Online Tutoring Market

Online Tutoring Market Outlook (2024 to 2034)

A new research report by Fact.MR reveals that the global online tutoring market is pegged at US$ 8.36 billion in 2024. Worldwide revenue from online tutoring services is projected to accelerate at a 12.7% CAGR and reach US$ 27.63 billion by the end of 2034.

Flexibility and convenience of online tutoring are contributing to its popularity among parents as well as students across geographies. Students can get easy access to tutoring sessions with an internet connection. It becomes challenging for students to attend in-person sessions, who are residing in rural or remote locations or the ones who have hectic schedules. Adoption of online education services can be helpful for these students.

Key Market Growth Drivers

• Personalized instructions are offered by online tutors while customizing their teaching methods to match the specific requirements of each student. Tutors can adopt several instructional tools and techniques, including video conferencing, screen sharing, and interactive whiteboard to assist students to match their academic requirements.
• Innovations, including machine learning, artificial intelligence (AI), adaptive learning platforms, and augmented and virtual reality, are predicted to enhance the overall tutoring experience of students, making it more effective and engaging.

Increasing competition in academics along with the pursuit of additional support beyond conventional schooling is predicted to stimulate the adoption of supplementary education through remote learning. The majority of students are seeking international education and qualifications. Online tutoring platforms can become a convenient way for students to get access to specialized language learning, test preparation, and courses.

• Demand for online tutoring in China is predicted to advance at a CAGR of 13.2% and reach a market value of US$ 6.39 billion by 2034-end.
• Worldwide revenue from online learning services for the long-term period is forecasted to increase at 15.7% CAGR and reach US$ 1.18 billion by the end of 2034.
• North America is estimated to account for 27.5% share of global market revenue in 2024.

Rising awareness about the benefits of e-learning, including affordability, flexibility, and the option to learn at one’s own pace, is predicted to contribute to the rising acceptance of online tutoring platforms.

Report Attributes	Details
Online Tutoring Market Size (2024E)	US$ 8.36 Billion
Forecasted Market Value (2034F)	US$ 27.63 Billion
Global Market Growth Rate (2024 to 2034)	12.7% CAGR
East Asia Market Share (2034F)	36.8%
Japan Market Value (2034F)	US$ 2.65 Billion
Long-term Segment Growth Rate (2024 to 2034)	15.7% CAGR
Short-term Online Tutoring Segment Share (2034F)	70.4%
Key Companies Profiled	Vedantu BYJU’s iTutorGroup Beijing Magic Ears Technology Co., Ltd. Ambow Education Club Z Inc. Chegg Inc. ArborBridge Varsity Tutors Qkids Teacher

Why is There Increased Demand for Online Tutoring across the World?

“Rising Adoption of Artificial Intelligence and Digitalization in Education Sector”

Digital transformation is having a positive impact on the education sector. Digital transformation in global education systems is predicted to bring significant shifts not only in teaching but also in assessment methods. In recent years, the learning environment has also undergone noteworthy changes.

Artificial intelligence is also adopted as an effective tool in education practices. Education providers are coming up with virtual advisory services with access around the clock. They can address several queries simultaneously. Customized and personalized learning is possible through digital transformation only. These advanced services ensure real-time interaction with peers.

“Wide Adoption of Personalized Online Education with Improved Learning Outcomes”

In recent years, demand for convenient and personalized online education has been increasing significantly. This online tutoring market trend is prominently driven by many aspects, including flexibility in online education, which enables students to learn concepts on their schedule and at their own pace.

Personalized services are also offered through online education services according to the preferences and requirements of students, offering tailored learning resources and plans to cater to unique interests and styles. These services are offered to students irrespective of their physical abilities and geographic location, which is further driving opportunities in the global online tutoring market.

Which Issues are Adversely Impacting Online Tutoring Market Growth?

“High Fees for Personalized Online Tutoring”

Fees for personalized online tutoring are comparatively on the higher side, thereby making them unaffordable for students coming from lower-income families. In addition, certain concerns also arise because of the confusion created by different teaching methods adopted by school teachers and coaching classes for the same subject. These confusions can lead to conflicting approaches for learners.

Variation in teaching practices is projected to adversely impact students performance and create confusion during examinations. Thus, these factors are foreseen to negatively impact market growth opportunities.

What Initiatives are Start-ups Taking to Secure Their Market Position?

“More Investments in E-Learning Platforms”

Increasing investment by start-ups in e-learning platforms to increase user engagement is predicted to contribute to their revenue share. The adoption of artificial intelligence (AI), the Internet of Things (IoT), etc., in tutoring is predicted to ensure a distinctive learning environment. In addition, offering online tutoring services with the incorporation of virtual learning into online courses can also help new entrants generate profits.

Country-wise Insights

As per Fact.MR’s study, East Asia is forecasted to hold 36.8% share of global market revenue by 2034. The dominance of the region is attributed to strategic government initiatives, including the implementation of government-funded education projects.

Why is Adoption of Online Tutoring Increasing in the United States?

“Growing Implementation of Data Analytics to Monitor Student Performance”

Attribute	United States
Market Value (2024E)	US$ 1.57 Billion
Growth Rate (2024 to 2034)	12.2% CAGR
Projected Value (2034F)	US$ 4.98 Billion

The United States is estimated to account for 68.5% share of the regional market revenue in 2024. Data analytics is foreseen to have a positive impact on the demand for online tutoring services in the country. Venders are making efforts to bundle data analytics with learning materials. This initiative is predicted to offer students a chance to actively monitor their involvement in the learning activities, both insightfully and impartially.

Individuals and institutional learners can not only keep track of their performance and progress but also analyze the same with the adoption of embedded software analytics. Therefore, it is estimated that data analytics are predicted to become popular owing to rising requirements for one-on-one and personalized learning programs.

What’s Shaping Demand Growth for Online Tutoring Services in India?

“Rising Awareness about Significance of Effective Preparation for Competitive Exams”

Growing expenditure on tutoring in India is predicted to positively impact the size of the online tutoring market. Increased awareness among parents as well as students about the significance of education is predicted to boost the adoption of remote learning at distant locations for an effective learning experience. They understand the contribution of digital tutoring to the education system.

The increasing demand for online tutoring in India is owing to the growing competition as well as an increased need for preparation to get a higher education. Most students are becoming aware of the necessity for effective preparation for these entrance exams, which is contributing to market growth.

Category-wise Insights

As per the study published by Fact.MR, a market research and competitive intelligence provider, on-demand online tutoring held 70% of the online tutoring market share in 2023. This dominance is attributed to the growing adoption of personalized and customized learning approaches among learners across regions.

Why are More Students Extensively Opting for Online Tutoring Facilities?

“Growing Adoption of Online Tutoring for Academic Support”

Attribute	Academic Support
Segment Value (2024E)	US$ 4.56 Billion
Growth Rate (2024 to 2034)	13.1% CAGR
Projected Value (2034F)	US$ 14.48 Billion

The academic support segment is forecasted to occupy 52.4% of global market revenue by 2034. More students are seeking extra tutoring for multiple reasons. They either aim to perform well in their exams, achieving high scores or aspire to grasp challenging subjects within their academic curriculum.

For instance:

• In November 2018, Cambridge Assessment International Education published the Global Education Census Report 2018. According to the report, mathematics was reported as the most common subject for which students were opting for tuition services, followed by physics.

What Makes Most Learners Adopt Online Tutoring for a Shorter Duration?

“Growing Demand for Short-term Diploma Courses to Acquire Industry-specific Skills”

Attribute	Short Term
Segment Value (2024E)	US$ 6.17 Billion
Growth Rate (2024 to 2034)	11.6% CAGR
Projected Value (2034F)	US$ 19.45 Billion

Short-term online tutoring services are predicted to hold 70.4% share of the global market by 2034. A rapid increase in the demand for short-term online tutoring is attributed to the growing inclination toward short-term diploma courses. These courses are specifically designed to match industry-specific requirements for career advancement or salary boosts. Several players are introducing courses to match consumers’ increasing need for tutoring services.

For instance :

• UpGrad, in January 2022, entered into a partnership with Fullstack Academy and Caltech University for the launch of two short-term programs in cybersecurity and data analytics.

Competitive Landscape

Leading online tutoring solution providers are focusing on expanding their footprints across regions to gain a competitive edge. They are focusing on ensuring quality control of products, effective management of supply chain systems, new developments, and collaborations.

For instance :

• Canva and Vedantu, in 2021, entered into a collaboration for the launching of a unique Design Challenge in India to unleash creativity among students. This design included a boot camp to teach school children the basics of design thinking and creativity.

Key players in the online tutoring industry are Vedantu, BYJU’s, iTutorGroup, Beijing Magic Ears Technology Co., Ltd., Ambow Education, Club Z Inc., Chegg Inc., ArborBridge, Varsity Tutors, and Qkids Teacher.

Segmentation of Online Tutoring Market Research

• By Type :

  • Structured
  • On-demand

• By Purpose :

  • Academic Support
  • Subject Tutoring
  • Special Needs Tutoring

• By Duration :

  • Short Term
  • Long Term

• By End Use :

  • K-12
  • Higher Education

• By Region :

  • North America
  • Europe
  • East Asia
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania