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India Test Preparation Market Report 2020 - Ken Research

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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. – PowerPoint PPT presentation

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Title: India Test Preparation Market Report 2020 - Ken Research


1
India Test Preparation Market Report - 2020
2
  • 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.

4
  • 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.

5
  • 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.

6
  • 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.

8
  • 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.

9
  • 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.

10
  • 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.

11
  • 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.

12
  • 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.

13
  • 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.

14
  • 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.

15
  • 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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