How big is the study abroad service market?
Study abroad service is to provide students who are interested in studying abroad with study abroad planning program, tailor-made study abroad plan, packaging the experience and goals of study abroad intention, improve the student visa rate and improve the opportunity to choose a good school. There are senior study abroad consultants in the service agencies to provide these services.
Studying abroad, formerly known as studying abroad, generally refers to a person who goes to a country other than his or her home country to receive various types of education, which can be short or long term (from a few weeks to a few years). In recent years, with the continuous development of China’s social economy, the people’s living standard and quality of life have gradually improved, and the number of students studying abroad has increased.
Development History of China Study Abroad Industry
The data shows:
2016-2019 The number of Chinese studying abroad increased from 544.5 thousand to 703,500.
2020 The number of students studying abroad in China has dropped to 450,900 as the COVID-19 pandemic hits the world.
2021The number of Chinese students studying abroad recovered gradually, reaching 523.7 thousand, up 16.15% year-on-year.
2022More than 800,000 Chinese are expected to study abroad, an increase of about 10 percent over the 703.5 thousand expected in 2019.
According to the “Study Abroad Service Industry Depth Survey and Future Development Trend Forecast Report 2022-2027” issued by the China Research Institute of PwC Industry:
Study Abroad Service Industry Market Size Analysis in 2023
In the past 10 years, among the new Sino-foreign cooperative educational institutions and projects above the undergraduate level, the proportion of science, engineering, agriculture and medicine has reached 65%. In recent years, Sino-foreign cooperative education has played a positive role in alleviating the obstacles to studying abroad caused by the epidemic, and has enrolled nearly 10,000 students.
From the perspective of destination countries, since the 1980s, education service trade in the field of international service trade has become an important economic growth content of a country, and has become an industry that can produce greater economic benefits through operation. Some countries have formed their own advantages in education service trade and become net exporters of education service trade.
According to data, from 2019 to 2020, Chinese students studying abroad mainly include the United States, the United Kingdom, Canada, Australia, Japan, the number of people studying abroad reached 373 thousand, 142 thousand, 141,000, 120,000 and 122,000 respectively.
Since the beginning of the epidemic in 2020, the number of returned students has soared. By 2021, the number of returned students who choose to work in China for the first time exceeded one million, reaching 1.049 million people. In 2020 and 2021, the growth rate of the number of overseas students returning to China will be 33.9% and 35% respectively, which is 3-5 times that of previous years. As the country expands its opening up to the outside world, it also needs talents with an international perspective, and as the epidemic situation stabilizes, the number of students studying abroad will show a rapid upward trend.
Affected by the epidemic in the past two years, the number of people studying abroad has declined. However, it is precisely because of the epidemic in the past two years that the number of domestic college entrance examination and postgraduate entrance examination has soared, and the competition for entering higher education is much higher than before. With the improvement of the epidemic and the recovery of the overseas study service market, the number of people studying abroad is bound to be more than last year, and may even be more than before the outbreak of the epidemic. The number of Chinese people studying abroad in 2022 will reach more than 800,000, which is likely to increase by about 10% compared with the number of 703.5 thousand in 2019.
With the “convenience and low cost” of studying abroad, more and more families choose to let their children study abroad. After studying abroad, students face not only the pressure from their studies, but also the challenges from life. In addition, it is necessary to face life independently. Among them, renting a house has become the top priority for international students; In the face of school dormitories, rental housing, homestay and other options, students have been busy. With the trend of younger age of international students, China’s post-study service market will further expand. The global mass vaccination campaign in COVID-19 vaccination has started, and the year-long epidemic is coming to an end. If the global vaccination goes well, the best scenario is that the epidemic will be under control in the second half of 2021. However, due to the large size of the global population, it will still take a long time to be vaccinated, so there will be no “herd immunity” before the end of 2021, and if the subsequent vaccination measures are appropriate, the global epidemic will be fully controlled by 2024. Therefore, the market size of China’s post-study service market will reach 285.4 billion yuan in 2024 and 2019, and then grow at a growth rate of about 13% to about 61.1 billion yuan in 2026.
The resources in the industry are limited, the qualification resources are limited, the resources for studying abroad are limited, and the resources of colleges and universities are limited. The continuous increase in the number of institutions in the intermediary industry for studying abroad is bound to lead to increased competition within the industry. The main aspects of competition exist in: resource competition, with more foreign colleges and universities resources intermediary competitiveness is stronger; scale competition, long history, scale teaching institutions are more likely to become the basis for foreign students to choose intermediary; service quality competition, management of studying abroad countries more matching, service attitude is better vulnerable to stay by scholars.
The market barriers to the entry of the intermediary industry for studying abroad are relatively low, and any individual or enterprise group with the financial strength can enter.
With the expansion of the market size of the study abroad agency industry, new entrants in the market will inevitably continue to increase. It does not rule out the emergence of new leading enterprises in the future study abroad intermediary industry. And with the popularity of the Internet, the degree of control of information is no longer completely dependent on the study abroad agent, and more and more countries are covered by the study abroad institutions. Only those who have more information and relevant websites on the Internet can enter the market of study abroad agency industry quickly.
The substitute products of study abroad agency industry mainly include: foreign colleges and universities application auxiliary website, Sino-foreign cooperative education colleges and universities, domestic branch schools of foreign colleges and universities, high school overseas direct program and so on. These ways to study abroad to get rid of the dependence on the study abroad agent, can directly study abroad related institutions. For two goods, if an increase in the price of one causes an increase in the demand for the other, the two goods are called substitutes.
Foreign student receiving colleges and universities are in the upper reaches of the study abroad intermediary industry, which provides qualification certification, market supervision behavior and study abroad resources for the study abroad intermediary industry. The government and relevant departments shall audit the industry in accordance with the relevant regulations and regulations formulated by them, promulgate relevant license certificates, and allocate places for studying abroad in accordance with their own enrollment plans.Therefore, the study abroad intermediary industry has almost no bargaining power on the upstream.
In recent years, the number of students studying abroad has been increasing. The survey shows that 80% of the cost of studying abroad (tuition fees + living expenses) is 300000-500000 yuan per year, and most countries have fewer scholarships for business and liberal arts.
More than half spent less than three years studying abroad, with a total cost of between 1 million and 1.5 million yuan, and 3.1 percent said they spent more than 3 million yuan.
United States, CanadaAbout 300 thousand yuan a year is needed in big cities;
In the united kingdom, about 250 thousand yuan a year;
Australia’s annual 200 thousand to 230,000 yuan;
Japan, south korea, germany, france, and other european countries spend 150 thousand to 180,000 yuan each year.
Many countries in Europe have free tuition, so it is cheap.
South Korea has a high hourly salary for foreign students and a lot of opportunities to work, and can earn living expenses through working.
Analysis on the Prospect of Studying Abroad Service Industry
The follow-up service mainly refers to the service after the child goes abroad, mainly including two aspects: homestay matching and supervision services. It is expected that the scale of post-study services in China will increase by 10% year-on-year in 2023.
From the perspective of investment and financing, due to the impact of the epidemic, the investment and financing enthusiasm of the overseas study industry has declined. On the one hand, issues such as industrial policies and changes in international relations have made investment institutions take a wait-and-see attitude towards the overseas study industry; On the other hand, from the perspective of the development of the overseas study industry, the advantages of intermediary services and language services related to overseas study are obvious, the market is relatively saturated, and the investment heat in the primary market is weakened.
In the post-epidemic era, the demand of studying abroad groups is stagnant, and the pressure of employment in the future will be further increased, and the demand for study, life and employment needs to erupt. From the point of view of the purpose of studying abroad, the demand for self-improvement, such as “expanding international vision”, “enriching life experience” and “learning foreign advanced knowledge”, has increased year by year. The purpose of studying abroad is becoming more and more diverse, which also means that the expectation of studying abroad and self-improvement is also higher and higher. How to balance the high expectation with the real life abroad makes the demand of studying abroad group become more and more diverse and rich.
This report is written by China Research Price Consulting Company, based on a large number of thorough market research, mainly based on the National Bureau of Statistics, the Ministry of Commerce, National Development and Reform Commission, National Economic Information Center, Development Research Center of the State Council, General Administration of Customs, National Commercial Information Center, China Economic Monitoring Center, China Industry Research Network, relevant domestic and foreign newspapers and magazines A large number of materials published and provided by the research units of the study abroad service industry, as well as a large number of first-hand data obtained from the investigation and inspection of enterprises in the industry, have analyzed the development situation, supply and demand situation, competition pattern, profit level and development trend of the study abroad service market in China.The report focuses on the research and development, production and marketing, strategy and operation of the top ten enterprises.For domestic and foreign industry enterprises, research institutions, social groups and government departments to provide professional industry market research, business analysis, investment consulting, market strategy consulting and other services.