Test preparation in China: Key market research findings
- Changes in standard exam structures to augment the demand for test preparation
- Increased emphasis on marketing by prominent vendors in the market
- Key vendors – CDEL, Kaplan, New Oriental, and UMeWorld
Technavio’s market research analysts predict the test preparation market in China to grow at a CAGR of over 15% between 2016 and 2020. The growth in this market is fueled primarily by the change in standard exam structures. Structural changes brought about in standardized and certification exams such as SAT, APT, Zhongkao, and charted financial analyst is augmenting the demand for test preparation instructional programs and materials. Furthermore, students are becoming increasingly dependent on students on test preparation service providers to understand the requirements and perform well in exams.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Recently, vendors have started focusing more on marketing. The test preparation market in China is characterized by the presence of multiple vendors. Prominent vendors in the market are spending extensively on marketing and the promotion of their products and services to gain market shares. Furthermore, vendors are also innovating services offered to segments such as primary and middle school, and emphasizing on increasing the number of learning centers,” says Jhansi Mary, Lead Analyst, Education, Technavio Research.
The education market in China is currently witnessing a rise in the number of enrollments in graduate schools. Factors such as the economic expansion of the country, which enables middle-class families to invest in their children’s education, and the rise in the number of private institutions are triggering an increase in the enrolment rates. As a result, the number of students taking APT and Gaokao tests, a prerequisite to enroll in the Chinese higher education system, is also increasing. This opens up an array of opportunities in the test preparation market in China.
The key vendors in the market include CDEL, Kaplan, New Oriental, and UMeWorld. The test preparation market in China is characterized by the presence of well-diversified international and regional vendors. However, as international players have increased their footprint in the market, regional vendors are finding it increasingly difficult to compete with them, especially on features such as quality, technology, and pricing. The competitive environment in this market is likely to intensify further with an increase in service extensions and M&A. Several new players are entering the market due to the long-term visibility in the market growth and advanced investments.
A more detailed analysis is available in the Technavio report, Test Preparation Market in China 2016-2020.
We can customize reports by other regions and specific segments upon request.
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