The market size was 257.3 billion yuan in 2020, increasing by 35.5%.
According to the statistics of iResearch, the market size of China’s online education industry reached 257.3 billion yuan in 2020. The CAGR in the past four years was 34.5%. The accelerated online development process of early childhood and all-round education track and K12 subject tutoring is the main contributor to the fast growth of the online education market. Influenced by the pandemic, the online scope of early childhood and all-round education keeps developing vertically. The online development of the vocational education field has been accelerating, generating supply and demand. Impacted by the pandemic in 2020, the development of online education was accelerated, which will overdraft the growth rate in 2021. iResearch predicts that the YoY growth rate of the online education industry will fall to around 20%.
Proportion of Online Education in the Industry
The proportion of online education in the entire education industry increased by 5 percentage points to 13%-15% from 2016 to 2019, and surged to 23%-25% in 2020 due to the Covid-19 pandemic.
The form of recorded lessons played the main role in online education before 2016. It is mainly adopted in adult education fields such as higher education and vocational training. In 2017, live streaming technology matured, bringing large-scale monetization channels for online education and accelerating the development of online education. From 2016 to 2019, the online penetration in the education industry increased from 8%-10% to 13%-15%. The online penetration in K12 subject tutoring, early childhood and all-round education grew from 1% to 5%-8%. Due to the Covid-19 pandemic in 2020, online education developed rapidly and the scale of offline education reduced significantly. The proportions of online education in the entire market and market segments have increased a lot. As the pandemic is gradually under control, education is becoming normal again. The online penetration is expected to fall.