Industry Overview

Global online education market was valued at USD 218.56 Bn in 2021 and is expected to grow at a CAGR of 13.2% during 2021 – 2031 to reach 821.31 Bn by the year 2031. The growth is accounted for by increasing government initiatives in the developing economies to increase educational capabilities in the coming years. Major industry players are investing in the key market regions which are further anticipated to drive the market growth over the forecast period.

Introduction

Online education is a virtual learning environment where students and teachers can connect and interact using cloud platforms to ensure better connectivity and less technical dependency. Online education enables teachers and students to learn at their own comfort which is gaining significant traction in the post-pandemic recovery phase where a larger share of the end-users is inclined towards remote learning. Online education programs are equipped with the ability to provide multiple courses at the same time enabling the students to learn and adopt more skills in less time.

Online education systems provide greater flexibility in terms of time and location, as well as being more cost-effective than traditional pen and paper education. Online education is a cost-effective and efficient method of imparting knowledge to students via PDFs, videos, and other media. During the forecast period, the online education market is likely to benefit from the penetration of artificial intelligence (AI) and virtual reality (VR) in the education sector.

Virtual classrooms are available in online education, allowing students to successfully attend classes while remaining coordinated from a distance. The online education market is benefiting from large-scale global initiatives to harness technology.

Online Education Market Covid-19 Pandemic Impact & Recovery Analysis

The covid-19 pandemic harmed all the major markets across the globe. However, the online education market registered substantial growth during the pandemic accounted for government enforcement lockdowns to prevent the spread of the virus. Major industry players invested heavily in technological enhancements to gain a competitive edge in the online education market during the pandemic. End-users are more inclined toward remote learning and learning at their own pace which is further projected to drive the online education market over the forecast period.

Market Dynamics

Cellphone or smartphone ownership varies by demographics, such as gender, educational level, and age, in nations all around the world. Almost everyone on the earth is addicted to video games, computers, cellphones, and social media, yet they have little to no knowledge of them. Basic programming abilities would aid in recognizing and interacting with technology, which most people take for granted. During the forecast period, this is projected to be a major driver of the online education market.

With rising levels of education, there is a rapid growth in the use of digital devices and the Internet, highlighting the importance of education in the adoption of digital technology.

However, the Lack of skilled human resources for online education platforms to cater to increasing demand is expected to create a major challenge for the online education market across the globe.

Online Education Market Segment Analysis

The online education market is segmented based on type, by application, by end-users, & region.

Insights by Type

Based on type, the online education market is bifurcated into synchronous, asynchronous, and hybrid. In the year 2021, hybrid type for online education accounted for the largest market share owing to the reopening of educational institutions and government initiatives to implement the hybrid model at training centers to ensure safety.

Insights by Application

Based on application, the online education market is segmented into Test Preparation, Reskilling & Online, Certification, Language & Casual Learning, Higher Education, Primary & Secondary Education. In the year 2021, the test preparation segment led the market accounted for increasing spending by key market players to target the test preparation segment through digital mediums

Insights by end-users

In the year 2021, the K-12 segment accounted for the largest market share in terms of revenue and is expected to dominate the market over the forecast period accounting for increasing awareness for online education among the young demographics. However, the vocational training segment is projected to gain a larger market share in the North America region where training and certification are showing high market demand.

Online Education Market Regional Analysis

Based on region, the online education market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America led the market in terms of revenue owing to the increasing demand for virtual learning in the region. The presence of key market players in the country such as the US is projected to drive the market in North America in the coming years.

Asia Pacific has a strong demand for online education and represents promising growth opportunities. In the year 2021, the region was the second largest contributor in online education market in terms of revenue with growing digitization in the region. An increasing number of startups in the countries such as China, India, and South Korea is projected to create strong growth opportunities over the forecast period.

India, along with Brazil, Bangladesh, China, Indonesia, Egypt, Mexico, Pakistan, and Nigeria, joined the United Nations E9 project in April 2021, which focuses on excluded children and young people, particularly females. The program intends to achieve the Sustainable Development Goal 4 agenda by supporting fast educational transformation.

Competitive Insights

The online education market is highly competitive in nature with global companies competing with regional players. Key players operating in the online education market are Adobe Corporation, Aptara Inc., Blackboard Inc., Docebo, Edmodo, Edukasyon.ph, EduComp Solutions, Excelsoft Technologies Pvt Ltd., Zeus Systems Pvt. Ltd, Simplilearn Solutions, BYJU’S, McGraw-Hill Education, Pearson PLC, MPS Interactive Systems Limited, Edx Inc., and others. (20+ Companies profiled in the final report)

Prominent players in the market are focusing largely on acquisitions of new startups to leverage inorganic growth strategies. Leading companies in the online education market are entering into partnerships, mergers, and joint ventures to gain a competitive edge in the market.

• In September 2021, IBM collaborated with Adobe to introduce teens to basic design principles
• In March 2020, Nutanix, a key player in the online education market entered into a partnership with Udacity to offer a hybrid cloud nanodegree program
• In July 2021, BYJU’S acquired the U.S.-based kids learning platform Epic in a US$ 500 Mn cash-and-stock deal

Online Education Market Countries Covered

• US
• Canada
• Mexico
• UK
• Germany
• France
• Italy
• China
• South Korea
• Japan
• Australia
• Malaysia
• Saudi Arabia
• United Arab Emirates
• South Africa
• Brazil
• Argentina