ambientinsight 2011 2016 worldwide digital english language learning market overview

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Ambient Insight Premium Report The Worldwide Market for Digital English Language Learning Products and Services: 2011-2016 Forecast and Analysis The Emergence of a Global Technology-based English Language Learning Ecosystem “We Put Research into Practice” www.ambientinsight.com Market Analysis by: Sam S. Adkins, Chief Research Officer Published: April 2012 To learn more about our research services, email: [email protected] Ambient Insight Copyright Policy: All rights reserved. All media and research data published by Ambient Insight are protected by copyright. Unauthorized use of Ambient Insight research without prior permission is prohibited. Ambient Insight research products provide valuable financial data only to the individual purchaser or the purchasing organization. Purchasers may not modify or repurpose the information and financial data in our research in any manner. Specific distribution rights are provided based on the license model granted at time of purchase. Quoting Ambient Insight Research: Permission is required to use quotes, tables, diagrams, or charts from Ambient Insight research in press releases, promotional material, external presentations, or commercial publications. Permission from Ambient Insight is required to reproduce or distribute in entirety any table, paragraph, section, or report.

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Page 1: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

Ambient Insight

Premium Report

The Worldwide Market for Digital English Language Learning Products and Services: 2011-2016 Forecast

and Analysis

The Emergence of a Global Technology-based English

Language Learning Ecosystem

“We Put Research into Practice”

www.ambientinsight.com

Market Analysis by: Sam S. Adkins, Chief Research Officer

Published: April 2012

To learn more about our research services, email:

[email protected]

Ambient Insight Copyright Policy: All rights reserved. All media and research data published by Ambient Insight are protected by copyright. Unauthorized use of Ambient Insight research without prior permission is prohibited. Ambient Insight research products provide valuable financial data only to the individual purchaser or the purchasing organization. Purchasers may not modify or repurpose the information and financial data in our research in any manner. Specific distribution rights are provided based on the license model granted at time of purchase. Quoting Ambient Insight Research: Permission is required to use quotes, tables, diagrams, or charts from Ambient Insight research in press releases, promotional material, external presentations, or commercial publications. Permission from Ambient Insight is required to reproduce or distribute in entirety any table, paragraph, section, or report.

Page 2: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

Ambient Insight’s Worldwide Market for Digital English Language Learning: 2011-2016 Forecast and Analysis. Premium Edition

For more information about this research, email: [email protected] 2

Table of Contents

List of Tables ............................................................................... 4

List of Figures .............................................................................. 5

Executive Overview ...................................................................... 7

Quantitative Methodology, Scope, and Definitions .......................... 15

Scope .................................................................................................16

Geographical Regions ...........................................................................17

Definitions ...........................................................................................18

Related Research .................................................................................19

2011-2016 Forecast and Analysis ................................................. 20

Who are the Buyers? ............................................................................20

Demand-side Analysis by Region ............................................................23

North America ................................................................................................ 24

The United States (US) ................................................................................. 24

US Consumer Expenditures on Digital Language Learning Products ................. 27

Canada ....................................................................................................... 27

Latin America ................................................................................................. 29

Argentina .................................................................................................... 29

Brazil ......................................................................................................... 30

Chile .......................................................................................................... 32

Colombia .................................................................................................... 33

Mexico ........................................................................................................ 34

Venezuela ................................................................................................... 35

Western Europe .............................................................................................. 36

Austria ....................................................................................................... 37

Belgium ...................................................................................................... 37

The Czech Republic ...................................................................................... 38

Denmark .................................................................................................... 39

Finland ....................................................................................................... 40

France ........................................................................................................ 41

Germany .................................................................................................... 42

Hungary ..................................................................................................... 44

Italy ........................................................................................................... 45

The Netherlands .......................................................................................... 46

Norway ....................................................................................................... 47

Poland ........................................................................................................ 48

Portugal ...................................................................................................... 50

Romania ..................................................................................................... 51

Spain ......................................................................................................... 52

Sweden ...................................................................................................... 54

Page 3: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

Ambient Insight’s Worldwide Market for Digital English Language Learning: 2011-2016 Forecast and Analysis. Premium Edition

For more information about this research, email: [email protected] 3

Switzerland ................................................................................................. 55

The United Kingdom (UK) ............................................................................. 56

Eastern Europe ............................................................................................... 57

Belarus ....................................................................................................... 57

Georgia ...................................................................................................... 58

Kazakhstan ................................................................................................. 59

The Russian Federation ................................................................................ 60

Ukraine ...................................................................................................... 61

Asia .............................................................................................................. 62

Australia ..................................................................................................... 65

China ......................................................................................................... 66

India .......................................................................................................... 70

Indonesia ................................................................................................... 73

Japan ......................................................................................................... 75

Malaysia ..................................................................................................... 77

New Zealand ............................................................................................... 78

Singapore ................................................................................................... 79

South Korea ................................................................................................ 80

Taiwan ....................................................................................................... 83

Thailand ..................................................................................................... 84

Vietnam ...................................................................................................... 85

Mobile Learning VAS Spreads Across Asia ....................................................... 86

The Middle East .............................................................................................. 86

Jordan ........................................................................................................ 87

Kuwait ........................................................................................................ 88

Oman ......................................................................................................... 89

Qatar ......................................................................................................... 90

Saudi Arabia ............................................................................................... 92

Turkey........................................................................................................ 93

The United Arab Emirates (UAE) .................................................................... 95

Africa ............................................................................................................ 96

Algeria ....................................................................................................... 98

Morocco ...................................................................................................... 98

South Africa ................................................................................................ 99

Tunisia ..................................................................................................... 100

Supply-side Analysis ........................................................................... 102

Self-paced eLearning..................................................................................... 103

Collaboration-based Learning ......................................................................... 104

Digital Referenceware ................................................................................... 105

Mobile Learning ............................................................................................ 106

Mobile Learning VAS .................................................................................. 107

Index of Suppliers .................................................................... 109

Page 4: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

Ambient Insight’s Worldwide Market for Digital English Language Learning: 2011-2016 Forecast and Analysis. Premium Edition

For more information about this research, email: [email protected] 4

List of Tables

Table 1 - 2011-2016 Worldwide Revenue Forecasts for Digital

English Language Learning Products by Five Buyer Segments (in

$US Millions) ............................................................................. 20

Table 2 - 2011-2016 Worldwide Revenue Forecasts for Digital

English Language Learning Products and Services by Region (in

$US Millions) ............................................................................. 23

Table 3 - 2011-2016 Digital English Language Learning

Revenue Forecasts for North America Broken out by the US and

Canada (in $US Millions) ............................................................. 24

Table 4 - 2011-2016 US Revenue Forecast for Digital English

Language Learning by Five Buyer Segments (in $US Millions) .......... 24

Table 5 - 2011-2016 US Consumer Expenditures for Digital

Language Learning Broken Out by Six Languages (in $US

Millions) .................................................................................... 27

Table 6 - 2011-2016 Revenue Forecasts for Digital English

Language Learning by Top Buying Countries in Latin America (in

$US Millions) ............................................................................. 29

Table 7 - 2011-2016 Revenue Forecasts for Digital English

Language Learning by Top Buying Countries in Western Europe

(in $US Millions) ......................................................................... 36

Table 8 - 2011-2016 Revenue Forecasts for Digital English

Language Learning by Top Buying Countries in Eastern Europe

(in $US Millions) ......................................................................... 57

Table 9 - 2011-2016 Revenue Forecasts for Digital English

Language Learning by Top Buying Countries in Asia (in $US

Millions) .................................................................................... 62

Table 10 - 2011-2016 Revenue Forecasts for Digital English

Language Learning by Top Buying Countries in the Middle East

(in $US Millions) ......................................................................... 87

Table 11 - 2011-2016 Revenue Forecasts for Digital English

Language Learning by Top Buying Countries in Africa (in $US

Millions) .................................................................................... 97

Table 12 - 2011-2016 Worldwide Revenue Forecasts for Digital

English Language Learning by Four Product Categories (in $US

Millions) .................................................................................. 102

Table 13 - 2011-2016 Worldwide Revenue Forecasts for Digital

English Language Learning by Two Mobile Learning Categories

(in $US Millions) ....................................................................... 106

Page 5: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

Ambient Insight’s Worldwide Market for Digital English Language Learning: 2011-2016 Forecast and Analysis. Premium Edition

For more information about this research, email: [email protected] 5

List of Figures

Figure 1 – The 2011 Global Language Industry (in $US Billions) ......... 7

Figure 2 - The Convergent Catalysts Driving the International

Growth of Digital English Learning Adoption..................................... 8

Figure 3 – International Catalysts Driving Adoption of Learning

Technology in the Global PreK-12 Segment ................................... 10

Figure 4 – 2011-2016 Worldwide Digital English Language

Learning Growth Rates by Region ................................................. 13

Figure 5 – 2011-2016 Top Ten Digital English Language

Learning Growth Rates by Country ............................................... 14

Figure 6 - Who is the Buyer? 2011-2016 Worldwide Revenue

Forecasts for Digital English Language Learning Products by

Five Buyer Segments (in $US Millions) .......................................... 21

Figure 7 - 2011-2016 Worldwide Revenue Forecasts for Digital

English Language Learning Products by Seven Regions (in $US

Millions) .................................................................................... 23

Figure 8 - 2011-2016 US Revenue Forecast for Digital English

Language Learning Products by Five Buyer Segments (in $US

Millions) .................................................................................... 25

Figure 9 - 2011-2016 Top Digital English Language Learning

Five-year Growth Rates in Asia by Country .................................... 63

Figure 10 - 2011-2016 Worldwide Revenue Forecasts for Digital

English Language Learning by Four Product Categories (in $US

Millions) .................................................................................. 102

Figure 11 - The Return on Investment for Commercial

Collaboration-based Learning Delivery ........................................ 104

Page 6: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

Ambient Insight’s Worldwide Market for Digital English Language Learning: 2011-2016 Forecast and Analysis. Premium Edition

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This is a Premium Report. Ambient Insight has five types

of syndicated market research reports:

Premium Reports: A Premium report includes a buyer

analysis, a regional demand-side forecast analysis across seven regions with five-year forecasts and profiles for the top buying countries in each region, a supply-side analysis, and an index of suppliers - These reports are designed for suppliers that need an in-depth view of the buying behaviors in each of

the top buying countries in each region of the globe.

Standard Reports: A Standard report includes a brief buyer

analysis and a regional demand-side forecast analysis of the top buying countries across seven regions. A Standard report does not include country profiles, supply-side analyses, or an index of suppliers - These reports are designed for suppliers

that understand the international market dynamics and "just want the numbers."

Regional Reports: A Regional report includes regional

demand-side forecast analysis with five-year forecasts and profiles for the top buying countries in each region - These reports are designed for suppliers that are competing (or plan

to compete) in specific regions.

Targeted Reports: A Targeted Report may analyze buying behavior and trends in a specific buyer segment; may isolate revenue opportunities, forecast revenues, and trends for a

particular product type; or may pinpoint revenues and trends

for a specific sub-category of content, service, or technology - These reports are designed for suppliers that are targeting specific buyers or specializing in a particular product sub-type.

Revenue Snapshots are 2-3 page reports that include a

single revenue-forecast table and a brief description of that table from a current market report. Please review the free

Executive Overview for each report for a list of available tables. Contact us at [email protected] to request a specific Revenue Snapshot.

“We Put Research into Practice”

www.ambientinsight.com

Page 7: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

Ambient Insight’s Worldwide Market for Digital English Language Learning: 2011-2016 Forecast and Analysis. Premium Edition

For more information about this research, email: [email protected] 7

Executive Overview The global market for digital English language learning products and

services reached $1.31 billion in 2011. The worldwide five-year compound

annual growth rate (CAGR) is 14.5% and revenues will reach $2.58 billion

by 2016.

Ambient Insight has revised our international forecasts for digital

English language learning products significantly upward from

previous forecasts.

There are three sections in this report: a buying behavior analysis by five

buying segments, a demand-side analysis broken out by the top buying

countries in each region, and a brief supply-side analysis by product type.

The Big Picture

The global language industry is an $82.6 billion market and language

learning is a subset of that industry. In this report, Ambient Insight isolates

the addressable market for learning suppliers and excludes language

services revenues generated from localization, interpretation, translation,

and other services.

Figure 1 – The 2011 Global Language Industry (in $US Billions)

The worldwide language learning market (all languages combined) was

$58.2 billion in 2011. The overall worldwide language learning market is

gradually shrinking due to the adoption of cost-efficient technology-based

products and the migration away from classroom and print products.

The global English language learning market (offline and digital combined) reached $35.9 billion in 2011.

Page 8: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

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English language learning products (offline and online combined) generated

$35.9 billion (or 61.7% of the total language learning market) in 2011,

making it the largest concentrated revenue opportunity in the

international language learning market.

As of 2011, only 3.7%, or $1.31 billion, of that $35.9 billion English

language learning revenue was generated by the sales of digital products,

which indicates a significant potential for growth. By 2016, expenditures on

digital English language learning products will account for 7.3% (or $2.5

billion) of the global English language learning market.

The current digital English language learning revenues are heavily

concentrated in five learning product types: Self-paced eLearning, Digital

Referenceware (eTextbooks), Collaboration-based Learning, Mobile

Learning apps, and Mobile Learning VAS.

Figure 2 - The Convergent Catalysts Driving the International Growth of Digital English Learning Adoption

The substantial growth in revenues for digital English language learning

products over the forecast period is due to several convergent catalysts:

Consumer demand for digital language learning products

The recent explosion of Mobile Learning Value Added Services (VAS)

The digitization efforts in academic markets across the globe

Migration to digital formats by the major international publishers

Government-mandated English language learning initiatives in

school systems

The shortage of English teachers in high-demand countries.

The total global English language learning market (offline and digital products combined) will decline slightly to $35.3 billion in 2016 due to the adoption of more cost efficient products.

Page 9: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

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Technology-based language learning products have always been popular

with consumers. In 2011, the majority of revenues derived from consumers

were generated by the sales of Self-paced eLearning products, followed by

Mobile Learning products. Yet, Self-paced eLearning is a mature legacy

product type facing significant pricing pressures and the growth rate is

slowing. That said, self-paced products will generate a significant amount

of revenue throughout the forecast period.

There is now clear evidence that newer products, particularly Mobile

Learning, are cannibalizing sales of legacy technology-based English

learning products, particularly in the consumer segments across the planet.

This is called product substitution in market analysis.

When Ambient Insight published our first worldwide digital English

language learning report in 2009, mobile language learning apps were just

taking off and Mobile Learning value-added services (VAS) did not exist at

all. By 2016, mobile English language learning products will generate the

highest revenues for suppliers, followed by self-paced products. A breakout

of the growth rates and revenues for five product types is included in the

supply-side analysis in this report.

The emergence of a new Mobile Learning product type is now a major

catalyst for language learning, particularly English. Subscription-based

Mobile Learning content sold as a value-added service (VAS) is quite new

on the market and essentially represents a new type of Mobile Learning

product – a fusion of packaged content and services. Ambient Insight has

labeled this new product type "Mobile Learning VAS."

Dozens of new Mobile Learning value-added service (VAS) products have

come on the market in the last two years. Mobile Learning VAS products

are now on the market in every region of the world and deliver content in

four major areas: language learning, math, test prep, and mHealth

education. The products are sold directly to consumers by telecom network

operators, device makers, and content suppliers. The content is usually

delivered via audio, Short Message Service (SMS), or Interactive Voice

Response (IVR).

The top revenue-generating Mobile Learning VAS is English

language learning and a breakout of that revenue is included in this

report. As of April 2012, there are twenty-one Mobile Learning VAS

English language learning products in the world, with eight of them

coming to market since January 2012.

The operators initially launched their Mobile Learning VAS products in

developing economies and are now expanding into the developed

economies.

The telecom network operators are now major Mobile Learning suppliers in

Asia, Latin America, and Africa. In February 2011, the first Mobile Learning

VAS in Western Europe launched in Italy and the first Mobile Learning VAS

in Eastern Europe launched in Kazakhstan. Both of these are English

language learning products.

A worldwide analysis of consumer buying behavior is included in the buying behavior section of this report.

Page 10: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

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The Mobile Learning VAS offerings in developing economies have relatively

low subscription prices, yet have millions of customers. Consequently, the

revenues are quite high. This is a classic "rags to riches" story with

suppliers across the planet collectively generating hundreds of

millions of dollars in new revenue in just the last two years.

The telecoms depend on third-party commercial suppliers for content,

custom content development services, tools, and platforms. They often pay

subject matter experts to provide tutoring to subscribers, so the revenue

opportunities for suppliers are significant across the supply chain. Analyses

of the Mobile Learning VAS regional supply chains, high-demand content

types, revenue-sharing models, and pricing models are included in this

report.

Figure 3 – International Catalysts Driving Adoption of Learning Technology in the Global PreK-12 Segment

There are now major digitization efforts going on in the school systems in

South Korea, Thailand, China, Taiwan, Turkey, Brazil, Russia, France,

Poland, Spain, the Ukraine, Mexico, Japan, Singapore, United Arab

Emirates (UAE), and in various school systems in the UK and the US. As

the print textbooks are converted to eTextbooks, the language learning

titles will also be digitized.

In June 2011, the South Korean Education Ministry mandated that all

instructional content in all primary and secondary schools must be 100%

digital by 2015. By 2015, every school child in South Korea will be carrying

a personal learning device.

Page 11: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

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Turkey intends to equip over 15 million students with tablets in the next

four years, which represents a huge delivery ecosystem for learning

technology suppliers. The Turkish government began distributing the

tablets to schools in February 2012 and (like South Korea) intends to have

all print-based textbooks replaced with eTextbooks in four years. Thailand

will begin distributing tablets to all their primary students in May 2012.

These trends are driving the major international print publishers of English

language learning textbooks and test prep content to move rapidly to

digital formats. Cengage Learning, McGraw-Hill, Houghton Mifflin Harcourt,

Macmillan, Pearson, Oxford University Press, and Cambridge University

Press are all aggressively shifting their language learning product portfolios

to digital formats.

As schools across the globe migrate to digital content, a massive amount of

commercial, open, and indigenous print-based English language learning

content will be ported to digital formats. This represents a significant

revenue opportunity for suppliers that offer conversion services.

According to Cambridge University Press, there are over 100 countries in

which English is designated as the "first foreign language" taught in

schools. The British Council reports that there are over 30 additional

countries in which English has an official status. In general, English is the

first foreign language taught in schools in the Middle East, Asia, Europe

(outside of Britain and Ireland), South America, and a third of Africa.

New government mandates for school systems designed to increase

proficiency in the English language have been initiated in countries around

the world. The governments of Rwanda, South Sudan, Turkey, the Russian

Federation, South Korea, Japan, Malaysia, Vietnam, China, Brazil, Chile,

and Argentina have instituted broad-reaching federal programs designed to

increase English proficiency.

Some of these mandates are minor adjustments to current mandates. For

example, in June 2011, Saudi Arabia began offering English language

learning starting in fourth grade, two years earlier than the previous

mandate. Prior to February 2012, English language learning began in first

grade in Dubai in the United Arab Emirates (UAE). Now English is

introduced to Dubai students in kindergarten.

Other mandates are sweeping in scope:

Rwanda is a predominately French-speaking country with over 10

million people and in 2009 the government mandated that all

primary education had to be taught in English.

When South Sudan gained independence from Sudan in 2011, the

new government proclaimed that English would be the national

language even though very few people in the new country speak

English.

Page 12: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

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In late 2010, the Russian Federation mandated that fluent English

would be a requirement to become a civil servant starting in 2012.

In 2011, the Ministry of Education and Training in Vietnam made

English language learning compulsory starting in fourth grade. The

government intends to have 80,000 English language teachers in

the country by 2020, but is having difficulty finding qualified

teachers.

In 2011, Japan made English language learning compulsory in all

Japanese primary schools. Previous to this mandate, students were

introduced to English in junior high.

In December 2011, the government of Thailand launched their 2012

English Speaking Year project with the ambitious goal to teach

English to 14 million students in 34,000 state schools across

Thailand from pre-primary to university age.

In the presence of minor and major mandates like this, it should be no

surprise that there is now a significant shortage of English language

teachers in several countries, and this is a catalyst for technology-based

products and services. The shortage of teachers is driving the demand for

both self-paced products and live remote tutoring by native English-

speaking teachers based outside the respective countries.

For example, in May 2011, the Turkish government announced that they

would recruit 40,000 native-speaking English languages teachers as part of

a four-year billion dollar initiative to increase English language skills in their

primary and secondary schools. The first phase of the initiative began in

2011 and involved hiring English teachers in the US to tutor Turkish

students remotely in real time via Collaboration-based Learning

technology.

The Regions and the Top Growth Countries

This report forecasts the revenues for digital English language learning

products and services across seven regions: North America, Latin America,

Western Europe, Eastern Europe, Asia, Middle East, and Africa. This report

also identifies the top buying countries in each region and provides a five-

year forecast for each of those countries.

Asia has the highest growth rate followed by Africa, Latin America, and

Eastern Europe. All four of these regions have growth rates above the

aggregate growth rate for all regions. Western Europe and North America

are the most mature markets and have relatively low growth rates. The

region with the lowest growth rate is North America, which masks the fact

that it spends the most on digital English language learning products.

The top buying country for digital English language learning in

2011 was the US, followed by South Korea, China, Japan, and Brazil. By

2016, the largest buying countries will be China, South Korea, the US,

Brazil, and Japan, respectively. Turkey, India, the Russian Federation,

Spain, and Poland will also be in the top ten buying countries by 2016.

In terms of revenues, the top buying regions will be Asia, Western Europe, and North America,

respectively, throughout the forecast period.

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Figure 4 – 2011-2016 Worldwide Digital English Language Learning Growth Rates by Region

In this report, five-year revenue forecasts are provided for these countries:

In North America, revenue forecasts are broken out for Canada and

the United States.

In Latin America, revenue forecasts are broken out for Brazil,

Mexico, Venezuela, Argentina, Chile, and Colombia.

In Western Europe, revenue forecasts are broken out for Spain,

France, Germany, the Netherlands, Sweden, Switzerland, Denmark,

Italy, Finland, Belgium, Norway, Poland, the United Kingdom,

Hungary, Austria, Portugal, the Czech Republic, and Romania.

In Eastern Europe, revenue forecasts are broken out for the Russian

Federation, Kazakhstan, Ukraine, Georgia, and Belarus.

In Asia, revenue forecasts are broken out for South Korea, China,

Japan, Taiwan, India, Indonesia, Australia, Malaysia, Singapore,

Vietnam, Thailand, and New Zealand.

In the Middle East, revenue forecasts are broken out for Turkey,

Saudi Arabia, the United Arab Emirates, Jordan, Kuwait, Oman, and

Qatar.

In Africa, revenue forecasts are broken out for South Africa,

Morocco, Tunisia, and Algeria.

Over 300 suppliers operating in specific countries are cited in this report to help international suppliers identify local partners, distributors, resellers, and potential merger and acquisition (M&A) targets.

Page 14: AmbientInsight 2011 2016 Worldwide Digital English Language Learning Market Overview

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The dynamics of the market in these countries, particularly the US, are

complex. A detailed analysis of the US market is provided in this report and

forecasts for digital English language learning are broken out by buying

segment. Additionally this report breaks out the US consumer expenditures

for digital language learning by six languages.

A high-level analysis of the worldwide expenditures by five buying

segments is included in this report broken out by consumer, PreK-12,

higher education, government, and corporate. Even though the buying

behavior is different in each country, revenues tend to be concentrated in

consumer and academic segments in most countries.

In terms of growth, the countries with the highest growth rates are

Malaysia, China, Romania, Ukraine, Indonesia, Brazil, Poland, India,

Georgia, and the Russian Federation. The growth rates in Malaysia, China,

Romania, and Ukraine are all above 30%, more than twice the worldwide

aggregate growth rate.

There are spikes in spending in certain countries due to a variety of factors.

For example, Brazil will host the World Cup in 2014 and the Olympics in

2016. The Brazilian Ministry of Tourism intends to provide English training

to 306,000 tourism professionals just for the World Cup. There will be a

spike in spending in Brazil during the forecast period due to the

World Cup in 2014 and the Olympics in 2016.

Figure 5 – 2011-2016 Top Ten Digital English Language Learning Growth Rates by Country

There are distinct regional differences and the buying behavior can be quite different in each region, and in countries within a region.

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So far, Englishtown is the primary competitor benefiting from the Brazilian

expenditures having been designated by the government as the "Official

Language Training Provider for Brazil."

The major international suppliers are aggressively expanding across the

globe. Yet, new suppliers are entering the market at a rapid pace. There

are several niche areas that represent revenue opportunities for smaller

domestic suppliers and they are identified in this report.

Digital English language learning is now a significant revenue opportunity

for large and small suppliers. Targeting specific buyers in specific countries

with particular product types is the key to generating revenues. Suppliers

will find that data in this report.

Quantitative Methodology, Scope, and

Definitions Ambient Insight provides quantitative revenue forecasts based on our

proprietary Evidence-based Research Methodology (ERM). We developed

ERM by modifying and refining industry-standard quantitative methods to

reflect the unique characteristics of the learning technology market.

ERM progresses from general patterns (the big picture) to very precise

granular patterns. It is used to create a forecast model comprised of

accurate predictors. The forecast model is refined as additional data

become available.

Ambient Insight provides a detailed description of our Evidence-based

Research Methodology in: Ambient Insight’s 2012 Learning Technology

Research Taxonomy.

Ambient Insight gathers market and competitive intelligence from a wide

spectrum of information broadly classified as leading and lagging

indicators. Economic and market conditions are subject to change and the

data in this report are current at the time of publication.

Many of the companies discussed in this report are publicly traded on

various international stock exchanges and their financial disclosures

provide baseline data for global sales, regional competitive pressures, and

specific country-by-country business activity.

Many private companies, particularly outside the US, report their revenues

as a matter of policy. Those financial disclosures also provide baseline data

for the demand for specific types of products in particular countries and

regions.

Federal government and industry trade bodies, particularly in the US,

Japan, South Korea, Germany, France, Canada, Ireland, India, and the UK,

provide extensive data on export opportunities in specific international

A detailed description of Ambient Insight's

Evidence-based Research Methodology is included in our research taxonomy.

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education markets. Federal, state, provincial, and local school agencies

provide detailed reports on technology funding, the adoption of learning

technology, and the buying behavior in the academic markets.

The European Union funds ongoing research on the adoption of electronic

learning in the EU and Eastern Europe. Several international bodies such as

the World Bank, the UN, and the Commonwealth of Learning provide

funding for projects and detailed data on the adoption of learning

technology in developing countries.

There are now distance learning and learning-technology trade associations

in every region of the world. Publications, event presentations, and press

from these associations provide valuable insight into the market conditions

inside particular countries and regions.

The various English language learning publishing, training, and education

associations across the globe provide a wealth of information about the

migration to digital formats and the buying behavior in specific countries.

Scope The analysis focuses on those countries that currently represent the top

revenue opportunities for suppliers. The analysis of long-term revenue

opportunities in emerging markets is less detailed.

This report forecasts the combined revenue for shrink-wrapped and digital

self-paced content, Collaboration-based Learning (which includes live one-

to-one digital tutoring and live digital classes), Digital Referenceware, and

Mobile Learning. Additionally, the revenues for Mobile Learning apps and

Mobile Learning value added services (VAS) are broken out as well.

While there are revenues for game-based and simulation-based English

language learning they are quite nascent and not included in this forecast.

There are now dozens of Social Learning sites related to language learning,

with basic access offered for free. The "premium" content sold on those

sites falls into one of the four product categories analyzed in this report.

The revenue forecasts in this report are in US Dollars. There have

been significant fluctuations in currency valuations in 2010 and 2011 and

the forecasts in this report are based on exchange rates as of February

2012.

This report does not include a market share analysis broken out by

suppliers. Ambient Insight only provides market share data on a private

consulting basis and we do not publish market share data in syndicated

reports.

This report includes revenues for all categories of English including:

American English, British English, and Australian English. There are other

distinct subcategories of English language learning discussed in this report

including: English for Tourism, Legal English, Technical English, Medical

English, business English, and Aviation English.

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This report does not include forecasts for offline proctored English language

proficiency exams for students and teachers. This report does not include

forecasts for teacher-facing exam products used to certify teachers in

either Teaching English as a Foreign Language (TEFL) or Teaching English

to Speakers of Other Languages (TESOL). TEFL and TESOL are equivalent

terms and are used interchangeably. TEFL is a more common term in the

US and TESOL is more widely used in the UK and Europe.

There is an digital Test of English as a Foreign Language (TOEFL) or IBT

(Internet-Based Test) sold by ETS, but those revenues are not included in

this report. This is an exam product delivered online for a fee, and not a

digital learning product per se.

This report does include revenues for digital test prep content, digital

courseware, and tutoring services designed to help students and teachers

pass these tests.

There are thriving English language learning businesses in native English

speaking countries such as Canada, the US, the UK, New Zealand, Ireland,

and Australia. Significant amounts of their customers are located outside

these countries and those revenues are excluded from the forecasts for

these six countries. However, the revenues are factored in if the buyers

originate in these countries. For example, the US and the UK are

Cambridge University Press' third and fifth largest buyers, respectively, of

the company's English language learning products and those revenues are

factored into the forecasts for those two countries.

Finally, this report does not include forecasts for dedicated language

learning lab hardware. It does include revenues for the digital English

courses sold for use on the hardware.

Geographical Regions This report provides forecasts for seven international regions: North

America, Latin America, Western Europe, Eastern Europe, Asia, Middle

East, and Africa.

North America includes the US and Canada.

Latin America includes Mexico, Central America, and South America.

The Caribbean countries and islands are also grouped with Latin

America.

Ambient Insight defines Western Europe as the 27 countries in the

European Union as of January 2011. It also includes four countries

that, so far, have not joined the EU: Iceland, Norway, Lichtenstein,

and Switzerland.

Ambient Insight defines Eastern Europe as the countries that were

once part of Yugoslavia and many of the Commonwealth of

Independent States (CIS) that were once part of the former Soviet

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Union: Serbia, Montenegro, Bosnia and Herzegovina, Macedonia,

Albania, the Russian Federation, Belarus, Croatia, Georgia, Moldova,

Armenia, Azerbaijan, Turkmenistan, Kazakhstan, Kyrgyzstan,

Uzbekistan, and Ukraine.

Asia is defined as the countries in continental eastern Asia and the

countries and island nations in the Asian Pacific including Australia

and New Zealand.

The Middle East includes all the east Mediterranean, Gulf, and

western Asian countries, and arbitrarily groups Turkey and Egypt as

part of the Middle East.

Africa includes all the countries on the African continent except

Egypt and also includes Madagascar.

Definitions In this report, the term "digital English language learning" is used to

describe content, events, services, and technology accessed on a

computing device (mobile or desktop).

The current digital English language learning revenues are heavily

concentrated in five learning product types: Self-paced eLearning, Digital

Referenceware (eTextbooks), Collaboration-based Learning, Mobile

Learning apps, and Mobile Learning VAS.

Ambient Insight provides a granular definition of these learning technology

product types in: Ambient Insight’s 2012 Learning Technology Research

Taxonomy.

Ambient Insight defines packaged content as CD/DVD (shrink-wrapped)

digital Web-based content, and mobile apps.

This report includes forecasts for digital products designed to teach

English-as-a-Second Language (ESL) and English-as-a-Foreign Language

(EFL):

ESL refers to teaching English in an English-speaking region to those

whose first language is not English

EFL is English learning in a non-English region, being learned by

someone whose first language is not English.

There is a growing demand for digital English language learning designed

for teachers that want to achieve a certification. Common terms are:

TEFL (Teaching English as a Foreign Language), is used when

English is being taught in a country where it isn't the native

language.

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TESL (Teaching English as a Second Language), is used when

English is being taught to non-native speakers of English in a

country where English is the native language.

TESOL (Teaching English to Speakers of Other Languages) is often

used interchangeably with TEFL and TESL.

ELT (English Language Teaching) is a phrase primarily used in the

UK.

The term English language learners (ELL) is used in this report to describe

the current regional populations of English language learners.

The terms "Francophone" and "Anglophone" are used for the terms "French

speaking" and "English speaking," respectively.

Related Research Buyers of this report may also benefit by the following Ambient Insight

market research:

The Worldwide Market for Self-paced eLearning Products and Services:

2010-2015 Forecast and Analysis

The US Market for Self-paced eLearning Products and Services: 2010-

2015 Forecast and Analysis

The Worldwide Market for Mobile Learning Products and Services: 2010-

2015 Forecast and Analysis

The US Market for Mobile Learning Products and Services: 2010-2015

Forecast and Analysis

The US Collaboration-based Learning Market: 2010-2015 Forecast and

Analysis

Ambient Insight’s 2012 Learning Technology Research Taxonomy

“We Put Research into Practice”

www.ambientinsight.com