China News Service, July 28. With the continuous improvement of China's economic level, the K-12 education and training industry has developed rapidly, and the TO B (corporate service) market is also ushering in a critical period of high-quality development. On July 28, at the "2020 Good Future TI Smart Education Open Cooperation Conference", the Chinese Academy of Educational Sciences, Oliver Wyman Consulting and Good Future Group jointly released the "2020 China K-12 Education and Training TO B Market Development Report" (hereinafter referred to as "report"). The report comprehensively and systematically analyzes the development needs and trends of China's education and training TO B market (hereinafter referred to as "education TO B market") from the dimensions of policy influence, enrollment management, educational administration operations, teaching and learning support, and reveals its development Opportunities and challenges.
Wang Su, director of the Future Laboratory of the Chinese Academy of Educational Sciences, said that under the impact of the new crown pneumonia epidemic, the education and training industry has encountered an existential crisis and also ushered in an opportunity to explore new models. The new generation of information technology will become an important driving force for the upgrading of education and training formats. For the education TO B market, the online and offline integration model will play a huge boost in the post-epidemic era. In this context, the Chinese Academy of Educational Sciences united for the future, starting from the TOB education scene, reviewing and combing the development of the industry, and comprehensively sketching the future picture of the education TOB market.
At the scene of the 2020 TI Smart Education Open Cooperation Conference, Director Wang Su of the Chinese Academy of Educational Sciences deeply interpreted the "2020 China K-12 Education and Training TO B Market Development Report"
The education and training market is expected to exceed 1.4 trillion yuan in 2025
The report shows that in recent years, China's K-12 education and training industry has developed rapidly at a compound annual growth rate of nearly 30%. In 2019, the market size of China's K-12 education and training industry exceeded 800 billion yuan. However, due to the new crown pneumonia epidemic, a large number of off-campus training institutions had to close schools and classes. The report predicts that in 2020, the scale of China's K-12 education and training market will shrink by 50% to about 400 billion yuan.
With the gradual easing of the epidemic, the report speculates that in 2021, the scale of China's K-12 education and training market can be restored to 730 billion yuan; by 2025, the market size can exceed 1.4 billion yuan, and the proportion of different disciplines is basically stable. In this regard, Wang Su pointed out that with the accelerated application of 5G, artificial intelligence and other technologies in education scenarios, the education TO B industry will better empower off-campus training institutions, help institutions improve the quality of running schools, and become an accelerator for the development of China's education and training industry.
Market Scale Forecast of China's K-12 Education and Training Industry
With the vigorous development of the K-12 education and training market, the competitive landscape of market players is gradually changing. Based on the scale of operating income, the report roughly divides China’s K-12 off-campus training institutions into five categories, namely mega, large, medium, small, and micro. The report shows that giant and large off-campus training institutions together account for 10% of the market share; medium-sized off-campus training institutions account for 20% of the market share; small and micro off-campus training institutions have a small revenue, but the number is the largest, accounting for 70% of the total Market share. In the long run, China's K-12 education and training industry will show a trend of integration and elimination, industry differentiation will become more obvious, and the overall competition pattern will change from a "pyramid type" to a "dumbbell type".
China's K-12 education and training To B market demand side competitive landscape changes
Education TO B market ushered in a period of rapid development and is expected to exceed 100 billion yuan by 2025
The epidemic has stimulated the online development of the education industry, and off-campus training institutions are actively seeking B-end empowerment. The report shows that in recent years, different types of offline training institutions in China have faced varying degrees of development difficulties in enrollment and drainage, teaching, teaching operations, and back-end management. The report pointed out that during the epidemic, more than 70% of off-campus training institutions faced huge cash flow challenges, and more than 60% of the heads of institutions said that this impact will continue until the end of 2020. At the same time, under the stimulus of the epidemic, online education has achieved breakthrough development. Its market share has rapidly increased from 5% to 15%, and the industry's online trend is obvious.
In order to respond to the impact of the epidemic and embrace the trend of online and offline integration, the demand for the B-end market of the education and training industry has rapidly expanded. Off-campus training institutions have supplemented their organizational capabilities and shortcomings through service providers such as tools, content, and smart technologies. board. During this period, a number of educational TO B service providers quickly responded to the country's call for "suspending classes and not stopping schools" to help more offline education and training institutions tide over the crisis. For example, the Good Future Education Open Platform launched the "Safe Harbor Plan" after the outbreak of the epidemic, opened online live teaching solutions to the industry, and provided support for course content and operation escort, and provided multi-dimensional, multi-scenario, and comprehensive support for off-campus training institutions. support. Xueersi Online School, a subsidiary of Good Future, has launched free live classes and self-study classes, opening course resources to institutions and students across the country. During the epidemic, the “Safe Harbor Project” helped more than 40,000 off-campus training institutions across the country to smoothly transition online.
The report shows that China's education TO B market will usher in a period of rapid development. In 2019, the education TO B market scale is close to 27 billion yuan, and it is estimated that by 2025, the overall market size will exceed 100 billion yuan.
2019 Education and Training TO B Market Scale
According to market enthusiasm, the report divides the education TO B market into five major market segments: tools, content, communities and training, complexes, and smart technology. The tool market includes a full set of SaaS software market and hardware market from the front-end enrollment and drainage to the back-end management and office. Digital and informatization methods are used to reduce costs and increase efficiency for off-campus training institutions; the content market is mainly to provide quality content resources and teachers for off-campus training institutions The supply of resources, including the underlying teaching and research teaching materials, teaching materials, and the content solution market for live broadcast dual teachers and AI dual teachers; the community and training market provides vertical industry community, media, and training services for practitioners; the complex market aims to satisfy Millions of off-campus training institutions need to upgrade their venues to create a one-stop learning platform; the smart technology market is mainly based on 5G, big data, cloud computing, artificial intelligence and other new-generation information technologies, providing off-campus training institutions with full-scenario intelligent solutions , Solve the pain points of teaching effect, management efficiency, operating cost and user service stickiness during the operation of off-campus training institutions.
The five major market segments are using their respective businesses as the origin, horizontal integration to open up all scenarios, and vertical integration to integrate multiple product forms, and the overall platform trend is obvious. In addition, Internet service providers, integrated education service providers, infrastructure service providers and other cross-border service providers are bringing their own advantages to "run into the field." For example, Internet service providers are relying on their own C-side traffic advantages and technical advantages, starting from the tool market, and gradually building tool product platforms; comprehensive education institutions relying on their knowledge of the off-campus training market and their own teaching, research and teaching capabilities , Cut from the content market.
The rapid development of science and technology is pushing the educational reform to be more flexible, convenient, efficient, individualized and fair. The education and training industry will also further strengthen the innovative application of emerging technologies, accelerate the innovation of educational concepts, teaching methods and management models, achieve large-scale teaching in accordance with their aptitude, expand the supply of high-quality educational resources, and promote the realization of educational equity.