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The US Test Preparation market is valued at USD 14.72 billion at a CAGR of 7.32% between 2022 to 2027. The report includes historic market data from 2017 to 2021. The rise in demand for personalized test preparation is a significant driver propelling the market's expansion. This tailored approach to test readiness is gaining traction among both parents and students, offering early and effective identification of areas needing improvement. In the US, key players in the test preparation sector are actively involved in crafting course content that aligns with student's learning objectives and performance goals. Providers have the capacity to customize learning experiences for individual students, monitor learner engagement, and evaluate progress using analytics data gathered from periodic tests and assignments. Consequently, the increasing preference for personalized learning methodologies is anticipated to fuel market growth throughout the forecast period.
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The market is witnessing dynamic shifts fueled by various factors. With increasing educational competition and a growing demand for higher education, students are seeking effective preparatory services to excel in elementary exams, K-12 assessments, and university admissions. Amid affordability concerns, test preparation providers are leveraging artificial intelligence and data analytics to offer innovative blended learning models and interactive resources. These advancements cater to the needs of job seekers, empowering them with comprehensive strategies to navigate the competitive landscape and secure promising employment opportunities.
The market research report provides covers market segmentation by end-user (higher education and K-12), learning method (blended and online), and product (university exams, certifications exams, high school exams, elementary exams, and other exams). This market report also includes an in-depth analysis of drivers, trends, and challenges. The market caters to a diverse range of end-users, including students preparing for academic tests, standardized tests, and language proficiency exams. With the rise of online learning, there's been a surge in online test preparation platforms offering personalized and adaptive learning experiences. These platforms incorporate gamification and mobile learning to engage users effectively. Additionally, the adoption of online proctoring ensures exam integrity. As educational competition intensifies, affordability concerns prompt users to seek cost-effective preparatory services. Artificial intelligence (AI) aids in content delivery and assessment, benefiting university admissions and job seekers alike, who rely on these services to enhance their prospects in an increasingly competitive landscape.
The market share growth by the higher education segment will be significant during the forecast period. Growing demand for certificate courses, coupled with an increase in the number of students choosing to take competitive exams, is driving this segment. In the higher education segment, the demand for specialized courses is very large, causing students to increasingly choose professional training. Thus, many different providers offer certificate courses in the fields of medicine, nursing, law, and property management, as well as many other industry-specific certifications.
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The higher education segment showed a gradual increase in the market share of USD 16.33 billion in 2017 and continued to grow by 2021. The number of different graduate entrance exams in the country has increased significantly, causing students to increasingly choose competitive exams. Another major factor contributing to the growth of the market is the increasing number of international students coming to the US to pursue higher education. These students often enroll in competitive courses like GRE, GMAT, and other similar courses. As a result, various providers have started to offer domain-specific exam preparation services. Thus, such factors will drive the growth of the market during the forecast period.
In the US, the market is witnessing a surge in demand across various educational levels, from elementary to professional certification exams. With the rise of online platforms, personalized and adaptive learning experiences, along with gamification elements, are enhancing student engagement. Mobile learning and online proctoring are reshaping traditional test preparation methods, providing flexibility and accessibility. Amidst increasing competition in education and concerns about affordability, test preparation services cater to the growing demand for higher education and employment. Leveraging artificial intelligence and data analytics, blended learning models offer interactive resources tailored to individual needs, facilitating success in academic, standardized, and professional certification exams.
An increase in merger and acquisition activities is a primary trend in the market. With the fragmented structure of the market, the number of mergers and acquisitions (M&A) activities has increased significantly, and domestic and international suppliers are eager to enter the market. International and domestic suppliers are increasingly entering into cooperation and collaborations with regional suppliers operating in the market.
For example, Pearson, in April 2022, acquired a global online language-learning platform. The acquisition will allow Pearson to provide a wide range of options for people to learn and demonstrate their English proficiency by integrating online self-study into its current diagnostics, tools, and assessment portfolios. Thus, such factors will drive the growth of the market during the forecast period.
Increasing competition from private tutors is a challenge that affects the growth of the market during the forecast period. Tutoring is one of the fastest-growing businesses. A majority of students do not like to take part in group classes, so they are choosing private tutors. For some students, private tuition is a much more efficient method of education that allows them to develop their skills and capabilities at an accelerated pace. The fact that most students are unable to find an appropriate tutor, even though they do want one, is a major concern in the test prep training market.
As a result, there has been a rapid growth in the number of new websites and businesses entering the tutoring industry. The growth of the private tutoring market is driven by the need for students to be fully equipped with the knowledge necessary to complete the program and the lack of teaching skills in schools and colleges. These unorganized private teachers do not have a fixed rate, which can vary practice from student to student. Thus, such factors may impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Additionally, test preparation companies often collaborate with schools and educational institutions to offer their services to students. Some popular test preparation providers in the US include Kaplan, The Princeton Review, and Khan Academy. The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth driven by factors such as the increasing demand for higher education, growing competition in education, and the rising need for professional certification exams. Academic tests, standardized tests, and language proficiency tests remain integral parts of the educational landscape, driving the demand for online test preparation platforms. These platforms offer personalization and adaptive learning, gamification, and mobile learning to cater to diverse learning needs. Additionally, the market sees a surge in online proctoring services to maintain integrity during exams. Artificial intelligence (AI) and data analytics play pivotal roles in enhancing learning outcomes, while blended learning models and interactive resources enrich the learning experience for job seekers and university admissions alike.
The market is witnessing dynamic growth, driven by various driving factors such as increasing educational competition and the growing demand for higher education. However, affordability and cost concerns, along with employment factors, act as restraining factors. Professionals, including working professionals, seek preparatory services for niche exams and specialized certifications to enhance their industry applications. Key market trends include the globalization of education, the rise of EdTech startups, and the evolving nature of standardized testing. Innovative solutions, adaptive learning technologies, and personalized learning approaches cater to diverse needs, including early education assessment and post-secondary certification. Established players and untapped markets offer opportunities for growth and expansion in this male and female dominated industry. The rise of online learning is reshaping the landscape of test preparation in the US, aligning with changing educational trends and offering flexible, accessible study options for students and professionals alike.
The market forecast report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD Billion for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.32% |
Market growth 2023-2027 |
USD 14.72 billion |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
6.6 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ArborBridge Inc., BenchPrep, Blackboard Inc., C2 Educational System Inc., Cengage Learning Holdings II Inc., Club Z Inc., CogniFit Inc., Graham Holdings Co., Imagine Learning LLC, Instructure Holdings Inc., Kaplan Inc., Magoosh, McGraw Hill LLC, Pearson Plc, PrepScholar, Sylvan Learning LLC, Test Innovators, TESTIVE, TPR Education LLC, and USATestprep LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Learning Method
8 Market Segmentation by Product
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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