Schools Shift to Home Based Learning. Virtual Private Tutoring Gets the Much Awaited Boost. Market to Reach $218Billion
The global market for Private Tutoring is projected to reach US$218 billion by the year 2027, trailing a post COVID-19 CAGR of 8.4% over the analysis period 2020 through 2027. The pandemic is accelerating the emergence of shadow education as a global phenomenon. With mainstream schools and colleges closed and academic schedules disrupted, private tutoring especially online private tutoring is growing in demand and popularity. Over 1.4 billion students worldwide have been impacted by school, college & university closures worldwide. The pandemic has triggered an overnight shift to online teaching tools in an industry which was skeptical of the effectiveness of the internet as teaching medium. Along with mainstream education, private tutoring is also rapidly migrating to virtual platforms. With schools being shut since early-January or March in most countries, there has been significant growth in demand for private tutors. In order to ensure the continuity of the learning process, many parents consider various options, including online tutoring, homeschooling, and micro-schooling with a small group of children. Large online tutoring firms are generally equipped with proprietary specialist platforms that can help in sustaining students’ interest. In addition, large companies have their own training and research teams, as well, as are more dynamic and nimble as compared to schools. Some Asian parents are also sourcing tutors from international locations. In recent months, several tutoring services experienced significant increase in requests for online tuition from local parents as well as English-speaking expat parents globally. Affluent parents from regions, including Central America, Dubai, Italy, Singapore, Hong Kong, and Portugal, are also hiring expensive tutors for homeschooling their children.
Investments in edtech including language apps, virtual tutoring, video conferencing etc. is expected to accelerate even in the post COVID-19 period as the benefits of online learning gives the trend a flavor of permanence. Personalized approach, fewer distractions, greater motivation, better performance at school, are all benefits that will take private tutoring to the next level of growth. Online tutoring services connect students to a worldwide network of tutors trained in various subjects and grade levels. As against going to tuition centers after school hours online tuitions eliminate the need to travel and commute to distant learning facilities. This is a major benefit for students in developing countries with inadequate public transport and poor road infrastructure. Students can avail tutoring for a wide range of subjects including mathematics, calculus, French, Latin, physics, chemistry, and history, among others, from certified teachers/tutors. The vendors also provide test preparation services for exams such as SAT, ACT, GRE, GED, and ASVAB. In addition, several online tutoring systems provide courseware library, which includes a wide array of learning programs in various academic subjects. Other factors prevalent even in the pre-pandemic period that will continue to drive growth include the inadequacy of mainstream school systems, growing pressure on students to improve overall grades, rising student preference for individualized self-paced academic tutoring plans, and the need to acquire competency and knowledge skills to compete in the tough and competitive labor market. The cornerstone for growth in the market is the high unmet student needs especially in developing countries and; growing perception of education as an investment in human capital with payoffs in the form of well-paying jobs, higher remuneration, improved social standing and success in personal and professional life. Few of the benefits of private supplementary tutoring services driving their adoption as the most effective academic-support strategy include one-on-one engagement; provision of a customized learning environment unique to the learning preferences of each child; flexibility in adopting personalized study techniques; provides a positive learning environment; better ability to match tutor skills with student need; improved performance in mainstream exams and test; and reduced distractions and intimidations from other pupils; superior learning experience.
Major factors influencing growth in the market include growing proportion of household income on education; rapid evolution of shadow education curriculum to keep up with formal education; rise of online tutoring supported by the increase in internet penetration, easy access to high-speed internet due to falling mobile data tariffs, and growing smartphone and tablet sales; and importance placed by society and parents on scholastic achievement and educational budget cuts by deficit laden governments that reduce funding for public schools and education systems. Asia-Pacific will grow led by factors such as growing importance of education especially in developing economies which offer attractive opportunities for skilled labor, increasing desire among students to gain admission into prestigious universities, increased spending on private tutoring among the expanding base of educated and affluent middle class population, skilled labor migration into developing economies and the resulting increase in competition in the education and labor markets. Competitors identified in this market include, among others,
- A Plus-All Subjects Tutoring, Inc.
- Ambow Education Holding Ltd.
- Club Z! Tutoring Services
- Daekyo Co., Ltd.
- Educomp Solutions Ltd.
- Huntington Learning Centers, Inc.
- JEI Learning Centers
- Kaplan, Inc.
- Mandarin House
- Mathnasium LLC
- New Oriental Education &Technology Group
- Sylvan Learning Inc.
- TAL Education Group
- Tutor Doctor
- Tutor.com, Inc.
- Varsity Tutors
- Xueda Education Group