锘?!DOCTYPE html> Share of K12 in Online Education Market Rose to 20.7% in H1 2019
  • Share of K12 in Online Education Market Rose to 20.7% in H1 2019

    Source:iResearch October 22,20198:37 AM
    According to iResearch Consulting Group, revenue of online education market is estimated to reach 313.36 billion Yuan in China by the end of 2019, up 24.5% compared with the previous year. and it is expected that the growth will be stable with a decelerated rate. The decelerated growth of online education market can be attributed to the following three reasons: Users' acceptance of online education is increasing, the willingness of online payment is forming and online learning experience and effect is improving.聽

    The data from iResearch Consulting Group show that higher education and vocational training is the principal part of online education market and takes a share of roughly 80% in online education market. For the adult have strong self-control, clear study purpose, limited free time and stable vision, they are the main user group of online education. Especially in the scenarios such as qualification upgrade, job seeking and certification obtaining, there are stronger demand for education and training.聽
    Meanwhile, there is rigid demand for in K12 education, but the study in the K12 education has the feature of high trial-and-error cost. Students and their parents have cautious attitude to online education, which is why K12 had a small share in the early stage of online education. Especially in 2012, the share was only 9%. However, as the parents after 80s and 90s upgraded education consciousness and had high consumption capability, children after 00s and 10s had naturally familiarity to internet, and two-child policy produced demographic dividend, children and their parents鈥?acceptance for online education rapidly increased and the share of K12 in online education market rose to 20.7% in first half of 2019. But the share of higher education and vocational training decreased to 75%. iResearch forecasts that K12 will occupy approximately 28% of online education market by the end of 2022.

    In the first half of 2019, the average revenue of LAIX Inc, Genshuixue, 51talk, Sunlands and China Distance Education Holdings Ltd. reached 699 million Yuan. Among them, Sunlands had the highest revenue which was 1,117 million Yuan. The five listed education companies all experienced fast growth in the period and their average growth was 129.7%. Growth of Genshuixue even skyrocketed to 437.9%.聽
    According to iResearch Consulting Group, Sunlands obtained the highest revenue in the first half of 2019 because it, as the first stock in the adult education examination training field, had absorbed rapidly the offline adult education examination training market. Genshuixue had the highest growth because low price for per customer raised the tremendous growth of online paying users.聽

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