India’s test preparation market is projected to reach $23-26 billion by FY30 from about $14.8 billion in FY26, growing at a 12-15% CAGR, according to a report by consulting firm Redseer. Undergraduate entrance preparation, led by JEE and NEET, is expected to remain the key growth segment.
The other way around, I’d structure it with the market size first, followed by JEE and NEET as the key drivers:
India’s undergraduate entrance test preparation market alone is expected to grow from about $3.8 billion in FY26 to $6.5-7 billion by FY30, led by a growing aspirant base, wider adoption of organised preparation and higher spending per student, the report said. Of this, JEE and NEET together currently account for nearly 70% of the market.
The UG entrance test segment also sees the highest investment from aspirants and their families, even as competition remains intense, with success rates of around 1% for IIT admissions and 3% for preferred government medical seats.
The report says that outcomes and academic quality become more important than factors such as price, location and brand visibility when students choose a primary coaching institute.
Among offline aspirants surveyed by Redseer, 57% ranked faculty quality among their top three considerations, while 44% cited past results. Among students targeting ranks below 1,000, the figures rose to 59% and 51%, respectively.
Most aspirants build their preparation around one primary institute and use other providers for supplementary needs such as test series, revision or additional study material. Students are also scrutinising result claims through peer conversations, institute data and topper interviews before enrolling, the report said.
This puts greater pressure on coaching providers to demonstrate that their reach translates into outcomes.
The online preparation segment, which initially focused on video lessons and doubt resolution, is moving towards adaptive practice, AI enabled personalisation and performance tracking. The shift is also allowing more students to prepare outside traditional coaching hubs. About 71% of Tier 1 aspirants and 67% of Tier 2+ aspirants surveyed outside major preparation hubs said they were unwilling to relocate.
This is also related with the fact that the annual cost of preparation in established hubs is estimated at ₹2.5-2.8 lakh, compared with ₹1.1-1.4 lakh in non-hub cities, largely due to accommodation, food and relocation costs.
As coaching providers expand across geographies, the report said, the next phase of competition will depend increasingly on their ability to combine pedagogy, continuous evaluation, targeted intervention and technology to deliver consistent outcomes at scale.