Online Tutoring Services in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS OD6038Revenue
$1.8bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
51,556
Businesses
23,509
Wages
$XXX.Xm
Online Tutoring Services in the US industry analysis
Online tutoring services boomed through the COVID-19 pandemic as they became the sole option for students looking for help with their coursework. Accordingly, the growing industry saw its strongest revenue growth on record in 2020. Many schools, unable to meet student needs amid teacher layoffs, are leaning heavily on online tutors to help struggling students. Innovative strategies have emerged to better integrate online tutors with primary and secondary schools, but the trend away from standardized tests cut usage of exam preparation services. Still, a significant decline in test scores among elementary school students has lifted demand for tutoring services as a whole. Revenue has been surging at a CAGR of 6.9% to an estimated $1.8 billion over the five years through 2024. Revenue will expand by 3.6% in 2024 alone.
Trends and Insights
- Schools want to integrate teachers and tutors into the curriculum to support students. Most working parents welcome school-backed extra help, and some kick in extra funding to prepare children for college admission.
- Online tutoring provides much-needed flexibility for busy students and parents. Many students, particularly in high school, balance school with sports, theater or jobs.
- Location doesn’t matter for online tutors. Online tutors in California can quickly call in to meet with students on the East Coast.
- A rush of online tutors entered the market in the wake of COVID-19. Profit has taken a hit as competition ramps up.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 6.9 % over the past five years, to reach an estimated $1.8bn in 2024.
Trends and Insights
Online tutors stepped in through the pandemic and have remained integral to education
- The COVID-19 pandemic forced many schools to embrace online learning in 2020. Most schools continued online learning to mitigate outbreaks in 2021. Online tutors became the only option for students seeking help with their schoolwork.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Tutors and teachers will integrate to improve student-to-teacher ratios
- A Polk County, Florida pilot program will test how students perform with tutors serving as “co-teachers.” Curriculums will feature more tutor-teacher integration to develop customized, one-on-one student instruction. Online tutoring can put ten teachers in a classroom instead of one.
Biggest companies in the Online Tutoring Services in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Tutor.com | 200.3 | -1.5 | -0.7 | |
Chegg, Inc. | 92.7 | 8.1 | 8.7 | |
Pearson Plc | 23.1 | 1.8 | 7.8 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Exam preparation services, Primary school tutoring programs and courses and Occupational and advanced academic programs and courses. Exam preparation services is the largest segment of the Online Tutoring Services in the US.
Trends and Insights
Primary school tutoring remains the backbone of the industry
- Online tutors help elementary, middle and high school students with history, literature, social studies, science, math and many other subjects. Younger students receive extra help if falling behind or additional instruction to help them get ahead.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Business Coaching in the US
- Tutoring & Driving Schools in the US
- Testing & Educational Support in the US
Complementors
- Public Schools in the US
- Colleges & Universities in the US
- Private Schools in the US
International industries
- Art and Non-Vocational Education in Australia
- Art and Non-Vocational Education in New Zealand
Table of Contents
About this industry
Industry definition
This industry provides tutoring services via the Internet. Online tutoring services provide academic assistance across a variety of academic subjects and all age groups for children in primary and secondary school as well as college students.
What's included in this industry?
Primary school tutoring Advanced academic tutoringExam preparation servicesOccupational academic programsCompanies
Tutor.comChegg, Inc.Pearson PlcPurchase this report to view all 3 major companies in this industry.
Related Terms
GRAPHIC TABLETSK-12CLOUD COMPUTINGIndustry Code
NAICS 61169 - Online Tutoring Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Schools want to integrate teachers and tutors into the curriculum to support students. Most working parents welcome school-backed extra help, and some kick in extra funding t...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Online tutoring provides much-needed flexibility for busy students and parents. Many students, particularly in high school, balance school with sports, theater or jobs.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Location doesn’t matter for online tutors. Online tutors in California can quickly call in to meet with students on the East Coast.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
A rush of online tutors entered the market in the wake of COVID-19. Profit has taken a hit as competition ramps up.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Tutor.com’s 24/7 online tutoring service has attracted many students looking to cram for exams and assignments. The number of online tutoring sessions more than doubled from ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Tutor.com's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Chegg, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Pearson Plc's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Tutor.com, and factors influencing its performance in the industry
- Description and key data for Chegg, Inc., and factors influencing its performance in the industry
- Description and key data for Pearson Plc, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Schools in Polk County, Florida, tapped into ESSER II funding to hire online tutors. These tutors complement teachers struggling under the weight of staffing shortages.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit is sinking amid intense competition. Still, technological improvements are streamlining tutoring and keeping costs manageable. High demand is keeping revenue on the ri...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Online Tutoring Services in the US industry in United States in 2024?
The market size of the Online Tutoring Services in the US industry in United States is $1.8bn in 2024.
How many businesses are there in the Online Tutoring Services in the US industry in 2024?
There are 23,509 businesses in the Online Tutoring Services in the US industry in United States, which has grown at a CAGR of 12.0 % between 2019 and 2024.
Has the Online Tutoring Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Online Tutoring Services in the US industry in United States has been growing at a CAGR of 6.9 % between 2019 and 2024.
What is the forecast growth of the Online Tutoring Services in the US industry in United States over the next 5 years?
Over the next five years, the Online Tutoring Services in the US industry in United States is expected to grow.
What are the biggest companies in the Online Tutoring Services in the US market in United States?
The biggest companies operating in the Online Tutoring Services market in United States are Tutor.com, Chegg, Inc. and Pearson Plc
What does the Online Tutoring Services in the US in United States include?
Primary school tutoring and Advanced academic tutoring are part of the Online Tutoring Services in the US industry.
Which companies have the highest market share in the Online Tutoring Services in the US in United States?
The company holding the most market share in United States is Tutor.com.
How competitive is the Online Tutoring Services in the US industry in United States?
The level of competition is high and steady in the Online Tutoring Services in the US industry in United States.
