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Online Education (E-Education) Market in Russia and in the World

September 2014

Analytical Report (full version)

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Analytical Report (full version)

Online Education (E-Education) Market in Russia and in the World
Online Education (E-Education) Market in Russia and in the World
September 2014

Online Education (E-Education) Market in Russia and in the World

September 2014

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Typology

 

E-education is relatively young industry which explosive growth has started in 2011 – 2012.

 

There are a lot of ways to form the topology for e-education. Main type of e-education is MOOCS – Massive Open Online Courses with interactive participation aimed at unlimited number of students. The following criteria can be distinguished in the sphere of online-education:

 

1. By price: free, paid and freemium

 

Last category – the education is free but passing the exam or receiving the certificate is on paid terms.

 

2. By time: fixed time and open schedule.


In terms of first mode – the course is available only during specific time (hour, day, week, month), second – is always available.

 

3. By courses’ authors: users’ and professional

 

Users’ – the information is being uploaded by users (usually in the form of videos).

 

Professional model – the company is preparing everything, including making the videos.

 

4. By number of students: unlimited and limited (not more than 50 students for example).

 

5. By education process: with supervision and without supervision.

 

Basic business models

 

Main product of educational platforms is a content. There are several production ways:

 

  1. Broadcast of readymade content.

 

Provided by aggregators, such as Uchinovoe, UniverTV etc.

 

  1. Adapt someone else’s content.

 

For example, Lendwings translates popular courses provided by American platform Udemy.

 

 

  1. Users’ content.  

 

For example, records of Zillion webinars.

 

 

  1. In-house production.

 

For example, Eduson, Universarium, Web.University etc.

 

The main tendencies are the decrease of popularity of aggregators’ sites and increase of demand on selected, of high quality and recorded courses.

 

Main monetization ways

 

  • Sale of programs containing range of courses (Uniweb, Eduson) – avg. $200-500.
  • Sale of video (Besmart) – avg. till $10.
  • Sale of course (Web.University, Udemy) – avg. till $100.
  • Sale of subscription for a period (Netologia, YaKlass, LinguoLeo) – $20-25 per month.
  • Sale of certificates by free course provision (Cousera) – avg. $50-80.
  • Sale of additional services – consultancy, check of knowledge, etc. (Earlydays) – avg. $100-300.
  • Sale of users’ data to advertisers for targeting advertising (ResearchGate).
  • Analytics’ processing by uploaded content and selection of necessary researches for additional price (Academia.edu).
  • Provision of additional paid services, for example, storage of material and organization of platforms for discussion for universities (Mendeley).
  • Organization of educational, HR and PR platform for the company (Udacity).

 

The most perspective are hybrid models, they offer blended learning – mix of online and offline education. For example one of the 3 largest American MOOC-platform Udacity transited on this model recently. Starting 2014, the platform offers paid courses with constant help and supervision, check of home tasks, feedbacks and provide diplomas as alternative to free self educational courses

 

Example: Course: App development based on Android cost $300, duration – 2 month.  

 

The course was developed by Google in order to popularize Android and development of new apps. It includes feedback by projects, help of teachers and certificates.

 

Global Market

 

E-education market was on the basic step of development for a long time. Despite the fact that first platforms were launched in 90’s, and first major project (MIT OpenCourseWare) was launched in 2002, the peak of market development was in 2012 – three largest platforms started to operate: Coursera, EdX and Udacity.

 

 

Despite the late start, e-education became very popular in a short period of time; e-education market had attracted a lot of attention from investors. Around 20 mln.of people use Top 10 global educational portals. Investments in e-education are estimated over 300 mln.USD.

 

According to Docebo data, global e-education market volume is over 40 bln.USD. According to the forecast, this amount will be over 50 bln.USD by 2016. Global geographical market structure is being provided below.

 

Russian market

 

Despite the fact that Russian e-education market has started its development one year later than largest global platforms (2013), first large projects had already been here 5 years ago. At the moment, there are over 50 large projects with thousands of users, according to J’son & Partners Consulting’s estimations. Market leaders have millions of users, for example – Lingualeo service – over 6 mln.users from Russia.

 

Key data and indicators:

 

  •       Over 50 platforms;
  •       7,2 mln. inhabitants in Russia used online education at least once;
  •       78% users’ study English;
  •       Popular platforms, help with Unified State Exams and offer education in the sphere – programming (software engineering);
  •       paid model prevails.

 

The map of Russian e-education by key directions is being provided below.

 

 

Paid model is a peculiarity of Russian e-education market. Such paid model has dominated from the beginning, while European markets developed from the free model. There are few free projects on Russian market, the most significant ones are:

 

      Lektorium (www.lektorium.tv) – non-commercial academic education project, launched in 2009, offers courses by MOOC model. The project is being financed by FPPI and private investors;

 

      Universarium (www.universarium.org) – non-commercial academic education project, launched in December 2013 by MOOC model with the support from Russian Informational Agency Nauka and ASI;

 

      UniverTV (www.univertv.ru) – aggregator of online courses.

 

Russian e-education market attracts venture investors. Russian projects have attracted around 15 mln.USD in the last 2,5 years. Main examples of investments are listed below.

 

 

Russian market is actively developing and is one of the most fast growing in the world: high interest from investors and current market growth forecasts. The fastest development in 2014 -  2016 will be observed in Asia (18% per year) and East Europe (17%). Active development in Russia is the key market driver of online education on east European market.

 

Detailed results of the Research are presented in the full version of the Report:

 

1. Introduction

2. Sources and methodology

3. Definition of the current e-education platforms’ typology

4. Business and monetization models on e-education market

 

Part 1. Analysis of E-Education Market

1. Overview of global e-education market

  1.1. Market volume and dynamics ($), 2010-2013, forecast 2014-2016

  1.2. Geographical market structure ($), 2013, forecast for 2016

  1.3. Number of users 2010-2013, forecast for 2014-2016

  1.4. Monetization models by largest platforms’ data

  1.5. Profiles’ of the largest global platforms:

      1.5.1. Coursera

      1.5.2. Udacity

      1.5.3. MIT Open Courseware

      1.5.4. Edx.org

      1.5.5. Khan Academy

      1.5.6. Udemy

      1.5.7. Lynda

      1.5.8. Other

  1.6. Market drivers and barriers

2. Overview of Russian e-education market

  2.1. Market volume and dynamics ($), 2010-2013, forecast 2014-2016

  2.2. Geographical market structure ($), 2013, forecast for 2016

  2.3. Number of users 2010-2013, forecast for 2014-2016

  2.4. Monetization models by largest platforms’ data

  2.5. Russian platforms’ map

  2.6. Profiles’ of the largest global platforms:

      2.6.1. Lingualeo

      2.6.2. Lektorium

      2.6.3. Universarium

      2.6.4. Eduson

      2.6.5. Other

  2.7. Short overview of the key market players by directions:

      2.7.1. Academic courses

      2.7.2. General courses

      2.7.3. Courses for pre-school

      2.7.4. Courses for pupils and students

      2.7.5. Foreign languages

      2.7.6. Programming (software engineering)

      2.7.7. Courses for Unified State Exams

      2.7.8. Users’ content aggregators

      2.7.9. Corporate segment

  2.8. Short analysis of the Russian legislation re e-education

  2.9. Market drivers and barriers

Part 2. Corporate segment

1. Overview of corporate online education market

  1.1. Definition of corporate online education and its typology

  1.2. Current business models

  1.3. Global market

      1.3.1. Market volume 2010-2013, forecast for 2014-2016

      1.3.2. Geographical market structure 2013, forecast for 2016

      1.3.3. Largest online corporate universities

      1.3.4. Main trends and tendencies

  1.4. Russian market

      1.4.1. Market volume 2010-2013, forecast for 2014-2016

      1.4.2. Largest online corporate universities

      1.4.3. Main trends and tendencies

2. Learning Management Systems (LMS)

  2.1. Definitions and typology

  2.2. Market volume 2010-2013 ($), forecast 2014-2016

      2.2.1. Global market

      2.2.2. Russian segment

  2.3. Geographical market structure in the world

  2.4. Main developers in Russia and in the world

2.5. Trends and tendencies

 

Part 3. Marketing segment

1. Current structure of online courses by major in the world

2. Social demographical profile of online-courses users

3. Peculiarities of users’ behavior

  3.1. To choose the course

  3.2. To pass courses

  3.3. To pass exams

4. Instruments how to increase customers’ loyalty

  4.1. Gamification

  4.2. Mobile apps

  4.3. Certification

  4.4. Courses with supervision

  4.5. Others

5. Experts interviews with market players

6. Conclusion

 

 

 

This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.

 

There are a lot of ways to form the topology for e-education. Main type of e-education is MOOCS – Massive Open Online Courses with interactive participation aimed at unlimited number of students.