The demand for educational institutions has picked up, owing to the rise in population. Parents prefer private schools to government ones due to the limited number of English medium government schools. Students of private educational institutions have better exposure to smartphones, electricity, and internet facilities for to avail online classes during the pandemic.
Market insights:
In the wake of the pandemic, universities and colleges embraced a hybrid learning model where private institutions have outperformed government ones. Advanced infrastructure and English-medium learning entice parents to admit their children to private educational institutions. The total number of private educational institutions in India was 3,73,621 in FY 2021. It is expected to reach 4,59,952 units by FY 2027, expanding at a compound annual growth rate (CAGR) of ~3.69 % during the FY 2022 - FY 2027 period.
Impact of COVID-19:
Teachers could not complete the syllabus, exams were postponed, and were cancelled in several cases due to the implementation of intermittent lockdowns. Private institutions completed the curriculum by offering online classes and making course materials available to students. Although schools have reopened in most parts of the country, classroom attendance remains low at around 30%. Although vaccination for 15 years to 18 years have started, most parents are afraid to send their children to school.
Market Influencers:
Market drivers:
Private educational institutions are equipped with advanced facilities. Also, the advanced curriculum followed by private schools are beneficial for getting jobs. International collaborations have encouraged students to enroll in private colleges due to the exposure to exciting courses.
Key deterrents to the growth of the market:
Private institutions tend to focus on providing better infrastructure than quality education. Exorbitant fees in private educational institutions are a major cause of concern for several parents, resulting in a low enrolment rate for higher education.
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