Technology

Global online ESL market size in 2024?

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Reading Time: 5 minutes

2021 changes in policy banning online English teaching to Chinese children was significant, with a potential reduction of the global online English-as-a-second language (ESL) market from its peak by ≈20%; but the market is growing again.

Laptop with search engine enquiry for the term Learn English on the screen.

What happened to the online ESL market in in 2021?

In late 2021, changes in Chinese government regulations shook the online ESL community. Many watched in dismay as the largest section of the industry disappeared overnight. The Chinese Communist Party (CCP) issued legislation known as the “double reduction/720 policy” in July, which banned teachers based overseas from conducting any training activity in China to children, leading to a massive teacher layoffs. One company alone, VIPKID, hired more than 70,000 teachers at its peak.

Overseas-listed EdTech companies such as New Oriental lost more than half of their value in 2021 and most of the major online English tutoring companies that serviced the youth market in China either closed completely or quickly pivoted to alternate markets.

What was the size of Chinese online ESL in 2021?

In 2017, according to iResearch, China’s online youth English training market was around 1.97B RMB ($3B USD) but there was “frenzied growth” in the following four years, so figures are likely higher. In the same year, China accounted for 61% of all revenues for Digital English Language Learning products in Asia Pacific, with the regional market estimated at $2.45B in 2018.

Using these figures, China likely represented ≈15% ($1.47B) or more of the global industry size (if measured by the $10B valuation). This includes both the adult and youth markets. This figure is likely higher, due to rapid investment in the industry between 2018 – 2021. $10 billion of venture capital had been invested into Chinese EdTech in 2020 alone. Some reports claim that the total Chinese market is half of the global Digital English Language Learning market, making it worth ≈$5B. 

It is difficult to find exact numbers as most of the studies done in this area are very costly to access, but my estimation based on the available data is that the 2021 CCP policy changes may have possibly reduced the global online ESL market at the time by ≈20%.

© GETChina Insights (2017)

Yet, the adult market in China is also very large and was not affected directly by the 2021 policy changes. ESL for Chinese adults (online and offline) had a reported value of 37B RMB ($5.5B) in 2019. Research by J’son and Partners (2021) indicated that online ESL comprises 22% of the total market, with adult online ESL making up 68% of the total market. Using these figures, we can estimate that the Chinese adult online ESL sector is potentially still worth $1.21B (22% of the $5.5B estimation above) or more. 

So, what does that mean for the global online ESL market in 2024?

Despite the 2021 changes in the Chinese online youth market, it’s growing.

With more than 1.5B English language learners (up to 1.7B by some estimates) increasingly ‘going digital’, the move to online education during the COVID-19 pandemic greatly changed the face of the online ESL sector, in addition to the CCP changes.

The global online ESL learning market in 2021 was worth $10B (22% of the total market). In a 2023 report, it is predicted to grow at 14.5% CAGR over the next 8 years. Other forecasts indicate an even higher rate of growth (17.2% CAGR to $15.03B by 2030).

The Asia-Pacific region is still expected to account for the largest share of the global online language learning market, with Japan, South Korea, India and Indonesia making up the largest section of the student demand after China. Growth in Asia-Pacific is driven by “government initiatives to strengthen national education networks, the growing government focus on the education sector, rapidly developing economies, and increasing disposable incomes leading to increased internet penetration, which are propelling the demand for online language learning in the region”, according to Meticulous Research. 

© Research and Markets (2024)

In 2024, the 21-30 year olds account for the largest share of the online language learning market in Asia-Pacific, followed by 13-17 year olds. Based on age group, under 18s are estimated to account for the largest share of the total online English language learning market, due to “the increasing digitization of public schools, rising number of English learners, significant increase in smartphone users, growth in student immigration for higher education, and growing e-learning platforms”. 

However, adults over 18 are projected to register the highest growth in demand during the next few years due to “the rising importance of English in business and professional areas”. The Educational Tests (such as IELTS, PTE and TOEFL) and Businesses segment accounted for 46.29% and 35.51% of the market respectively in 2018. 

Broadly, the global education market is set to reach $10 trillion or more by 2030, driven by population growth, as technology “drives unprecedented re-skilling and up-skilling in developed economies. Asia and Africa are the driving force behind the expansion”, with the offline English Language Learning expected to reach $40.6B by 2030 (CAGR of 12.8%).

© J'son and Partners (2021)

Europe follows Asia-Pacific as the second biggest market for digital English language learning (16% of the total). 

The largest markets in Europe are Germany and France. In 2024, Germany is set to record the largest growth due to a need for professional and work-related language skills. Online tutoring platforms are seeing a growth in demand among students preparing for exams or seeking additional academic support.

In 2018, 96% of pupils in upper secondary education in the EU-27 learnt English as a foreign language. Maxim Azarov (founder of Novakid, a US-based teaching platform that caters to the European market) said in an interview that “…the popularity of online English language training for children has increased significantly since the pandemic began… it is still growing, and is poised to continue to grow exponentially”.

Other online English language learning markets in 2024?

In order of size, North America, Latin America, and The Middle East/Africa make up the remaining demand. Growth from Pakistan, Brazil and Mexico (among many others) is increasing offline and so may be reflected in the online space in the coming years.

According to a Preply Inc. (U.S.) survey report in 2023, people in the United Arab Emirates (UAE) want to learn English the most based on search engine results. In 2021, in the UAE, an average of 34,800 searches were conducted for the term ‘learn English’. Other countries that search for terms related to learning English the most include the Philippines, Sweden, and Israel.

Summary

China was, until 2021, the largest segment of the digital English learning market, followed by Europe. Changes in Chinese policy regarding online ESL tutoring for children reduced the global online ESL market by potentially ~20%. Yet, figures indicate 14.5% – 17.2% growth in the online ESL / English Language Learning industry by the end of the decade. 

The COVID-19 pandemic accelerated the uptake of online education and digital learning is set to continue to increase the share of the industry. There are currently 12 million English teachers worldwide, yet The British Council states that “the world needs to add 1.5 million teachers per year on average, approaching 100 million in total in order to keep pace with the unprecedented changes ahead”. 

It appears that the online ESL market will continue to grow in 2024 and beyond.

Those who are looking for an online ESL teaching job will find demand for their services from Asia and Europe. Find out more here. 

With the potential growth of online English language learning platforms and peer-to-peer learning, the landscape is great for independent, freelance English teachers and tutors. If you want to start your own freelance teaching business, reach out about coaching from a teacher with more than a decade of experience in attracting private students at $100AUD/hr. 

Digital security for online ESL teachers

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Online English teaching can leave you vulnerable to a range of different dangers than the average user. We’ll cover some easy tips that you can use to keep yourself safe; like using a VPN, avoiding remote access software and maximising your device protection.

Photo by cottonbro from Pexels

Why is digital security for online English teachers important?

The Australian Cyber Security Centre’s (ACSC) online reporting tool (ReportCyber), which “assists members of the community to report different types of cybercrime” receives a report every 10 minutes. It is incredibly common and can lead you to be at risk of identity theft or fraud. Online English teaching can incur some additional risks and working for a company based overseas means that you are potentially at risk from data breaches and hackers outside of Australian jurisdiction, so it’s worth spending a bit of time securing your system as best you can.

Note: We are NOT cyber security specialists, just online English teachers. These tips are based on our own personal experiences and research. If you want more information, consult a professional or visit the Australian Cyber Security Centre (ACSC) website.

TOP TIPS

Do not include personal information on your resume

I recently found a copy of a resume that I had sent to an international company almost two years ago online. Luckily it did not contain anything too personal. It’s worth remembering though that once it’s on the internet, it’s hard to remove. My general advice is DO NOT INCLUDE ON YOUR RESUME: Home address; Passport/Driver’s License/Birth Certificate/Social Security Number; or Phone number.

Use a VPN.

We personally always use a Virtual Private Network (VPN) when connected to the internet but feel that is particularly important to do so when teaching online. A VPN is a secure tunnel between two or more devices (such as between your computer, Internet Service Provider (ISP) and your teaching platform) and is used to “protect private web traffic from snooping, interference, and censorship” by encrypting your data and making it more difficult to intercept or steal at it travels through this tunnel. This is even more important when using public wi-fi, as this is more vulnerable than your ‘private’ home connection.

Use Antivirus software.

You’re likely already using some form of antivirus program but if not, it will help protect you from malware, ransomware, spyware and adware. We use Avast, which have both excellent free and paid versions.

Avoid remote access software.

Many online English teaching companies ask you to download remote access software such as TeamViewer so that they can access your computer and troubleshoot any IT problems that you might be having. While this might be integral in certain situations, there are obvious risks in letting a staff member in a foreign IT department access your personal device via this type of software, so we recommend that you proceed with caution before downloading this software and particularly before opening it and sharing your connection. Other common remote access software includes: Remote PC, Zoho Assist, Splashtop, LogMeIn, ConnectWise Control and Remote Desktop Manager (among others).

Maximise your device protection.

There are many small things that you can do to increase your device security, depending on whether you are using a computer, laptop or mobile device (phone/tablet) to teach classes, including (but not limited to!):

  • Cover your webcam when not in use. You can do a ‘Zuckerberg’ and use a piece of tape or post it note but you will end up with sticky residue on your cam after a while. You can buy an inexpensive webcam cover slide for only a few dollars.
  • Choose a strong password, change it regularly and use a different password for your online teaching platform than you do for other sites as online teaching platfoms from overseas companies are not always well secured.
  • If you teach over Zoom, set a password for students to enter and/or use a waiting room to avoid Zoombombing.
  • Many Chinese companies use apps such as WeChat and DingTalk to communicate between staff and teachers but there are security concerns so be cautious and avoid sharing identity documents through these channels.

Be careful.

In summary – if you follow the above tips, you are less likely to encounter some the dangerous elements that teaching online can expose you to – but caution and carefulness are always the best approach to security. If your company asks you to download software, do a quick google search first and look for online reviews. China, in particular, has their own version of many common programs used in other countries so it helps to do your homework before downloading and ask your company if an alternative is available. In the world of digital security, a little bit of prevention is better than a possible lifetime of cure.

What is the essential equipment to teach online?

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Internet, a computer or laptop with a webcam, a headset and good lighting is all the essential equipment to teach online that you’ll need. There are a few more items, though, that can really make you stand out. Let’s find out more.

My first online English teaching setup was pretty basic! (c) Kate Zarb

5 years ago, when I first began teaching online, I bought a cheap pair of ‘call centre’ headphones with a microphone, a clip-on ring light and little else. While the classes were OK, it soon became apparent to me that a few pieces of quality equipment would also increase the quality of the classes. If you want to stand out amongst a sea of grainy-looking classes with bad audio, keep reading.

Kate Zarb
Kate Zarb, BA (Education), Grad Cert Education (TESOL)

Internet

To teach English online, you need the internet. English teaching companies may require that you have a minimum internet connection speed (which can vary greatly). Freelance and marketplace teachers will also benefit from a fast, steady connection. 

A GENERAL guide is 10Mbps Download/10 Mbps Upload or higher. Australia has slow internet overall, so “the faster, the better”… but it’s normal for your upload speed to be slower. If your connection cuts out regularly or is patchy on a Skype/Zoom/Video call with friends and family, it might not quite be enough. You can check your internet speed at speedtest.net

Here is an example of my connection (top) via wifi and Ethernet cable (below).

One of the easiest ways to increase your internet speed is by purchasing an inexpensive ‘Ethernet Network LAN Patch Cable’ (from ≈$5AUD on eBay Australia). By plugging your computer directly into your router/modem via Ethernet cable, you can increase your speed significantly. You may need a USB (or Micro) to Ethernet (RJ45) adapter (≈$20AUD on eBay Australia). 

I have been teaching for almost two years with the above speeds and have not had any issues, except for a few nights with stormy weather, but the faster the better. Even moving closer to your router/modem will help improve your speed. You may have luck with a wi-fi extender that can dramatically increase the wi-fi speeds in hard-to-reach areas of your house (from ≈$50AUD on eBay Australia).

Also, if you use a VPN, you may wish to turn it off before class and back on again after; I’ve found that they slow your connection.

It’s also good to have a back-up connection via wi-fi hotspot (on your phone). I‘ve relied on this a few times and it has been a lifesaver. It looks slightly different on every phone. On Apple phones, it’s ‘Personal Hotspot’ (see image). If you don’t have unlimited data on your plan, it can be expensive, so best for emergencies.

Computer

Like internet speeds, some companies will require that your computer has minimum operating specifications.  A Windows 7 (or above) laptop/desktop or Mac with 4GB+ RAM and Intel 5i+ (AMD10) are generally required, but please check out the technical requirements of each company as they are all different. 

Teachers have reported issues with Chromebooks and Linux systems on some teaching platforms. Some companies run their software on Google Chrome, so you may need to download this browser. Some companies allow you to teach from a tablet (like an iPad) or phone, but the majority require a new-ish laptop or desktop.

If you’re using a laptop, a stand (≈$50AUD on eBay Australia) that elevates your webcam to eye level is really helpful if you can’t adjust your chair, although a stack of books or a shoebox will also do in a pinch. Remember, try and get the webcam to as close to your eye level as possible, as you don’t want your students staring up into your nostrils or feel like you are looking down on them.

Webcam

If you have a less than 5 year old laptop, you should have a integrated webcam that will be sufficient. If you are working on a desktop computer, you may need to purchase one. Aim for 1080p (at 30fps) for best video quality. 

Note: Check if the webcam you want is compatible with your operating system (Windows or iOS) before buying as many released this year are only compatible with the newest version of major operating systems.

After good lighting and a quality microphone, a good webcam will set you apart in the job interview and make your classes much higher high quality, so it’s worth the extra expense if you can afford it.

Our recommendations:
Budget webcam: (≈$70AUD on eBay Australia) Creative brand 1080p webcam.
Mid-range webcam: (≈$120AUD on eBay Australia) Logitech brand 1080p webcam.
Hid-end webcam: (≈$300AUD on eBay Australia) Logitech brand HD Pro webcam.

Photo by tyler hendy from Pexels


Lighting

The fastest way to improve the quality of your appearance online is to set up some basic lighting. In my first budget setup, I used a $6 LED lamp from Kmart (which is sadly no longer available), so a cheap desk lamp or two is a perfect way to start.

Cinematographer Greg Middleton recommends that you bounce the light from a desk lamp off a wall instead of pointing it at yourself directly, if possible. He also says that “cinematographers favour tungsten bulbs or energy-efficient LEDs, which generate steadier light than fluorescents”, so be mindful of the bulb in the lamp too. 

I’ve seen a few that are quite yellow and make people look a bit jaundiced. There is something called the Kelvin Scale which ranks lights from blue to yellow. 

It is a bit complicated, but basically, you want to aim for light in the middle of the spectrum – that is – closest to ‘Cool White’. Keep an eye out for white bulbs if you are using a lamp, but my experience has been that most LED lights are near to this goal white area. 

This article suggests that “The optimum points when adding lights around your face are at 10 and 2 pm if you’re sitting at, and facing, high noon. You’ll also want a slight light behind you – again from an angle”.

Ring lights used to be only in the purview of Instagram models and YouTubers, but they are also indispensable for those educating online. You especially want the students to see your face (and mouth) to help them imitate your movements and to help elicit communication. Ring lights are great at focusing light right onto your face, but you may want to turn on your overhead bulb, a desk lamp and maybe even a light or two behind you. Turn on your webcam and play around with different arrangements until you find the best setup for your situation.

Our recommendations:

Budget Ring Light: (≈$10AUD on eBay Australia). The ‘clip on’ selfie ring light can clip on the top of your laptop over your webcam and usually comes with three settings – low, medium and high. It’s a great option if you are on a budget and/or just getting started. You can use it to make yourself look good in selfies too, which is a bonus. 

The main ‘con’ is that looking into it for long periods of time is not great, so I actually recommend a larger ring light that sits behind your laptop or on your desk that can you look through the middle of. Your eyes will thank you.

Mid-tier Ring Light: (≈$40AUD on eBay Australia). This well-reviewed ring light is 10″ and sits on your desk (for the smaller sizes) and the floor (for the larger lights). It is adjustable, with many different light/brightness settings. 

High-End Ring Light: (≈$65AUD on eBay Australia). The next step up is to invest in professional ‘soft box’ 

Headset

Although you might get away without having a headset, we don’t recommend that you skip this purchase. After being able to see you clearly, students need to be able to hear you clearly too. You also need to be able to hear them too! 

Communication with a non-native English speaker is not always easy, so make your life easier and buy the best headset that you can afford. We recommend headsets with a built-in microphone, like the ones that you see in call centres, as they provide the best sound quality.

A few considerations before buying a headset:

  • Noise-cancellation. If you are working from a noisy space, having a noise-cancelling microphone is a must.
  • Mute button. If you think you may be interrupted frequently by young children in your home, for example, you may want a headset with a quick and easy mute function.
  • Wireless headset. If you are a very animated person and especially if you plan on teaching young children, being wireless will help you tremendously.

Do your research and read a few reviews before buying a headset. If you plan on teaching full-time a lightweight and comfortable headset will be worth its weight in gold, but an inexpensive headset from Logitech (see below) was our choice when we first started and is still a reliable backup after a year of daily use. 

Note: Depending on your laptop/computer, you may need an adapter for some headsets. Be mindful when looking and buy a USB or wireless headset for maximum compatibility.

Our recommendations:

Budget Headset: (≈$25AUD on Amazon). Basic and with none of the aforementioned features, this is the cheapest well-reviewed headset on the market. You may need an adapter (≈$7AUD on Amazon).
Mid-tier Headset: (≈$50AUD on Amazon). With a noise-cancelling microphone, a mute button, and a USB connection.
High-end Headset: (≈$99AUD on Amazon). All of the above features, but wireless.

Tablet

This is an often overlooked item for teaching but we think it is one of the things that can really increase the quality of your class. By tablet, we don’t mean a device like an iPad, but a drawing tablet that is common among graphic designers. It usually consists of a small drawing surface and digital pen, known as a stylus (see above).

Depending on the platform that you use when teaching, you can draw on the presentation to underline words, draw pictures and bring focus to certain elements of the class. In classes where you can write on a whiteboard-esque white screen, you can write ‘on the board’ just like in a real-life classroom.

Our recommendations:

Budget tablet: (≈$50AUD on Amazon). Simple, cheap and easy to use.
Mid-tier tablet: (≈$69AUD on Amazon). Comes highly recommended, slightly larger.
High-end tablet: (≈$90AUD on Amazon). We use a Wacom tablet personally and find them the easiest devices to plug-and-play. 

So, that’s all for the tech. Just remember that a few items will greatly increase the quality of your face and voice. Online English teaching companies often offer you an hourly rate based on your demo(nstration) class, so if you are in a quiet, well lit room with a clear, high quality image and sound (plus, give an enthusiastic class) you’ll likely receive the upper rate. The small amount that you pay will be recouped in a few hours work at a better hourly rate.

Backdrop/Background

What you have behind you while you are teaching is really important. The students have only a small ‘window’ on their screen in which to view you and just like when you watch a video online, a messy bedroom in a background is really distracting.

Some companies ask that you have a plain, white background, while others encourage you to decorate your background with colourful signs, posters and child-friendly decorations.

For plain backgrounds: You can purchase a photography backdrop (above) that includes both white and green screen fabrics, but as you can see in the photo – the cheap fabric that comes with it is unable to be ironed and leaves creases. We recommend that you buy a frame (≈$45AUD on Amazon) and a decent muslin fabric (≈$40AUD on Amazon), or you can use any plain fabric like a sheet, for example. Using a green screen gives you the potential to use virtual backgrounds through programs like ManyCam. This can be really spectacularly used for young learners with animations and fun filters. Using a program like ManyCam is quite RAM-heavy so works best with new systems. You can also purchase a small portable green screen that you affix to the wall (≈$68AUD on Amazon).

For decorated backgrounds: You can get really crafty and make yourself a personalised background with cardboard, your name, and an Australian/New Zealand-themed collage – you are only limited by your imagination! Lots of people have a World Map (≈$30AUD on Amazon). Some companies require you to display the company logo on your screen and you can do this by printing it out on paper or using a program like ManyCam to add it digitally. If you have a lovely, tidy home or office – you might not need a backdrop.


Whiteboard

You might want to buy a small ‘mini’ whiteboard ($10AUD on Amazon) to write on and can be especially helpful when explaining a vocabulary word, by drawing an image or breaking it down letter by letter.

Props

What props you use will depend on the age of the students that you are teaching and your own comfort level with using them. The list really is endless. You might want to have a puppet, prop food, costumes etc.

Remember, you can use use props for adult learners as well. Use a phone to ‘call’ your students, or put on a paper moustache to role play a discussion with an angry boss etc. Surprisingly, adults often respond to the same, fun activities that children do – just take your cue from how your students respond. Not all cultures are as comfortable with the notion of play and fun, so start conservatively and get ‘sillier’ if and when appropriate. 

Summary

You can go ‘all out’ when teaching online and you are only limited by your wallet, but in order to be a great teacher, focus on WHAT you’re teaching and let the technology and props support you. If you are on a tight budget, we suggest that you buy the best headset that you can afford and spend the most you can on good lighting and a webcam (if you can). This will really help the student to see and hear you. A tablet, a few props and a fun background will take you to the next level.

Good luck and happy teaching!