India Test Preparation Market Report 2020 - Ken Research

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India Test Preparation Market Report - 2020
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• How India Test Preparation Market Is Positioned?
• The test preparation market in the country has
  been immensely driven by the growing user base
  and increasing number of aspirants appearing for
  competitive exams every year. In FY2015, the
  test preparation market in India clocked revenue
  worth INR billion which increased by from
  INR billion in FY2014. The test preparation
  market has experienced a substantial growth in
  the last few years. There are several factors
  which have led to this growth such as rising
  internet penetration, surge in the number of test
  preparation centres, increasing number of
  smartphone users and also the establishment of
  test preparation centers. Additionally, the
  online courses provided by big players like
  Aakash and Career Launcher have positioned the
  market with a great potential of in FY2010 to
  in FY2015. The increasing number of online
  test preparation portals and the ease of usage
  provided by them has also impelled the market
  growth.

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• The online segment of the test preparation
  market garnered of the market revenues as
  observed in FY2015. The rapid growth in this
  segment can be attributed to increased number of
  students appearing for the entrance exams
  enrolling themselves under e-learning courses.
  The online courses do not span over long
  durations and sessions can be availed as per the
  convenience of the user. Classroom coaching has
  been the major segment of the coaching industry
  and is responsible for generating substantial
  revenues of test preparation market in India. The
  Indian classroom test preparation accounted for
  approximately INR billion in FY2015 which grew
  from INR billion since FY2010. In FY2015, the
  total number of enrolments accounted for
  million with an annual CAGR of since FY2010
  wherein the total enrollments were approximately
  million in absolute terms.

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• How the India Test Preparation Market has
  Performed?
• The overall sales of online modules through
  system integrators and other online and offline
  provision of coaching in India generated revenues
  of INR billion in FY2015 and represented a
  CAGR of during the period, FY2010-FY2015.Comp
  anies such as FIITJEE, IMS, Aakash, Career
  Launcher, T.I.M.E and MT Educare among others
  have grabbed significant positioning in the
  domestic test preparation market. The domestic
  landscape is very fragmented in the country with
  presence of many small players who occupy
  regional markets. However, tech start-ups like
  Embibe and Toppr are gradually creating a niche
  for themselves with through offerings of
  specially designed tailor cut modules as per the
  student needs. Most of these start-ups focus on
  data analytics offerings that are expected to
  carve a decent proportion of the overall market
  as organizations tend to move away from the only
  classroom coaching model. In order to cater to
  the mounting demand of test preparation coaching
  by the growing number of aspirants and expanding
  unorganized sector, the competition amongst the
  established vendors has intensified in the recent
  past.

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• There has been a sea change in the
  organizational attitude towards the coaching
  provision as more and more students are being
  attracted towards online coaching in the past few
  years. Institutes have been allotting
  comparatively higher proportion of its budget
  towards online coaching services than in the
  past. The market is expected to grow at a CAGR
  of during the period FY15-FY20 and the share
  of online coaching in the total revenues is
  expected to grow from in FY15 to in FY20.
  The offline institutes have expanded their
  presence in Tier-2 and Tier-3 cities in recent
  years. The aspirants for competitive exams are
  increasing every year. Owing to this there is a
  rising pressure on these institutes. With rising
  number of enrollments annually, the institutes
  have to expand their physical presence. In the
  previous few years the institutes have increased
  the number of centers at an average of 2-3
  centers per year. Initially, states used to
  conduct their own entrance exams for admissions.
  However with increased internet penetration,
  education delivery models have become innovated.
  High cost associated with conducting the entrance
  tests at a state level and being stressful for
  both students and parents, some of the tests with
  the purpose to make entry into IIT, NIT and other
  national institutions now are regulated by one
  exam-JEE Main. Similarly, students focusing on
  making the career in banking field now have to
  give one exam-IBPS.

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• Which Segments Have Driven Changes In Test
  Preparation Market?
• It has been witnessed that graduate courses
  has dominated the test preparation market with a
  share of during FY2015. More than of
  students enrolling for competitive exams
  generally opt for coaching to nurture their
  skills. In FY2010 the share of graduate courses
  was recorded at . However, over the years the
  share of revenues from graduate courses has
  declined. In FY2010 the share of graduate
  courses was recorded at . However, over the
  years the share of revenues from graduate courses
  has declined. This is primarily due to
  improvements in school education that keep
  students away from attending coaching classes and
  develop their skills through self learning and
  school education. The share of job based courses
  has increased over the years. In FY2010, the
  share of job based exams was recorded at ,
  while in FY15 the share was recorded at in
  terms of revenues. The excessive competition in
  the private sector has led the aspirants to opt
  for the government jobs. The share of the
  postgraduate sector has remained almost same over
  the years.

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• In FY2010 the share of postgraduate
  courses was recorded at . There was a marginal
  increase in the share of postgraduate courses
  which accounted for in FY2015. The coaching
  for exams like CAT, GATE, and MAT are highly
  popular amongst aspirants and gather a major
  chunk of enrollments. The share of the organized
  sector in terms of enrollments was recorded at
  45 of the total enrollments. However, the share
  in terms of revenue was gauged at 60 of the
  total revenue. The share in terms of revenues is
  lower than the organized sector as the fees
  charged is not very high. The centers tend to tap
  the student base majorly in the rural areas. In
  FY2015, enrollments in the northern region under
  the offline segment were recorded at . However,
  in the online segment, enrollments have been
  originated from northern region. Uttar Pradesh
  was ranked in FY2015 in terms of enrollments
  for JEE in FY2015. A total of lakh JEE
  aspirants were from Uttar Pradesh in FY2015. In
  FY2015 enrollments in the Southern region were
  recorded at under the offline segment. On the
  other hand in the online segment the enrollments
  were recorded at . The east zone is ranked
  fourth in the online segment with an annual
  enrollment of for FY2015. It fares better in
  the offline segment after recording annual
  enrollment rate of in FY2015.

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• What is the Decision Making Process of an
  Individual while Enrolling for coaching?
• Students in such competitive environment
  have the foremost aim of cracking the entrance.
  The success rate is thus the most important
  parameter. It acts as an assurance to the
  students when they get themselves enrolled in any
  test preparation institute. A boost to the self
  confidence and self belief helps students achieve
  better results. The pedagogy of the institute
  with higher success rate is never doubted by the
  students. With increased competition in the
  industry the pricing has become really important
  as students have substantial alternatives
  available in the test preparation market. Thus,
  it would not be wrong to say that price
  differential also plays a significant role.
  Faculty qualification adds to the brand value of
  the coaching institute. More is the number of
  faculties from IITs and IIMs more is the trust
  in the institution. The centers that are located
  in the more residential areas or main city centre
  are likely to enroll more students. The centers
  that are in close vicinity of the students are
  preferred even if the faculty is not renowned.

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• The students prefer the time saved to be
  spent on self study. The number of students in a
  batch can run in both directions and depends on
  the reputation of the institution. Some students
  enroll at places even when the batch size is
  80-100 students because of the quality of
  content. Having an active website or mobile
  applications increases the credibility of the
  institution. The students can access content from
  the mixed classes and are notified in advance
  about any important change.
• What Have Been The Trends And Developments In The
  Test Preparation Market In India?
• New innovative preparation ways such as
  video tutorials and online coaching have
  transformed the learning experience. The
  introduction of concepts such as real time
  teaching and conversation has added significance
  to the online portals. Advancement in the
  technology will help in the growth of India test
  preparation market as the number of e-enrollments
  shall rise and there shall be better content
  available.

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• The online test preparation market revenue
  in India recorded a CAGR of for the period
  FY10-FY15 and is estimated to grow at a CAGR of
  for the period FY2016-FY2020. The online
  test preparation market has gained significance
  since the major examinations have shifted to
  conducting the exams online. With the advancement
  in technology in all aspects, from registrations
  to result declaration, the online market shall
  gauge higher revenues in the future years.
  However, for complex subjects online test
  preparation companies need to come up with
  extensive preparation material. Given the rising
  funding in online test preparation startups, the
  revenue of the test preparation market is
  expected to grow at a CAGR of , while the
  revenues for the online test preparation market
  are expected to grow at a CAGR of for the
  period FY16-FY20 and thus it has successfully
  attracted investors who can see through the
  business opportunities the sector holds. Online
  education is still in a nascent stage and has
  just begun to boom in India. The major players
  have attracted huge investments to make the
  quality content available to the students. For
  instance, Career Point, had attracted funds from
  financial services players Franklin Templeton and
  Nadathur Group of around INR 104 crores in 2009.

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• What role does Online Test preparation Plays in
  the Overall Test Preparation Market
• The online test preparation market posted
  revenues worth INR billion in FY2015 which
  multiplied itself from INR billion in FY2010
  to grow to its current value. The online test
  preparation market has not yet grown to its full
  potential but over the period of time due to the
  changing outlook of the youth the importance of
  online test preparation has increased. The online
  test preparation market has been a key driver of
  growth now in the overall test preparation market
  and it had a share of in the total test
  preparation market in FY2015 which gauged at INR
  billion. The rising penetration of the internet
  through broadband and 3G technologies has
  increased the user base of online test
  preparation portals. The core teaching
  methodology that is one teacher and a few
  students has not changed but the reach is limited
  as there is a shortage of skilled teachers and
  the experienced teachers shall be available to
  teach only a limited few. From a business
  perspective, this is a problem of excessive
  demand and limited supply. From a technical
  perspective, this is an opportunity and it can be
  grabbed by introduction of cutting-edge
  technology.

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• The online education market in India is
  still in its nascent stage. The swarm of
  opportunities is riding its way to the test
  preparation market. The poor teacher to student
  ratio in India which was at in primary and in
  upper primary during FY15 is driving the demand
  for online test preparation. The online education
  market in India is expected to grow at a CAGR of
  percent over the period 2015-2020. The age
  group of 19-25 has a major chunk in the offline
  test preparation market having a share of in
  the test preparation market while on the other
  hand the people in the age group 25 and above
  have a dominant share in the online test
  preparation market with of the total share in
  FY15. The online test preparation companies have
  innovative detailing and charts/graphs/tables are
  shown on parameters such as accuracy, marks
  distribution, rank, and percentile. The share is
  lower in online segment even though the course
  pricing is relatively cheaper from the offline
  fee because students have to pay an initial
  amount to be able to write these exams. The
  introduction of concepts such as real time
  teaching and conversation has added significance
  to the online portals.

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• How Is The Competition Structured In India Test
  Preparation Market?
• India test preparation market is estimated
  at INR billion in FY15. The organized market
  for the test preparation market comprises of 125
  companies. of the total enrollments which were
  recorded at million in FY15 came from the
  organized sector. However, in terms of revenue
  of the total revenue has been reported from the
  organized sector. FIITJEE is the most trusted and
  favored upon in the Indian market. The company
  cut out a market share of around in terms of
  revenues in FY2015 and is determined to further
  penetrate the market. The brand value of the
  institute and a high success rate is the major
  revenue generator for the company. Currently IMS
  has around of the market share in the
  industry. Its inception dates back to four
  decades ago and it has stuck to coaching for
  management segment. It had a market share of
  in FY2015.

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• Measured against parameters like market
  share, online enrollments and even profitability,
  online test preparation officials have showcased
  enormous growth in the past by growing at a
  phenomenal rate during FY2010-FY2015. As the
  number of internet users and the Smartphone users
  has increased, the momentum is likely to shift
  towards the online test preparation players in
  the market in the coming future. The Indian
  online test preparation has been estimated to
  grow to INR billion by FY2020 with a CAGR of
  in the period FY10-FY20. The offline market
  of the test preparation has grown at a CAGR of
  during the period FY10-FY15. The offline market
  is expected to grow at a CAGR of during the
  period FY2016-FY2020. The market is estimated
  to grow to INR billion by FY2020. The
  emergence of web portals and android/ iOS
  applications has opened an avenue of new money
  making opportunities in the Indian test
  preparation market.

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• Source https//www.kenresearch.com/education-and-
  recruitment/education/india-test-preparation-marke
  t-report/38141-99.html
•  Contact Ken ResearchAnkur
  Gupta, Head Marketing CommunicationsAnkur_at_kenre
  search.com91-9015378249

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