The market size of edtech is estimated to grow 3.7x in the next 5 years in India, from $2.8 Bn to $10.4 Bn, reveals recently released “The Future Of Edtech In India: Decoding The $10 Bn Market Opportunity” report, by Inc42 Plus.
Going beyond supporting school curriculum and helping candidates prepare for tests, edtech today has spread its wings far and wide. From K-12 and test preparation to skilling and learning management systems, edtech startups have branched out to cater to various submarkets.
This has a significant impact as the otherwise fragmented, and conventional education system has failed to address many crucial questions, which have a direct effect on the economy. From skill development and reskilling to upskilling, university-level courses and even B2B models, edtech has shown the potential to disrupt the entire value chain.
In terms of skilling, as per Inc42 Plus analysis, more than half of India’s workers will require reskilling to meet the talent demands of industrial revolution 4.0 by 2022. The emerging skill requirements are primarily focused on areas such as technology-led design and programming, complex problem solving, reasoning, ideation, emotional intelligence, critical thinking, and analysis.
With the working-age population in India making up 67% of the total population (1.3 Bn), the market offers great opportunities for reskilling, skill development and upskilling. The right tech skillsets and certification are the two most important parameters for tech employment. It is to be noted here that the demand side of edtech is robust, thanks to the rising unemployment in India.
Factors such as the deep penetration of the internet and the rampant use of smartphones and other electronic devices have spiked online content consumption in India. This has also, in turn, impacted India’s addressable market for edtech products and services. The report also noted that it is the youth of the country who is driving the adoption of the edtech products and services in India.
These two factors have exponentially increased the capitalisation opportunity in Indian edtech. This is seen in the business done by edtech startups in the previous fiscal. In FY 2019, the aggregate revenue of the top 38 edtech startups in India was $303 Mn, a 2.1x surge compared to the previous financial year.
“Edtech startups are looking to capitalise on the opportunity in education enterprises — schools, colleges, coaching institutes and more — and fill these gaps in access to education or provision of online learning classes. As more and more schools go online and rely on virtual classrooms, the adoption of edtech B2B services and products will grow, just as the adoption in enterprise tech tools has grown in the past 6 months.,” said the Inc42 Plus analyst.
The Report Also Highlighted The Following Trends
- K-12 learning solution will account for 41% of the total edtech market size by 2025.
- 11.3 Mn could be the total number of paid users in the K-12 learning solutions space by 2025.
- The income elasticity on education is estimated at 0.93 compared to 1.95 in healthcare. This indicates that at any income level, an Indian consumer will prefer investing more on education than healthcare.
- Convenience and cost efficiency are the two primary drivers of online education in India.
- 43 mergers and acquisitions (M&A’s) of edtech startups between 2015 to H1 2020
Inc42 Plus has analysed the future of educational technology and has recorded the growth prospects, the market and consumer-related insights from the booming Indian edtech market in its latest report — The Future Of Edtech In India: Decoding The $10 Bn Market Opportunity Report, 2020
