Rising corporate profit and disposable income will continue to prove beneficial for the industry.
New York, NY (PRWEB) April 18, 2014
The Language Instruction industry recovered strongly from the recession, growing in each of the past five years. Positive macroeconomic and demographic trends bolstered demand for language instruction. In particular, disposable income experienced relatively consistent growth over the period, stimulating international travel by Canadian residents. Additionally, corporate profit performed strongly, allowing businesses to more easily carry out international expansion projects. Industry operators have also developed online-education platforms, allowing language schools to more easily reach students across the world. Therefore, IBISWorld anticipates industry revenue to grow an average rate in the five years to 2014. In 2014, revenue is expected to rise due to positive corporate profit growth over the year.
Over the past two decades, significant economic growth has occurred in non-English-speaking regions, particularly China and India. This factor has caused many companies to expand overseas operations, stimulating demand for foreign-language training. Additionally, according to IBISWorld Industry Analyst David Yang, “in emerging economies, the rapidly expanding middle class has resulted in a growing student population that seeks out international education opportunities.” As Canada's international-student population increased, demand for English and French language instruction courses also increased. Positive demand growth in recent years also benefited industry profit margins. In 2014, “profit is anticipated to total a small percentage of industry revenue, compared with the recessionary low in 2009,” says Yang.
The Language Instruction industry is expected to benefit from consistent demand growth over the next five years, as outbound tourism, disposable income and corporate profit continue to rise. Additionally, language schools will likely build on their success in the online, corporate and international markets to drive growth. Demand for language instruction will also grow as the Canadian population becomes more diverse and businesses attempt to target new demographic markets. In the coming years, steady immigration levels will likely support long-term demand for English- and French-language courses domestically. In particular, federal government efforts to increase the international student population in Canada will likely drive demand for language instruction. Consequently, IBISWorld forecasts that industry revenue will rise at an average annual rate.
For more information, visit IBISWorld’s Language Instruction in Canada industry report page.
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IBISWorld industry Report Key Topics
The Language Instruction industry provides language instruction training for casual conversational skills and career and educational needs. Schools teach foreign languages, sign language and English or French as a second language.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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