Newer devices, such as smartphones and tablets, provide new mediums that innovative companies can conquer.
New York, NY (PRWEB) April 30, 2015
The Online Tutoring Services industry comprises firms that provide tutoring services for a variety of academic and professional development subjects via the internet. Over the past five years, the industry has recorded strong growth due to rising internet penetration in households and changing consumer preferences that favor conducting services online. Additionally, industry operators benefited immediately following the recession as widespread unemployment across the US economy precipitated a large number of individuals returning to educational institutions to develop skills while the labor market remained weak. According to IBISWorld Industry Analyst Nick Petrillo, “Academic courses are becoming increasingly geared toward the internet and, therefore, a growing number of tech-savvy Americans have used online tutoring as a new means to access supplementary educational services.” As a result, industry revenue is forecast to grow an annualized 5.2% to $132.1 million over the five years to 2015. A rising number of college and K-12 students is helping boost revenue, which is forecast to grow 4.9% in 2015 alone.
Over the five-year period, the number of companies operating in the industry has increased. A greater number of industry enterprises has resulted in inconsistent performance in industry profit over the past five years. Nonetheless, some consolidation is occurring as large conglomerates enter the industry through acquisitions. For example, InterActiveCorp, a media and internet firm, acquired Tutor.com in 2013.
Over the next five years, the Online Tutoring Services industry is expected to continue to record strong growth. Increasing internet saturation and slower growth in the number of college students may pose challenges to industry growth; however, a host of opportunities still exist. “Newer devices, such as smartphones and tablets, provide new mediums that innovative companies can conquer, and an expansion of services to include preparation for other standardized tests, such as those for graduate schools, will be opportunities for operators to grow,” says Petrillo. “This will help industry operators fend off rising competition from free online sources and traditional in-person tutoring services.”
For more information, visit IBISWorld’s Online Tutoring Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides tutoring services via the internet. Industry operators provide tutoring services across a variety of academic subjects and across all age groups.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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