The Latest Test Prep Industry Statistics Explained
The US test preparation market, encompassing both K-12 and higher education, was valued at $8.0 billion in 2021,
The statistic indicates that the total value of the US test preparation market, which includes services targeting students in K-12 education as well as those in higher education, was $8.0 billion in the year 2021. This figure represents the amount of money spent on various test preparation resources and services such as tutoring, study materials, online courses, and test prep books across both educational sectors. The market valuation suggests that there is a significant demand for test preparation services in the US, highlighting the importance placed on academic achievement and standardized testing in the country’s education system.
The estimated growth rate of global test prep market from 2021 to 2027 is 10.2%.
The estimated growth rate of the global test prep market from 2021 to 2027 being 10.2% indicates the projected annual increase in market size over this period. This statistic suggests that the test prep market is anticipated to expand steadily at a rate of 10.2% each year from 2021 to 2027, driven by factors such as increasing demand for educational services, advancements in technology, and a growing emphasis on academic achievement worldwide. This growth rate serves as a key metric for assessing the market’s potential growth trajectory and provides valuable insights for stakeholders and investors looking to capitalize on opportunities within the test prep industry.
The online segment of the test prep industry is projected to have the highest CAGR of over 15.0% from 2021 to 2027-
This statistic indicates that the online segment within the test preparation industry is forecasted to experience significant growth, with a Compound Annual Growth Rate (CAGR) exceeding 15.0% between 2021 and 2027. This suggests a rapidly expanding market for online test prep services, driven by factors such as the increasing digitization of education, technological advancements, and a growing demand for flexible and convenient learning options. The high CAGR implies a strong upward trend in the adoption of online test preparation resources, indicating a shift towards digital learning methods within the industry. This projection highlights the potential for substantial opportunities and advancements in the online test prep sector over the coming years.
The Chinese test preparation market is projected to reach $17.9 billion by 2027.
The statistic that the Chinese test preparation market is projected to reach $17.9 billion by 2027 reflects a significant and rapid growth in the industry. This projection indicates a strong demand for test preparation services in China, likely driven by factors such as increasing competition for educational opportunities and the importance placed on standardized testing for academic and career advancement. The substantial market size suggests that test preparation services will continue to be a lucrative and vital sector within the education industry. The projected growth also underscores the Chinese population’s dedication to academic excellence and the willingness of individuals and families to invest in enhancing their educational outcomes through professional test preparation services.
The Asia Pacific test preparation market is estimated to expand at a CAGR of above 15.0% from 2021 to 2027.
The statistic indicates that the Asia Pacific test preparation market is projected to grow significantly at a compound annual growth rate (CAGR) of over 15.0% over the period spanning from 2021 to 2027. This suggests a rapid pace of expansion in the market during the specified timeframe. The CAGR measure reflects the average annual growth rate of the market over the specified period, which implies that the market for test preparation services and resources in the Asia Pacific region is expected to experience strong growth and increasing demand for such services in the coming years. Investors, businesses, and other stakeholders may find this statistic valuable in understanding the potential growth opportunities in the test preparation industry in the Asia Pacific region.
The school exams preparation segment dominated the test prep market and accounted for over 30% revenue share in 2019.
This statistic indicates that the segment focused on preparing students for school exams was the leading sector within the test preparation market in 2019, contributing a significant portion of the total revenue with over 30% market share. This domination suggests that a substantial portion of the demand for test preparation services was driven by students preparing for school exams, highlighting the importance and popularity of such services within the education industry. Companies operating in this segment likely benefited from strong demand and market growth, positioning them as key players in the competitive test prep market.
Graduate level examinations application segment is expected to grow at a CAGR of above 14% from 2021 to 2027.
This statistic indicates that the demand for graduate level examinations is anticipated to increase significantly over the period spanning from 2021 to 2027, with a compound annual growth rate (CAGR) exceeding 14%. This implies a strong and consistent growth trend in the application segment for graduate level examinations, suggesting a rising number of individuals seeking to pursue further education at the graduate level during these years. Factors such as increasing emphasis on higher education, evolving job market requirements, and the desire for career advancement may be driving this growth in demand for graduate level examinations. Organizations and institutions involved in administering these examinations may need to prepare for an upsurge in applications and adjust their resources and strategies to accommodate the projected increase in demand.
Number of SAT test takers in the United States in 2020/2021 school year was about 2.2 million.
The statistic that states the number of SAT test takers in the United States during the 2020/2021 school year was approximately 2.2 million, reflects the large scale and widespread participation in this standardized college entrance exam. This figure serves as an indicator of the significance of the SAT as a pivotal component in the college admissions process for a vast number of high school students across the country. The high volume of test takers implies the continued relevance and influence of the SAT in determining academic preparedness and college eligibility for students aiming to further their education. Additionally, this statistic may also suggest trends in educational attainment, college aspirations, and potential areas for future research or policy considerations within the realm of standardized testing and college admissions in the United States.
Approximately 1.7 million students in the United States took the ACT in 2019.
The statistic that approximately 1.7 million students in the United States took the ACT in 2019 indicates the scale of participation in this standardized test. The ACT is a widely recognized assessment used by many colleges and universities as part of their admissions process. The large number of students taking the ACT reflects the significance of the test in the college application process and suggests a high level of competition among students seeking admission to higher education institutions. This statistic also provides insight into the sheer volume of students in the U.S. who are actively pursuing educational opportunities beyond high school.
In 2021, 54% of the high school graduating class took the ACT, and 47% took the SAT.
In 2021, 54% of the high school graduating class took the ACT, while 47% of the class took the SAT. This data provides insights into the preferences of students when it comes to college entrance exams. It suggests that a higher proportion of students opted to take the ACT compared to the SAT. The information can be useful for colleges and universities in understanding the testing landscape and making decisions related to admissions criteria. Additionally, it could also be valuable for test preparation companies and educators to tailor their offerings based on the popularity of these exams among students.
About 80% of elite colleges and universities require SAT or ACT scores for admission.
The statistic states that approximately 80% of prestigious colleges and universities require applicants to submit scores from standardized tests such as the SAT or ACT as part of their admission process. This suggests that standardized testing remains a common requirement among elite institutions and plays a significant role in evaluating the academic preparedness of prospective students. Admissions decisions at these schools may heavily weigh test scores alongside other factors such as GPA, extracurricular activities, and personal essays. The emphasis on standardized tests in the admissions process of top-tier universities underscores the importance of academic performance and demonstrates the competitive nature of gaining acceptance to these institutions.
Approximately 16% of US high schools, serving about 500,000 students, don’t have any school-sponsored test preparation.
The statistic indicates that approximately 16% of high schools in the United States, which equates to around 800 schools, do not offer any form of school-sponsored test preparation for their students. This lack of preparation programs impacts an estimated 500,000 students who attend these schools. Test preparation programs are often considered essential for students to adequately prepare for standardized tests such as the SAT or ACT, which can significantly impact their college admissions prospects. The absence of school-sponsored test preparation in these high schools may create disparities in educational opportunities and outcomes for students compared to those attending schools with such programs.
Average cost for people to prepare for ACT or SAT exams varies between $200 and $800.
The statistic “Average cost for people to prepare for ACT or SAT exams varies between $200 and $800” suggests that the typical amount individuals spend on preparation materials, courses, or tutoring services for these standardized tests falls within the range of $200 to $800. This variation in cost may be influenced by factors such as the specific resources chosen for preparation, the duration of the preparation period, and whether individuals opt for self-study materials or professional guidance. On average, test-takers may allocate a budget within this range to enhance their readiness and performance on the ACT or SAT exams, indicating the potential financial commitment associated with pursuing higher education opportunities.
The average score of ACT test at 20.9 in 2020, has been falling for last five years.
The statistic indicates that the average score on the ACT test was 20.9 in 2020 and has been declining over the past five years. This trend suggests that students’ overall performance on the ACT test has been decreasing over time. A declining average score may be attributed to various factors such as changes in the test content, differences in student preparation, or shifts in educational policies and practices. The consistent decrease in average scores highlights a potential need for further analysis and intervention to understand and address the factors contributing to this downward trend.
Nearly one-quarter of students in 2019 used a fee-based test prep service or tutor for the SAT.
This statistic indicates that approximately 25% of students who took the SAT exam in 2019 paid for a test preparation service or hired a tutor to help them prepare for the exam. This suggests that a significant portion of students recognize the value of additional support in preparing for standardized tests like the SAT, possibly aiming to improve their scores and increase their chances of college acceptance. The high usage of fee-based test prep services or tutors highlights the competitive nature of college admissions and the lengths that some students are willing to go to in order to enhance their academic performance.
For-profit test prep courses improve SAT scores by an average of about 30 points.
The statement suggests that enrolling in for-profit test prep courses leads to an average increase in SAT scores of approximately 30 points. This statistic implies that students who take these courses tend to perform better on the SAT exam compared to those who do not. The 30-point increase indicates a positive impact of the test prep courses on students’ test scores. However, it’s important to note that this average increase may vary among individual students, as factors such as prior knowledge, study habits, and baseline abilities also play a role in determining the effectiveness of the test prep courses.
Only 3% of the American test-prep industry is regulated, while in Japan it’s around 87%.
The statistic provided indicates a stark contrast in the regulation of the test-prep industry between the United States and Japan. With only 3% of the American test-prep industry being regulated, there is a substantially lower level of oversight and control in place compared to Japan, where approximately 87% of the industry is regulated. This suggests that in the United States, the test-prep industry operates with minimal governmental restrictions and standards, potentially leading to varied quality of services and a lack of accountability. In contrast, Japan’s significantly higher regulation rate indicates a more standardized and monitored test-prep industry, which may result in greater consistency and reliability for consumers seeking test preparation services.
About 18% of ACT and SAT takers used a commercial test prep book in 2019.
The statistic “About 18% of ACT and SAT takers used a commercial test prep book in 2019” indicates that approximately 18% of students who took the ACT or SAT exams in 2019 utilized a commercial test preparation book to help them study. This suggests that a significant portion of students preparing for these standardized tests opted for commercially available resources to enhance their test-taking skills and improve their chances of achieving higher scores. The widespread use of commercial test prep books highlights the importance placed on standardized testing performance and the competitive nature of college admissions processes, as students seek ways to better prepare themselves for these critical exams.
Over 80% of test-prep tutors earn more than the average U.S. teacher annually.
The statistic that over 80% of test-prep tutors earn more than the average U.S. teacher annually highlights a significant disparity in earning potential between these two professions. Test-prep tutors typically provide specialized assistance to students preparing for standardized tests, and due to the high demand for their services and the potential to cater to affluent clientele or private companies, they are able to command higher fees. In contrast, the average U.S. teacher’s salary reflects the broader public education system’s compensation structure, which can vary widely depending on factors such as location, level of experience, and qualifications. Therefore, this statistic underscores the financial incentives that can drive individuals towards pursuing careers in test-prep tutoring over traditional teaching roles.
References
0. – https://www.www.act.org
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3. – https://www.www.statista.com
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5. – https://www.www.edweek.org
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7. – https://www.www.latimes.com
8. – https://www.www.insidehighered.com
9. – https://www.www.brookings.edu
10. – https://www.www.cnbc.com
11. – https://www.www.businessinsider.com
