With the unprecedented jump in online education and job upskilling uptake in the country, India is soon to become a USD 313 billion online education market, says a new report – Investing for Impact: Education, Skills and EdTech released by Aspire Circle.
The report acknowledges that there has been a massive transformation in education and skilling in the last decade, which the pandemic has accentuated. It mainly involves a shift to online delivery of lessons and academic resources as the pandemic increased the acceptance and dependence of consumers on educational and skilling offered by digital platforms.
The market value of the global edtech industry was USD 84.49 billion in 2020 and is expected to grow at the compounded annual growth rate (CAGR) of 19.9% between 2021 and 2028. The global digital spend, as per the report, on technology is about USD 227 billion; in contrast, the global digital spend on education and training forms less than 4% of total education sector spend globally. And additional two billion learners are anticipated between 2021 and 2025. Edtech will have a crucial role in meeting their education and training needs.
The report highlights that dependence on digital platforms for education delivery soared as schools and colleges were shut. “Today, the online education market for classes 1-12 is projected to grow more than six-fold in India to become a USD 1.7 billion market while the post-class 12 market is likely to grow almost four-fold to become a USD 1.8 billion market.”
It gave examples of edtech platforms such as upGrad recording 100% growth in the first three quarters of FY21. BYJU’s, India’s largest edtech company, reported that the student engagement rate has gone up by 30% as students are not spending 71 to 100 minutes a day on its app and more than 40 million new users have been added to the platform since the start of the pandemic. Moreover, Unacademy claims to have a substantial user base in tier II and tier III cities.
With the advent of the Industrial Revolution 4.0, the report points out that edtech start-ups, corporates and multi-partner initiatives have made reskilling and upskilling the workforce possible and effective. It should be noted that skill development was the most preferred sub-sector by investors in the India edtech startups between 2014 and 2019; as such recent forecasts say the market for technical skilling is set to grow from USD 56 million in 2019 to USD 335 million in 2022.