China’s online vocational learning set for rapid growth in what analysts label ‘megatrend’

China’s online vocational education industry is about to blossom into a major new consumer sector, thanks to changes wrought by mobile internet, as well as consumer enthusiasm for the new medium, according to a report by Citic Securities.

Citic Securities analysts led by Guo Yi said the market for online vocational learning is currently worth about 150 billion yuan, but will balloon to around 585 billion yuan by 2020.

“Online education represents a megatrend as the internet and mobile internet infrastructures develop and the user habits change,” Guo said.

Among factors fuelling the rapid growth, mainland Chinese are finding online learning can help broaden their employability at a time of increasing competition in the job market. Structural changes in the economy are also fostering demand for more highly skilled workers as manufacturers downsize their operations in China in favour of setting up shop in neighbouring countries where labour costs are lower.

Online learning encompasses two main categories. These include a consumer model which is targeted towards individuals seeking to improve their employability.

Another segment includes corporate training and teacher training.