GVR Report cover 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 (Short-term Courses, Long-term Courses), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Sep, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-202-8
  • Format: Electronic (PDF)
  • Historical Data: 2018 - 2019
  • Number of Pages: 100

Report Overview

The global online tutoring services market size was valued at USD 5.61 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 15.6% from 2021 to 2028. The rapid adoption of smartphones is one of the significant factors driving the adoption of online tutoring services worldwide as it enables learning to take place irrespective of the geographical location. For instance, Varsity Tutors, a U.S.-based online tutoring company, offers a mobile application for live tutoring and instructions. It provides experts’ assistance from anywhere and lets learners manage their tutoring sessions.

Asia Pacific online tutoring services market size, by type, 2018 - 2028 (USD Million)

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 segment led the online tutoring services market in 2020, accounting for over 75% share of the global revenue. The coronavirus pandemic has also surged the growth of on-demand online tutoring due to the nationwide school closure. For instance, in September 2020, Info Edge (India) Ltd.’s job portal Naukri.com reported that it had witnessed four-fold growth in demand for e-learning professionals in the past few months compared to 2019. The job-listings within the education sector for Work from Home (WFH) roles were increased by 3.5 times since the pandemic started. 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 13.8% over the forecast period. The growth of the segment can be attributed to the growing prominence of live teaching sessions via videoconferencing. For instance, in July 2020, BYJU, 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 62% share of the global revenue in 2020. Some school districts have formed partnerships with digital learning platforms to offer local educational broadcasts focused on different STEM courses grade levels. For instance, in March 2020, the Los Angeles Unified School District (LAUSD) partnered with Public Broadcasting Service (PBS) to offer students customized educational programming on three over-the-air broadcasts and a range of digital options. 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 growth rate over the forecast period. The segment 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 AI, digital marketing, and data science.  

Duration Insights

The long-term courses segment dominated the market and accounted for more than 72% share of the global revenue in 2020.The coronavirus outbreak has also brought vast opportunities for long-term courses in the market. Several academic organizations and students have realized the advantages of online learning since the lockdown began. 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 pertaining to 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, by duration, 2020 (%)

The short-term courses segment is anticipated to register a healthy CAGR of 17.0% over the forecast period. The segment growth can be attributed to the increasing popularity of short-term diploma courses with an 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 types and has over 11 million users worldwide.

Regional Insights

North America dominated the market and accounted for over 37.0% share of the global revenue in 2020. In the U.S., there is a considerable gap between students from privileged and disadvantaged backgrounds. For instance, according to the Organisation for Economic Co-operation and Development (OECD), an intergovernmental economic organization, virtually all U.S. students of the 15-year-old age group from a privileged background reported they had a computer to work on, nearly 25% of children from disadvantaged backgrounds did not. 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. The key players are expected to focus on advancing their platform via cutting-edge technological developments in order to expand their footprints in the unreached market. 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, 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 of the prominent players operating in the global online tutoring services market are:

  • 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 2021

USD 6.57 billion

Revenue forecast in 2028

USD 18.18 billion

Growth Rate

CAGR of 15.6% from 2021 to 2028

Base year for estimation

2020

Historical data

2018 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

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

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope.

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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 2018 to 2028. 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, 2018 - 2028)

    • Structured Tutoring

    • On-Demand Tutoring

  • Course Type Outlook (Revenue, USD Million, 2018 - 2028)

    • Language Courses

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

    • Others

  • Duration Outlook (Revenue, USD Million, 2018 - 2028)

    • Short-Term Courses

    • Long-Term Courses

  • Regional Outlook (Revenue, USD Million, 2018 - 2028)

    • North America

      • The 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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