How to Continue Growing your Tutoring Business? (2020 Tutoring Market Trends)

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 Paula Antalffy
analytics business managemet

The Global tutoring market is set to grow and recover from COVID-19, due to increased competition between students. As a business owner being aware of these trends can help inform key business decision and help your business grow.

A new study examining private tutoring and shadow tutoring has found that the market is expected to grow. Tutoring, more specifically the private one-on-one and outside of school sectors have been boosted by increased competition between students. Private tutoring has been shown to help with student focus and learning speed, making it extremely valuable for students in school and in college.

As an agency owner, understanding how your market will grown and change in the future can help you successfully expand your business.

What is driving the tuition growth?

Despite fears surrounding higher education, the pandemic has not slowed down university admissions. The growth of the global tuition market seems to primarily be driven by an increase in competitiveness surrounding entrance exams into schools and universities. 

While there have been fluctuations within the higher education market over the past few years (see graph 1 for US data), university admissions continue to be extremely competitive.

Actual and projected undergraduate enrolment in degree-granting postsecondary institutions, by sex (Autumn 2000-2029)
Actual and projected undergraduate enrolment in degree-granting postsecondary institutions, by sex (Autumn 2000-2029)

Some of the top universities in the world such as Princeton and Harvard University have admission rates as low at 4.5%. It is therefore clear why many parents are turning to private tuition to boost their child’s chances of enrolment. 

Who are the key players?

One of the key players driving the growth in the one-on-one tuition market is China. In the past decade China has invested large sums of money in higher education. China is also keen to welcome international students. While this has been halted by COVID-19, in 2018 China boasted almost 500,000 international students. This made it the third-largest destination for international study.

This huge student population has meant getting into Chinese higher education has become increasingly competitive. In 2019 alone, around 10 million Chinese students applied for nationl college entrance examinations. Since the number of students is continuing to increase, more parents are turning to private tuition to give their children extra support.

What about other key regions?

North America is another key player in the tuition market. Similarly to China, they are seeing an increase in competition among students, especially within higher education. The European Tuition market has also seen growth in recents years as more parents turn to private. 

It is also important not to ignore the Asian Pacific market, which is the fastest growing market within the tutoring industry. This once again comes down to competition among students to get into good schools and universities. As well as China, India has seen a huge surge in demand for tutoring services. According to a survey conducted in 2018, 21% of students in India opted to have some form of private tuition.

Plant growing in a glass pot filled with coins.
Plant growing in a glass pot filled with coins.

What does this mean for business owners? 

It is important to remember that your business does not operate within a vacuum. Being aware of trends within your market can help inform business decisions and direct your business. 

If you are looking to grow your company, this is a good opportunity to explore whether you can enter the Chinese tuition market or generally expand your business to provide school or higher education entrance exam help. If you are already providing services is the key regions and subjects projected to grow, this information can also help you decided where to invest more funding. 

If you are looking to invest in tools which can help you run your business easier, you should explore Tutor Management Software! Click here to find out more!

Looking for more business insights? Read more about how COVID-19 has affected the tutoring market.


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