Unbundling courses and democratizing access enhance the demand for online higher education while also increasing completion rates.
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Online Learning Market To Touch $5 billion by 2025
A major subsegment of EdTech is higher education over the internet. An online education market report by Redseer Consulting predicts that online education will reach $5 billion by 2025. The report also found that the Indian online education market is expected to grow by 30% year-on-year, propelled by demand for digital learning solutions. This growth is being driven by the increasing availability of internet access and the rising demand for quality education.
Several macroeconomic reasons will fuel this increase, including the loosening of degree regulations, supply-side capacity shortfalls, recognition of the need for higher education among students and professionals, and the shift to the credit system.
EdTech companies will now be able to join with universities to offer online degrees thanks to a loosening of degree requirements.
Unbundling courses and democratizing access increase demand for online higher education while also increasing completion rates.
While average ticket sizes for higher education grew 3X when compared to K12, the user base for online higher education increased by 75% in 2021 alone, according to the report. In 2021, the number of students studying online in the United States increased to 17.3 million.
There is no doubt that online higher education plays an increasingly important role in society. Its size is comparable to that of the largest EdTech segments (e.g. K6-12 and test preparation). This is due to the convenience, accessibility, and affordability of online courses. People of all ages and backgrounds are able to access quality education without having to leave the comfort of their home. This makes it easier for people to access education even if they have work or family obligations.
According to the research, the market for online lifelong learning will grow even more with “additional push following Covid as economic uncertainty further reinforces the necessity for continual learning.”
Aside from Covid, additional factors driving growth include existing skills becoming increasingly obsolete, job creation lagging behind annual additions to the workforce and a mismatch between industry requirements and college curricula.
“India’s expanding edtech business, which saw several startups and increased funding during the epidemic, is expecting further boost on the strength of development in higher education and lifelong learning categories,” said Abhishek Gupta who is the Engagement Manager, Redseer.
It’s reasonable to say that online higher education has wowed us all by becoming the fastest-growing area. There was also a significant increase in M&A (mergers and acquisitions) activity, according to the findings.
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