Indian higher learning edtech to hit $5b in market size by 2025: report

The online higher education and lifelong learning segments within the Indian edtech industry are estimated to grow to US$5 billion by 2025, according to a new report by research firm RedSeer.

The outlook is based on relaxations in regulations, allowing edtech firms in these segments to partner with universities to offer online degrees. Factors such as the democratization of access have also helped boost the demand for online higher education and increase the competition rate.

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According to the report, the user base for online higher education in the country grew by 75% in 2021, despite a 3x growth in the average ticket size compared to the more popular K-12 segment. The market size for online higher education is now comparable with the largest edtech segments, which include K6-12 and test preparations.

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RedSeer also highlights that the lifelong learning segment will further grow in the country as the economic uncertainty owing to the Covid-19 pandemic has established the need for continuous learning. Other factors, such as existing skills becoming redundant and a widening gap between industry requirements and curriculums in colleges, have also ushered the growth of the segment.

The research firm also noted a steep uptake in mergers and acquisitions within the edtech space.

“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. It’s safe to say that online higher education has impressed us all by emerging as the fastest growing sub-segment,” Abhishek Gupta, engagement manager at RedSeer, said in a statement.