China Online Education Industry Size 2014, Market Analysis, Growth, Trends and Forecast 2017: MarketResearchReports.Biz
Albany, NY (PRWEB) September 25, 2014 -- The Chinese online education market attracted the inrush of huge capital in 2013-2014, as Internet firms, offline education training institutions, investment companies and startups continued their expansion in online education.
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In 2014, China online education industry is characterized as follows:
1. Online education is still an investment hot spot.
In 2013, 51 investment events took place in China online education industry, 44 of which were venture investments. And the figure rose to 54 during Jan.-Aug, 2014, 10 of which (including acquisitions) occurred in Aug. 2014 alone, equaling total investment of over RMB 1 billion.
2. Education and teaching models are further improved.
Koolearn’s live classroom channel went online in Feb. 2014; Hujiang.com introduced mobile live classroom “CCTalk” in Aug. 2014; Super Class introduces teaching elements like film & TV, recreation and sports and game & animation, and adopts teaching model of “Flipped Classroom”.
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3. Technologies like multimedia-based information processing, big data, visualization, gamification, business intelligence, AR, 3D and situational interaction further integrates with education products and services.
As far as content of courses is concerned, students’ enthusiasm is stimulated by course gamification and situational interaction. Meanwhile, learning management system, through big data analytics with mass data gathered during teaching process, provides learners with interactional education and anytime, anywhere tailored learning experience, and keeps track of their progress.
At present, online education companies employing technologies like big data, visualization and business intelligence include Super Class, Hujiang.com, 17zuoye.com, etc. In Jul. 2014, kaikeba.com, an IT online education platform under Uniquedu, cooperated with IBM, applying IBM’s big data and analytic techniques to develop series courses on the platform.
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4. Education institutions and IT companies endeavor to make layout in open education platform.
Open platforms can not only charge tenant fees from course providers, share revenue after the courses are sold, and make profit from value-added services, presenting a bright lucrative prospects. Various education institutions, IT companies and startups have introduced open online education platforms.
By virtue of their web traffic advantage, IT firms have launched open online education platforms in succession. For example, in Jul. 2013, Alibaba introduced its education channel --Taobao Tongxue; In Apr. 2014, Tencent and Netease’s Youdao released Tencent Classroom and Youdao Open Education Platform respectively; In Aug. 2014, Baidu purchased Chuanke.com for USD 30 million. To attract the settlement of education institutions (teachers), these platforms now don’t charge tenant fees, nor share the gains from transactions.
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5. Mobile devices capture attention of online education companies.
Compared with page learning, mobile products, integrating interest and gameplay, are easier to become popular among learners, be promoted and grab users.
In Jan. 2014, Baidu Knows introduced the APP named Zuoyebang (a platform for students to discuss schoolwork and exchange views on different topics), which was upgraded to 3.0 version in Sep. 2014; In May, 2014, Alibaba rolled out the APP Shisheng (a product for communication and interaction between parents and kindergartens, primary schools and junior/senior high school); In Jul. 2014, Tencent made layout in mobile product by establishing joint venture with New Oriental; Xingshuai Teach is developing a new APP, which is expected to be launched by the end of 2014.
6. New business models (O2O, MOOC, online interaction among teachers, students and parents) are mushrooming, but some profit models are unclear.
Currently, many education institutions are making layout in O2O, like New Oriental, which launched “New Oriental TV Classroom” though BesTV’s IPTV in May, 2014, and Hujiang, which opened online education experience store “HJ Class Experience Center” in Jun. 2014. With regard to MOOC model, Tsinghua University launched xuetangX.com in Oct. 2013, and CnMooc under Shanghai Jiaotong University went live in Apr. 2014.
Among online education companies, Hujiang has a relatively mature business model and profit model. For the former, Hujiang has a fairly complete business model covering C2C+B2C+B2B2C, and for the latter, it earns profits from advertisement, E-commerce, online class and platform. By contrast, 17zuoye, an online platform for interaction and communications among teachers, students and parents, now provides all services for free, with working capital coming from financing and profit model being explored.
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China Education And Training Industry Report, 2013-2016
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The education and training industry mainly involves in after-class tutoring, IT training, foreign language training, online education, pre-school education and skill cultivating. In China, the market size of the education and training industry soared from RMB610 billion in 2008 to RMB955.4 billion in 2012, with the CAGR of 11.87%. On the one hand, education institutions are launching online courses covering a wide range of domains, such as foreign language, qualification test, skill education, and tutoring for students at elementary and secondary schools; on the other hand, internet enterprises are making positive efforts in building platform to share education content.
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The number of private kindergartens increased from 48,368 in 2002 to 115,404 in 2011, with the CAGR of 10.14% or the proportion surging from 43.28% to 69.21%. Thanks to the preferential policies, provinces and cities all across China have introduced “Three-Year-Long Pre-school Education Action Plan”, a move which triggered the number hike of kindergartens.
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Global ICT market in the Education Sector to grow at a CAGR of 3.05 percent over the period 2013-2018. One of the key factors contributing to this market growth is the need for creative and innovative learning. The Global ICT market in the Education sector has also been witnessing the increasing usage of tablets in the education vertical. However, the low levels of education could pose a challenge to the growth of this market.
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Global ICT Market in the Education Sector 2014-2018, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the Americas, and the EMEA and APAC regions; it also covers the Global ICT market landscape and its growth prospects in the coming years. The report also includes a discussion of the key vendors operating in this market. Key vendors dominating this space are Dell Inc., Hewlett-Packard Co., IBM Corp., and Microsoft Corp.
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