India's edtech market likely to reach Rs. 2,50,850 crore (US$ 29 billion) by 2030: Report

The Indian edtech market, currently valued at Rs. 64,875 crore (US$ 7.5 billion) is projected to grow to Rs. 2,50,850 crore (US$ 29 billion) by 2030, according to a report by the Internet and Mobile Association of India (IAMAI) and Grant Thornton Bharat. Despite facing challenges, such as a decline in funding following the peak during the COVID-19 period and corporate governance concerns, the sector has continued to expand. Growth is driven by rising aspirations, enhanced digital infrastructure, and a cultural shift towards online learning. Middle-class families’ changing expectations, the competitive job market, and increased awareness of global education standards have propelled the sector. Edtech platforms have capitalised on these trends, offering individual students interactive and personalised learning experiences.

By 2029, the sector is expected to contribute 0.4% to India's GDP, up from 0.1% in 2020. Hybrid learning models, regional content adaptation, and skill development initiatives will support this expansion. Although funding in edtech nearly tripled to Rs. 5,259.20 crore (US$ 608 million) in 2024 from Rs. 1,790.55 crore (US$ 207 million) in 2023, it remains significantly below the Rs. 18,165 crore (US$ 2.1 billion) raised in 2022. The decline is attributed to a broader reduction in investments across various sectors due to challenging macroeconomic conditions and more cautious investor behaviour. As of March 2024, India had 954.4 million internet subscriptions, with edtech companies expanding into tier II and tier III cities, offering affordable and customised content. However, high GST rates increase service costs, limiting affordability. The report highlights that emerging technologies, including generative AI, gamification, and augmented/virtual reality, present opportunities to enhance education by personalising learning experiences.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.