Revenue of China's Online Education Market Increased by 25.7% in 2018

Source:iResearch March 19,20198:44 AM

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.

China’s online education paying users reached 135 million in 2018, increasing 23.3% compared with the previous year, and the growth is estimated to remain in the range of 14%-21% in the next 3-5 years. The growth rate will decrease but maintain steady.

According to iResearch, higher education and vocational education have long been the main part of China’s online education market and took up roughly 80% of the market. Given that adults usually have stronger self-control ability, clearer study targets, limited spare time and fixed vision, adults are the main customer group of online education nowadays, and their demand for education is particularly strong in the scenarios of pursuing a higher education background, searching for a job and preparing for a certificate exam.

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%. 

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