According to data available on Statista, the online education industry is expected to grow at an annual growth rate (CAGR) of 10.68% between 2022 and 2026. The industry was worth just $65.61 billion in 2017 As shown above, the annual revenue is expected to reach $148.57 billion in 2022. In five years, the industry size is expected to increase by 126.4%.
It does not look like the growth rate will slow down in the coming years. In 2023, the industry is expected to generate $168.03 billion in revenue, indicating annual growth of 13.1%. By 2026, annual revenue is expected to reach $222.99 billion.
If we compare the revenues of 2017 to those of 2026, we see an increase of 240%. Consequently, the online education industry is expected to more than triple its revenue within a decade.
The online education sector mainly includes online university education, online learning platforms and professional certificates.
Most of the industry’s revenue is generated by online university education, while the contribution of professional certificates is minimal. In 2022, online college education will generate $86.63 billion in revenue, or 58% of all industry revenue. E-learning platforms will generate $57.25 billion in revenue, or 38.5% of overall revenue. The remaining part is allocated to professional certificates.
In 2026, the share of university education online is expected to increase to 68%, while the share of online platforms is expected to drop to 28%.
US dominates online education market with $62.3 billion in revenue
The United States is currently the undisputed leader in the online education sector. The US market will produce $62.3 billion in revenue in 2022.
China is the second largest market and is expected to generate $46.9 billion in revenue. The United Kingdom ranks third with an estimated figure of $8.1 billion.
The Indian market is expected to produce $4.8 billion in 2022. Given its size, India is expected to experience rapid industry growth in the coming years. Canada finishes in the top five with $4.2 billion in revenue.