The revenue of Russian educational platforms in 2023 reached record levels
Online education, the demand for which increased during the COVID times, seems to continue to be in demand among Russians, and even more so. In just the past year, the market for remote learning earned about 120 billion rubles, increasing the revenue from 2022 by one-third. To understand the reasons for such a surge in interest, in which segments it is most active, and what could drive further growth, we decided to delve into it with the help of experts.
We are referring to data published by the research company Smart Ranking. According to this information, the market leaders for 2023 were VK Skillbox Holding (+11.1%, growth to 12.3 billion rubles), Skyeng (+26.2%, growth to 12 billion rubles), and “Synergy” (+24.2%, growth to 8.47 billion rubles) – they accounted for about half of the total market revenue.
The peak of purchasing power fell in September, indicating an increase in demand for online education in the children and teenage segments. This is 36.7 billion rubles in annual revenue, or +37% growth compared to 2022. According to the same data, today, this sector accounts for about 30% of the market with a tendency to further increase.
Last year, the pioneer of the market was the niche of professional education: in 2023, its share was 35%, with a growth in revenue volumes by 27%, or 43.5 billion rubles in monetary terms. Interestingly, at the beginning of last year, Smart Ranking predicted a possible growth of no more than 15-20% annually, but revised its forecasts based on the results of the last few months of the year.
“The external prerequisite (for market growth – ed. note) is associated with taking the culture of distance learning to a new level due to the forced remote work during COVID. Network platforms have become more flexible, adaptive to needs, and convenient. And people have developed a taste for continuous learning in the ‘when and where I want’ format,” believes Natalia Zolotareva, advisor to the Minister of Education of the Russian Federation and a member of the Public Chamber of the Russian Federation.
The Cause of Growth
According to Marina Vinberg, an entrepreneur in the field of IT, the rapid development of the market is due to several reasons. Modern technologies have made educational online platforms accessible and user-friendly. Interfaces have changed, the stability of service operation has increased, and broadband internet access has significantly improved the quality of education.
At the same time, the COVID restrictions, which forced many to switch to remote work, created a qualitatively new trend. People realized that distance learning has a whole range of household advantages and allows for a significant reduction in the costs of acquiring knowledge.
Online learning platforms themselves have also become more active: today, they provide a more individualized approach to educational programs, allowing them to take into account the personal characteristics and needs of each student. In addition, educational services have begun to expand the list of offered courses and programs, covering more and more specializations and disciplines.
“In our case, this strategy is called continuous education. Among the advantages of obtaining it, one can highlight its low cost, a flexible payment system (installments or credit), short training periods, and the availability of a large number of programs that meet the demands of the labor market. Online courses are also popular among students who have realized that their current specialty is not very interesting to them but, without abandoning university education, are simultaneously studying online,” explains Pyotr Tazov, senior lecturer at the marketing department of the State University of Management.
The list of online courses and programs offered is constantly expanding
“In 2023, we were able to achieve all planned strategic goals thanks to the centralization of internal processes, active expansion within the CIS, the development of the B2B direction, and through-the-line commerce projects. We continued to expand the product matrix and launched 56 new products in all directions. For example, at the Bang Bang Education design school, IT courses appeared, and at the Moscow Digital School, we are expanding the product matrix in related areas – finance, analytics, and the like,” says Pavel Moseykin, CEO of the Ultimate Education educational holding.
Market Potential
The further development of the market will depend on the implementation of partnership programs with Russian universities and the development of new courses that meet today’s emerging demands, according to Olga Borisova, an expert in online education. This will significantly expand the reach of customers who, due to their remoteness from major cities, cannot receive quality education and will allow them to undergo training without interrupting their main activities, simultaneously applying the acquired knowledge in practice.
Thus, another promising trend will emerge, aimed at customizing online education based on the individual needs of the client. In perspective, it may replace the familiar offline, which often ceases to meet market demands.
“In 2024, we see many opportunities for growth. Now we plan to strengthen the higher education direction by launching joint training programs with institutes that have unique expertise in industry segments. Such collaborations allow us to expand the school’s educational programs, enrich them with new knowledge and experience in various business areas. And students, in turn, have the opportunity to gain a complete understanding of trends and features of a specific segment, as well as various strategies and business models used in this industry,” shares Alexander Samoilovsky, rector of the Moscow Business School.
In addition, there is a certain growth reserve in the niche of short educational programs aimed at quickly retraining specialists and developing additional skills in a chosen profession. Since acquiring these skills is not always an easy task, online educational platforms and courses can come to the rescue.
Programs based on interaction with other group participants and communication with experienced curators and mentors allow course listeners to develop their soft and self-skills. After all, a successful employee must not only possess technical skills but also effectively build a strategy for their development.
The introduction of modern technologies into the learning process can also become an essential aspect. The use of big data and AI to analyze user needs will help create an even more personalized learning experience, and the implementation of VR/AR technologies will allow offering innovative interactive courses that will attract new audiences.
“The EdTech market has tremendous potential. For example, artificial intelligence allows reducing the paperwork of teachers, personalizing educational programs, and using chatbots for assistance and instant feedback. For example, our clients want to improve the work of methodologists through AI: the algorithm will help collect lesson plans,” explains Anton Fokin, CEO of QTIM.
The introduction of modern technologies will help create even more personalized learning
Lifelong learning
The pandemic in 2020 completely changed the attitude of Russians towards the online format, including communication, remote work, and education. Remote work became the new norm and elevated the status of online education.
Moreover, recently, not only Russians’ attitude towards online education but also towards education in general has been changing. A considerable number of people in the country are beginning to believe again that education is a starting point for efforts, provided there is a desire to change one’s life and build a successful career. This also applies to comprehensive development, from personal qualities to health.
“Every year, the understanding grows that private educational companies produce strong content and provide a systemic result. A large audience at Skillbox takes courses for personal development. People learn, for example, graphic design, both for themselves and to acquire a new profession. EdTech is expanding the boundaries of its educational programs with courses in mathematics, chess, drawing, and health,” believes Dmitry Krutov, founder and CEO of the Skillbox educational platform.
According to Pavel Moseykin from the Ultimate Education educational holding, every year there is a growing awareness that learning and skill development are key elements of a successful career. According to the holding’s surveys, 14.6% of student respondents changed their field of activity more than three times in their lives. Up to three times – 30.3%, and 23.3% – once. 11.5% have not yet changed their field of activity but have already taken the first steps in this direction. Moreover, those who changed their profession more than twice note the highest level of satisfaction with their career.
The changing world requires employees to adhere to the concept of lifelong learning to remain relevant in the job market, and more and more people are not afraid to change their field of activity.
By Aleksey Zotov