Learning curve: Industry revenue will grow, but competition from language software looms

Over the five years to 2017, per capita disposable income and international travel by US residents are expected to grow, leading to solid growth for the Language Instruction industry. Moving forward, the industry will build on its success in the online, corporate and international markets to fuel growth. Furthermore, steady immigration levels will support long-term demand for English-language courses in the domestic market. Demand for language training will also grow as the US population becomes more diverse and businesses attempt to target the new demographic markets. Nevertheless, competition from language instruction software continues to pose a threat to the industry...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Industry operators will continue to reap the benefits from rising incomes and corporate profit
  • Language instruction software has increased external competition for this industry
  • Intensive language and cultural training will remain popular services
  • Industry Report - Industry SWOT Analysis Chapter

    The Language Instruction industry is in the mature stage of its life cycle. Over the 10 years to 2022, industry value added, which measures an industry’s contribution to the overall economy, is projected to increase at an annualized rate of 2.5%. Comparatively, US GDP is projected to grow at an annualized rate of 2.0% over the same period. The industry’s importance to the overall economy is relatively stable, which suggests that the industry is mature. Additionally, the industry exhibits stable long-term demand and minimal changes in basic services, which are other characteristics of a mature industry.Teaching methods have changed considerably with the advent of the internet and associated technologies. Som...purchase to read more.

    Additional Insights for the Language Instruction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Language Instruction Industry are

  • Easy access for clients
  • Provision of a related range of goods/services ("one-stop shop")
  • Ability to alter goods and services produced in favor of market conditions
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Number of immigrants in the Language Instruction industry impact industry performance..

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    What's in this report

    What is the Language Instruction Industry?

    Language schools offer language instruction ranging from conversational skills for personal enrichment to intensive training courses for career or educational opportunities. Schools teach foreign languages, sign language and English as a second language. This industry does not include language instruction software.

    Industry Products
  • Foreign language instruction
  • English language instruction
  • Sign language instruction
  • Industry Activities
  • English language instruction
  • Other language instruction
  • Sign language instruction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Number of immigrants
  • International trips by US residents
  • Time spent on leisure and sports
  • Per capita disposable income

  • Current Performance
  • International travel rebounds
  • Rising competition from software
  • International students
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition impedes opportunity
  • Profitability declines slowly
  • Table: Language Instruction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Language Instruction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance and Insurance
  • Educational Services
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Book Stores
  • Computer Stores
  • Internet Hosting
  • Office Supply Stores

  • Products & Services
  • Foreign language instruction
  • English language instruction
  • Sign language instruction
  • Chart: Language Instruction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers
  • Corporations
  • Government
  • Chart: Major Market Segmentation for the Language Instruction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilities, marketing and depreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Language Instruction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Language Instruction Industry

  • Industry Globalization
    Rosetta Stone Inc., Berlitz,
  • Table: Rosetta Stone Inc. - financial performance
  • Table: Berlitz - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Language Instruction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Language Instruction Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • International trips by US residents (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Blended Learning
  • Combines computer- or online-based lessons with traditional face-to-face training.
  • Intensive English Program (Iep)
  • Course program offered by colleges designed for non-English-speakers who want to pursue higher education or employment in the United States.
  • Outbound Tourism
  • Tourism leaving from the United States to foreign countries.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Language Instruction Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Language Instruction industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Language Instruction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Language Instruction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Language Instruction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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