Transparency Market Solutions has studied the market and estimates that the market was worth $146.3m in 2016, and will rapidly expand to be worth $427.5m by 2025.
North America’s leading position is down to “vast spending” on English courses by foreign students
Its report says that much of the demand for virtual learning is coming from North America, which accounted for 50% of revenue in 2016.
“The leading position of North America in the market is primarily attributable to the vast spending on English language learning courses by foreign students enrolled in higher education institutions in the region,” it notes.
Languages considered in the scope of study were English, Spanish, Chinese, French, German, Japanese, Italian, and Russian.
English will lead future demand, “as the language increasingly becomes the preferred language of communication in the fields of academics and businesses across the globe”, states the report.
It says that the corporate market currently accounts for 50% of demand but the “education segment” of learner is expected to grow at a faster pace to 2025.
And the Asia-Pacific will see most new growth in business by region, it predicts: “Governments in [India, China, and Japan] and other countries in the region have mandated language learning initiatives in school systems, which is also expected to drive the market.”
It is a fragmented marketplace in terms of leading providers, with acquisitions and partnerships happening to build market share.
Leading providers currently include Duolingo, Linguatronics LC, Rosetta Stone, Culture Alley, Speexx and EF.