The online tutoring market is witnessing rapid growth, projected to reach USD 27.63 billion by 2034, driven by the flexibility and personalization of digital education. Key growth factors include the use of AI, adaptive learning platforms, and interactive tools enhancing the learning experience.
Data from market researcher Fact.MR reveals that the online tutoring market is projected to grow from $8.36 billion in 2024 to $27.63 billion by 2034, at a compound annual growth rate of 12.7 percent. This growth is driven by the flexibility and convenience offered by online tutoring, which is particularly beneficial for students in remote or rural areas or those with hectic schedules.
One of the key growth drivers is the personalization of instruction. Online tutors tailor their teaching methods to meet individual student needs, utilizing various tools such as video conferencing, screen sharing, and interactive whiteboards. Furthermore, technological innovations like machine learning, artificial intelligence, adaptive learning platforms, and augmented and virtual reality are enhancing the tutoring experience, making it more effective and engaging.
The rising adoption of AI and digitalization in the education sector has led to significant shifts in teaching and assessment methods. According to the report, education providers are increasingly offering virtual advisory services and personalized learning experiences, which ensure real-time interaction with peers and cater to unique learning styles and interests.
Balancing expansion with access, consistency
However, the market also faces challenges. High fees for personalized online tutoring can be a barrier for students from lower-income families. Moreover, variations in teaching practices between school teachers and coaching classes can lead to confusion among students, negatively impacting their performance and market growth opportunities.
In 2023, on-demand online tutoring accounted for 70 percent of the market share, attributed to the growing adoption of personalized and customized learning approaches. The academic support segment, valued at USD 4.56 billion in 2024, is projected to occupy 52.4 percent of the global market revenue by 2034, driven by students seeking additional tutoring for exam preparation and understanding challenging subjects.
Case study for online education
The EY report, based on data from over 3,000 university students in New Zealand, Australia, and eight other countries, provides significant insights into online learning and its potential to improve access for Māori, Pasifika, and other marginalized communities. Titled “Is your university’s transformation centered on tech or people?,” the report presents a detailed analysis of the current educational landscape and future opportunities.
Key findings show high satisfaction among New Zealand students with their university choices, leading in student contentment. However, about 20 percent of respondents call for enhancements in the quality of online learning. EY partner Chad Paraone (Te Aupōuri, Ngai Tahu) emphasizes that the report mainly reflects the experiences of those with access to higher education, underscoring the specific challenges faced by Māori communities, such as family commitments, financial limitations, and difficulties in physically accessing tertiary institutions.
The study reveals a preference among students for technological investments by universities to improve online education, including enhancing teachers’ skills, better support for online learners, and improved online educational materials. University staff also express the need for more training in blended learning methods.
Driving forces in online education
The demand for short-term online tutoring, valued at $6.17 billion in 2024, is also increasing, with a projected market share of 70.4 percent by 2034. This growth is due to the rising demand for short-term diploma courses aimed at acquiring industry-specific skills for career advancement or salary boosts.
Leading online tutoring solution providers are focusing on expanding their presence globally, ensuring quality control, managing supply chain systems efficiently, and engaging in new developments and collaborations. For example, Canva and Vedantu collaborated in 2021 to launch a unique Design Challenge in India, emphasizing the importance of creativity in education.
The online tutoring market is experiencing significant growth, driven by technological advancements, personalized learning experiences, and increased demand for flexible education solutions. However, it also faces challenges like high fees and variations in teaching practices that need to be addressed to sustain its growth trajectory.
