Virtual Schools Market

Virtual Schools Market Outlook (2023 to 2033)

The global virtual schools market is predicted to soar at a CAGR of 15.4% and reach a market size of US$ 16.49 billion by the end of 2033, up from US$ 3.94 billion in 2023.

Virtual schools teach students via online media, such as video conferencing over the Internet. There has been a lot of debate on how virtual schooling is not as effective as traditional schooling, but in recent years, the notion seems to be changing, and people have been more accepting of virtual schooling trends.

By allowing them to access the curriculum in a digital form whenever they choose, virtual schools enable students to save money. Virtual schools help educators and trainers because they enable them to reach a wider audience with their messages.

Using a cloud-based learning management system (LMS) reduces the cost of creating, managing, storing, and providing students with information. Educators can lessen their reliance on major publishers by using a range of sources to acquire brief modules of pertinent content for class sessions. The development and administration of engaging and intriguing course materials are assisted by online education.

• Implementation of virtual schooling methods has been prominent for private EMOs. They are quite popular since they offer education and are effective enough to run courses without restricting the academic growth of students.
• Demand for private EMOs to provide virtual schooling is anticipated to rise at a prolific CAGR of 15.7% over the decade.

Market expansion is attributed to increased student desire for personalized learning as well as rising demand for online education. The industry is expanding due to the increasing use of smartphones and the Internet.

Demand for online education is rising as more students can choose to learn at their speed and from any location thanks to the popularity of virtual schools. The industry of online schools is receiving a significant boost as a result.

Recent advancements in digital technology have made it easier for students and instructors to interact and work together online, which has increased the demand for virtual school services. Employers are more willing to hire workers who have finished their education through online courses or programs, such as virtual school programs, as a result of the increasing acceptability of online learning.

Report Attributes	Details
Virtual Schools Market Size (2023)	US$ 3.94 Billion
Projected Market Value (2033)	US$ 16.49 Billion
Global Market Growth Rate (2023 to 2033)	15.4% CAGR
Market Share of Private EMOs (2023)	69%
India Market Size (2023)	US$ 311 Million
Germany Market Growth Rate (2023 to 2033)	16.2% CAGR
United Kingdom Market Size (2033)	US$ 1 Billion
Market Share of High Schools (2023)	50%
United States Market Growth Rate (2023 to 2033)	15.2% CAGR
Key Companies Profiled	Florida Virtual School; Acklam Grange; Alaska Virtual School; Basehor-Linwood Virtual School; Mosaica Education; K12 Inc.; Abbotsford Virtual School; Lincoln Learning Solutions; Connections Education; Pansophic Learning; Charter Schools USA

How are Virtual Schools Changing the Face of Education?

“Surging e-Learning Enrollments in Higher Education”

Higher education has seen a sharp increase in students taking e-learning courses in recent years. This is related to students' increasing desire for classes and degree programs that provide flexible modes of learning, such as self-paced learning.

Several institutions of higher education are incorporating e-learning into their courses. Additionally, the accessibility of internet-connected gadgets such as smartphones and tablets has changed students' choices from traditional classrooms to online learning environments. As a consequence, the market for virtual schools is anticipated to grow over the projected period due to increased e-learning enrollments in higher education.

“Integration of Innovative Technologies to Enhance Online Learning”

The market for virtual schools has a profitable prospect due to advancements in technology and devices utilized in these institutions to enhance online learning. Virtual schools are increasingly using cloud-based solutions, and industry participants have invested heavily in enhancing their stability and security. The expansion of IoT and the improvement of artificial intelligence will improve the user experience in online learning networks.

“Increasing Use of VR and AR Applications”

Virtual reality and augmented reality are widely used in education. By putting students in new surroundings while lowering risk, virtual reality technology encourages deep learning. Augmented reality enables just-in-time education because it puts training at the learner's fingertips.

AR and VR technologies are being employed more in education because they provide practical answers. Virtual reality can manage difficult procedures and high-risk situations. Through virtual field excursions, augmented reality (AR) in education provides pupils with a global perspective and introduces them to many cultures.

Learners can engage with the content via VR and AR. They enable students to construct immersive learning environments and adjust to their needs. Ed-tech start-ups adopting AR and VR are predicted to attract investor attention since the industry is still in its infancy and has a wealth of unrealized economic potential.

What is the Main Impediment to Market Expansion of Virtual Schools?

“Negative Consequences of Too Much Screen Time”

Students have to spend more time in front of screens for their online education. Too much screen time has many negative consequences for kids' development, including obesity, sleep issues, chronic neck and back pain, melancholy, anxiety, and worse test scores.

Increased risk of diabetes, an increase in blood pressure, and a rise in cholesterol are all consequences of excessive screen time on the heart. The market growth for virtual schools is anticipated to be constrained over the coming years due to these health-related adverse effects.

• According to the National Institutes of Health, children who used any electronic device for more than two hours per day performed worse on tests of thinking and language, and those who used screens for more than seven hours per day experienced cortical thinning, which makes it difficult to reason and think.

How Can New Companies Settle Down in This Competitive Industry?

“Start-ups Concentrating on Offering Advanced AR and VR Technologies”

Emerging firms are concentrating on offering advanced AR and VR technologies to gain a decent position in this industry. They are heavily investing in research and development projects to enhance immersive virtual environments' quality, performance, and efficacy. They try to make distance learning more convenient by measuring performance and providing information that is easy to access.

• CleverBooks, an Irish start-up, creates a variety of AR and VR tools geared toward (science, technology, engineering, and mathematics) STEM education. The company's augmented reality technology converts 2D photos from books into dynamic 3D models that can be seen on a smartphone or in a web browser. It facilitates worldwide collaboration between educational institutions and enables the creation of custom virtual reality experiences by instructors, students, and schools. To promote interest in STEM courses, CleverBooks' solution, unlike other virtual classroom technologies, turns textbooks and reading materials into interactive learning experiences.

Country-wise Insights

Why is the United States a Prime Market for Virtual Schools?

“Presence of Advanced Internet Infrastructure in the Country”

• Demand for virtual schools in the United States is estimated to reach a market value of US$ 5.66 billion by 2033.

The United States is projected to be a highly favorable market for virtual schools. Quick adoption due to the proliferation of technology and better Internet infrastructure are favoring market expansion across the country.

The United States is seeing a tremendous increase in demand for massive open online courses (MOOC). Virtual schools for private EMOs are forecasted to gain substantial popularity over the next ten years in the country.

What is the Market Scenario for Virtual Schools in Germany?

“Increase in Renowned Educational Institutions”

• The market in Germany is valued at US$ 291.4 million in 2023.

In Germany, a majority of schools and universities use digital technologies to implement online learning. The market for virtual schools is driven by domestic institutions that provide online distance-learning courses and use digital education content for both students and working people. An increase in renowned educational institutions and a growth in e-learning enrollments in the higher education sector are the factors boosting market value.

Why is China Exhibiting High Demand for Virtual Schools?

“Increasing Government Initiatives to Establish Online Institutions”

• The virtual schools market in China is predicted to surge at an impressive CAGR of 15.6% over the forecast period.

Virtual schools for children and adults are estimated to see an increase in demand over the next ten years in the country. This is ascribed to expanding internet usage and parental education awareness. Market growth is fueled by increasing government attempts to establish online institutions.

Category-wise Insights

Which End Use is Dominant in Terms of Revenue Generation?

“Online Education through High Schools Ideal Substitute for Students with Busy Schedules and Special Needs or Disabilities”

Based on end use, the market is divided into elementary schools, middle schools, high schools, and adult education.

• Adoption of virtual education techniques in high schools is projected to expand at a stupendous CAGR of 16.1% over the forecast period.

The need for innovative teaching techniques to enhance student learning outcomes is anticipated to boost the development of high schools over the forecast period. A variety of benefits come with virtual secondary education, including flexible class times that support students with busy schedules that let students with special needs or disabilities get instruction in their own homes.

Secondary education delivered online also contributes to lower administrative and teacher compensation expenses, which further lowers the overall cost of delivering high-quality educational services and promotes more adoption in numerous countries throughout the world. For many reasons, high schools are utilizing virtual schooling.

As an alternative to conventional classroom-based courses, several high schools offer virtual school courses. High schools employ online courses to round up their normal course offerings. Students who take advanced placement (AP) or college-level courses at virtual schools can be able to make up failed credits or pursue AP classes. Additionally, certain courses offered by virtual schools are not offered at local high schools.

Most secondary school students prefer to learn online to save time and concentrate on other activities that contribute to market development. Students who attend virtual schools have the option of enrolling in college-level or advanced placement courses.

If a traditional high school is too far from their homes, students from rural areas opt for online high schools. For full- and part-time online instruction, several high schools in remote areas collaborate with other educational institutions. The market for virtual schools is driven by the growing acceptance of advanced technologies in high schools.

Competitive Landscape

Top market participants are focusing on pushing the benefits of virtual schooling and are adopting various growth strategies to increase their market penetration. These players' primary expansion methods include new developments, quality control, joint ventures, product standards, agreements, and new product releases.

For instance,

• Larsen & Toubro, a renowned name in the construction industry announced its plan to enter the online education space and will be launching application-based learning for engineering students.

Key Segments of Virtual Schools Industry Research

• By Type :

  • Private EMOs
  • Non-profit EMOs

• By End Use :

  • Elementary Schools
  • Middle Schools
  • High Schools
  • Adult Education

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa