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What is the global market-size (TAM) for the online tutoring and e-learning industry?
Hi! Thanks for your question about the global TAM for online tutoring and e-learning. Here's the short answer: these markets are sized separately in several sources. Our research puts the 2016 size of the e-learning market between $173.3 billion and $176.9 billion and the online tutoring market at $81.5 billion, for a total of between $254.8 billion and $258.4 billion.
Read on for my deep dive!
OVERVIEW
The sources we found suggest that e-learning and online tutoring are separate markets. Online tutoring, like in-person tutoring, generally consists of real-time person-to-person sessions, while e-learning is a broader term that encompasses more one-way, pre-prepared learning materials that are hosted online. As a result, while the products are similar, the markets appear to be considered separately.
Several market reports are available for both e-learning and online tutoring. Where they differ in size or growth rates, we've included a range. In cases where these reports offered older or partial market sizes, we've estimated based on growth rates and market shares.
FINDINGS
In 2015, the global market for e-learning was worth an estimated $165 billion, with a CAGR of between 5% and 7.2%. Experts predict that this market will be worth between $240 billion and $345 billion within the next ten years. Based on these market size and growth figures, we can estimate that the global e-learning market was worth between $173.3 billion and $176.9 billion in 2016.
According to Technavio, North America had 31% of the online tutoring market in 2016 at a value of $25.27 billion. Based on this percentage, the global online tutoring market was worth $81.5 billion ($25.27 billion / 31%) in 2016. This report estimates a 14% CAGR between 2017 and 2021. A sample report from Technavio, with more accurate market size and growth data, is available here.
All told, the markets for e-learning and online tutoring were worth between $254.8 billion and $258.4 billion in 2016.
CONCLUSION
In the online education industry, e-learning tends to mean pre-made, one-way learning resources, while online tutoring consists of real-time person-to-person sessions hosted online. As a result, these markets are sized separately in reports. Based on our research, the e-learning market was worth between $173.3 billion and $176.9 billion in 2016, and the online tutoring market was worth $81.5 billion. Altogether, these markets totaled between $254.8 billion and $258.4 billion that year.
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