New Delhi: The ancillary segment of India’s education sector, which includes admissions outsourcing and performance analytics, is set to almost triple in value to $40 billion in the next seven years, according to a report by consulting firm Technopak Advisors Pvt. Ltd.
The sector is estimated to be worth around $15 billion and is expected to increase in size at an annual average pace of 15%, the report said. “Today’s large and growing population of parents aspires for quality education as it is seen to be an investment rather than an expense,” said Enayet Kabir, associate vice-president of Technopak.
The various products and services, whose objective is to improve the learning experience and advance academic outcomes, are becoming increasingly important and valuable, the report said.
“This transition is happening in tandem with...the shift in focus from knowledge to application, from academics to innovation, and from mere rote learning to ‘learning to learn’,” the report said.
The ancillary industry encompasses areas as varied as admissions outsourcing, admission and performance analytics, education facilities management, education tours and technological intervention in classrooms.
The travel education market is largely unorganized and fragmented, Technopak said. It estimates the current market potential of the school travel education market at around $2 billion and expects the size to increase as many international school boards are promoting travel education as part of the experimental model of learning.
“There is a huge untapped opportunity in tier-II and lower-rung cities. Moreover, travel education has thus far been limited to private schools and large scale adoption by central and state government schools is a future possibility,” said the report.
The report estimates the size of the facilities management business at $2.5 billion, with such services being sought for educational, administrative, residential, or sports facilities within a campus.
As school education shifts focus from input-based learning to output-based learning, assessment and performance analytics has also started to play a significant role, the report said.
“From parents to schools and corporate houses, everybody wants to asses the performance of the candidates. With some school boards bringing in continuous comprehensive evaluation system, such assessment of students is only going to be big. It’s a huge market,” said Vasu K. Saksena, chief executive of MeritTrac, an assessment firm of the Manipal Education group.
With government increasing its focus on education, the market is only going to grow. India will spend Rs.4.13 trillion on higher education alone in the five years to March 2017, about four times more than the Rs.84,943 crore allotted during the preceding five years, according to the Plan panel.
Kartik Sharma, founder of education ancillary firm Agnito, said that from kindergarten to colleges, everybody now wants to adopt experimental learning. “Child- or student-centric education is key to improving the quality of education and companies like us try to help formal institutions in achieving it,” he said.