Online higher education, lifelong learning mkt to hit $5bn by 2025: Redseer

Relaxation in rules governing degrees, supply-side capacity gap will be key drivers of this growth, going forward

Online higher education is emerging as the fastest-growing sub-segment of edtech, according to a report by consulting firm RedSeer. According to their findings, the online higher education and lifelong learning market is poised to reach about $5 billion by calendar year 2025.

Relaxation in regulations governing degrees is one of the causal factors that is driving this growth forward. Thanks to this, edtech companies can now partner with universities to offer online degrees. The unbundling of courses and democratisation of access unquestionably boosts the demand for online higher education and also increases the completion rate. Another growth driver is the supply-side capacity gaps. India has supply-side constraints in education infrastructure (especially for specialised courses). Transition to the credit system as well as the realisation of the need for higher education by students and working professionals who are new to the workforce, is further contributing to the boom in this sector.

“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,” said Abhishek Gupta, Engagement Manager, RedSeer. “It's safe to say that online higher education has impressed us all by emerging as the fastest growing sub-segment”.

The market for online lifelong learning also will expand further with “further push after Covid as the economic uncertainty further establishes the need for continuous learning,” the report noted. Apart from Covid, existing skills getting increasingly redundant, job creation lagging behind new additions to the workforce annually, and a mismatch between industry requirements versus education curriculum in colleges are the other reasons for growth.

The report further stated that the user base for online higher education grew by about 75 per cent in 2021, despite a 3X growth in the average ticket size compared to the K12 segment. In fact, the market size for online higher education is now comparable to the largest edtech segments (i.e., K6-12 including test prep).

The findings also saw that there was a steep uptake in M&A (mergers and acquisitions) activity as well.

With millions of young people in India looking to gain access to world-class education and training, online higher education has become a key sector in the Indian education landscape. The RedSeer report said the future is surely bright for this sub-segment, making it an exciting space to watch.