A report released by the Internet and Mobile Association of India (IAMAI) and Grant Thornton Bharat on Friday revealed that the Indian edtech market, currently valued at $7.5 billion, will likely reach $29 billion by 2030.
Despite challenges such as reduced funding post-Covid-19 and corporate governance issues, the sector has seen steady growth over the past decade.
The report stated that increasing aspirations, improved digital infrastructure, and a shift toward online learning have driven this expansion.
The report noted, “The changing aspirations among middle-class families, a competitive job market, and growing awareness of global education standards have pushed stakeholders to embrace alternative learning methods. Edtech platforms have capitalised on this shift by offering interactive, engaging, and personalised learning experiences tailored to the needs of individual students.”
Contribution Of Edtech To GDP
The sector will likely contribute 0.4% to India’s GDP by 2029, compared to 0.1% in 2020.
Key drivers of this growth include hybrid learning models, regional content development, and skill-focused initiatives.
According to the data from Venture Intelligence, the funding in edtech nearly tripled in 2024, reaching $608 million compared to $207 million in 2023.
However, this figure remains significantly lower than the $2.1 billion raised in 2022.
The decline reflects broader economic challenges and cautious investor behavior.
An Economic Times report earlier this month suggested 2024 could be a pivotal year for the edtech sector. The industry aims to recover from setbacks like Byju’s troubles by adopting sustainable business models and delivering measurable outcomes.
With 954.4 million internet subscriptions as of March 2024, edtech companies are expanding their reach into rural areas and tier II and tier III cities, offering affordable and localized content to attract new users.
The report revealed that 86% of respondents consider edtech platforms to be economically viable, emphasizing their position as affordable alternatives to traditional education.
However, high GST rates pose a challenge by increasing costs and limiting accessibility.
Emerging technologies such as generative AI, gamification, and augmented/virtual reality are seen as opportunities to enhance learning experiences.
These tools enable edtech platforms to offer tailored and immersive educational content, addressing the diverse needs of students.
Also Read: Apple Breaks Into Top Five Smartphone Brands In India
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