The online education market is evaluated at US$220.837 billion for the year 2020 and is projected to grow at a CAGR of 10.91% to reach US$455.990 billion in 2027.
Online education is an electronically upheld learning framework, which depends on the internet for cooperation and appropriation of study material among understudies and instructors. Developing interest to decrease the expense of instruction, expanding government drives supporting online schooling, and expanding infiltration of cell phones and the internet are the variables adding to the growth of the online education market. Furthermore, the market growth is likewise expected to be facilitated attributing to the expanding interest for versatile and adaptive learning and the emergence of an AI-enabled e-learning solution.
The developing appropriation of cloud-based arrangements combined with rising investment speculations by significant market penetrators towards improving the security and unwavering quality of cloud-based education platforms is further expanding its selection among the institutions. The presence of an enormous number of service and content suppliers in the market is bringing colossal volumes of instructive substance to the web. Declining facilitating costs and the developing requirement for educational content is further propelling the growth of the market. However, the accessibility of plentiful free substances and the absence of awareness in the end-users are challenging the market growth.
The presence of free content is driving the end-users towards the adoption of online learning and ed-tech companies look at this as another opportunity to exploit. Many companies offer free and engaging content online as a marketing strategy to increase their penetration and market share. For instance, one of India’s most valuable Edtech startup BYJU’S saw 7.5 million new users on its platform since it started offering free access to content.
The growing internet penetration even in the emerging economies and flexibility of availing educational information at any place and any time is further pointing to the growth of the market. For instance, Bangladesh experienced an extremely high internet penetration rate from merely 100,000 in 2000 to 94,199,000 in 2020. These emerging countries offer great opportunities in the online education market.
The government across the countries have introduced several schemes in favour of online education, especially after the COVID-19 crisis grappled the world. PM eVidya, a unique and innovative venture by the Ministry of Education, Government of India was introduced in May 2020 to facilitate multi-mode access to online education contents of various types among students and teachers. The US Department of Education Funds has identified twelve programs that support both K-12 and Postsecondary institutions that can facilitate broadband infrastructure and adoption. Some of these programs may even be used to support access to devices for students (e.g., tablets, computers) and mobile hotspot devices and data plans.
One of the main hurdles in the online education market is the limited accessibility by the poor people in rural areas owing to the low internet penetration and less smartphone adoption. These sections rather turn to televisions and radios which is a niche not many companies are ready to adopt. For instance, as per World Bank, in the US, where schools have been exclusively online since mid-March 2020, almost 14 percent of households with school-age children do not have internet access. Furthermore, despite Cambodia’s internet penetration being only 40 percent, the government has allocated about 54 percent more for online learning (US$ 1.7 Million) as opposed to TV & Radio (US$ 1.1 Million). However, the situation is steadily changing and has shown positive trends in some countries like India where the rural region had 227 million active internet users, 10% more than urban India as of November 2019 as per the Internet and Mobile Association of India.
Due to the advent of the COVID-19 pandemic, schools and colleges across the globe had to adopt the online education method to make sure the chain of gaining and imparting knowledge is not disrupted due to the regulation imposed to curb the spread of the virus.
In May 2021, Kahoot, the popular Oslo-based edtech company that focuses on framing a business out of gamifiying education and providing a platform for users to design their learning games, is acquiring Clever, a start-up that has provided a single sign-on portal for educators, students, and their families to build and engage in digital learning classrooms with an aim for education innovation.
In May 2021, Indian online higher education platform upGrad acquired Impartus, a video-learning solutions provider, for? 150 crores intending to distribute its courses to colleges and other educational institutions.
By type, the online education market has been segmented into academic, and corporate. By technology, the market is categorized into mobile e-learning, learning management systems, application simulation tools, rapid e-learning, podcasts, and virtual classroom. By vendor, the market is segmented into service providers, and content providers. By end-user, the market is divided into higher education institutions, k-12 schools, and others.
Geographically, the global online education market is studied across North America, South America, Europe, Middle East and Africa (MEA), and Asia-Pacific (APAC). North America dominates the market and is expected to hold the largest market share of the global online education market attributing to the presence of major market players. However, Asia-Pacific is projected to witness the fastest market growth rate during the forecast period owing to rising internet penetration along with the growing use of mobile devices in emerging economies.
|Market size value in 2020||US$220.837 billion|
|Market size value in 2027||US$455.990 billion|
|Growth Rate||CAGR of 10.91% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Technology, Vendor, End-User, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Adobe, Blackboard Inc., Cisco, Citrix Systems, Inc, McGraw-Hill Education, Microsoft Corporation, Oracle, Pearson, MPS Limited, OES|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the online education market size by 2027?
A1. The online education market is projected to reach a market size of US$455.990 billion in 2027.
Q2. What is the size of the global online education market?
A2. Online Education Market was valued at US$220.837 billion in 2020.
Q3. What are the growth prospects for the online education market?
A3. The global online education market is projected to grow at a CAGR of 10.91% during the forecast period.
Q4. Which region holds the maximum market share of the online education market?
A4. North America dominates the market and is expected to hold the largest share of the global online education market attributing to the presence of major market players.
Q5. What factors are anticipated to drive the global online education market growth?
A5. Developing interest to decrease the expense of instruction, expanding government drives supporting online schooling, and expanding infiltration of cell phones and the internet are the variables adding to the growth of the online education market.
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Global Online Education Market Analysis, by Type
6. Global Online Education Market Analysis, by Technology
6.2. Mobile E-learning
6.3. Learning Management System
6.4. Application Simulation Tool
6.5. Rapid E-learning
6.7. Virtual Classroom
7. Global Online Education Market Analysis, by Vendor
7.2. Service Providers
7.3. Content Providers
8. Global Online Education Market Analysis, by End-User
8.2. Higher Education Institutions
8.3. K-12 Schools
9. Global Online Education Market Analysis, by Geography
9.2. North America
9.2.1. North America Online Education Market, By Type
9.2.2. North America Online Education Market, By Technology
9.2.3. North America Online Education Market, By Vendor
9.2.4. North America Online Education Market, By End-User
9.2.5. By Country
188.8.131.52. United States
9.3. South America
9.3.1. South America Online Education Market, By Type
9.3.2. South America Online Education Market, By Technology
9.3.3. South America Online Education Market, By Vendor
9.3.4. South America Online Education Market, By End-User
9.3.5. By Country
9.4.1. Europe Online Education Market, By Type
9.4.2. Europe Online Education Market, By Technology
9.4.3. Europe Online Education Market, By Vendor
9.4.4. Europe Online Education Market, By End-User
9.4.5. By Country
9.5. Middle East and Africa
9.5.1. Middle East and Africa Online Education Market, By Type
9.5.2. Middle East and Africa Online Education Market, By Technology
9.5.3. Middle East and Africa Online Education Market, By Vendor
9.5.4. Middle East and Africa Online Education Market, By End-User
9.5.5. By Country
184.108.40.206. Saudi Arabia
220.127.116.11. United Arab Emirates
9.6. Asia Pacific
9.6.1. Asia Pacific Online Education Market, By Type
9.6.2. Asia Pacific Online Education Market, By Technology
9.6.3. Asia Pacific Online Education Market, By Vendor
9.6.4. Asia Pacific Online Education Market, By End-User
9.6.5. By Country
18.104.22.168. South Korea
10. Competitive Environment and Analysis
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. Company Profiles
11.2. Blackboard Inc.
11.4. Citrix Systems, Inc.
11.5. McGraw-Hill Education
11.6. Microsoft Corporation
11.9. MPS Limited
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