Online Tutoring Services Market Size, Share & Trends Report

Online Tutoring Services Market Size, Share & Trends Analysis Report By Tutoring Type (Structured Tutoring, On-demand Tutoring), By Course Type, By Duration, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Oct, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-202-8
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 100

Report Overview

The global online tutoring services market size was valued at USD 4.81 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR)of 16.1% from 2020 to 2027. According to the U.S. Bureau of Labour Statistics, higher education levels led to increased earnings and higher employment rates. This supports the adoption of online mobile learning methods for all age groups and course types. Furthermore, these methods offer numerous advantages, including the elimination of geographic constraints. Online tutoring services render a tutor’s assistance from a global network of individuals having expertise in a subject.

Asia Pacific online tutoring services market size

A rapid surge in the adoption of online learning methods has been witnessed owing to benefits such as improved focus, convenience, and cost-effectiveness. Furthermore, online learning enables both learners and tutors to enhance their productivity and efficiency. The partnerships and collaborations among mobile app developers and content providers have led to the introduction of smart learning solutions. The market is expected to demonstrate considerable growth over the forecast period owing to the massive adoption of these services by school students and corporate professionals.

The continuous technological advancements and enhancements in the portable communication devices’ connectivity are some of the other factors driving the adoption of online learning methods. Government support for digital teaching in developing countries is encouraging universities and schools to offer online learning sessions. For instance, in Canada, Ontario’s Ministry of Education rolled out an educational plan in July 2019, which mandated pursuing four online courses for high school students to graduate. Such initiatives undertaken by governments are expected to positively impact market growth.

Virtual learning solution providers have leveraged the COVID-19 pandemic as a prominent opportunity to deal with their distance learning policy. Moreover, governments worldwide are recommending online teaching and learning solutions and offering free portals for online tutorials. For instance, in April 2020, New Zealand’s government leased around 17,000 digital portable devices for distribution among students who did not possess one. All these factors are offering a vast potential for the market to grow at a massive rate amid the coronavirus outbreak.

Tutoring Type Insights

The on-demand tutoring segment dominated the online tutoring services market and accounted for more than 75.0% share of the global revenue in 2019. On-demand tutoring offers a personalized platform, which helps students progress based on their capabilities and pace. Furthermore, on-demand tutoring combined with analytics applications helps tutors and content providers obtain real-time information on the learner’s progress. Thus, the rapidly growing adoption of customized and personalized learning is triggering the on-demand tutoring market’s growth positively.

Structured online tutoring involves real-time interaction between the students and the tutor. The segment is anticipated to register a CAGR of 14.3% over the forecast period. The growth can be attributed to the growing prominence of live teaching sessions via videoconferencing. For instance, in July 2020, BYJU'S, an Indian EdTech company, ventured into live virtual teaching. It launched a program to provide personalized after-school tuition classes called BYJU’s Classes.

Course Type Insights

The Science, Technology, Engineering, and Mathematics (STEM) courses segment dominated the market and accounted for more than 60.0% share of the global revenue in 2019. This high share of the segment can be attributed to the prominence of online learning methods among high school students. Numerous EdTech firms are working on providing STEM courses to middle and high school students. For instance, in July 2020, McGraw Hill, an American education company, partnered with TutorMe, LLC, a U.S.-based education services provider, to offer free on-demand tutoring services to college students.

The other courses segment includes tutorials and courses on lifestyle, skill trades, marketing, business, finance, and music. It is anticipated to register a noticeable CAGR over the forecast period. The growth can be attributed to the growing prominence of short-term diploma courses in coding and business-related subjects among corporate professionals. For instance, Coursera Inc., an American Massive Open Online Course (MOOC) provider, offers several courses other than STEM and language courses, such as artificial intelligence, digital marketing, and data science.

Duration Insights

The long-term courses segment dominated the market and accounted for more than 70.0% share of the global revenue in 2019. This high share of the segment can be attributed to the fact that long-term courses hold significant value. It enables the learners to gain in-depth knowledge about the reskilling course and deliver higher efficiency. Also, long-term courses have been adopted for continuous developments in learning methods for under-resourced students. For instance, 100tal.com, a Chinese education company, has covered 252 teaching centers in China's Sichuan province. Its project included teaching Mandarin to over 70,000 under-resourced students in 72 schools.

Global online tutoring services market share

The short-term courses segment is anticipated to register a healthy CAGR of 17.5% over the forecast period. The segment growth can be attributed to the increasing popularity of short-term diploma courses with on-demand tutoring pattern. For instance, Alison, an Ireland-based free online education platform, offers short-term certificate and diploma courses of average duration of 2 to 3 hours and 8 to 10 hours, respectively. It provides a wide variety of course types on multiple subjects with on-demand tutoring type and has over 11 million users worldwide.

Regional Insights

North America dominated the market and accounted for over 35.0% share of the global revenue in 2019. This high share of the region can be attributed to the availability of a large customer base and well-established ICT solution providers. The region is characterized by the presence of an enormous pool of service providers, including ArborBridge; Chegg Inc.; Club Z! Inc.; and Kaplan, Inc. The South American market is also expected to witness high growth over the forecast period. The growth of the regional market can be attributed to the adoption of innovative technologies in the region, including microlearning, Massive Open Online Courses (MOOCs), and personalized literacy programs.

The Asia Pacific region is anticipated to witness significant growth in the online tutoring industry owing to the presence of developing economies such as India. Government-led strategic developments, such as government-funded projects for education in rural areas, are expected to promote the adoption of online tutoring services. For instance, in India, the Ministry of Human Resource Development has created an online library called the National Digital Library of India to provide educational content for different academic levels based on the subject domain. Furthermore, increasing investments in virtual education firms are one of the significant factors driving regional market growth. For instance, in July 2020, Vedantu.com, an Indian interactive online tutoring platform, raised USD 100 million in its Series D financing round led by a U.S.-based company named Coatue Management, L.L.C.

Key Companies & Market Share Insights

The key vendors in the market focus on expanding their customer base and global reach to gain a competitive edge. Therefore, they undertake various strategic initiatives such as mergers and acquisitions, partnerships, and collaborations with other key players. For instance, in April 2019, Zovio, an American for-profit education services company, expanded its online tutoring product suite and services by completing the acquisition of TutorMe, LLC, a U.S.-based services provider. Similarly, in February 2019, the Ellucian Company L.P., a U.S.-based IT EdTech company, announced its partnership with ESM Solutions Corporation, an e-procurement, and spend management solutions provider. Under this partnership agreement, the former company expanded its procurement management solution called Ellucian Spend Management Suite, including Ellucian Purchase. Some prominent players in the global online tutoring services market include:

  • Ambow Education

  • ArborBridge

  • Beijing Magic Ears Technology Co., Ltd

  • BYJU'S

  • Chegg Inc.

  • Club Z! Inc.

  • iTutorGroup

  • Qkids Teacher

  • Varsity Tutors

  • Vedantu.com

Online Tutoring Services Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 5.61 billion

Revenue forecast in 2027

USD 15.99 billion

Growth Rate

CAGR of 16.1% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Tutoring type, course type, duration, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; France; China; Japan; India; Brazil

Key companies profiled

Ambow Education; ArborBridge; Beijing Magic Ears Technology Co., Ltd; BYJU'S; Chegg Inc.; Club Z! Inc.; iTutorGroup; Qkids Teacher; Varsity Tutors; Vedantu.com

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global online tutoring services market report based on tutoring type, course type, duration, and region.

  • Tutoring Type Outlook (Revenue, USD Million, 2016 - 2027)

    • Structured Tutoring

    • On-Demand Tutoring

  • Course Type Outlook (Revenue, USD Million, 2016 - 2027)

    • Language Courses

    • Science, Technology, Engineering, and Mathematics (STEM) Courses

    • Others

  • Duration Outlook (Revenue, USD Million, 2016 - 2027)

    • Short-Term Courses

    • Long-Term Courses

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • Middle East & Africa (MEA)

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