Market Insights Digital eServices Online Education

Online University Education - Kenya

Kenya

Revenue in the Online University Education market is projected to reach €18.35m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 14.67%, resulting in a projected market volume of €31.73m by 2028.
In the Online University Education market, the number of users is expected to amount to 94.9k users by 2028.
User penetration will be 0.1% in 2024 and is expected to hit 0.1% by 2028.
The average revenue per user (ARPU) is expected to amount to €312.70.
In global comparison, most revenue will be generated in the United States (€75.52bn in 2024).
With a projected rate of 2.3%, the user penetration in the Online University Education market is highest in the United States.

Key regions: Germany, China, United States, South Korea, Europe

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Analyst Opinion

The Online University Education market in Kenya has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Kenyan students are increasingly turning to online university education as a convenient and flexible alternative to traditional classroom-based learning. The ability to study at their own pace and from the comfort of their own homes is particularly appealing to many students. Additionally, online university education offers a wider range of courses and programs, allowing students to pursue their specific interests and career goals.

Trends in the market: One of the key trends in the online university education market in Kenya is the increasing adoption of technology. With the rapid advancement of internet connectivity and the proliferation of smartphones, more and more Kenyan students have access to online learning platforms. This has led to a surge in the number of online universities and educational institutions offering online courses and programs in the country. Another trend in the market is the growing demand for skills-based education. Kenyan students are increasingly seeking out online university programs that provide practical skills and knowledge that can be immediately applied in the job market. This is driven by the need to stay competitive in a rapidly evolving job market and the desire to enhance career prospects.

Local special circumstances: Kenya has a large and young population, with a high demand for higher education. However, the capacity of traditional universities to accommodate all the students is limited. Online university education provides a scalable solution to this challenge, allowing more students to access higher education without the need for physical infrastructure expansion. Furthermore, the cost of traditional university education in Kenya can be prohibitive for many students. Online university education offers a more affordable alternative, as it eliminates the need for expenses such as transportation, accommodation, and textbooks. This makes higher education more accessible to a larger segment of the population.

Underlying macroeconomic factors: The growth of the online university education market in Kenya is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth, which has resulted in an expanding middle class with higher disposable incomes. This has created a larger pool of potential customers for online university education providers. Additionally, the Kenyan government has recognized the importance of online education in improving access to higher education and enhancing the country's human capital. As a result, they have implemented policies and initiatives to promote the growth of the online university education sector, including the establishment of regulatory frameworks and the provision of financial incentives. In conclusion, the Online University Education market in Kenya is developing rapidly due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The convenience, flexibility, and affordability of online university education, coupled with the increasing adoption of technology and the demand for skills-based education, have contributed to the growth of the market. With the government's support and the continued advancement of technology, the market is expected to continue to expand in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.