Friday, 10 May 2024
ICT

Digital English Language Learning Market is expected to reach US$ 15.03 billion by 2030

Published: Wednesday, 21 Feb 2024 by The Insight Partners Share on :
 
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According to our latest market study on "Digital English Language Learning Market Size and Forecast (2023–2030), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Product Type, Business Type, and End User," the market was valued at US$ 4.22 billion in 2022 and is expected to reach US$ 15.03 billion by 2030; it is estimated to record a CAGR of 17.2% from 2022 to 2030. The report includes growth drivers along with the digital English language learning market trends and their foreseeable impact during the forecast period.

A key driver in the digital English language learning market is gamification, or the incorporation of game aspects into non-gaming contexts. Gamification capitalizes on the inherent human desire for rewards, competition, and achievement, making learning enjoyable. In 2022, ~60% of all digital language learning platforms had some form of gamification combined with their systems. One of the industry leaders, Duolingo, revealed that consumers' retention rates were 50% higher for their gamified lessons when consumers interacted with them. Similarly, Babbel observed a 35% enhancement in lesson completion rates after the integration of game mechanics. The average yearly revenue increase of gamified learning platforms has been 20%, which is more than that of non-gamified platforms by almost 10%. A poll conducted in 2021 revealed that 45% of respondents were willing to pay more for platforms that offered sophisticated, gamified experiences, which was an increase compared to just 30% two years earlier. The advancements in AR and VR technologies are likely to provide even more immersive, gamified experiences. According to Babbel's projections, gamified platforms with AR or VR components may generate up to 25% of the total income from the digital language learning market by 2025. Therefore, the increasing gamification of language learning platforms drives the digital English language learning market growth.

Digital English Language Learning Market Share– by Geography, 2022

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Source: The Insight Partners Analysis

There is an increasing trend among Asian students to enroll themselves in universities located in Western countries for higher education, including post-graduation. According to Best Colleges Company's data, 858,395 international students registered for higher education in the US during the 2022–2023 school year. The total number of international students represented ~5.6% of the nearly 19 million college students in the US in 2022–2023. In 2021–2022, almost 31% of international students were from China, and 21% were from India. The majority of the candidates from Asian countries, especially India and China, enroll themselves for the Test of English for International Communication (TOEIC), International English Language Testing System (IELTS), Test of English as a Foreign Language (TOEFL), and Graduate Record Examination (GRE). TOEFL and IELTS tests are conducted to assess a non-native candidate's English fluency level. These examinations and the universities and schools that accept them require qualified students with proper English speaking and writing skills. This factor compels the enrolling candidates to opt for English Language Training (ELT) institutes. The burgeoning demand for these competitive exams has led to the establishment of various ELT institutions across the countries, generating different English learning techniques. Various schools, colleges, and universities in India and China have adopted digital learning. Many ELTs have also incorporated digital English language learning systems and technologies. This factor has bolstered the growth of the digital English language learning market in recent years. Several schools and universities in India and China also offer English learning training courses for students willing to appear for TOEFL and IELTS. Therefore, the increasing number of candidates from Asian countries registering for competitive exams to qualify for education in Foreign countries fuels the market.

The digital English language learning market analysis is carried out by identifying and evaluating key players in the market across different regions. EF EDUCATION FIRST; ELSA, Corp.; Houghton Mifflin Harcourt Co; MACMILLAN; OXFORD UNIVERSITY PRESS; Pearson Plc; Sanako Corporation; Babbel GmbH; Transparent Language; Vipkid; CAMBRIDGE UNIVERSITY PRESS; Voxy; Chegg Inc; Duolingo Inc; INLINGUA INTERNATIONAL LTD.; Berlitz Corporation; and IXL Learning are among the key players profiled in the digital English language learning market report. Several other major companies have been analyzed during this research study to get a holistic view of the ecosystem. The market forecast is estimated on the basis of various secondary and primary research findings such as key company publications, association data, and databases.

The scope of the digital English language learning market report covers North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). In terms of revenue, Asia Pacific dominated the digital English language learning market share in 2022, followed by Europe and North America.

The North America digital English language learning market is segmented into the US, Canada, and Mexico. The economically prosperous region of North America constitutes the highly advanced economies of the US and Canada. Industrialization has remained a high priority in the US and Canada, and it has also been the main factor driving the economy over the years. The US boasts the world's most technologically advanced information & communication technology (ICT) sector. The presence of an established digital infrastructure in North America further provides opportunities for digital English language learning solution providers.

The high GDP of North America is one of the major driving factors for individuals to migrate to these countries in search of luxurious lifestyles and better jobs as well as education opportunities. Being economically advanced, a large population from other parts of the world migrated to North America. As English is the business language followed by North American companies, the migrants coming from other parts of the globe seek to gather proficiency in the language and, therefore, contribute to the soaring revenues of the digital English language learning market. Besides this, various student exchange programs between universities in North America and other countries have also contributed to the growing demand for digital English language learning.

The digital English language learning market growth has been observed in Mexico. Relatively low English language proficiency, coupled with increasing prospects of companies setting up businesses in Mexico, has favored the market growth. Further, the Mexican government has taken various initiatives that support the establishment of a robust digital infrastructure in the country. Prominent digital English language learning service providers in North America include Cengage/National Geographic Learning; Pearson ELT; Springer Nature Limited; and Transparent Language, Inc.

Close to one-fifth of the Canadian population is migrants from other countries. According to ICEF GmbH data, Ontario, Canada's most populous province, has long held the largest volume of international students in Canada, and its share of students has grown. In 2021, it hosted 49% of the total; in 2023, it accounted for 51%. The popularity of Ontario college programs among international students is driving this growth. Also, the presence of IT and manufacturing hubs in the country presents better job opportunities for the migrants in a bid to pursue the luxuries of life. Hence, the digital English language learning market growth is expected to witness larger opportunities in this country during the forecast period.

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