MARKET SIZE OF EDUCATION INDUSTRY IN INDIA –
With a median age of 25 years, India has over 550 million people below the age of 25 years. According to Census figures, over 32 per cent of the 1.1 billion population is between the age group 0-14. This means that the number of people in India needing primary and secondary education alone exceeds the entire population of the USA. Since these students will be seeking higher education in India over the next decade it illustrates the sheer size of the Indian education market. Presently about 11 million students are in the Higher Education system. This represents just 11% of the of the 17-23 year old population. The government hopes to increase this to at least 21% by 2017- a target which still falls short of the world average. With the emergence of India as a knowledge-based economy, human capital has now become its major strength. This has put the spotlight on severe inadequacies of India’s infrastructure for delivery of education, particularly higher and vocational education.
The Indian education market is expected to almost double to $180 billion by 2020, buoyed by the rapid expansion of the digital learning market and the world’s largest population in the age bracket of six to 17 years even as the sector continues to be plagued by poor infrastructure and a shortage of trained teachers. According to a 2016 report by management consulting firm Technopak, India’s education market is valued at $100 billion currently.
India Ratings expects the Indian education sector’s market size to increase to Rs 602,410 crore ($109.84 billion) by FY15 due to the expected strong demand for quality education. Indian education sector’s market size in FY12 is estimated to be Rs 341,180 crores.
The sector grew at a compounded annual growth rate of 16.5% during FY05-FY12. The higher education (HE) segment was at 34.04% ($17.02billion) of the total size in FY10 and grew by a CAGR of 18.13% during FY04-FY10.
India Ratings, a Fitch Group Company, said that it has a stable outlook on the Indian education sector which includes both school and higher education.
A peek into the digital future of education-
In 2014, India had the largest body of students in the world, numbering 315 million. The standard of education imparted, however, is far from satisfactory. Attendance, accessibility, standardization, quality and availability of teachers are all points of concern. Recognizing that education is a key driver for India’s future growth, it is one of the areas of focus under the Indian government’s Digital India program – some initiatives introduced include-
- Swayam, an indigenous developed IT platform that facilitates hosting of all the courses, taught in classrooms from 9th class till post-graduation to be accessed by anyone, anywhere at any time.
- Nand Ghar, where Anganwadi educators will be trained to use digital tools as teaching aids
- E-basta, aiming to making school books accessible in digital form as e-books to be read on tablets and laptops. Traditional education companies are also catching up in to stay relevant.
Digital education in India is a good move. If we talk about a country, where students still don’t have access to quality education due to which they either have to compromise with their dreams or have to leave their homes, digital education is no doubt a great opportunity.
There are lakhs of students who want to appear for competitive exams to get admission to medical and engineering colleges, but their miss the opportunity because they don’t get right resources to prepare for tough exams. Digital learning for these students is a right choice, as they can also get the same guidance, training and support of experienced teachers which other students get in the institutes.
Live interactive classes and recorded video lectures by experienced faculty help students understand the concepts better, which might not be possible by self-study. In digital learning, students can repeat the same topic as many times as they want to get the better understanding and regular revision.
India’s online education market is set to grow to USD 1.96 billion and around 9.6 million users by 2021 from USD 247 million and around 1.6 million users in 2016.
- Online certifications is the largest category today at USD 93 million
- Primary & secondary supplemental education will be the largest category by 2021 at USD 773 million, growing at a CAGR of 60%
- Test preparation will be the fastest growing category in 2021, growing at a CAGR of 64%.
India’s online students:
- Perceive convenience,flexibility with commencement dates and variety of study material are key motivational factors to adopt online channel
- Cite peers and internet searches the top two sources of brand awareness
- Indicate quality of course content as the top reason for selecting a specific brand
- Prefer laptops over mobile phones for accessing the course content.
India, which is expected to grow from the current base of 1.57 million users to 9.5 million users in 2021 at a CAGR of 44%.
Big players of education market in India-
BIG PLAYERS OF DIGITAL LEANINGS IN INDIA-
The education industry in India has taken to e-learning with open arms and there is a consistent rise in the service providers. Some of the prominent e-learning online education websites like e-MedicalPrep in India are:
- Udemy Online Courses
- Digital Eklavya
- Academic Earth
- Internet Archive
- The Futures Channel