How Test Prepartion is Growing
in India
Given the
high population of India, and the severe mismatch in terms of jobs, colleges,
institutions vs students/aspirants, the test preparation industry in the
country is a very vibrant one. Millions of aspirants every year appear for ~
competitive exam that have a pass rate of less than ~%.
Test
preparation industry is driven by the high number of competitive exams across the
country and the presence of competitive exams from school life, to college and
professional life for any individual in the country.
The demand
for test preparation has been stimulated by the increasing internet penetration
in Tier-2 and Tier-3 cities in the country. People living in these cities, form
a major part of the audience for test preparation courses. They relocate to
other cities and stay in rented accommodations, only to prepare for competitive
exams through coaching centers, which are based in metros. The lack of quality
test preparation coaching in remote areas of the country is the primary reason
behind the burgeoning landscape of the online test preparation industry.
Combining
educational expertise with technology, online test preparation companies aim to
deliver quality education to people across the country, which don’t have access
to quality offline coaching. Their task has been made easier by the ever
increasing internet penetration in the country, the pandemic which forced the
entire education system in the country to shift online and the change of
patterns in major competitive exams from pen and paper to online.
There is no
wonder why learners in Tier-2 and Tier-3 cities form the bulk of the user-base
for online test preparation platforms. Moreover, the large addressable market
scope in rural India and the ability of online platforms to service that market
at scale has made the online test preparation segment very lucrative for
investors. Online Test Preparation has been the Ed-Tech segment receiving the
most funding and growing at the fastest pace in the country.
Segmentation by Type of Course
By Type of Course (Under-Graduate,
Post-Graduate and Job-Based Exams)
Under-Graduate segment was identified to be leading
segment for test preparation with a high ticket size and a high volume target
audience being the primary factors responsible.
Segmentation by Type of
Under-Graduate Exam
By Type of Under-Graduate Test
Prep (Medical, Engineering, Architecture, Cost Accounting and CA Foundation,
SAT, Law and Other UG Entrances)
Medical and Engineering entrance exams were identified
to be the leading categories for test preparation in the country owing to the
prestige associated with the 2 fields of study and the vast audience appearing
for such exams. The high competition for seats is also a key factor behind high
revenues for the 2 segments.
Segmentation by Type of
Post-Graduate Exam
By Type of Post-Graduate Test
Prep (Commerce, Engineering, Management and Others)
Commerce Exams (CA, CFA, CS dominated the space due to
highly professional nature of the exams the professions associated with the
same. GATE exam is associated with jobs at PSUs and hence enjoys high adoption
along with MBA entrance exams (Management).
Segmentation by Type of
Post-Graduate Exam
By Type of Job-Based Test Prep
(Banking & Insurance, Civil Services, SSC, Railways and Others)
In the Job-based Test Prep segment, Government jobs
were identified to be the most traction-gaining segment in terms of revenues.
Same can be divided amongst Banking exams, Civil Services exams, SSC exams,
Railways exams and other exams including State Government and Defence exams. A
large proportion of the audience for such courses is from Tier-2 and Tier-3
regions in the country.
Ecosystem of Test Preparation Service Providers
in India
There are close to ~
entities in the Test Preparation industry in India providing test preparation
services including live courses, lectures, books, tests, practice questions and
mentorship/guidance. The companies providing test preparation services can
broadly be divided into Offline and Online entities. While the number of
offline entities overpowers the number of online ones, it is the online ones
that have been making the most progress in the past 3-4 years. Entities can
further be divided basis the test prep courses that they offer with primarily 3
categories emerging: Under-Graduate, Post-Graduate and Job-Based. Offline
Centre-based companies generally speicalize in a particular test preparation
category, while online players dip their feet in multiple exam categories.
Competition Landscape
The competition structure in the Indian Test Prep
market is fragmented amongst the Online & Offline players. Players
differentiate themselves category-wise, basis different Test-Prep segments. Major
Online players in the UG space include BYJUs, Unacademy, Vedantu, Toppr while
major Online players in the Professional + PG segment include Unacademy,
Adda247, Gradeup & Testbook. Players generally operate amongst multiple
categories in the space with Unacademy, BYJUs, Gradeupetc being key examples of
the same. The online test preparation landscape is growing rapidly and holds
about ~% share in terms of the overall market revenues.
Future Outlook of Test Preparation
in India
The test preparation industry in the country is bound to grow on the
back of strong growth in the online test preparation segment, advent of new
testing categories due to government interventions and the advancement in
technologies allowing scalability of education solutions in the country. The
online test preparation industry is expected to grow at pace and start to catch
up with the revenues in the offline segment and is expected to hold ~% in the
overall revenues of the test preparation industry, by FY 2025. There is also
expected to be the development of a scalable hybrid delivery model for test
prep solutions, combining the best of online and offline learning delivery.
Key
Segments Covered:-
Type of Course
(Under-Graduate, Post-Graduate and Job-Based)
Type of
Undergraduate Test Prep (Medical, Engineering, Architecture, Cost Accounting
and CA Foundation, SAT, Law and Other UG Entrances)
Type of
Postgraduate Test Prep (Commerce, Engineering, Management and Others)
Type
of Job-Based Test Prep (Banking & Insurance, Civil Services, SSC, Railways
and Others)
Test Preparation Companies Covered
BYJU’s
Unacademy
Testbook
Vedantu
Toppr
Gradeup
Oliveboard
Adda
247
Doubtnut
Aakash
Educational Services
Key
Target Audience:-
Offline
Test Preparation Companies
Online
Test Preparation Companies
Educational
Industry Associations
Ed-Tech
Companies
Ministry
of Education, India
Venture
Capital and Private Equity firms
Time
Period Captured in the Report:-
Historical Period: 2015-2020
Forecast Period: 2020-2025
Key Topics Covered in the
Report:-
Target
Addressable Audience for Test Preparation in India
Division
in the Test Preparation Market in India
Decision
Making Model for Learners: Test Prep Courses
Learner
Preference Trends
Segmental
Leaders of Test Prep in India
Test
Preparation Investment Landscape
Online
Test Prep M&A Landscape
Operating
Model Implementation across Indian Online Test Prep Ecosystem
Course
Monetization in Indian Online Test Prep Ecosystem
Revenue
Streams of Test Prep Players
Product
Combination for Online Test Prep Companies
Tech
Innovations by Online Test Prep Companies
Marketing
Model for Test Prep Players
Business
Landscape of Major Test Prep Players
Operating
and Financial Landscape of Major Test Prep Players
Category
Presence of Major Players
Challenges
Faced by Online Test Prep Players including Solutions
COVID
Impact on Demand of Test Prep Courses
Emerging
Test Prep Trends in the Future
Recommended
Market Penetration Strategies
Industry
Speak (Interviews with Strategic Leaders across the Industry)
For More
Information on the research report, refer to below link:-
India
Test Preparation Market
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Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
