A recent report from UBS Securities stated that online education is gaining traction in China, with the market scale expected to exceed 714 billion yuan ($104 billion) by 2025.
According to the report, the Chinese online education market will grow markedly from the 29 billion yuan reported last year.
An analyst at iiMedia, Liu Jiehao said government support, technological progress, and an cultural emphasis on education have all contributed to a burgeoning online education market in China.
Most Chinese parents expect their kids to continue learning after the end of the school day.
The UBS report pointed out that about 37% of Chinese parents paid for tuition compared to 70% in places such as Japan and South Korea.
A Chinese online education company, called VIPKid recently raised $500 million in its latest round of financing – the world’s largest fundraising in the online education sector.
The company’s latest data showed it has enrolled more than 60,000 foreign teachers in its network, enabling it to work with 500,000 paid users.
Founder and chief researcher at Learneasy Times Online Education Research Institute,LyuSenlin said; “The financing accelerated the accumulative effect of the country’s online education segment.”
China Daily informed that, in recent years, TAL Education Group and New Oriental Education & Technology Grouphas been China’s top two education players.
The companies are transforming from offline to online and putting great emphasis on online education.
Source: China Daily