test preparation market in the us to 2018 – market study — report brief — indalytics advisors

Test Preparation Market in the US to 2018 — Market Study —

September 2013

� © 2013, Indalytics Advisors Private Limited

© 2013, Indalytics Advisors Private Limited l Indalytics.com l [email protected]

TEST PREPARATION MARKET IN THE US TO

2018 — MARKET STUDY

SEPTEMBER 2013


September 2013


REPORT T ITLE

Test Preparation Market in the US to 2018 – Market Study

ABOUT THE REPORT

This report is a comprehensive study on test preparation for various

standardized tests in the US. The report discusses the current and forecasted

market size of test preparation space, followed by the key trends, as well as

drivers that will impact growth of the sector. It also discusses the five forces

analysis of test preparation, as well as the PEST analysis of the US, with respect

to the test preparation market.

For a detailed understanding, the test preparation market has been segregated

both, on the basis of level of education, as well as types of test preparation

provided. For level of education, the market is segregated into school level,

undergraduate level, and postgraduate and professional level. All the three

levels have different types of standardized tests, and the test takers also

prepare in different manner.

Regarding the types of test preparation provided, the market is segregated into

classroom and one–to–one tutoring; online tutoring; official handbooks, guides,

study materials and practice tests; additional books, study material and printed

tests; and mobile and tablet applications.

The NAICS code, used to define the market is 611691 (Exam Preparation &

Tutoring Industry).


September 2013


RESEARCH METHODOLOGY

Market size of test preparation sector is defined as the total revenue generated

by the sector. It is a product of the total number of test takers who took test

preparation, and the ticket size of various test preparation resources.

All the data present in this report is sourced through legal and ethical

competitive intelligence. The research includes both secondary research, as well

as primary research including interviews and surveys.

SECONDARY RESEARCH

Secondary research was conducted to gather relevant, latest and authentic data

from various sources. This data is used to understand the sector, identify

various trends and players, and calculate the number of students taking various

tests. The sources used for secondary data include:

• White Papers, Reports, and Research Material from Test Makers

• White Papers, Reports, and Research Material from various government

organizations

• Analyst Reports

• Annual Reports and Filings

• Companies’ Social Media Activities

• Company Websites

• Events and Conferences

• Industry Organizations

• Webinars and News Releases

PRIMARY RESEARCH

More than 1,000 students were surveyed and more than 30 test preparation

providers were interviewed for this report. Data and insights from them were

used to determine various factors, such as:


September 2013


• % of students taking full–time tuitions, online tuitions, study material

etc.

• Psyche of students, while spending on test preparation.

• Average fee for various types of tuitions, study material and books.

The sample size was kept a minimum 1,000 students and 30 test preparation

providers, so as to get a normal distribution bell curve, without any exceptions

and variances.

NUMBER OF PAGES

64

PRICE (SEE PRICING DETAILS BELOW)

Single User: US$1,000

Multi User/ Enterprise: US$2,500


September 2013


TABLE OF CONTENTS

• Market size of US test preparation sector

o Test preparation for Standardized Tests at School Level

o Test Preparation for Standardized Tests at Undergraduate Level

o Test Preparation for Standardized Tests at Postgraduate and

Professional Level

• Types of Test Preparation for Standardized Tests

o Types of Test Preparation at School Level

o Types of Test Preparation at Undergraduate Level

o Types of Test Preparation at Postgraduate and Professional Level

• Key Trends in the US Test Preparation Sector

o Trend 1

o Trend 2

o Trend 3

o Trend 4

o Trend 5

o Trend 6

o Trend 7

o Trend 8

• Five Forces Analysis of US Test Preparation Sector

o Threat of New Entrants

o Threats of Substitutes

o Bargaining Power of Buyers

o Bargaining Power of Suppliers

o Intensity of Competitive Rivalry

• PEST Analysis of US Test Preparation Sector

o Political

o Economic

o Social

o Technological

• Forecasted Market Size of US Test Preparation Sector

• Key drivers for test preparation in the US

o Driver 1

o Driver 2

o Driver 3

o Driver 4


September 2013


o Driver 5

• List of Players

o Test Makers

� ACT, Inc.

� American Council on Education

� Association of American Medical Colleges

� College Board

� Educational Testing Service

� Graduate Management Admission Council

� Law School Admission Council

o Third–party test providers

� Barron’s Educational Series

� Grockit, Inc.

� Houghton Mifflin Harcourt

� Huntington Learning Centers

� Kaplan, Inc.

� Knewton, Inc.

� McGraw–Hill Education

� Manhattan Review

� Pearson Education

� The Princeton Review

� Varitas Prep

• List of Organizations Mentioned in the Report


September 2013


L IST OF FIGURES • Figure 1: Market Size of US Test Preparation Sector — 2013 (E) (US$ billion)

• Figure 2: Market Size of US Test Preparation — School Level — 2013 (E)

(US$ billion)

• Figure 3: Market Size of US Test Preparation — Undergraduate Level —

2013 (E) (US$ billion)

• Figure 4: Market Size of US Test Preparation — Postgraduate and

Professional Level — 2013 (E) (US$ billion)

• Figure 5: Market Size of US Test Preparation — Types of Test Preparation —

2013 (E) (US$ billion)


School Level — 2013 (E) (US$ billion)


Undergraduate Level — 2013 (E) (US$ billion)


Postgraduate and Professional Level — 2013 (E) (US$ billion)


Different Levels of Education — 2013 (E) (US$ billion)

• Figure 10: Government Outlay on Education and Training — 2009–2014 (F)

(US$ billion)

• Figure 11: Higher education spending as a % of total government outlay —

2014

• Figure 12: Gross domestic product, constant prices — 2010–2014(F) (%

change)

• Figure 13: Gross national savings — 2010–2014(F) (% of GDP)

• Figure 14: Inflation — average consumer prices — 2010–2014(F) (% change)

• Figure 15: % Enrollment in the US — By age groups — 2011

• Figure 16: Enrollment in the US — Preschool to Graduate — 2011

• Figure 17: % Enrollment in the US — By age groups — 2011

• Figure 18: College enrollment ratio in the US — 18–24 years — 2011

• Figure 19: % of households with computers and internet at home — 2009–

2011

• Figure 20: Internet penetration in the US — by age groups —2011

• Figure 21: Internet usage in the US — by devices —2011

• Figure 22: Forecasted Market Size of US Test Preparation —2013–2018 (US$

billion)

• Figure 23: Median earnings in the US on the basis of population — 2011

• Figure 24: Population of the US — 2011–2014(F)

• Figure 25: GDP of US, EU, Asia and World — At current prices — 2011–2012

(US$ trillion)

• Figure 26: Student Visa (F1) issued by the US — 2019–2012

• Figure 27: % of student Visa (F1) issued by the US — by countries — 2012


September 2013


• Figure 28: % of US to Non–US test–takers in standardized tests —2012

L IST OF STANDARDIZED TESTS MENTIONED IN THE

REPORT

• ACT (American College Testing)

• AP Tests (Advanced Placement tests)

• ASVAB (Armed Services Vocational Aptitude Battery)

• CAIA (Chartered Alternative Investment Analyst)

• CFA (Chartered Financial Analyst)

• CFP (Certified Financial Planner)

• COOP (Cooperative Admissions Examination Program)

• CPA (Certified Public Accountant)

• DAT (Dental Admission Test)

• FRM (Financial Risk Manager)

• GED (General Educational Development)

• GMAT (Graduate Management Admission Test)

• GRE (Graduate Record Examinations)

• HSPT (High School Proficiency Assessment)

• ISEE (Independent School Entrance Examination)

• LSAT (Law School Admission Test)

• MCAT (Medical College Admission Test)

• OAT (Optometry Admission Test)

• PCAT (Pharmacy College Admission Test)

• PLAN (Preliminary Scholastic Aptitude Test)

• PSAT/NMSQT (Preliminary SAT/National Merit Scholarship Qualifying Test)

• SAT (Scholastic Assessment Test)

• SHSAT ( Specialized High Schools Admissions Test)

• SSAT (Secondary School Admission Test)

• TACHS ( Test for Admission into Catholic High Schools)

• THEA (Texas Higher Education Assessment)

• TOEFL (Test of English as a Foreign Language)

• TOEIC (Test of English for International Communication)

• USMLE (United States Medical Licensing Examination)


September 2013


L IST OF ORGANIZATIONS MENTIONED IN THE REPORT

ACT, Inc

Amazon.com

American Council on Education

Apollo Global Management LLC

Apple

Association of American Medical

Colleges

Avid

Barron’s Educational Series

Beat the GMAT

BenchPrep

Charlesbank Capital Partners

Chicago Public Schools’ College

Prep

CL Educate

College Board

Davis College of Business

Easel

Economist

Educational Testing Service

eTextPrep

Extole

GMAT Tutor

Google

Graduate Management Admission

Council

Grockit, Inc.

gWhiz LLC

Hobsons

Houghton Mifflin Harcourt

Hubspot

Huntington Learning Centers

Jacksonville University

Kaplan, Inc.

Khan Academy

Knerr Learning Center

Knewton

Law School Admission Council

Learnhub

Learninst


September 2013


Macmillan Education

Manhattan Review

Massachusetts Institute of

Technology

McGraw–Hill Education

Mindojo

Pearson Education

Pixability

Shmoop

Simplilearn

StudyPoint

TechStars

Testive

The Princeton Review

Triumph Learning

Udemy

University of Miami Global

Academy

Veritas Prep

Washington Post Company

ZipCar


September 2013


D ISCLAIMER

No part of this publication may be reproduced, stored in a retrieval system or

transmitted in any form by any means, electronic, mechanical, photocopying,

recording or otherwise, without the prior permission of the publisher, Indalytics

Advisors Private Limited.

The information contained in this report is of a general nature and is not

intended to address any particular individual or entity’s circumstances. Although

proper care has been taken to provide accurate and timely information, there

can be no guarantee that such information is accurate as of the date it is

received or that it will continue to be accurate in the future. The publisher

should not be held liable for any discrepancy in the information. No one should

act upon such information without appropriate professional advice after a

thorough examination of the particular situation.

All the tests mentioned in the report are registered trademarks of respective

test makers and test preparation providers — that are not involved in the

production of, and do not endorse, this report.

Publication Volume: GCI-13-US–01

Publication Date – September 2013

© 2013 Indalytics Advisors Private Limited

For further information, please contact

[email protected]