Online Education Market in India 2023-2028

Online Education Market in India 2023-2028

In the aftermath of the pandemic, over 500 million students have faced disruptions due to the periodic closure of schools and universities. Traditional education systems have been significantly affected by technological innovations. Online learning platforms have experienced rapid growth across various educational levels, including primary, secondary, higher education, test preparation, and informal learning. The online education market exhibits a high degree of fragmentation, with a handful of specialized players operating in different segments, while startups with innovative solutions are steadily gaining prominence.

Market insights:

In the past ten years, advancements in technology have significantly improved online education. These advancements encompass the integration of information and communications technology (ICT) in classrooms and the utilization of cloud-based platforms, virtual reality (VR), and augmented reality (AR). As of 2022, the online education market was valued at INR 361.68 Bn, and it is projected to reach INR 837.11 Bn by 2028, demonstrating a compound annual growth rate (CAGR) of approximately 13.68% from 2023 to 2028.

Government initiatives:

The government played a pivotal role in facilitating the effective implementation of online classes. Among the significant initiatives spearheaded by the government are the Samagra Shiksha Scheme, PM eVIDYA Program, Andhra Pradesh State Skill Development Corporation (APSSDC), and the National Apprenticeship Promotion Scheme (NAPS).

Market Influencers:

Market drivers:

Over time, the proliferation of affordable smartphones has generated a rise in the request for internet services, catalyzing an increased demand for online content, including educational materials, in both rural and urban settings. There is a growing desire for training courses that are pertinent to various industries, with individuals increasingly viewing online learning as a cost-effective alternative to traditional education.

Key deterrents to the growth of the market:

Challenges in the Indian online education market arise from factors such as the prevalence of free Open Educational Resources (OER), attracting price-sensitive users despite potential quality drawbacks. Providers struggle to differentiate premium content from free offerings, hindering consumer attraction. Monetization challenges stem from reliance on advertisements over subscription fees. Limited awareness among Indian learners about online education and a preference for traditional learning methods hinder market growth. Online platforms struggle to replicate offline learning aspects, impacting user engagement. Post-pandemic, a shift to in-person training adversely affected virtual e-tech companies. Intense competition, driven by venture capital investments, strained the sector, with a notable decline in funding in 2022, underlining industry challenges.