The last 18 months have been Covid-19 effected. For the first time in our lives we experienced a global lockdown.
Couple of years back, parents were reluctant to provide a mobile to their kids. Mobile was a strict NO in schools. Today, all the classes are being conducted on-line. Just think of the situation, you are at home and cannot go out. What about your daily needs, your studies, your entertainment and payments? Just get connected to the internet and start accessing apps and services on mobile, laptops, PC etc. Yes, you could do all these because of IT. The IT sector saw a boom during this period and will go further in the coming years. EdTech has grown many folds with the boom in IT.
The EdTech market will be ~USD 30 Billion by 2025. The TechEd (Technical Education) market in India will be USD 10 Billion by 2025. India TechEd market can be segmented into EdTech, Organized training centers, un-organized training centers, private institutes, corporate, schools and colleges, and private classes.
Based on the application, the Indian TechEd market has been categorized into IT Infrastructure & Management Services, software, cyber security, Cloud computing, IoT, Text, image & voice processing, AI, Robotics, Distributed technology e.g. Blockchain, Digital trade, Telecom, Digital Marketing, FinTech Engineering, database and big data analytics training with IT Infrastructure management & Services training shows a clear dominance in the market.
The TechEd sector will further get a boost as Government of India has rolled out policies supporting investment in TechEd sector. Union Budget 2020-21, has an allocation of US$ 14.21 billion. Government of India has allowed 100% FDI in this sector. The Cabinet on July 29, 2020 approved the long waiting National Education Policy 2020. NEP 2020 aims to increase the Gross Enrolment Ratio in higher education including vocational education from 26.3% in 2018 to 50% by 2035. 35 Million new seats will be added to Higher education institutions. The Government of India has focused on the quality of higher education and will increase admissions from ~724 students per institution in 2017-19 to ~1,400 admissions, by 2030.
In the Union Budget 2021-22, the government allocated USD 1.23 Billion to boost telecom connectivity in the country that includes high-speed optical fibre cables or satellite-based broadband services across 2.2 lakh village panchayats in the next financial year. This will enable the tier 4 towns and villages to be a part of online education revolution. In India, the online education market is forecasted to reach ~USD 11.6 billion by 2026. With the increase in online education. 47% of LMS (Learning Management Systems) will be AI enabled by 2024. Although the on-line learning will be increasing year on year, the demand for brick-and-mortar training will not reduce and we will soon see the Hybrid model of training as a reality.
India has the world’s largest population with ~155 Million students of class 6th-12th. ~500 million people in the age group of 5-24 years providing a great opportunity for the TechEd sector. Indian Tech industry employee base will be 4.47 million in 2021 providing an opportunity to TechEd companies to explore the upskilling and reskilling market.
There are more opportunities for private and foreign companies that are involved in academics through financial partnership with Indian EdTech companies.
- NEP 2020 will trigger TechEd revolution
- Enhanced education accessibility and affordability
- Favourable government policies make TechEd an attractive investment domain
- The future of education will be skill based and not on only degrees
- Upskilling and reskilling market will have a huge potential