By Vingish Vijay
The global ed-tech market soared to US$ 222.4 Billion in 2023, projected by IMARC Group to escalate to US$ 661.2 Billion by 2032, boasting a robust CAGR of 12.48% from 2024 to 2032. India’s ed-tech sphere has been a focal point, stemming from a pioneering few in the early 2000s, evolving into today’s dynamic landscape. Amidst the burgeoning internet and smartphone accessibility, coupled with a tech-savvy youth, ed-tech startups thrived. The Indian EdTech arena is diverse, catering to varied educational needs from K-12 learning to skilling, language acquisition, and STEM education, embodying the country’s journey toward educational innovation and digital empowerment.
Rise of the Indian ed-tech sector
India’s ed-tech surge in 2021 positioned it as the world’s second-largest market, following the US, with a staggering influx of US$ 4.73 billion in funding. Yet, beyond market size, growth hinges on user adoption. In 2022, the sector boasted 18.5 million paid users, primarily driven by test prep and online certification. KPMG anticipates this figure to skyrocket to over 120 million by 2030, spanning online certification, K-12, skill development, and test prep, underscoring India’s profound embrace of educational technology.
Additionally, the popularity of online content consumption in India, particularly educational videos, helps drive the growth of edtech. The country’s young, employable population also fuels the demand for skill development and online certification. Moreover, the need for reskilling and acquiring new skills becomes imperative for working professionals. Numerous factors contribute to the ed-tech industry’s growth. The continuous increase in internet users in India plays a significant role in expanding the ed-tech sector. With mobile devices being the preferred gateway for online content consumption in India, the proliferation of smart devices presents another open opportunity for ed-tech startups.
The post-pandemic adverse effect
Since 2022, a concerning downturn has emerged in India’s ed-tech realm. With around 4,500 startups vying for attention, securing funding and attracting new clientele has become arduous. Fierce competition has triggered aggressive cost-cutting and widespread layoffs, dimming the industry’s transformative potential. Despite these hurdles, Indian ed-tech firms have experienced notable growth, buoyed by global demand for their offerings.
The global expansion of Indian ed-tech companies
A key advantage for Indian ed-tech lies in its affordability. Compared to the U.S. and the Middle East, courses cost significantly less in India. Online postgraduate programs are obtainable at a fraction of the cost of a U.S. master’s degree. This affordability breaks down barriers to premium education, while the virtual format eliminates geographical limitations. Research reveals Indian parents’ reluctance to spend beyond US$ 65 monthly on tuition, compared to their foreign counterparts willing to exceed US$ 75. This cost-conscious approach has propelled Indian ed-tech onto the global stage, promising substantial revenue opportunities abroad.
Indian EdTech companies, driven by innovation and a mission to bridge educational gaps, are swiftly rising. Beyond transforming India’s education landscape, they aim to impact learners globally. Key strategies for expansion include cultural adaptation, technological universality, and strategic collaborations. By tailoring content, leveraging adaptable platforms, and forming partnerships, these ventures are poised to make a significant mark on the global stage, advocating for accessible and quality education worldwide. Internationally, these platforms thrive partly because of heightened engagement from foreign learners. Recent research indicates instructors on Indian ed-tech platforms devote more time and reach a larger student base compared to foreign platforms, resulting in increased earnings for them.
The global proliferation of online education offers substantial opportunities for students, educators, and ed-tech firms. Despite existing obstacles, ongoing advancements in online learning will redefine higher education post-pandemic. India’s trajectory toward becoming a global EdTech hub is propelled by growing faith in digital tools. The international expansion of Indian EdTech entities heralds a transformative era in global education, showcasing a seamless fusion of technology, innovation, and cultural awareness, positioning India as a frontrunner in shaping the future of education worldwide.
The author is founder and VP at 90+ My Tuition App. Views are personal.