Online education in China. Photo: iStock
Online education in China. Photo: iStock

Driven by artificial intelligence, virtual reality and other technologies, and parents’ growing recognition of education, China’s online education market is expected to usher in explosive growth, exceeding 700 billion yuan (US$103.4 billion) by 2025, according to a report published by UBS Securities, reported.

At present, however, online education is not widely accepted. In 2017, the market size of after-class tutoring was about 580 billion yuan, of which the online sector only accounted for 29 billion yuan.

Also, current online education is mainly concentrated on tertiary and vocational education, while K12 education covering pre-school to high school is still in its early stages, accounting for less than 5% of the 29 billion yuan online education market.

The report predicts that K12 online education will become an important force in the market for extracurricular tutoring.

In the next five years, the annual compound growth rate of the education market will be around 18%, with the market size hitting 2 trillion yuan by 2025, among which the online education market is expected to reach 714 billion yuan.