China's Digital English Market Swells to $931.8 Million by 2018

Digital English Language Learning Market in China is in a Boom Phase According to Ambient Insight Report

SEATTLE, Aug. 14, 2014 /PRNewswire-iReach/ -- In 2013, China edged out the United States to become the top digital English language learning buying country in the world, according to an Ambient Insight report called "The 2013-2018 China Digital English Language Learning Market." The five-year compound annual growth rate (CAGR) for digital English language learning products in China is 23.6% and revenues will nearly triple over the forecast period.

Revenues for these products will surge to $931.8 million in 2018, up from the $323.1 million reached in 2013. Due to the increasingly favorable market conditions, Ambient Insight has revised our China forecasts for digital English language learning products significantly upward from previous forecasts.

Download the free Abstract:

2013-2018 China Digital English Language Learning Market

"The substantial growth in revenues for digital English language learning products in China is due to four primary catalysts," explains Chief Research Officer, Sam S. Adkins. "Tablet adoption, the growing use of English in education, consumer demand for mobile educational content, and the high demand for specialized forms of digital English are all contributing to very favorable market conditions in China. There are also significant secondary catalysts, which are also discussed in the report."

This report includes two sections: a demand-side analysis and a supply-side analysis. The demand-side analysis breaks out five-year spending forecasts for six buying segments: consumers, corporations & businesses, PreK-12 schools, higher education institutions, federal government agencies, and provincial/municipal government agencies. The buying behavior in each segment is quite different and this report identifies the products in the highest demand in each segment.

"The government-operated school systems were the top buyers in 2013, but the highest growth rate for digital English language learning products in China is in the consumer segment at a breathtaking 36.3%," comments Adkins. "Consumer buying behavior in China is being driven by several factors, particularly a spike in the demand for mobile educational apps and edugames. Consumers will be the top buyers by 2018."

The supply-side analysis breaks out revenues by five learning technology product types: Self-paced eLearning (courseware), Collaboration-based Learning (live online classes and live online tutoring), Digital Reference-ware (eTextbooks, video, audio), Mobile Learning apps and edugames, and Mobile Learning value added services (VAS).

"The growth rates and the revenues for all five digital English language learning product types are quite robust in China," reports Adkins. "It is rare for a country to have such high growth rates for all of the product types. The two product types with the highest growth rates in China are Mobile Learning apps (and edugames) and Mobile Learning VAS at 28.5% and 26.3%, respectively. Combined, the two mobile product types will account for over half of all digital English language learning revenues in China by 2018."

According to Adkins, "Products for young children are popular in China. Parents and the schools now purchase a significant amount of digital English language learning for children. The vast majority of the English-related mobile edugames sold in China are products designed for very young children."

An interesting pattern in China is the dramatic increase in private investments made to suppliers that serve the Chinese market. This is a distinct leading indicator. This only started in earnest in 2013 and $183.6 million has been invested in 17 online English language learning suppliers in China from 2013 through the first half of 2014. More than half of the total investments made to digital English language learning suppliers in 2013 and 2014 went to Chinese companies.

Over 60 suppliers operating in China are cited in this report to help international suppliers identify local partners, distributors, resellers, and potential merger and acquisition (M&A) targets.

"Clearly, the market conditions are favorable for digital English language learning suppliers in China," adds Adkins. "That said, doing business in China can be challenging for a foreign firm. An analysis of those challenges and how suppliers are overcoming them is included in this report.t

Media Contact: Sam Adkins, Ambient Insight, 360-805-4298,

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SOURCE Ambient Insight



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