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The global online tutoring market size is estimated to grow at a CAGR of 15.38% between 2022 and 2027. The size of the market is forecast to increase by USD 196.35 billion. The growth of the market depends on several factors, including the growing importance of STEM education, strong global demand for test preparation, and increasing focus on language learning.
This report extensively covers market segmentation by courses (STEM, language courses, and other courses), platform (desktop tutoring and mobile tutoring), and geography (APAC, Europe, North America, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing importance of STEM education is notably driving the market growth, although factors such as the threat from open-source and private tutoring may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Online Tutoring Market Driver
The growing importance of STEM education is the key factor driving the global online tutoring market growth. The growing importance of STEM education among students, parents, and various educational stakeholders globally is a major factor driving the growth of the market. STEM is a curriculum based on the idea of educating students in four specific disciplines, namely science, technology, engineering, and mathematics. STEM integrates these subjects into a unified learning model based on real-world applications. Therefore, it trains students to learn job-relevant skills in the STEM field.
Increasing job opportunities in the STEM field are one of the major reasons for the rising popularity of STEM courses among students globally. According to the US Department of Commerce (DOC), the number of employment opportunities and roles in STEM grew at a higher rate than that for other occupation roles in 2018. Consequently, about 2.4 million STEM jobs remained unfilled in the US in 2018. Overall, the increasing number of STEM job opportunities, coupled with the rising competition in STEM competitive exams, will encourage more students to enroll in online tutoring services market during the forecast period.
Key Online Tutoring Market Trends
Apps and wearables for online tutoring will fuel the global online tutoring service market growth. Advanced technologies such as mobile apps and wearables are some of the recent trends in the market. The use of virtual reality (VR) in tutoring creates a unique environment for students. Along with the use of VR in online lessons, tutors are enhancing their teaching sessions with various mobile apps. The proliferation of smartphones, coupled with the increasing penetration of the Internet, is fueling the demand for mobile learning apps.
VR devices and smartwatches are expected to be the most popular technologies in virtual classrooms. The main benefit of these technologies is the ability to share content easily. Smartwatches keep the user connected always. Besides, a smartwatch can be connected to other devices, such as smartphones, which makes online tutoring convenient for its users. Therefore, it is expected that more vendors will adopt such technologies in their offerings during the forecast period.
Key Online Tutoring Market Challenge
The threat from open-source and private tutoring is a major challenge to the global online tutoring service market growth. The presence of free and open-source tutoring resources poses a huge threat to the growth of the market. Online tutoring vendors, such as Ambow Education, China Distance Education, and iTutorGroup, provide paid tutoring courses. At the same time, several open-source online tutoring firms offer tutoring programs free of cost.
Consumers that cannot afford a paid online tutoring service will opt for these free services offered by various open-source tutoring firms. Furthermore, private tutors will get to know a student's learning style and can modify their teaching methods based on the needs of the student. Owing to these factors, students prefer private tutoring to online tutoring. Therefore, the growing demand for open-source and private tutoring will pose a significant challenge to the growth of the online tutoring services market during the forecast period.
Key Online Tutoring Market Customer Landscape
The report includes the adoption lifecycle of the online tutoring services market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Online Tutoring Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the online tutoring services market.
Arbor Bridge - The company offers online tutoring for SAT and ACT coaching. Also, under this segment, the company offers various test preparation programs for SAT.
The report also includes detailed analyses of the competitive landscape of the online tutoring services market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The parent global education market covers products, services, and solutions that are offered to educational institutions, corporate institutions, students, parents, individuals, and teachers. Technavio calculates the global education market size based on the combined revenue generated by manufacturers/providers of equipment, software, teaching materials, solutions, and services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The market share growth by the STEM segment will be significant during the forecast period. STEM stands for science, technology, engineering, and mathematics and refers to any subject that falls under these four disciplines. Some of the prominent STEM subjects are Aerospace Engineering, Astronomy, Biochemistry, Chemical Engineering, Computer Science, Physics, and Statistics. The segment includes tutoring services offered for K-12 and higher education students in STEM subjects and for test preparation. Countries such as China, India, the US, and the UK are increasingly focusing on STEM education to narrow down the supply-demand gap in STEM-related job opportunities. Such initiatives undertaken by various governments have emphasized the importance of STEM subjects among students and their parents in several countries.
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The STEM segment showed a gradual increase in market share from USD 64.06 billion in 2017 and continued to grow by 2021. In India, students must clear standardized tests, such as Joint Entrance Examination (JEE) and National Eligibility cum Entrance Test-Under Graduate (NEET-UG), to get admission to engineering and medical courses, respectively. These exams mainly cover topics from STEM subjects such as Mathematics, Science, and Engineering. Therefore, students must get adequate care and support to appear for these exams. Online tutors such as Ambow Education, Club Z! Inc, and TAL Education Group offer various online STEM tutoring programs to help students excel in academics at school and in standardized college entrance exams. The strong focus on the standardization of examinations will further increase the competition among students, which will encourage them to join specialized STEM courses/test preparation online tutoring programs during the forecast period.
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APAC is projected to contribute 47% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
China, India, and Japan are the major markets for online tutoring in APAC. Ambow Education Holding Ltd. (Ambow Education), BYJU's (Think & Learn Pvt. Ltd.), China Distance Education Holdings Ltd. (China Distance Education), iTutorGroup, New Oriental Education and Technology Group Inc. (New Oriental Education), TAL Education Group, and Vedantu Innovations Pvt. Ltd. (Vedantu) are among the major vendors offering online tutoring services market in the region.
In 2021, the large-scale vaccination drives and other government initiatives resulted in the lifting of lockdown restrictions, and business operations resumed as normal. The adoption of online tutoring has increased post-pandemic. Therefore, these factors are expected to drive the growth of the regional online tutoring services market during the forecast period.
The online tutoring market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by courses, platforms, and region.
Online Tutoring Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.38% |
Market growth 2023-2027 |
USD 196.35 billion |
Market structure |
Fragmented |
YoY growth (%) |
15.03 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, Japan, India, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ambow Education Holding Ltd., ArborBridge LLC, China Distance Education Holdings Ltd., Club Z Inc., D2L Corp., Fleet Education Services Ltd., Growing Stars Inc., iTutorGroup Ltd., John Wiley and Sons Inc., My Tutorweb Ltd., New Oriental Education and Technology Group Inc., Nuevo Agora Centro De Estudios SL, Pearson Plc, Preply Inc, Stride Inc., Sylvan Learning LLC, TAL Education Group, Think and Learn Pvt. Ltd., Varsity Tutors LLC, and Vedantu Innovations Pvt. Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Courses
7 Market Segmentation by Platform
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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