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The global private tutoring market size was USD 92.59 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with private tutors witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market would exhibit a huge decline of 18.41% in 2020. The market is projected to grow from USD 98.15 billion in 2021 to USD 171.93 billion in 2028 at a CAGR of 8.3% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Rising awareness regarding literacy and the importance of education in life has significantly accelerated overall education and allied industries' growth. Subjects such as mathematics and the sciences have perceived greater importance as they help the child in career building. However, an average student usually struggles to learn subjects at school and thereby require extra coaching to understand the concepts and pass the exam. These factors have boosted demand for private tutoring or shadow education services globally that can offer customized learning.
Social Distancing Norms to Boost Demand for Online Tutoring amid COVID-19
Schools had to be shut down due to the emergence of the pandemic across the globe, which negatively impacted the education industry. As per the article, ’The Impact of The Covid-19 Pandemic On Education Financing’, published in May 2020 by World Bank Group, as per downside forecast, the real growth in education spending per capita in all countries was estimated to decline at a rate of -5.7% in 2020. This can be attributed to a greater focus on hygiene and health-related goods and services during the pandemic.
Besides, closures of schools led to an increase in the demand for online private classes. For instance, as per the research brief, ‘COVID-19 and Social Mobility Impact Brief #1: School Closures’ published in April 2020 by The Sutton Trust, Two-thirds of children who previously received private tuition were reported to no longer receive such support. However, the remaining one-third of students continued to access education through online services.
The negative impact of the COVID-19 crisis on the education industry was offset by online coaching opportunities. Therefore, the online mode of learning is further likely to gain popularity in the analysis period post-pandemic.
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EdTech is Considered to be an Emerging Trend in The Marketplace
Tutoring organizations having online subscriptions are gaining popularity as college students are more inclined towards technology-based learning. Technology has helped create subject-related content innovatively with presentations, 3D colored diagrams, flashcards, and animations that can keep children more focused. This factor has led to an increase in the students’ interest in the subject during the learning process, thereby accelerating demand for online tutoring mode. For instance, as per the 2019 Investor Presentation published on 10th February 2020 of Chegg Inc., which is a U.S. based education technology company, the annual service subscribers of Chegg increased to 3.9 million in FY19 from 1.0 million in FY15. Therefore, the rising popularity of technology-based shadow education services is likely to support private tutoring market trends.
Rising Level of Competition among Students to Increase the Need
Topmost schools or universities accept students with better grades with strict criteria such as the passing of difficult entrance exams or English language exams. This has increased the competition among students for entry into international schools or colleges. As per the Global Education Census Report 2018 published in November 2018 by Cambridge Assessment International Education, about 4 in 10 surveyed students (43%) had received private tuition outside the school worldwide, wherein in China, it accounted for more than 5 in 10 surveyed students (57%), followed by India (55%), and 1 in 10 students in the U.S.
Several reasons have led to the rising popularity of supplementary tutoring. Parents want their children to achieve the highest ranks in academics, or parents feel that their children are not performing well in certain subjects. Most students go out for tutoring due to the influence of classmates, seniors, or siblings who have attended the same coaching class.
Therefore, rising education-related awareness increased expectations from parents, and the growing prevalence of competition is likely to boost demand for private tutoring services.
Increasing Spending on Education by Wealthy Parents to Support Private Tutoring Market Growth
The declining quality of the public school-based education system has shifted wealthy parents' focus towards private schools and private tutors. Parents in developed countries are mainly spending on education to support children. For instance, as per the Singapore Department of Statistics, Singapore has shown a significant expenditure on education even though the overall population is low. As per the same source, the average monthly household expenditure on educational services increased from Singapore$235 in 2007/2008 to Singapore$339 in 2017/2018. Singapore $112 is accounted for private tuition and other educational services.
High-income families often tend to spend more on a child’s growth as they can afford high-quality services. For instance, as per the report, PARENT POWER 2018 published in September 2018 by The Sutton Trust, the percentage of parents sending their child for coaching is greater among the upper-middle-class group as compared to the working-class group. As per the same source, only 6% of working-class parents have availed private tuition services for their children, increasing to about 15% among lower-middle-class parents, followed by 23% middle-class parents and increased to 31% for upper-middle-class parents.
Therefore, increased spending by rich parents on their children’s education is likely to expand market size.
Higher Fee Amount to Limit the Growth
Fees of private tutors are on the higher side, which is often not affordable to lower-income families. Besides, concerns such as confusion created due to different teaching methods of a coaching class and school teacher for the same subject lead to conflicting approaches by a student. Such practices are likely to lower the performance and increase the confusion among children at the time of examination. Therefore, such factors are likely to limit the penetration of after-school tutoring services.
Academic Subjects Segment to Dominate owing to Greater need of Passing the School Examination
The market is segmented into academic and non-academic subjects. The academic subjects segment is likely to gain significant market share as students seek extra tutoring either for the difficult to learn subjects or to excel in examination in scoring subjects. For instance, as per the Global Education Census Report 2018 published in November 2018 by Cambridge Assessment International Education, mathematics was reported to be the most common privately tutored subject, wherein 66% of surveyed students (about 2/3rd) received private tutoring followed by physics accounting about 43%.
However, non-academic subjects such as learning an additional language that is not in the syllabus or art form related subjects are rising. This can be attributed to increased demand from parents who want to engage their child in productive activities outside school hours, helping them further in their career.
Up to K-12 Segment Would Hold Highest Share Owing to Increased Parental Pressures on School Children
The market is segmented as up-to K-12 and post K-12. Students up to K-12 grades require a clear understanding of basic subjects to make their foundation stronger, making the up-to K-12 a dominant segment. Children with age groups up to 10 to 12 need extra attention in learning to achieve better grades. However, parents' busy schedules and long working hours have resulted in a more significant requirement of a private tutor that can dedicatedly look after a child’s academic performance and help him/her understand the subjects.
Besides, a post-K-12 segment is likely to grow with the increasing trend of competitive examinations, where external training is required to get a top rank.
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Online Channel Would Exhibit Fastest Growth due to its Greater Convenience
The market is segmented as an online and offline mode. The offline mode is likely to hold a major share as home tutoring; group tutoring or classroom tutoring has gained popularity over the years. A tutor can see a child’s growth or weaknesses in-person and offer more attention or better solutions accordingly.
However, the advent of technology has led to a shift in preference towards online mode where teacher and student can provide and avail the service respectively from any place worldwide. For instance, as per Bramble survey results published in July 2020, about 84% of surveyed students reported that online tutoring was more effective or as effective as tutoring in person. Online tutoring's significant benefits were reported by surveyed students, parents, and tutors, which included flexible lesson scheduling, searchable lesson recordings, and a more relaxed and focused atmosphere.
As the tutors make their recording available online, they become easier to search later on whenever needed for learning or revising the content. Therefore, online tutoring mode is likely to grow rapidly in the near future.
Asia Pacific Private Tutoring Market Size, 2020 (USD Billion)
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Asia Pacific's private tutoring market stood at USD 70.85 billion in 2020. The Asia Pacific held the lion's share globally due to a strong presence of supplementary coaching classes primarily in China, Japan, South Korea, and Southeast Asian nations. In May 2020, the press release of Yonhap News Agency reported an annual survey conducted by the National Statistics Korea and the Ministry of Gender Equality and Family. It was reported that, in 2019, about ¾th of the students received private tutoring in South Korea, wherein students spent, on an average, 6.5 hours/week for this tutoring. Moreover, a rising number of middle-class families would further support the market growth in the Asia Pacific.
North America is expected to hold a significant share. The growth can be attributed to the increasing penetration of online tutoring services. Growing initiatives for advanced tutoring services would promote market growth in the region. For instance, in March 2019, Clark Inc., the U.S. based software company, introduced its new service by which it would help tutors to create and set up their websites. The company also offers software that can help tutors manage tuition scheduling and online payments, which is a convenient method of communication for tutors and parents. Additionally, the presence of high-income groups and a techno-savvy population in the region would further raise the demand for online private tutoring in the region and aid in the market growth.
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Increasing penetration of private tutoring firms in the European market is likely to support market growth. As per the Private Tuition Polling 2019 report of The Sutton Trust, the percentage of children aged between 11-16, who received private/home tuition, increased from 20% in 2009 to 27% in 2019 in England and Wales. Among countries in the rest of Europe, Greece, Romania, and Russia, among others, are likely to grow owing to an increasing number of private tutors.
Similarly, increased awareness regarding education and rising spending of parents on academics in countries such as Brazil and Chile would increase the need for external tutoring in South America, fueling the market growth.
A growing number of infrastructural activities related to education in GCC and South African countries are further likely to boost the market expansion in the Middle East and Africa Moreover, the growth of the region in the science and technology section would increase the need for coaching in difficult to learn science-related subjects and the English language. For instance, as per the study report, Parents’ Perspectives on Paid Private Tutoring in the United Arab Emirates published in June 2018 by the Regional Center for Educational Planning of UAE, Mathematics was the subject in which most students took out-of-school lessons (83%), followed by science (58%), English (50%), and Arabic (44%).
Therefore, increased awareness regarding education and rising spending of parents are likely to propel market growth.
Fragmented Industry is likely to Increase the Competition
Several private tutors are available locally, which has made the market fragmented, increasing competition in the marketplace. Players in the market are adopting strategies such as introducing new learning centers or merger and acquisition to strengthen their presence. For instance, in May 2018, Curro Holdings Ltd. acquired Dot’s Learning Centre based in Cape Town, South Africa. Dot’s Learning Centre conducts classes for students who cannot cope up with the school schedule.
Besides, prominent key players are making efforts to avail their services through online mode, which would allow them to target a greater number of students on an international level. Such initiatives would increase the service's market penetration and would help the company expand its presence in new markets.
An Infographic Representation of Private Tutoring Market
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The market research report provides a detailed analysis of the market and focuses on key aspects such as competitive landscape, subjects, application, and mode. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors contributing to the market's growth in recent years.
Value (USD Billion)
Fortune Business Insights says that the global market size was USD 92.59 billion in 2020 and is projected to reach USD 171.93 billion by 2028.
In 2020, the Asia market size stood at USD 70.85 billion.
Registering a CAGR of 8.3%, the market is estimated to exhibit a steady growth rate during the forecast period (2021-2028).
Based on mode, the offline segment is expected to lead the market.
Increasing competition among students is a significant factor driving the growth of the market.
Chegg, Ambow, and TAL Education are a few major players in the global market.
Asia Pacific held the highest market share in 2020.
Website, as well as mobile application based tutoring, is expected to drive the adoption.
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