The online education sector, which experienced rapid expansion during the COVID-19 pandemic, continues to thrive, with projections showing it will reach unprecedented levels of growth.
According to data from Stocklytics.com, the global online education market is expected to increase by 40% over the next four years, climbing to an estimated valuation of $257bn by 2028.
Revenue set to rise by $20bn annually
The digital transformation in education, accelerated by lockdowns, has become a permanent and expanding part of the global education landscape. With advances in technology and the growing adoption of AI-powered tools and interactive learning platforms, the online learning experience is now more dynamic and personalised than ever before.
This sustained growth has been attributed to several key factors. Online education offers cost-effective learning opportunities, reducing expenses related to transportation, accommodation, and materials. It also opens up access to prestigious institutions worldwide, removing geographical barriers that have traditionally limited educational access.
Additionally, growing investment in educational technology (EdTech) has improved the quality and flexibility of online learning, appealing to both students and professionals alike. Corporate demand for e-learning, particularly for employee training, has further fuelled the sector’s growth.
The market’s value has nearly tripled since 2017, soaring from $65bn to over $185bn in 2023. According to Statista, this double-digit growth is expected to continue, with an estimated $20bn increase in revenue each year, culminating in a $257bn market by 2028.
University programs set to lead industry growth
A significant portion of this market expansion will come from online university programs. Statista has projected that revenues from this segment will grow by 50%, reaching $180bn by 2028. This makes it the largest and fastest-growing sector in the online education industry, accounting for over 70% of the total market value.
Online learning platforms will also see substantial growth, with revenues expected to rise by 18% to nearly $70bn, while professional certification programs are forecasted to generate $8.4bn by the same year, reflecting a 40% increase.
Over one billion users by 2028
In tandem with rising revenues, the number of users engaging with online education is expected to surge. Statista’s data indicated that more than 860 million people will be using online education platforms, courses, and certification programs by 2024, up from around 360m in 2017.
By 2028, this figure is forecasted to exceed one bn users, with nearly 90% of these users relying on online learning platforms. The number of users enrolled in online university programs is expected to reach 46.5m, marking an increase of 15 million from current levels.
China leading in usage
In the global landscape, China continues to lead the way in online education adoption. Statista’s data revealed that by 2028, one in three online education users will be based in China. Europe and the United States are also considered major markets, with 130 million users projected in Europe and 82 million in the U.S.
As the sector continues to expand, its impact on traditional education models and global accessibility is set to become even more pronounced in the years ahead.