The annual rate of students who will enroll in online tutoring services worldwide is expected to double over the next few years. The global K-12 online tutoring market is projected to grow at a compound annual growth rate (CAGR) of 12.75 percent from 2017-2021, up from a CAGR of about 6 percent from 2016-2020, according to a recent report from Technavio. The K–12 segment of the online tutoring market was valued at $63.57 billion in 2016 and is forecasted to be $120.67 billion by 2021.
The London-based tech market research firm has identified the top three emerging marketing trends expected to impact the market between 2017 and 2021:
- The emergence of virtual learning;
- Mobile-based online tutoring services; and
- Increasing customization of tutoring services.
With virtual classrooms on the rise worldwide, the adoption of web conferencing tools like Google Hangouts, Syncpad and Skype are increasing in use. Additionally, apps like WizIQ Virtual Classroom Application and Eduwizards that provide collaboration tools for virtual classrooms are expected to penetrate the market.
The report also highlights the rise of m-learning methods capable of providing real-time feedback and data. A range of apps provide students flexibility with on-demand individual instruction and support from expert online tutors. Key vendors include Fleet Education Services, Pearson Education and Skooli.
Finally, analytical applications that create customized learning content and paths for individual students was identified as a major trend to drive market growth. Services like Kaplan, for example, offer online customization tools for students enrolled in exam preparatory courses that can help track their performance.
This market research study identifies Club Z! Tutoring, Fleet Education Services, New Oriental Education and Technology, and Pearson Education as the leading players in the global K-12 online tutoring market. A comprehensive analysis of this market is also presented by the learning method (assessment and subject tutoring), types of tutoring (structured tutoring and on-demand tutoring), and geography (the Americas, APAC, and EMEA).
Overview of the global K-12 online tutoring market
The global K-12 online tutoring market is anticipated to grow rapidly and will post a CAGR of close to 12% during the forecast period. The increasing demand for international education will drive the growth prospects for the global K-12 online tutoring market until the end of 2021. One of the key drivers contributing to this rising demand is the emergence of international schools with consistent enrollments from both local and expatriate population. Also, the rise in income level of individuals has encouraged them to impart better education to their children. Furthermore, with the increasing demand for assessments from private and international schools, the trend for tutoring support for subject-based learning will also increase.
In terms of geography, APAC accounts for the maximum market share in 2016 and will continue to dominate the market for the next few years. The increasing disposable income of the households in key countries such as India and China is contributing to the growth of the online tutoring market.
Competitive landscape and key vendors
The global K-12 online tutoring market is highly fragmented and competitive due to the presence of many regional and international players across the globe. The market is majorly dominated by regional players; as a result of which, large organizations are increasingly focusing on M&A strategies to penetrate the market.
Key vendors in this market are –
- Club Z! Tutoring
- Fleet Education Services
- New Oriental Education and Technology
- Pearson Education
Other prominent vendors in the market include ArborBridge, BenchPrep, InstaEDU, JEI Learning Centers, Knewton, Manhattan Review, Peterson’s Nelnet, Revolution Prep, Sylvan Learning, and Tutor.
Segmentation by learning method and analysis of the K-12 online tutoring market
- Assessment
- Subject tutoring
The assessment segment accounts for the maximum market share in 2016 and will continue to dominate the market until the end of 2021. High reliance on standardized examination system at national and institutional level across geographies drives the demand for online tutoring in this segment.
Segmentation by types of tutoring and analysis of the K-12 online tutoring market
- Structured tutoring
- On-demand tutoring
The structured tutoring segment accounts for the maximum market share in 2016 and will continue to dominate the market for the next few years. The increasing preference for programs that have a pre-decided schedule and course content drives the demand for structured tutoring method.
