E-learning market to hit $5 billion by CY25: Redseer report


Online higher education is becoming the fastest growing sub-segment of EdTech. Along with lifelong learning, online education is expected to reach around $5 billion by calendar year 2025, according to a report by Redseer Consulting.

This growth will be driven by several macroeconomic factors, including the relaxation of degree regulations, supply-side capacity gaps, awareness of the need for higher education among students and professionals, and the transition to the credit system.

With the relaxation of degree regulations, EdTech companies will now be able to partner with universities to offer online degrees. Course unbundling and democratization of access are driving demand for online higher education and also increasing completion rates.

According to the report, the online higher education user base grew by around 75% in 2021 alone, despite a three-fold growth in average ticket size compared to the K12 segment. In fact, the size of the online higher education market is now comparable to the larger EdTech segments (i.e., K6-12, including test prep).

The online lifelong learning market will also grow further with “a further post-Covid push as economic uncertainty further establishes the need for lifelong learning,” the report notes. Outside of Covid, existing skills are becoming increasingly redundant, job creation lags behind new additions to the workforce each year and a mismatch between industry requirements and curriculum teaching in colleges are the other reasons for the growth.

Abhishek Gupta, Head of Engagement at Redseer, said, “India’s booming edtech market, which has seen multiple startups and increased funding during the pandemic, expects further impetus from to the growth of the higher education and lifelong learning segments. It’s safe to say that online higher education has impressed us all by emerging as the fastest growing sub-segment.”

The results also showed that there was also a strong increase in M&A (M&A) activity.

Published on

March 25, 2022


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