The online language learning market is expected to grow at a CAGR of 20% during the forecast period. Increasing enrollment of foreign students, drivers.2, and drivers.3 are some of the significant factors fueling online language learning market growth.
Increasing enrollment of foreign students
Technavio categorizes the online language learning market as a part of the global education services market (also referred to as the global education services market). The parent, global education services market, covers products, services, and solutions that are offered to educational institutions, corporate institutions, students, parents, individuals, and teachers.
The global education services market was valued at $ 9,214.61 billion in 2019 and is expected to grow at a moderate pace. Technavio calculates the global education services market size based on the combined revenues generated by manufacturers/providers of equipment, software, teaching materials, solutions, and services.
The following factors are expected to drive the growth of the global education services market:
The increasing importance of science, technology, engineering, and mathematics (STEM) education: Increasing job opportunities in the STEM fields is one of the major reasons for the increasing popularity of these courses among students globally. STEM jobs also offer higher salaries compared with non-STEM careers. Various governments are also aiding STEM education through funding and supportive policies.
Increasing offerings from ed-tech companies: New generation students facing a competitive education environment are demanding simple but effective solutions. Ed-tech companies are transforming ways of learning by offering technologies such as augmented reality (AR), virtual reality (VR), interactive whiteboards, blockchain, and STEM Labs. Such technologies are providing hands-on learning and enabling higher retention than textbook learning.
Increasing enrollments in online education: Online skills and language learning programs may cost less when compared with offline learning programs. The costs associated with classroom space, equipment, and other physical amenities do not apply to online learning programs. Also, online education offers flexibility in terms of location and study timings, which is particularly suitable for working people who seek additional certification.
Increasing enrollment in the K12 segment: This is one of the major factors driving the global education services market. There is a rise in the number of student enrollments in the K-12 segment that includes elementary schools, primary schools, and secondary schools. This growth is more prominent in North America and APAC with countries such as the US, China, and India witnessing high K-12 enrollments.
Increasing emphasis on mobile learning: The increasing use of smartphones is encouraging education service providers to introduce mobile learning modules. Mobile learning has several advantages, such as flexibility and convenience. Therefore, users can schedule and complete the course/training according to their convenience. Mobile learning is also an experience of personalized learning as users can take trainings as per their requirements.
Some of the key issues faced by the global education services market include:
Data and security issues: E-learning is a major revolution in the education market and has the Internet as its backbone. Institutions and students are increasingly opting for e-learning but are unaware of security threats such as content piracy, copyright infringement, phishing attacks, identity theft, and other cybersecurity risks.
Fragmented market: Owing to increasing demand for online and offline content, the market offers huge growth potential, which leads to a fragmented market structure with the presence of large international and small domestic players. Such intense competition has led to price wars resulting in almost zero switching costs for buyers.
Content credibility: In e-learning, the majority of the content is delivered online in various formats including digital documents, live streams, or recorded videos. The reach of e-learning is expanding rapidly; even medical courses are now available online. However, the credibility of such course material may be questionable as vendors may or may not be accredited, and it may be difficult for students to verify the same.
Increasing adoption of open educational resources (OERs): OERs have been gaining momentum in recent years. OERs are learning and teaching materials available free of cost or at low costs and may range from a single lesson plan to a complete curriculum. Another important factor that is contributing to their growing popularity is flexibility, which supports personalized learning. This is a challenge for traditional fee-based business models.
Low digital literacy rates: Educational hardware and software have not been realized in tandem with the availability of trained staff in educational institutions. Institutions find it difficult to integrate technology into business processes. This is because of the inability of the faculty and administrators to understand applications and optimal use. The deployment of these applications alone by colleges and universities is not enough.
The global education services market is at a crossroads with the positive impact of technological advances such as online education, implementation of AR and VR in teaching methods, and the use of interactive whiteboards. On the other hand, data and security issues and low digital literacy rates are having a negative impact on growth. The combined impact of these factors will lead to moderate growth in the global education services market.
The global education services market includes the following segments:
Formal education: Includes K-12 education, higher education, corporate training, pre-K education, government learning, and distance learning
Non-formal education: Includes technical education, language learning, test preparation services, tutoring services, makerspaces, vocational training, and distance learning courses and certifications
Education technology services: Includes education hardware, education technology software and solutions, wearable devices, game-based learning, e-learning platforms, blended learning, gamification, mobile learning, visual technologies (AR, VR, MR) in education, AI market in education, education toys, STEM toys, and 3D printing in the education sector.
