Online Education - South Africa

South Africa

Highlights

Revenue in the Online Education market is projected to reach US$500.60m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 9.73%, resulting in a projected market volume of US$725.80m by 2028.
The Online University Education market has a projected market volume of US$355.20m in 2024.
In global comparison, most revenue will be generated United States (US$87.51bn in 2024).
The average revenue per user (ARPU) in the Online Education market is projected to amount to US$56.80 in 2024.
In the Online Education market, the number of users is expected to amount to 12.0m users by 2028.
User penetration in the Online Education market will be at 14.2% in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Online Education market in South Africa is experiencing significant growth and development.

Customer preferences: South African customers are increasingly turning to online education as a convenient and flexible way to acquire new skills and knowledge. The flexibility of online learning allows individuals to study at their own pace and from the comfort of their own homes. This is particularly appealing to working professionals who may not have the time or resources to attend traditional in-person classes. Additionally, the wide range of online courses available caters to the diverse interests and needs of customers, allowing them to choose courses that align with their specific goals and interests.

Trends in the market: One of the key trends in the online education market in South Africa is the increasing demand for technical and vocational courses. As the country continues to develop and modernize, there is a growing need for individuals with specialized skills in areas such as information technology, engineering, and healthcare. Online education providers are capitalizing on this trend by offering a wide range of technical and vocational courses that cater to the needs of the job market. Another trend in the market is the emergence of online education platforms that offer localized content and support. These platforms recognize the importance of providing content that is relevant and relatable to South African learners. By incorporating local examples, case studies, and cultural references into their courses, these platforms are able to create a more engaging and personalized learning experience for customers.

Local special circumstances: South Africa has a large population of young people who are eager to acquire new skills and improve their employability. However, the country's education system faces numerous challenges, including limited access to quality education and a lack of resources. Online education offers a solution to these challenges by providing affordable and accessible learning opportunities to individuals across the country. Additionally, the COVID-19 pandemic has further accelerated the adoption of online education, as traditional in-person learning has been disrupted.

Underlying macroeconomic factors: South Africa's economy is undergoing a digital transformation, with increasing emphasis on sectors such as technology, e-commerce, and digital services. This shift is driving demand for individuals with digital skills and knowledge. Online education providers are well-positioned to meet this demand by offering courses and programs that provide learners with the necessary digital skills to succeed in the modern economy. Furthermore, South Africa has a high rate of unemployment, particularly among the youth. Online education presents an opportunity for individuals to upskill or reskill themselves, increasing their chances of finding employment or starting their own businesses. The government has also recognized the potential of online education in addressing unemployment and has implemented initiatives to support and promote online learning in the country. In conclusion, the Online Education market in South Africa is experiencing growth and development due to customer preferences for flexibility and convenience, the emergence of specialized technical and vocational courses, the need for localized content and support, and the underlying macroeconomic factors such as the digital transformation of the economy and high unemployment rates. Online education is providing a solution to the challenges faced by the traditional education system and is empowering individuals to acquire new skills and improve their employability.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.