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Rapid rise in China’s online education market

According to a recent official statistical report, China had 751 million internet users (including mobile internet users) as of the end of June 2017  representing 54 per cent of the country’s population. The number of internet users has grown by 5.9 per cent over a year earlier, but the number of users of online education has increased by over 22 per cent compared to June 2016 and now stands at over 144 million users. Mobile education has grown even faster, with the number of people accessing education apps or services on their phones up over 70 per cent from a year ago to almost 120 million users.

The report pointed to several factors influencing the rapid growth of online education. There has been a recent boom in online English learning services such as VIP Kid, Dada English and 51 Talk, which put Chinese learners in contact with teachers living abroad. Meanwhile, traditional offline players such as New Oriental and TAL Education Group (Xue’ersi) have also engaged more heavily in the online market. The main markets for these services are mainly in China’s Tier 1 megacities and Tier 2 cities such as provincial capitals, which have higher incomes, a more advanced education sector and more developed internet markets, but the report predicts that smaller Tier 3 and 4 cities will also have great potential in the near future.

Another driver of online education services has been the increased adoption of AI-based learning technology in fields such as exam practice, virtual learning assistants and speaking tests. AI-based education services that entered the market in 2017 include “Gaokao Robotics” from Xueba100, which uses a deep learning system to understand mathematics questions and explain to students how to solve them, as well as Hujiang.com’s “AI Learning System” and Liulishuo.com’s “AI English teacher”.

Online professional education is also in huge demand in China with over 47 million users by end of 2016. In addition, the number of internet users participating in online degree education reached 24 million.

Analysis by Kevin Prest and Cathy He:

The rapid development online education in China creates opportunities for UK institutions. Chinese investors and education providers are seeking partnerships on content and curriculum development in fields such as English teaching, professional programmes and even degree education. However, the rise of online and mobile education also creates challenges for traditional education providers, especially given the increasing use of AI-based learning technology.

Source:

http://www.cnnic.cn/hlwfzyj/hlwxzbg/hlwtjbg/201708/P020170807351923262153.pdf (40th China Statistical Report on Internet Development, by the China Internet Network Information Center under the Ministry of Industry and Information Technology – in Chinese)