China Education Industry Report: 2016 Edition - New Report by Koncept Analytics

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China Education Industry Report ----------------------------------------2016


Executive Summary The ancient education of China began in the Chinese classical works, rather than religious organizations. In Chinese history, clearly documented school for formal teaching began in Xia Dynasty (c. 2100-1600 B.C.). Since the beginning of 21st Century, the Chinese government gave priority to education and put forward the strategic policy of “revitalizing the nation through science and education". Deepening educational system reform, strengthening quality education, and adhering to make nine-year compulsory education universal and eliminating illiteracy are the most important tasks of education. The Chinese education system follows a specific pattern where early childhood education (pre-primary) is followed by primary school (Elementary school), middle school, secondary school (High school), and post-secondary (Tertiary) education. There are two major examinations for students undergoing school education in China, Zhongkao and Gaokao. Students begin their nine-year compulsory education at about six years old, and they progress through elementary school and junior high school over the following nine years. At the end of Grade Nine, all students are required to take Zhongkao, which is the cumulative assessment of this nine-year education period and is the entrance examination for senior high school. The overall growth of the industry will be driven by rising responsiveness of people towards the benefits of early education and continuing education and growing demand for online teaching methods. The trends observed in China regarding the education industry are growing access to internet and declining rates of young population. While on one side, internet opens up the opportunities to grab overseas education, simultaneously, it poses a threat to domestic educational institutions. Another challenge faced by the industry is declining rate of young population reflected by the fact that enrollments in primary and secondary education have been declining since 2007. The report, “China Education Industry” analyzes the prevailing condition of the industry along with its major segments including pre-primary, primary, K-12, post-secondary and adult/continuing education. Chinese domestic and international education market along with specific dependence on the US education as well as the market dynamics of the Chinese education industry are being presented in this report. The major players, TAL Education, TARENA International, China Distance Education Holding and New Oriental have being profiled and compared, along with their key financials and strategies for growth.


The growing importance of education improvises the requirement of kindergartens that provide a child with the very basic start in the field of studies. Since 2007, a rise in the number of private and pubic kindergartens in the provinces of China has been observed. School-age Population by Education Level (2014)  In the year 2014, xx million people were in the age group 45 years, i.e. the pre-primary level of education while those in the tertiary education were xx million people in all the provinces of China.

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 Total student enrollment in China has been declining since 2007 at a negative CAGR of xx%. The number of enrollments in China was estimated to be 1xx.8 million in 2015, down from xx8 million enrollments of 2007. Pre-primary (4-5)

Primary (6-11)

Secondary (12-17)

Tertiary (18-22)

 While public kindergartens increased from nearly xx by xx by the end of 2014.

Education Level (Age Group)

Total Student Enrollment in China (2007-2015E)

Number of Kindergartens in China (2007-2014)

2007 2008 2009 2010 2011 2012

es d Stu n ilo M

2013

ats G d in fK ero b m u N '0

2014

2007

2008

2009

2010

2011

2012

2013

2014

2015E

Public

Private

Collective & Others


China’s international schools are mostly based in Beijing, Shanghai and Guangzhou. There is a positive correlation between the number of international schools and a city’s speed of economic growth and its size of the population. Provincial Distribution of International Schools in China – Top 10 (2014) Public Private

• For the fiscal year 2015, nearly xx and xx million enrollments in primary and secondary education are anticipated in the Chinese education industry.

No. of International Schools

• By 2014, the United States hosted only xx% of the total. Key competitors for international students include the United Kingdom (xx%), China xx%), France (xx), Germany (x%), and Australia (xx%).

s tailSch fIn ero b m u N

• In recent years, international schools have increased in number in China. In the past 12 years, the number of international schools registered in mainland China has increased from xx to 3xx, a CAGR of xxx%.

China’s Share of Internationally Mobile Students (2001/2014)

Schools for Foreign Children (2007-2015E)

Spain Belgium

2001

US UK France

ls .fSch o N

China Germany

2014

Australia Canada %

Japan

2007

2008

2009

2010

2011

2012

2013

2014

2015E


Users of technological services in mainland China use the internet as the medium of education. Nearly 77.8 million people used online education services in China in the year 2014 . China Online Education Market by Value - Forecast (2016F-2018F)  Revenues generated by Online education sector in China are estimated to be US$xx billion for the fiscal year 2014 and is anticipated to be valued at US$xx billion for the year ended 2015.

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 Despite the fact that revenues from pre-schooling segment of online education were less than xx% for the financial year 2013, the largest investment (approximately xx%) is made in this particular segment, with expectation to get returns later on. Investments on vocational education were equivalent to 12% and that in primary & secondary education is xx%.

2017F

2018F

China's Online Educational Market Value by Segment (2013/2017E)

2017 e

Higher Education Career Training Elementary + Secondary

2013

China Online Education Market by Volume- Actual (2008-2015E)

r se U n ilo M

2016F

 The online education users are forecasted to grow at a CAGR of 1xx% for the period spanning 2015-2018, reaching xx million by the end of 2018, driven by greater adoption of product offerings online by industry players worldwide.

Corporate ELearning Pre-Schooling 2008

2009

2010

2011

2012

2013

2014

2015E


Contact Us: These are abridged and sanitized sample pages from the comprehensive report on the “China Education Industry”. To know more about this report or for any customized research requirement, please contact the following:

Koncept Analytics

Vikas Gupta BD Manager

CS-36, Second Floor, Ansal Plaza Vaishali, Ghaziabad, U.P. – 201010 T. +91-120-4130959 C: +91-9811715635 vikas@konceptanalytics.com

www.konceptanalytics.com


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