Jagpreet
17 April, 2024
Table of Contents
Education Technology, or EdTech, is on the rise nowadays, and the Indian Edtech market is also flourishing, especially after the COVID-19 pandemic. Traditional classroom-based learning has long been a defining feature of the Indian educational system. However, as technology has advanced, there has been a paradigm shift in favour of online and digital learning environments. The need for flexible learning options, the rise in smartphone usage, and ease of access to the internet have all contributed to this transition.
According to a Times of India report, India’s edtech market is expected to have 37 million paying users by 2025 and rise to a value of $10.4 billion. According to a 2017 KPMG analysis, India’s edtech market is expected to expand to $1.96 billion and 9.6 million users by 2021, making it the second largest behind the U.S. These numbers, however, were far lower in 2016—just $247 million and 1.6 million users. The middle class has grown significantly throughout this boom, and mobile gadgets and internet connectivity are widely available. KPMG also observed more recently that the pandemic sped up the growth of edtech businesses.
The Indian edtech sector can be broadly categorised into three areas: K12, test preparation, and upskilling/reskilling. These areas have the potential to see major internet adoption. Indian Edtech companies in all three categories have taken advantage of the move to online learning and have used creative methods to attract new customers. In the K–12 market, gamification, computer-adaptive learning, and interactive learning have raised student interest and made it easier to provide individualised education. The application of powerful analytics and artificial intelligence models has transformed online exam preparation. The epidemic has also demonstrated that excellent academic programs can be effectively delivered outside of the conventional on-campus classroom setting, which has led to an increase in the number of online degrees and hybrid classroom options offered by higher education institutions.
The study focuses on the rise in discussions about edtech companies and their products and services. The following is outlined in the paper:
The performance of tech-related subjects on Quora during the previous two years.
A segment-by-segment examination of conversation themes and brand mentions using Quora data.
Important lessons on consumer behaviour and preferences for edtech players.
Given the country’s digital gap, the Indian government is implementing innovative measures to digitalise education, encourage digital learning, and ensure that all students have fair access to education through its National Education Policy (NEP) 2020. In order to support digital education in India, it has also launched a number of programs, including the National Programme on Technology Enhanced Learning (NPTEL), Digital Infrastructure for Knowledge Sharing (DIKSHA), and Study Webs of Active-Learning for Young Aspiring Minds (SWAYAM).
By 2025, the online K12 industry is projected to reach a valuation of USD 4,200 million, largely due to the expansion of its user base. This is explained by the advent of more reasonably priced goods, a rise in disposable money, and the growing use of the internet.
It is anticipated that the market for online test preparation will reach a value of USD 3,960 million by 2025, with non-governmental tests accounting for roughly 95% of sales in 2024. Offline test prep companies are investigating whether to provide online services as an add-on for their core target market (grades 9–12) or as a service for their peripheral markets (grades 6–8, tier 2 cities).
It is projected that the online upskilling market will reach a value of USD 2,040 million by 2025, with working professionals continuing to make up the majority of end consumers. Metro areas and Tier 1 cities account for a larger portion of the domestic user base for these courses. The fields of technology and finance are the best for upskilling.
The Coursera Campus Skills Report, 2022, states that marketing specialists, software engineers, data scientists, data analysts, and machine learning engineers are in high demand among students. Digital marketing and data science are also listed as “jobs of tomorrow” in the World Economic Forum (WEF) study on the future of employment. The need for higher education delivered virtually has also grown in recent years. The Union Budget 2022–2023 includes programs like digital universities that the government is using to promote the same. Numerous highly esteemed academic institutions, domestically and abroad, have also entered this market, alone or in collaboration with other edtech companies.
KPMG’s research highlights the immense scope for creativity and cooperation within the Indian EdTech ecosystem. EdTech companies may provide students with specific and immersive learning experiences by utilising cutting-edge technology like artificial intelligence, machine learning, and augmented reality. Partnerships amongst EdTech companies, academic institutions, and governmental organisations can also spur efforts to provide access to high-quality education, particularly in underprivileged areas.
KPMG’s breakthrough revelations have consequences for several players in the Indian EdTech market:
| Stakeholders | Key Points |
| Educators | Educational technology can help traditional educators engage students and improve their teaching strategies. Adopting technology enables educators to remain updated. |
| Students | EdTech offers students access to quality educational content anytime, anywhere. It aids exam preparation, skill acquisition, and lifelong learning. |
| Investors | Investors should take the scalability and market dynamics of EdTech investments into consideration. Supporting creative startups promotes expansion. |
| Policy Makers | Governments should create policies promoting digital literacy and incentivising EdTech entrepreneurship to foster sector growth and socio-economic development. |
According to KPMG’s research, the rising demand for online learning has contributed to a rapid expansion of the Indian EdTech market. This expansion is being driven by factors such as government initiatives and digitisation.
The popularity of online tutoring platforms, the development of mobile learning applications, and the integration of AI and machine learning are some of the major trends that KPMG has highlighted as influencing the Indian EdTech scene.
According to the KPMG report, the Indian EdTech sector offers profitable investment opportunities. Investor trust in EdTech’s development potential is demonstrated by the notable increase in venture capital funding for these companies.
Some of the barriers and challenges in the Indian EdTech market include difficulty obtaining high-quality content, problems with price, constraints with digital infrastructure, and governmental restrictions.
KPMG’s breakthrough revelation about the Indian edtech market highlighted the huge potential of the Indian EdTech industry. The sector has the potential to undergo a significant transformation because of its rapid expansion, new trends, and investment opportunities. Stakeholders can fully utilise EdTech to transform education and empower students nationwide by removing obstacles, encouraging innovation, and building teamwork. The future of education in India will be shaped by our ability to embrace technology-enabled learning as we traverse the digital era.
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