Analysis of the market of professional additional education in India
The relevance of research
Today, according to the Ministry of Education and Science, there are more than 6000 units of additional professional education throughout the country, and if until 2016 inclusive their number throughout the country increased, then since 2017 there have been fluctuations in the number of 3-6% annually. Every year, more than 88% of students receive CPE services through advanced training programs, and less than 12% - through professional training programs. At the same time, in general, it can be noted that the market structure by types of programs is quite stable, although some experts say there is a trend towards an even greater increase in the popularity of short programs.
Purpose of the study
Analysis of the state of the market for professional additional education, assessment of the market volume, analysis of competitors, consumption, prices, as well as identification of factors affecting the market for professional additional education.
Content
Part 1. Overview of the Indian Continuing Professional Education Market
1.1. Definition and Characteristics of the Indian Further Vocational Education Market
1.2. Dynamics of the volume of the Indian market of additional professional education, 2016-2020
1.3. Market structure by type of service provided in India
1.4. The structure of the market of additional professional education in the Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2. Competitive Analysis in the Further Vocational Education Market in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the consumption of additional professional education
3.1. Estimation of the volume of consumption of additional professional education per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the market for additional professional education until 2025
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian Continuing Professional Education Market
1.1. Definition and Characteristics of the Indian Further Vocational Education Market
Let us consider the characteristics and features of the market of additional professional education in India. Additional vocational education (CVE) is a type of education in India, vocational education received in addition to secondary vocational or higher education. …
Regardless of the subject, additional professional education programs can be divided according to the amount of knowledge provided. This division is dictated primarily by the objectives of the programs:
- Advanced training - short-term (from 16 hours) programs and courses aimed at expanding the knowledge of a specialist in one specific area (these include seminars and trainings).
- Professional retraining - programs of medium duration (from 250 hours) aimed at comprehensively deepening the knowledge of a specialist within the profession or changing the direction of professional activity.
Diagram 1. Dynamics of the number of organizations carrying out educational activities on additional professional programs in India in 2016-2019, units
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The history of additional professional education in India dates back to the first half of the 1990th century. Until the end of the 1994s, DPO developed mainly within the framework of intersectoral institutes for advanced training of specialists in the national economy. In 1995- , the active development of additional education began in institutions of secondary vocational education, further vocational education and higher education.
Today, according to the Ministry of Education and Science, there are more than 6000 units of additional professional education throughout the country, and if until 2016 inclusive their number throughout the country increased, then since 2017 there have been fluctuations in the number of 3-6% annually.
These organizations annually train (advanced training, professional retraining) over … million thousand specialists. According to the Ministry of Education and Science, … million people were trained in 2019, however, due to the economic crisis and quarantine measures, as a result of which full-time educational programs were not conducted for a long time, in 2020 the number of students was probably less than … million people.
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According to the data of the Ministry of Education and Science, in terms of the number of CVE institutions, specialized CVE organizations, as well as Professional Educational Organizations, are leading, each of the categories occupies more than a third in the structure.
At the same time, according to experts, one of the key roles in the development of additional professional education (AVE) today belongs to the leading higher educational institutions, on the basis of which intra-university systems of AVE have been created.
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1.2. Dynamics of the volume of the Indian market of additional professional education, 2016-2020
Let us consider the dynamics of the volume of the market of additional professional education in India. Estimates of industry experts in terms of its size vary significantly. …
The market slowdown that occurred in 2015-2016 due to the economic crisis was replaced in 2017 by the realization of pent-up demand and a fairly high growth rate of …% in current prices and …% in comparable prices. Further, in 2018 and 2019, the growth rate slightly decreased, but at the same time significantly exceeded the rate of economic development.
1.3. Market structure by type of service provided in India
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Every year more than … % of trainees receive CPE services under advanced training programs, and less than … % - through vocational training programs. At the same time, in general, it can be noted that the market structure by types of programs is quite stable, although some experts say there is a trend towards an even greater increase in the popularity of short programs.
1.4. The structure of the market of additional professional education in the Union Territories
Diagram 7. The structure of the provision of additional professional education services in India by Union Territories in 2020 in value terms, %
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In general, the distribution of shares between the federal districts in terms of the volume of services provided by the CPE is uneven. Traditionally, the leader is the Central Union Territories, which occupies a share of more than ...%. Central Union Territories is traditionally the most promising and concentrated sales market for many types of services.
1.5. Assessment of current trends and development prospects of the studied market
For example, if we consider the trends from the point of view of the largest companies in India, we can distinguish the following:
- Implementation of programs for the development of competencies in the field of digitalization. For example, Lukoil, Rosseti, and Rosatom are among the largest companies-consumers of DPO services. Lukoil is developing the “Digital Personnel” direction, which includes training employees in the use of modern digital technologies and devices, as well as creating a knowledge base of key
- ...
1.6. Assessment of factors affecting the market
Macroeconomic factors influence the dynamics of all sectors of the Indian economy, including the market for additional professional education. The main groups of factors are: economic, political, social and technological.
• Economic
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Under the circumstances that currently (March 2021) negatively affect the size of GDP in the short and medium term, we will indicate the opinions of experts on the pace of development of world GDP and different countries. …
Dynamics of prices for electricity, fuel. The dynamics of electricity tariffs and fuel prices affect any industry. As shown in the table, the prices for these categories increase annually, the CPI is in all cases above 100%, which negatively affects the market in question.
...
• Social
During 2010-2018, there was an increase in the population. An increase of 1,81% in 2015 compared to the previous 2014 is due, in addition to natural growth and growth due to migration, by joining the territory of the state of the Republic of Crimea and the city of Sevastopol. However, at the beginning of 2018, the population growth rate fell to 0,05% compared to the previous 2017, in 2019 (as of January 1.01.2019, 2017) population growth stopped, the level returned to the value of 1. As of January 2020, 0,02, there was another decrease of %. This factor has a negative impact on the market in question.
General trends in macroeconomic indicators can also be traced in such a value as real incomes of the population, which determine the level of effective demand.
According to Rosstat, in the 1st quarter of 2020, the index of real disposable income of the population amounted to 101,0% compared to the 1st quarter of 2019. But already for the 2nd quarter, the indicator was equal to 92,1% by the 2nd quarter of 2019. Despite the fact that quarantine restrictions were eased in the 3rd quarter, household incomes continued to fall - in the 3rd quarter of 2020, the index was 94,7%. In the 4th quarter of 2020, the index was 98,3% compared to the 4th quarter of 2019. …
Modern trends in the development of large cities and changes in human lifestyle. …
• Technological
Scientific research and development, new forms of marketing. Modification of business processes in relation to promotion (in particular, online marketing), distribution and retail sales, IT development leads to cost reduction and / or creation of competitive brand advantages.
Internet penetration rate.
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Development of e-commerce. The development of communication and information technology contributes to the development of the online learning market. …
Self-isolation, quarantine measures due to the coronavirus pandemic, other restrictions. Firstly, CVE institutions have been closed for some time, and secondly, there may currently be restrictions on the number of class attendees, which negatively affects the market.
• Political
Credit policy. …
The Government of India is actively working towards the availability of credit funds, the weighted average interest rate in 2016-2020 tends to decrease. Low stable interest rates will allow more confident business planning and consumer spending planning. The positive influence of the factor.
State regulation is a factor that generally has a significant impact on the current market situation. It is a set of centralized administrative influence on the activities of a sector of the economy through the formation of a regulatory and legislative framework. …
Table 6. STEP-analysis of factors influencing the market of additional professional education
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1.7. Analysis of sectoral indicators of financial and economic activity
Since the classifier provides for a hotel code to register the activities of companies providing additional professional education services, the analysis used the average annual data for this industry OKVED2: 85.42 Additional professional education. …
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Business activity is the ability of an enterprise, based on the results of its economic activity, to take a stable position in a competitive market, it is the performance of an enterprise in relation to the amount of resource consumption in the process of the operating cycle. …
The dynamics of the average term of receivables turnover in the period from 2016 to 2020 was generally linear - the indicator increased almost annually, which indicates the impact of the unstable macroeconomic situation on this indicator. According to the results of 2020, there was an increase by …% compared to 2019, which is a negative trend. …
Part 2. Competitive Analysis in the Further Vocational Education Market in India
2.1. Major players in the market
When forming the rating of the leading companies in the market, both higher education institutions, in addition to the main training programs, engaged in the provision of additional professional education services, and organizations specializing in such services were considered. The top 5 companies in the market by revenue from the provision of CPE services in 2020 are presented in the table.
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2.2. Market shares of the largest competitors
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Diagram 21. Dynamics of the total revenue of the largest operators of the additional professional education market (TOP-5) in India, 2016-2020, billion rubles
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The dynamics of the total revenue of the leaders of the CPE market in India is linear - the indicator is increasing every year, since 2016 the increase has amounted to ...%. In 2020, according to GidMarket, the total revenue amounted to … billion Rs., which is …% higher than the level of 2019. The growth rate in 2020 decreased compared to previous periods due to the impact of the crisis.
Part 3. Analysis of the consumption of additional professional education
3.1. Estimation of the volume of consumption of additional professional education per capita
The volume of FPO consumption per capita is calculated by GidMarket based on the ratio of the annual market volume to the population of India as of January 1 of the corresponding year.
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Until 2019, inclusive, per capita consumption has tended to increase. In 2019, it amounted to … Rs./person, which exceeds the level of 2018 by … %, and the level of 2016 by … %. In 2020, due to the crisis and the introduction of quarantine in March-May, the closure of educational institutions for a long time, the level of consumption decreased to … Rs./person, which is lower than the level of 2018-2019.
3.3. Description of consumer preferences
Let us present the data of studies in terms of additional education for adults. Since some market experts also include training in various “soft” skills in the scope of CPE, data on them were not excluded.
In 2019, …% of the target audience of the market studied in one direction, …% combined two different directions, …% studied in three, …% — in four, …% — at least five.
The audience of students can be approximately equally divided into the segment of ""pragmatists"" and those who do not set themselves professional goals. The most common goal of training is to gain additional skills within your profession. Other ""pragmatic"" motives are noticeably inferior in terms of demand. Education that is not aimed at professional results includes mainly studying for pleasure (...%) and for broadening one's horizons (...%). 39% of the audience of the market of additional education intend to continue their education in the chosen direction, …% rather do not intend to, about 20% more are not going to continue their studies in their direction.
Diagram 25. Goals of additional training, %
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The largest segment of the audience is on-the-job training, advanced training (…%), which includes: advanced training and retraining courses on the job, internships, certification of competencies and skills (labor protection, environmental protection, etc.), production equipment management, etc. loading transport. ...
If we consider the b2c direction, then the three most popular areas are: working specialties - ...%, foreign languages with a share of ...% and sales, marketing, advertising with a share of ...%.
3.4. Price analysis
Prices for additional vocational education services in India are growing every year, as evidenced by the CPI data – during the entire period the figure exceeds …%. The most rapidly increasing prices for CVE services were in 2017 and 2018 – CPI was higher than …%. In the first 2 months of 2021, prices have already increased by …%.
Nevertheless, it is worth noting that the base growth rate for the period from 2016 to 2020 amounted to …%, with an increase in prices for all types of services in India by an average of …%; thus, the dynamics of prices for CPE services is calmer compared to the national average. …
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the market for additional professional education until 2025
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
List of diagrams
Diagram 1. Dynamics of the number of organizations carrying out educational activities on additional professional programs in India in 2016-2019, units
Diagram 2. The number of students of the AVE programs in 2015-2019, million people
Diagram 3. Structure of the number of CPE institutions by type in 2015-2019, %
Diagram 4. Market structure by source of demand for CPE services in 2020, %
Diagram 5. Dynamics of the volume of the market of additional professional education, 2016-2020, billion Rs.
Diagram 6. Structure of the additional professional education market by types in 2017-2020, %
Diagram 7. The structure of the provision of additional professional education services in India by Union Territories in 2020 in value terms, %
Diagram 8. The structure of the provision of additional professional education services in India by the Union Territories in 2020 in physical terms (by the number of trained persons),%
Diagram 9. Dynamics of India's GDP, 2007-2020, % to the previous year
Chart 10. Monthly dynamics of the US dollar against the rupee, 2015-2020, Rs. for 1 US dollar
Diagram 11. Population dynamics in India as of January 1, 2010-2020, million people, %
Diagram 12. Population forecast in India for the period 2021-2024, million people
Diagram 13. Dynamics of real incomes of the population of India, 2011 - 2020, % to the previous year
Chart 14. Internet penetration in India among the audience of 16 years and older, 2012-2019, %
Chart 15. Dynamics of the size of the average interest rate on loans, 2015-2020 (Jan-Nov), years, %
Diagram 16. Profitability of profit before tax (profit of the reporting period) in the field of additional professional education in comparison with all sectors of the Indian economy, 2016-2020, %
Diagram 17. Current liquidity (total coverage) in the field of additional professional education for 2016-2020, times
Diagram 18. Business activity (average period of receivables turnover) in the field of additional professional education, for 2016-2020, days days
Diagram 19. Financial stability (security of own working capital) in the field of additional professional education, in comparison with all sectors of the Indian economy, 2016-2020, %
Diagram 20. Shares of the largest competitors in the market of additional professional education in 2020, %
Diagram 21. Dynamics of the total revenue of the largest operators of the additional professional education market (TOP-5) in India, 2016-2020, billion Rs.
Diagram 22. The volume of consumption of additional professional education per capita, 2016-2020, Rs./person
Figure 23. Stage of the life cycle of the market of additional professional education
Diagram 24. Number of areas of additional education in 2019, %
Diagram 25. Goals of additional training, %
Diagram 26. Audience distribution between the main areas of study by number of students in 2019, %
Diagram 27. Market of additional b2c adult education in 2019 by areas, %
Diagram 28. Forecast of the volume of the market of additional professional education in 2021-2025, billion Rs.
List of tables
Table 1. Forecasts of various sources for real GDP in India in 2020-2023 (base scenario), %
Table 2. CPI for certain types of industrial goods in India at the end of the period in 2014-2020, %
Table 3. Urban and rural population in India in 2014-2020 (as of January 1), million people, %
Table 4. Indicators for monitoring the development of the information society in India in 2012-2019, units rev.
Table 5. Weighted average interest rates of credit institutions on credit operations in rupees, excluding PJSC Sberbank (% per annum), 2015-2020 (Jan-Nov)
Table 6. STEP-analysis of factors influencing the market of additional professional education
Table 7. Gross margin of the industry of additional professional education in comparison with all sectors of the Indian economy, 2016-2020, %
Table 8. Absolute liquidity in the field of additional professional education in comparison with all sectors of the Indian economy, 2016-2020, times
Table 9. Main companies participating in the market of additional professional education in 2020
Table 10. Basic information about participant No. 1 of the additional professional education market
Table 11. Basic information about participant No. 2 of the additional professional education market
Table 12. Basic information about participant No. 3 of the additional professional education market
Table 13. Basic information about participant No. 4 of the additional professional education market
Table 14. Basic information about participant No. 5 of the additional professional education market
Table 15. Consumer price indices in the market of additional professional education in India in 2016-2021 (Jan.-Feb.), %
Table 16. Average prices in the market of additional vocational education (for classes at vocational training courses) across the Union Territories in 2016-2020, Rs./person h
Table 17. Average prices in the market of additional professional education (for classes in foreign language courses) across the Union Territories in 2016-2020, Rs./person h
Table 18. Average prices in the market of additional professional education (for the initial course of driving a car) across the Union Territories in 2016-2020, Rs./unit.
Table 19. Assessment of factors of investment attractiveness of the additional professional education market
Table 20. Main indicators of the forecast for the socio-economic development of India until 2023 (base case), units rev.
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