"Black Swans" Collapse Russian EdTech Market
Posted: Wed Jan 22, 2025 5:44 am
According to the Smart Ranking agency, the total revenue of the 100 largest EdTech companies in Russia for 2023 amounted to 118 billion rubles, which is 31% higher than the 2022 level. At the same time, half of the revenue came from the 10 largest companies. As noted by the founder of the agency Daria Ryzhkova, the data obtained corresponds to previously made forecasts.
In 2022, the domestic EdTech market experienced a decline after eight years of steady growth, which accelerated to twofold during the pandemic years of 2020-2021. According croatia whatsapp number database to Natalia Tsarevskaya-Dyakina, Director of the EdTech Cluster of the Skolkovo Foundation, the market decline in 2022 is due to the curtailment of B2B programs by companies that left the Russian market, primarily SAP, which accounted for up to 80% of this segment.
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The volume of the Russian EdTech market, according to preliminary results for the year, amounted to 19.4 billion rubles, which is 14.5% lower than last year. The main factor in the decline was the curtailment of B2B programs, where foreign companies dominated and left the Russian market. However, new opportunities are opening up, primarily entry into the secondary vocational education market.
Quality issues were also accumulating. "Most corporate programs presented on the Russian market do not meet the needs of companies and their employees in terms of content and format. The courses do not take into account the level of target competencies of personnel, and the training formats are not adapted to current business problems and economic challenges," said Dmitry Krasovsky, director of T1 Digital Academy, commenting on the results of a study on corporate additional professional training (APT) and personnel development at the RUT: Talent Management Development conference. According to this study, the market decline due to the departure of foreign vendors, primarily SAP and Coursera, was 60%.
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Requirements for corporate IT education programs have grown
After the departure of foreign developers of corporate programs for additional professional education, the Russian market has become empty by approximately 60%. According to the research of T1 Digital Academy, the existing Russian training programs only partially satisfy business demand and do not meet the expectations of employees in terms of content and format.
In 2023, the additional education segment, according to Smart Ranking, accounted for 35% of the entire market, with growth rates slightly below average - 27%. Georgy Babayan, CEO and founder of Elbrus Bootcamp LLC, linked the relatively modest growth rates to the high level of competition among companies that offered various types of courses for training developers, as well as the increased cost of attracting new students.
According to the founder and producer of "Robbo" Pavel Frolov, the state of uncertainty among Russians, the fear of losing their previous job or a salary cut influenced the growth of the EdTech market in 2023: "The adult population was actively learning in-demand professions. Various IT specialties were in the greatest demand - for example, developers of innovative IT products, sales and marketing specialists."
Alexey Kutashev, Development Director of T1 Digital Academy, called advanced training of personnel the most popular tool for achieving business goals: "Interest in corporate electronic education (CEE) in Russia is fueled by the rapid implementation of advanced technologies by companies. To succeed in business, customers have to promptly train personnel in new skills and competencies in practice. The priority of employers is now to create conditions where each employee can fully reveal their professional potential. However, it should be borne in mind that creating a training platform, filling it with modular courses is a complex and expensive task, which includes developing an educational program, webinars, practical assignments, chat training for employees, etc. Not every business can afford such an approach, so companies continue to actively resort to EdTech services. And we expect that this trend will be sustainable in the coming years."
In 2022, the domestic EdTech market experienced a decline after eight years of steady growth, which accelerated to twofold during the pandemic years of 2020-2021. According croatia whatsapp number database to Natalia Tsarevskaya-Dyakina, Director of the EdTech Cluster of the Skolkovo Foundation, the market decline in 2022 is due to the curtailment of B2B programs by companies that left the Russian market, primarily SAP, which accounted for up to 80% of this segment.
Read also
The volume of the Russian EdTech market, according to preliminary results for the year, amounted to 19.4 billion rubles, which is 14.5% lower than last year. The main factor in the decline was the curtailment of B2B programs, where foreign companies dominated and left the Russian market. However, new opportunities are opening up, primarily entry into the secondary vocational education market.
Quality issues were also accumulating. "Most corporate programs presented on the Russian market do not meet the needs of companies and their employees in terms of content and format. The courses do not take into account the level of target competencies of personnel, and the training formats are not adapted to current business problems and economic challenges," said Dmitry Krasovsky, director of T1 Digital Academy, commenting on the results of a study on corporate additional professional training (APT) and personnel development at the RUT: Talent Management Development conference. According to this study, the market decline due to the departure of foreign vendors, primarily SAP and Coursera, was 60%.
Read also
Requirements for corporate IT education programs have grown
After the departure of foreign developers of corporate programs for additional professional education, the Russian market has become empty by approximately 60%. According to the research of T1 Digital Academy, the existing Russian training programs only partially satisfy business demand and do not meet the expectations of employees in terms of content and format.
In 2023, the additional education segment, according to Smart Ranking, accounted for 35% of the entire market, with growth rates slightly below average - 27%. Georgy Babayan, CEO and founder of Elbrus Bootcamp LLC, linked the relatively modest growth rates to the high level of competition among companies that offered various types of courses for training developers, as well as the increased cost of attracting new students.
According to the founder and producer of "Robbo" Pavel Frolov, the state of uncertainty among Russians, the fear of losing their previous job or a salary cut influenced the growth of the EdTech market in 2023: "The adult population was actively learning in-demand professions. Various IT specialties were in the greatest demand - for example, developers of innovative IT products, sales and marketing specialists."
Alexey Kutashev, Development Director of T1 Digital Academy, called advanced training of personnel the most popular tool for achieving business goals: "Interest in corporate electronic education (CEE) in Russia is fueled by the rapid implementation of advanced technologies by companies. To succeed in business, customers have to promptly train personnel in new skills and competencies in practice. The priority of employers is now to create conditions where each employee can fully reveal their professional potential. However, it should be borne in mind that creating a training platform, filling it with modular courses is a complex and expensive task, which includes developing an educational program, webinars, practical assignments, chat training for employees, etc. Not every business can afford such an approach, so companies continue to actively resort to EdTech services. And we expect that this trend will be sustainable in the coming years."