Online higher education is emerging as the fastest-growing sub-segment of edtech, according to a report by consulting firm RedSeer. According to their findings, the online higher education and lifelong learning market is poised to reach about $5 billion by calendar year 2025.
Relaxation in regulations governing degrees is one of the causal factors that is driving this growth forward. Thanks to this, edtech companies can now partner with universities to offer online degrees. The unbundling of courses and democratisation of access unquestionably boosts the demand for online higher education and also increases the completion rate. Another growth driver is the supply-side capacity gaps. India has supply-side constraints in education infrastructure (especially for specialised courses). Transition to the credit system as well as the realisation of the need for higher education by students and working professionals who are new to the workforce, is further contributing to the boom in this sector.
“India’s booming edtech market, which saw multiple startups and increased funding during the pandemic, is expecting further boost on the back of growth in higher education and lifelong learning segments,” said Abhishek Gupta, Engagement Manager, RedSeer. “It's safe to say that online higher education has impressed us all by emerging as the fastest growing sub-segment”.
The market for online lifelong learning also will expand further with “further push after Covid as the economic uncertainty further establishes the need for continuous learning,” the report noted. Apart from Covid, existing skills getting increasingly redundant, job creation lagging behind new additions to the workforce annually, and a mismatch between industry requirements versus education curriculum in colleges are the other reasons for growth.
The report further stated that the user base for online higher education grew by about 75 per cent in 2021, despite a 3X growth in the average ticket size compared to the K12 segment. In fact, the market size for online higher education is now comparable to the largest edtech segments (i.e., K6-12 including test prep).
The findings also saw that there was a steep uptake in M&A (mergers and acquisitions) activity as well.
With millions of young people in India looking to gain access to world-class education and training, online higher education has become a key sector in the Indian education landscape. The RedSeer report said the future is surely bright for this sub-segment, making it an exciting space to watch.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor