Exam Preparation and Tutoring Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 8,900 exam prep and tutoring service providers in the US offer preparation for standardized tests and academic tutoring programs. Some firms provide basic education and personal improvement programs. Firms may also specialize in occupation, technical, and trade professional development. The industry includes non-profit organizations, franchises, chains, and independent operators.

Online Tutoring Disrupts Industry Model

Online tutoring and exam prep programs expand reach, but also create competition for traditional centers and independent tutors.

Slowing Demand, Heavy Competition

Weaker demand and increased competition are expected to limit revenue and profit growth for exam prep and tutoring service providers.

Industry size & Structure

The average exam prep and tutoring service provider operates out of a single location, employs 12 workers, and generates about $663,000 annually.

    • The exam prep and tutoring services industry consists of about 8,900 firms that employ about 102,000 workers and generate $5.9 billion annually.
    • The industry includes nonprofit organizations, franchises, chains, and independent operators.
    • The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for about 41% of industry revenue, with the top four companies accounting for 14% of industry revenue.
    • Large companies include Huntington Learning Centers, Sylvan Learning Centers, and Princeton Review.
                                Industry Forecast
                                Exam Preparation and Tutoring Services Industry Growth
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Jul 9, 2024 - Moderate Sales Growth Expected
                                • Exam preparation and tutoring service industry sales are forecast to increase at a 4.57% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Exam preparation and tutoring industry employment has rebounded from a pandemic related plunge in 2020 and exceeded pre-pandemic levels in early 2024, according to the US Bureau of Labor Statistics.
                                • Americans’ confidence in colleges and universities has hit an all-time low at 28%, according to a 2024 survey conducted by the Foundation for Individual Rights and Expression (FIRE) and NORC (previously the National Opinion Research Center) at the University of Chicago. Demand for exam preparation and tutoring services may decrease if fewer people apply to colleges and universities. About 57% of Americans had a “great deal” of confidence in US colleges and universities in 2015, according to Gallup. That number decreased to 36% 2023.
                                • Federal pandemic funding paid for a major expansion of tutoring across the US but the 2023-24 school year is the last full year in which districts can spend down what remains of the $180 billion in federal Covid-19 aid. Education officials and advocates are asking state legislators and schools to find a way to keep these programs going. Some states have pledged continued funding. Virginia put an extra $418 million in its state budget for academic recovery this past fall and plans to spend 70% of that on high-dosage tutoring for students who failed or received low marks on state tests. Michigan set aside $150 million in state funds last year for intensive tutoring under the state’s MI Kids Back on Track program. Federal officials have indicated that they’d look favorably on state requests for more time to spend pandemic aid if it’s going toward tutoring.
                                • Yale University, Brown University, and Dartmouth College are among the increasing number of colleges and universities that are reinstating standardized test requirements for applicants. Officials at Brown said that research indicated that SAT and ACT scores are highly predictive of students’ academic performance in college. Many schools stopped requiring standardized test results when the coronavirus pandemic shut down testing centers. Exam preparation and tutoring services are likely to benefit from the return of standardized testing requirements.
                                Get A Demo

                                Vertical IQ’s Industry Intelligence Platform

                                See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                Build valuable, lasting relationships by having smarter conversations -
                                check out Vertical IQ today.

                                Request A Demo