India Experiential Learning Market Outlook to 2025

The report titled publication “India Experiential Learning Market Outlook to 2025- Driven by Growing Awareness About Early Childhood Development Backed by Availability of Popular Kids-Friendly Themes”provides acomprehensive analysis of the K8 Activity Kit Subscription Industry and K12 E-Learning Industry in India. The report provides the industry size basis revenue and number of subscribers of the activity kit subscription industry in India, ecosystem analysis, subscriber profile basis various socio-demographic variables, market segmentations, cost-revenue model, organizational structure analysis, marketing strategies, competition benchmarking, porter five force analysis, COVID impact, future projections and expected trends & challenges.

The report also talks about new trends witnessed in the industry along with new strategies & future way forward for an K12 E-Learning to move ahead. The report discusses the paid and unpaid e-learning users profile, funding & M&A activities, detailed competition analysis in e-learning and concludes with analyst recommendations providing a go-to-model for the industry.

K8 Activity Kit Subscription Industry

Market Overview

The activity kit industry in India is at its nascent stage and has penetrated <1% of its target addressable market. The industry has gained prominence since 2016 with entry of new players. The subscription price is highly volatile due to presence of demand seasonality. Over the review period, the activity kit market in India observed a healthy growth both in terms of revenues as well as number of subscribers.

By Age Group

Majority of activity kit subscribers are from 6-10 years age group category followed by 4-6 years, 2-4 years, 10-12 years and +12 years. There is a slight shift in focus towards 2-6 years old category after introduction of Intellikit and Xplorbox. The 2-6 years category is a easy audience from business perspective as the themes and boxes are simple for younger kids, there is no demand seasonality and parents prefer activity kits over e-learning to avoid the harmful screen time for young kids.

By Subscription Type

Majority of subscribers prefer 3 month subscription followed by 6 months, 12 months and others, however majority of revenue comes from 6 month subscribers due to huge difference in subscription price. Due to lack of awareness subscribers usually use 3 month subscription as a trial subscription. Majority of parents subscribing to activity kits are corporate employees and they prefer 6 months over 12 months to avoid a massive one time payment.

By Region

Majority of demand comes from tier 1 cities including Delhi, Bangalore, Mumbai and Chennai followed by tier 2 and tier 3 cities. Social media marketing and B2B partnerships with schools will help companies to penetrate in different tier 2 and tier 3 cities.

Competition Scenario

The activity industry faces highly concentrated competition with top 2 companies accounting for +90% of market share. There are ~10-15 firms competing on the basis of pricing, product quality, and brand value, type of activities, geographical presence and R&D strength.

Future Strategies-The Way Forward

The industry revenue is expected to grow with a double digit CAGR in the next 5 years. The industry will face competition from international players such as Mel Science. Companies are expected to venture into B2B business which in turn will enable them to expand their B2C presence. With increasing traction towards interactive learning, companies can add digital app based engagement in the package. Company can provide digital games and align the solution to the curriculum.

K12 E-Learning Market In India

Industry Overview

The K12 E-Learning industry is as its growth stage in India. The industry revenue is growing with a double digit CAGR and the industry experienced drastic increase in revenue and number of paid users during the lockdown in 2020. Increasing internet penetration and shift in preference from rote learning to experiential learning has been driving the growth in the industry. During 2020, live classes and new-age skill development courses such as coding, web development, etc. has gained traction. New business models such as revenue sharing and commission model has also emerged recently.

By Grade

Majority of revenue comes from Grade 9-12 users followed by 6-8 grade, 1-5 grade and pre-primary. Pre-primary grade has gained traction after introduction of BYJU’s Early Learn app in collaboration with Disney. The demand from Grade 1-8 grade is expected to grow at the fastest pace with introduction of state exams for class 3^rd, 5^th and 8^th according to the NEP 2020.

Competition Scenario

The competition in the industry is fierce, with companies competing on the basis of technological stack, teaching methodology, geographical presence, product portfolio, price and after sale service. There is increasing market consolidation with companies with heavy financial backing are taking over other ed-tech companies providing different type (school curriculum assistance, test-prep, coding, etc.) of courses. For instance, BYJU’s acquired WhiteHatJr to provide coding coaching and Aakash acquired Meritnation to expand in school curriculum coaching for younger age groups.

Future Strategies-The Way Forward

The E-Learning industry is expected to take over the unorganized tuition classes industry in India. After implementation of lockdown in 2020 and introduction of NEP 2020 use of experiential learning platforms have drastically increased. E-learning players are expected to take over activity kit providers to provide a one-stop-shop to its users. Increasing funding by local & international investors will enable company to implement big marketing campaigns to drive the growth in number of paid users. 

Key Segments Covered

• K8 Activity Kit Industry Revenue By Age Group

2-4 years

4-6 years

6-8 years

8-10 years

10-12 years

+12 years 

• K8 Activity Kit Industry Revenue By Subscription Type

3 Months

6 Months

12 Months

Others (1 Month, 2 Month & 9 Month)

• K8 Activity Kit Industry Revenue By Regions

Tier 1 Cities

Tier 2 Cities

Tier 3 Cities

• K12 E-Learning Industry Revenue By Grade

UKG and LKG

Grade 1-5

Grade 6-8

Grade 9-12

Key Target Audience

• E-Learning Companies
• Activity Kit Companies
• Toy Companies 
• Schools
• Pre-Schools
• Government Authority

Time Period Captured in the Report:

• Historical Period: FY’2015-FY’2020
• Forecast Period: FY’2020-FY’2025

Companies Mentioned:

• Indian K8 Activity Kit Subscription Competitive Ecosystem

Flinto (Flintobox and Flintoclass)

Magic Crate

Xplorabox

Einstein Box

Intellikit

Math Buddy

• Indian K12 E-Learning Competitive Ecosystem

BYJU’s

Meritnation

Cuemath

Toppr

Vedantu

PlanetSpark

CampK12

Key Topics Covered in the Report

Target Addressable Audience, Serviceable Addressable Market and Share of Market for Experiential Learning

Existing Gaps in Experiential Learning Industry

Supply Ecosystem

Marketing Strategies, Marketing Expenditure and Customer Acquisition Cost

Organizational Structure of Activity Kit Company

Cost-Revenue Model and Unit Analysis

Working Model in E-Learning Industry

Revenue Streams in E-Learning Industry

Technological Stack

Impact of COVID

Funding Rounds and M&A Activities

Demand Side Survey Analysis

Impact of NEP 2020

Analyst Recommendation