According to iResearch Consulting Group, the revenue of China’s online education market reached 251.76 billion Yuan in 2018 with a YoY growth of 25.7%, which was estimated to keep a growth rate of 16%-24% in the following 3-5 years. The growth rate may decline but will have a steady rising momentum. The rising acceptance level for online education among users, enhanced online service payment willingness and improvement in online learning experience and effects are the main reasons for the steady growth of online education market.
Although K12 education is in rigid demand is rigid, parents and students are usually cautious about online education due to the high trial-and-error cost at this stage of learning. This led to the relatively small market share of online K12 education at its initial stage of development, which was only 9% in 2012. Thanks to the improvement of education concept among post-80/post-90 generation parents and their consumption ability, post-00/post-10 generation’s familiarity of Internet, and the demographic dividend brought by the second-child policy, the corresponding parents and students are more receptive to online K12 education these years. It is estimated by iResearch that the share of online K12 education will grow to around 28% in 2022 and the share of higher education and vocational education in online education market may fall to around 68%.