Online Tutoring Services Market Size, Share & Trends Analysis Report By Tutoring Type (Structured Tutoring, On-Demand Tutoring), By Course Type (Language Courses, Science, Technology, Engineering, and Mathematics (STEM) Courses), By Duration (Short-Term Courses, Long-Term Courses) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global online tutoring services market was valued at USD 6.3 billion in 2021. It is expected to reach USD 20.81 billion by 2030, growing at a CAGR of 14.2% during the forecast period (2022–2030).

Online tutoring provides instruction in a networked, virtual, or online setting where students and tutors are physically present. The widespread use of internet services has increased its popularity. Tutors and students can now interact online at the same time thanks to faster internet data transfer. Additionally, the growing usage of cell phones, which enables learning to occur wherever people are, is crucial in expanding online education services. The market for online tutoring consists of the sales of online tutoring services and associated goods by businesses that offer these services (organizations, sole proprietors, and partnerships). Online tutoring provides instruction to students and teachers remotely in digital, interactive, or linked sets.

Market Dynamics

Global online tutoring services market drivers

Emerging pattern of individualized instruction

The personalized platform of on-demand tutoring enables students to advance by their capacities and learning rate. Additionally, on-demand tutoring combined with analytics software enables content creators and tutors to get up-to-the-minute updates on a student's progress. As a result, the market for customized online tutoring is positively impacted by the rapidly expanding adoption of this service. Online teaching sessions' popularity is growing due to on-demand live sessions conducted via videoconferencing. In their tutoring platforms, several vendors have begun including personalized learning features.

Increasing spending on innovative teaching techniques

The process of learning is evolving quickly to keep up with technological advancements. The EdTech industry, which includes online tutoring and massive open online courses (MOOCs), is changing swiftly and attracting significant investments across the globe. Due to the ongoing rollout of high-speed internet networks and the growing prevalence of smart devices among the general public, the Asia-Pacific region is predicted to experience the industry's fastest growth. For instance, in India, the ongoing rollout of accessible broadband connectivity enables businesses to communicate with the public online. The trend is facilitating the development of the newest technologies to deliver educational content. To close the gap between the educational infrastructure and the available teaching resources, stakeholders in the education sector are also considering adopting the newest technologies.

Global online tutoring services market restraints

Access to open-source material

Open-source content is readily available, and MOOCs (Massive Open Online Courses) are a threat to the expansion of the market for online tutoring services. Open-source content poses a challenge to the widespread use of online tutoring services because it is widely available, frequently free of charge, and supports the self-paced learning mode. For instance, compared to 2019, about 60 million more students enrolled in MOOCs in 2020. It is anticipated that the growth of the online tutoring services market will be hampered by the availability of quick online certificate programs and micro-credentials, which have fueled learners' development in MOOCs. However, one of the main reasons college graduates and postgraduates need online tutoring services is the absence of personalized courseware in open-source content.

Global online tutoring services market opportunities

Rapid adoption of new technologies

With businesses ranging from early-stage start-ups exploring opportunities to making an impact with market-transforming initiatives, the global online tutoring market is rapidly expanding. The rapid adoption of new technologies, learners' increasing preference for one-on-one mentor guidance, and appropriate options that meet their financial, geographic, and time needs are some of the main factors influencing the market's growth. Due to the lucrative growth potential of the digital learning sector, venture capitalists and private investors are investing heavily in the online tutoring sector. For instance, the Learning+ initiative of the Department of South Australia offered free one-on-one online tutoring with qualified, trained teachers to students at nearby schools after school and on weekends starting in February 2022. The purpose of this initiative is to enhance learning outcomes for participating children.

Regional Analysis

By region, the global online tutoring services market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

Asia-pacific dominates the global market

Asia-Pacific is the most significant shareholder in the global online tutoring services market and is expected to grow at a CAGR of 19.5% during the forecast period. Due to developing economies like India, the Asia-Pacific region is expected to see significant growth in the online tutoring sector. Online tutoring services are anticipated to be promoted in the Asia-Pacific by government-led strategic developments, such as government-funded projects for education in rural areas. For instance, the National Digital Library of India, an online library created by the Ministry of Human Resource Development of India, offers educational content for various academic levels based on the subject area. Online tutoring has enormous potential in Asia-Pacific. The market in the region will be shaped and continue to rise for months to come as a result of large institutions' partnerships with online service providers and government initiatives toward online education.

North America is expected to grow at a CAGR of 14.10% during the forecast period. A sizable customer base and reputable ICT solution providers are responsible for this region's high share. The vast array of service providers in the North American area includes ArborBridge, Chegg Inc., Club Z! Inc., and Kaplan, Inc. In the United States, there is a noticeable achievement gap between students from privileged and underprivileged backgrounds.

For instance, according to the OECD (Organization for Economic Co-operation and Development), an intergovernmental economic organization, nearly all U.S. students in the 15-year-old age group from privileged backgrounds reported having a computer to work on, and only about 25% of children from underprivileged backgrounds did. In order to remove this gap, various market players are introducing personalized learning to students. For instance, the EdTech platform Chegg Inc., based in the United States, introduced a new "Learn with Chegg" feature in January 2022 to provide personalized learning. Under this feature, students could plan their studies by taking advantage of Chegg's many resources, including practice questions, flashcards, expert assistance, writing assistance, and other AI-enabled features.

The South American market is also anticipated to expand significantly over the forecast period. Adopting cutting-edge technologies in the area, such as microlearning, Massive Open Online Courses (MOOCs), and individualized literacy programs, can be credited with expanding the regional market.

Rising investments significantly influence the Middle East and Africa's expansion in virtual education companies. For instance, the Middle East and North Africa (MENA) had about 100 million students enrolled in schools in November 2021. Modern tools like online tutoring will help students continue to advance their knowledge. The current generation of students will have what it takes to revolutionize MENA and close the existing gaps in poverty and inequality if the region continues to invest in educational innovation.

Segmental Analysis

The global online tutoring services market is segmented by tutoring type, course type, and duration.

Based on tutoring type, the global market is bifurcated into structured tutoring and on-demand tutoring.

The structured tutoring segment is unique for its structured and organized approach to education. Structured tutoring programs are carefully planned with a clearly defined and pre-outlined curriculum that addresses the different needs of students in all disciplines and at all levels of study. Real-time communication between the tutor and students is a feature of structured online tutoring. Structured online tutoring includes regular assessments and progress tracking to monitor student performance and identify areas that require additional focus. The COVID-19 pandemic accelerated the adoption of online learning, also Structured Curriculum, real-time communication, and progress tracking drive the growth of the segment. Ambow Education, ArborBridge, Chegg Inc., etc., are key players in this segment.

The on-demand tutoring segment is the highest contributor to the market and is expected to grow at a CAGR of 16.3% during the forecast period. In 2021, the on-demand tutoring segment dominated and brought in more than 75% of total market revenue. With the personalized platform that on-demand tutoring provides, students can advance according to their capacities and learning rate. Additionally, on-demand tutoring combined with analytics software enables content creators and tutors to get up-to-the-minute updates on a student's progress. The on-demand tutoring market is expanding favorably due to the rapidly growing adoption of customized and personalized learning.

Real-time communication between the tutor and students is a feature of structured online tutoring. The increasing popularity of live teaching sessions conducted via videoconferencing can be used to explain the growth of structured tutoring. For instance, the Indian EdTech company BYJU'S began offering live virtual classes in July 2020. A new program that provides individualized after-school tuition classes called BYJU's classes was recently launched.

Based on course type, the global market is bifurcated into language courses and science, technology, engineering, and mathematics (stem) courses.

The science, technology, engineering, and mathematics (stem) courses segment owns the highest market share and is expected to grow at a CAGR of 16.1% during the forecast period. This high percentage of STEM courses is explained by the popularity of online learning among high school students. Several EdTech companies are developing STEM courses for middle and high school students. For instance, to provide free on-demand tutoring to college students, American education company McGraw Hill teamed up with TutorMe, LLC, a U.S.-based provider of education services, in July 2020.

This segment includes a wide range of languages, from popular global languages such as English, Spanish, French, and Mandarin as well as less commonly taught regional languages. The flexibility of online platforms enables both self-paced study and live, interactive sessions with certified teachers. These courses often make use of multimedia tools, gamification, and personalized feedback to increase learning engagement and effectiveness. Increasing globalization, the need for cross-cultural communication, accessibility, and technological developments are driving the growth of the segment. Key players in this segment are language learning platforms like Duolingo, Rosetta Stone, and Babbel.

Based on duration, the global market is bifurcated into short-term courses and long-term courses.

The short-term duration segment includes courses that can be finished in a relatively short amount of time ranging from a few days to several weeks. Short-term courses are specifically popular among individuals who want to rapidly learn new skills or improve existing knowledge without committing to a long-term training program. Short-term courses are generally more affordable than long-term programs. Cost-effectiveness, immediate skill acquisition, flexible learning options, and increased accessibility drive the growth of the market. Key players for short-term duration courses segment Udemy, Coursera, LinkedIn Learning, etc.

The long-term courses segment is the highest contributor to the market and is expected to grow at a CAGR of 15.2% during the forecast period. This high segment share of long-term courses can be attributed to the fact that they are valuable. It allows for greater efficiency and helps learners learn in-depth about the reskilling course. For students with limited resources, long-term courses have been adopted for ongoing improvements in teaching strategies. For instance, the Sichuan province of China's 100tal.com education company has 252 teaching centers covered. More than 70,000 students with limited resources were taught Mandarin as part of the project in 72 schools.

The rise in popularity of short-term diploma courses with an on-demand tutoring model can be attributed to the expansion of the short-term courses market. For instance, Alison, a free online education platform in Ireland, offers short-term diploma and certificate programs with average run times of 2 to 3 hours and 8 to 10 hours, respectively. It has more than 11 million users worldwide and offers courses on many subjects, along with an on-demand tutoring option.

Recent Developments

• August 2022- Chegg, Inc., the industry leader in student-focused online learning, announced the expansion of its faculty-focused platform University to Canada and the UK.
• November 2022- Adam Caller, education consultant, CEO, and founder of Tutors International, an elite private tutoring company, announced a partnership with Kabuni Metaverse, a leader in immersive technology.