Digital English Language Learning – China Report Released

JadeBuddha-CityScenes-RailwayMuseum 2013-06-26 077In 2013, thanks in part to government-run schools, China moved to the top position as generating the highest revenues ($323.1 million) for digital English Language Learning products and services, not only in the Asia region but across the planet. Private language learning schools and consumers did their bit also. With a 26% compound annual growth rate (CAGR), digital English Language Learning products revenues will reach an astonishing $931.8 million in 2018.

The Chinese government has boosted digital English language learning in two ways. First, by their plans to deploy massive number—over 10 million—of educational tablets and second, by establishing compulsory requirements for students to learn English in an effort to promote internationalism and be competitive in a global market place. In higher education institutions, English is compulsory and students must pass an English proficiency test twice a year. Exams foster a market for test prep, and English language learning is no exception.

There is a thriving market for online courses for specialized forms of English: business, tourism, hospitality, and aviation. Again, for China to compete in the global marketplace, these skills are important. After presenting at a conference in Shanghai last year, I can attest to the prevalence of business, tourism, and hospitality English. (And since landing and taking off safely, I assume aviation English as well).

Digital Eng_China1Digital Eng_China2International sporting events such as the Beijing Olympics and the World Cup games to be held in Brazil this year often cause a spike in English language learning.

Sam Adkins, Ambient Insight’s Chief Research Officer, reports in his deep dive into this market in China, 2013-2018 China Market for English Language Learning that “All roads lead to mobile.” True, it’s just one of the five product types for which Sam has provided revenue and growth forecasts in this report, but Mobile Learning is strong in China.

In 2013, over 350 million smart phones were sold in China and in 2014 the number sold is anticipated to climb to 400 million. In January 2014, the iPhone was offered for sale in China by China Mobile, the nation’s largest telecom, which is continuing to build out their 4G network—and this was good news for iOS content providers. Android devices, supplied by vendors such as Lenovo, Xiaomi, and ZTE that sell low-cost phones (where the country’s smartphone growth is) have the dominant share.

Telecoms are sitting in the cat bird seat in China. Not only do they have vast subscriber bases to market their Mobile Learning VAS products, but they, as other carriers do, have the advantage of direct billing.

For more on the China market, download the free Abstract for the “2013-2018 China Digital English Language Learning Market” report from Ambient Insight’s Resource Library.

Digital English Language Learning – Asia Region Report Released

The Asia market for Digital English Language Learning is hot. This region’s revenues—the highest on the planet—were $863.1 million in 2013 and by 2018 will be a whopping $1.6 billion.

Sam Adkins, Ambient Insight's chief research officer

Sam Adkins, Ambient Insight’s chief research officer

Sam Adkins, Ambient Insight’s Chief Research Officer and author of the Digital English Language Learning reports, provides the numbers and details on what is making this market boom in The 2013-2018 Asia Digital English Language Learning Market, the first of the regional reports in this series.

Mobile Learning value added services (VAS)

One of the important factors in the growth of the Asia English language market is the energetic growth of Mobile Learning value added services (VAS), a fusion of products and services that we identified first in the Asia region in 2008 and that since then has enjoyed a meteoric rise, particularly in developing economies, around the world. Telecoms and device makers created the market and are still the leaders.

Telecoms based in Asia as elsewhere are taking advantage of their reach—millions of customers—to partner with a host of language learning content providers to offer low-cost digital English lessons. Sam reports that by the end of 2013, there were 98 Mobile Learning VAS products in Asia and 230 million customers were using them; and those 98 VAS products accounted for nearly half (45%) of Mobile Learning VAS products on the planet. However, 5 of the 20 countries analyzed in this report do not yet have Mobile Learning VAS products—and this can mean new opportunities for suppliers.

2013-2018 Digital English Language Learning growth - AsiaIn Asia, English language learning is the top revenue-generating type of Mobile Learning VAS and the second product type in terms of growth. The top growth spot goes to Mobile Learning Apps and edugames. Of course, “mileage varies” country by country.

The full report identifies catalysts, details buyers—a particularly complex subject in the Asia region—and breaks out revenues for the five learning technology products they are buying.

For more about this market in Asia, including the other catalysts and country by country growth rates, download the free “2013-2018 Asia Digital English Language Learning Market Abstract” on Ambient Insight’s Digital English Language Learning Market Research page.

“All Roads Lead to Mobile”

Ambient-InsightFor years, we at Ambient Insight have been saying “All roads lead to Mobile.” And for the fifth year in a row, Ambient Insight’s Chief Research Officer Sam Adkins, the author of our Mobile Learning market reports, has revised his worldwide Mobile Learning forecasts upwards—significantly upwards.

The money is there–$5.3 billion in 2012, doubling to $12.2 billion by 2017. The numbers in the 2012-2017 Worldwide Mobile Learning Market report we just released (a compilation of 7 regional reports) reflect the galloping speed with which buyers around the world are embracing Mobile Learning.  What’s interesting also is which countries in terms of revenue, took the top five slots in 2012 and which will be in the top five positions by 2017.

MobileLearning_horseRaceIn 2012, the top five buying countries were US, Japan, South Korea, China, and India. The revenue picture changes by 2017: China leaps ahead from 4th place to the top spot, the US drops back to 2nd, India moves up from 5th to 4th, and Indonesia and Brazil join the top five in 3rd and 5th place respectively.

It’s not really a horse race, of course, but it is a very dynamic and robust market.

MobileLearning_Top20Worldwide5YrGrowth_countryThe growth rates are impressive, too, as are the patterns that Sam reports. The worldwide five-year compound annual growth rate (CAGR) is 18.2% Of the 93 countries (analyzed in this report) from the seven worldwide regions, 22 countries have growth rates in excess of 40%.

Further, of the top 20 countries with the highest growth rates, 6 are in Asia, 6 in the Middle East, and 5 in Africa.

The pattern is clear, as Sam puts it, “Mobile Learning is now being embraced as an essential strategy to improve education in these dynamic economies.” We saw confirmation of this first hand in November at the Connected Living Summit in Dubai, which included a focus on mEducation for Skills Development and Employability in the MENA region.

What’s Driving This Mobile Learning Market?

Catalysts vary from region to region, and country to country–and each regional report delves into those–but five catalysts are continually: strong consumer demand, new direct carrier billing agreements, large-scale tablet adoption, personal learning devices, and the explosion of Mobile Learning value added services (VAS).MobileLearning_WorldwideCatalysts

The free Executive Summary of the 2012-2017 Worldwide Market for Mobile Learning  premium report goes into detail on these catalysts, and you can download that document and the seven regional Abstracts from Ambient Insight’s Market Research page on our website.

 

 

 

 

 

 

EdNET-working the Crowd

About 500 education industry professionals—suppliers, administrators, and practitioners, plus Ambient Insight—came to Denver at the end of September for the 25th annual EdNET conference.

Nelson Heller, creator of EdNET conference

Nelson Heller, creator of EdNET

That in itself was a cause for celebration, as the networking conference that Nelson Heller (2009 inductee into the Association of American Publishers’ Hall of Fame and currently president of The HellerResults Group) started in 1988 is still going strong.

Conversations and presentations ranged from new ways to use data to traditional and new approaches to funding. One theme that came up at EdNET this year was one that Ambient Insight has seen across the planet and that was the need for suppliers to think about teaching the teachers how to implement and incorporate a new learning technology product. “Teachers are busy… (A product) needs to be a simple as an ATM machine” because teachers don’t have the time to figure out how to implement or incorporate a learning product, according to Harold Levy’s point of view as an investment firm executive.

EdNET 2013 "Staying Nimble in an Evolving Market"

Harold Levy, former New York City Schools Chancellor and now Managing Director at Palm Ventures, and Clement Erbmann, Managing Director of First Analysis and formerly with Goldman Sachs and Morgan Stanley, participated in the Private Equity panel chaired by Ambient Insight’s chief research officer Sam S. Adkins.

Sam Adkins, Ambient Insight's chief research officer

Sam Adkins, Ambient Insight’s chief research officer

Sam reported to conference attendees that as of mid-September, investment totals for learning technology products and services for 2013 stood at $950 million—with $57 million just in the two weeks preceding the conference.

  • Download the whitepaper “The 2012 Global Boom in Learning Technology Investments” and Sam’s slides  on investment patterns, including 2013 investments, from the Ambient Insight Resource Library: www.ambientinsight.com/News/PublishedContent.aspx.

Ambient Insight

The panelists offered insights into the dynamics of the ed tech investment world, including their firms’ different approaches, and provided valuable guidance on “what works” (and what doesn’t). Mr. Erbman reported that his firm takes a minority position and looks for established firms with positive cash flow and high growth rates. Mr.Levy’s firm targets “distressed education businesses” and innovative startups, and often takes a “slight majority” position. He also spoke emphatically that his firm was not interested in companies that offered “technology without pedagogy.”

Both panelists agreed with the impact of the new worldwide trend to alternative funding that Ambient Insight has been tracking for several years: the growth of new incubators and accelerators, and of crowdfunding. Mr. Erbman noted that crowdfunding is emerging as a viable funding alternative for startups.

For example, in 2012, Mango Health was one of 14 startups included in Rock Health’s 4th annual accelerator class. Mango Health did well in school: in 2013 they launched their medical adherence edugame with $3.1 million in funding.

The JOBS Act directed the Securities and Exchange Commission to remove the 1933 ban on advertising publically for investors will figuratively jump-start (pun avoided) more crowd funding and level the geographic playing field. According to crowdsourcing.org, crowdfunding platforms raised a total of $2.7 billion in 2012, an 81% increase over 2011.

Ironically, the new rules on crowdfunding became official on September 23—the last day of the EdNET conference –a place for an exceptionally networked crowd.

 
 
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