The market for educational support - Spain

The global tutoring market has been experiencing significant growth, with projections indicating an expansion from US$135 billion in 2021 to US$202 billion by 2026, growing at a rate of +8.4% per year. Digital solutions are transforming the industry, particularly the online courses segment, which is expected to flourish at an annual growth rate of +11.5% to a market size of US$50 billion by 2026. The tutoring market in Spain also mirrors this growth, with projections suggesting it could have reached around €1,700 million by 2022, although this may be an underestimation considering the potential size of the unreported black market at €1,800 million.

The demand for tutoring services is primarily driven by parents' perception of a decline in educational standards and the increased competition for high-quality diplomas. The COVID-19 pandemic has had a profound impact on the sector, accelerating the adoption of online tutoring platforms like GoStudent at the expense of traditional in-home services. This shift has corresponded with an overall dynamic growth in investment into EdTech, as exemplified by GoStudent's substantial fundraising of €590 million. As the industry continues to evolve, it is evident that advancements in digital education and a growing emphasis on supplementary academic support are core trends shaping the future of the tutoring market.

Trends in the Spanish Tutoring Market

The Spanish tutoring market has seen significant evolution, with evidence of growth and transformation influenced by various factors, including technological advancements and socio-economic dynamics. The market has demonstrated resilience even amidst the challenges brought by the Covid-19 pandemic, with notable shifts in consumer behavior and service delivery modes. Demand for tutoring services in Spain has been on the rise, with the market value escalating from around €246 million to over €700 million, and projections suggesting a potential market size of €1.5 to €2 billion by 2022. This growth indicates a sustained interest in supplemental education, with nearly half of all pupils in Spain reportedly having utilized tutoring services at some point. The digitalization of tutoring services has become a key trend, particularly in the wake of the pandemic, which forced a significant pivot to online learning formats. Online courses, in particular, have witnessed the fastest growth rate, in part due to the necessity of remote education during lockdowns. The pandemic also had varying effects on household spending on tutoring, with a decrease at the onset but a gradual recovery as families adapted to new circumstances. Interestingly, the resilience of lower-income families suggests that, in some cases, tutoring is considered an essential investment for students' success. Parents are enlisting tutoring help for several reasons, such as compensating for perceived declines in school quality and as an investment in their children's education, reflecting the importance of academic success for socioeconomic advancement.

This is underscored by the strong demand for subjects like English and Math, which are deemed crucial for future opportunities. The tutoring market is predominantly urban, but there's a growing presence in rural areas as well, thanks in part to digital platforms that transcend geographical limitations. This is helping to balance the availability of services across the country. EdTech startups are increasingly influencing the tutoring space, introducing innovative educational tools and securing significant investment. For instance, GoStudent, a key player in the sector, has raised millions of euros, signaling the robust potential of the industry. In terms of socioeconomic disparities, it is evident that families from various income quintiles allocate different amounts and percentages of their budgets to tutoring, with higher-income households spending close to €500 more annually on average compared to lower-income families. As the market continues to diversify, a range of tutoring services are available, from one-on-one in-home tutoring to online group classes. Prices for these services vary depending on the course type, city, and platform, with teachers earning between €10 and €20.

Prominent Contenders in Spain's Evolving Tutoring Landscape

Spain's tutoring market is home to a dynamic mix of established and emerging players, each offering unique services tailored to the diverse needs of Spanish students.

• Among them, GoStudent stands out as a major force in online private tutoring, utilizing a subscription model that connects students with dedicated teachers in a virtual environment. Despite not disclosing their 2021 sales, the company's significant presence in the market is underscored by its substantial recent fundraising activities and expansion endeavors.
• Profe.com is another player whose model focuses on assigning specific tutors to students, ensuring a personalized learning experience. While their financial details are not provided, their impact is felt across the market, providing customized support across various subjects.
• Lifecole takes a different approach, offering online courses for small groups, fostering interaction and peer learning remotely. In 2021, they reported revenues of €700,000, indicating a strong position within the segment aiming to bridge the gap between one-to-one and larger scale educational offerings.
• For those seeking home tutoring services across Spain, Infoclases caters to this demand with a well-established network of tutors prepared to teach in-person, following traditional tutoring models that allow for a hands-on, personalized approach.
• Mis clases particulares and Busca tu profesor are two entities that help match students with local tutors, although they have not publicly shared their financial performance. Their role in the market is nonetheless vital, connecting learners with the educational support they need.
• Másqueclases offers a more localized solution with their range of private tutoring services available in Madrid. They have carved a niche by focusing their expertise on one geographic location, yet hold back on disclosing their turnover.
• Lastly, Superprof operates a versatile marketplace that connects students with tutors across diverse subjects, from academic disciplines to music and sports. In 2020, they reported a turnover of €20 million, a testament to their prominent role in the Spanish tutoring industry and their ability to adapt to the educational needs of a wide student demographic.

Each of these market participants contributes to the rich tapestry of Spain's tutoring landscape, presenting options that range from traditional face-to-face learning to innovative online education platforms. Together, they signify the versatile and responsive nature of the sector, catering to the evolving preferences of Spanish families in pursuit of academic excellence for their children.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 09/03/2023

Summary and extracts

List of charts presented in this market study

• Trends in tutoring sales
• Online tutoring sales trend
• Evolution of tutoring sales
• Percentage of households with children aged 6-18 spending on private tuition
• Percentage of 15-year-olds with a low level of attainment by subject
• Use of tutoring by age and purpose
• Trends in indicators of educational investment
• Trends in the proportion of students enrolled in private lessons, by income and pandemic phase
• Average private tuition costs by income level
• Share of total tutoring budget by income level
• Percentage of households using private tuition by municipality size
• Percentage of students attending private lessons by autonomous community
• Breakdown of materials in total expenditure for low-income earners (first quintile)
• Breakdown of materials in total expenditure for high-income earners (fifth quintile)
• Funds raised by EdTech start-ups
• Percentage of students attending support courses within the education system
• Expenditure by type of education, by education system