by 2027, expanding at a compound annual growth rate (CAGR) of ~22.26% during the 2022 – 2027 period.

Government initiatives:

The government played a key role to ensure the successful operation of online classes. Some of the major initiatives undertaken by the government are – National Digital Educational Architecture (NDEAR), PM eVIDYA Program, Samagra Shiksha Scheme, Andhra Pradesh State Skill Development Corporation (APSSDC), and ‘ShaGun’ Portal.

Market Influencers:

Market drivers:

Over the years, the availability of low-cost smartphones has led to an increase in the demand among larger population for internet services. This has spurred the demand for online content, including education material, both, in rural and urban areas. There was an increase in demand for industry-relevant training courses. People are now considering online learning as a low-cost substitute to traditional learning.

Key deterrents to the growth of the market:

Indians are familiar and comfortable with the conventional face-to-face mode of learning, which impedes the adoption of online learning. Online channels fall short when it comes to replicating certain aspects of offline channels, such as interaction with peers, group learning, feedback, and soft skill development. There is a lack of formal recognition as also inadequate digital infrastructure throughout the country.