According to a report by Deloitte, the size of Chinese education market is expected to grow from 1.6 trillion yuan in 2015 to 2.9 trillion yuan by 2020.
The ecosystem of Chinese education is complex. The main sectors in the industry are private education, studying abroad, training and online education.
Mainland China is already the largest source of foreign-born pupils at British boarding schools, with numbers rising 10% last year to nearly 8000, according to the latest figures. That means Chinese pupils are worth about £220 million annually to British boarding schools.
The report puts emphasis on online education, as it is the most innovative segment of the industry. “Major trends emerging in the sector of online education include 1) the integration of online and offline platforms, 2) the diversification of profit-making models, 3) the rising significance of mobile-end users, 4) penetrating into Tier 3 and 4 cities and the continued expansion of businesses, and 5) M&A deals boosting industry consolidation,” the report claims.
The report also says that Chinese companies are looking for ways to expand operations abroad, creating opportunities for foreign investors.
Deloitte reported that there are multiple models to enter the Chinese education market. Some of the more popular models include setting up overseas offices or subsidiaries as well as exporting online education.
British universities are a lucrative route for ambitious youngsters from the far East, with some 60,000 Chinese students travelling to study here each year according to The Daily Telegraph.