China and India:
The Rise of the Asian Mega
Markets and What it Means for
Professional Publishers
Sudeep Das
Vice President – Publishing Services
NIIT (USA), Inc.
© 2005 NIIT. All Rights Reserved.
The Opportunities
 India’s education and training sector offers private institutions an
estimated US$ 40 bn market, with a potential 16% five-year CAGR.
 More than 1,200 private engineering colleges, 300 business
schools and more than 140 private medical colleges in India.
• Represent a US$7bn market
• Engineering takes the major share at US$5.85bn (or 83% of
the total).
• After K-12, private professional colleges form the single biggest
category in Indian education.
Source: CLSA Research Report(APAC
Markets), March 2008
© 2005 NIIT. All Rights Reserved.
The Opportunities
 Vocational Training - includes staff training for
• Airlines
• Retail chains
• Hotels
• Financial services
• Basic skills such as English improvement.
 Global Workforce Requirement
• 50% of population is below the age of 25
• Global shortfall of 56mn skilled workers by 2020, India will
have 47 million excess at that time.
• But without proper education and training majority of these
potential workers will not be employable.
Source: CLSA Research Report(APAC
Markets), March 2008
© 2005 NIIT. All Rights Reserved.
The Opportunities
 Quality of Education
• McKinsey study - 10 to 25% graduates in India are employable
• 300,000 engineering diplomas awarded each year, only 25%
competent to work
• 50% of technology graduates not good enough
• Quality of Study Material
• Syllabi revision is slow
• Little effort on research and development in Universities
• Libraries are not well stocked
All this presents an opportunity for providing better quality content
and solutions.
Source: CLSA Research Report(APAC
Markets), March 2008
© 2005 NIIT. All Rights Reserved.
The Opportunities
 Skills Development
• Market for Higher Education in India is projected to grow almost
three times in the next 10 years
• Market size for Skills Development in India is projected to grow
almost ten times, albeit over a smaller base
• Current private education market in India of ~US$ 40 billion is
expected to grow to ~US$ 115 billion in the next 10 years
• Multimedia in schools, child skills development, IT training and Elearning, preparatory and vocational studies, though relatively small
segments in 2008 are forecasted to grow in the range of 25% to 60%
and will together represent 1/4th of the market.
Source: CLSA Research Report(APAC
Markets), March 2008
© 2005 NIIT. All Rights Reserved.
The Opportunities
 Chinese Education legislation has been updated in line with policy on
internationalization
• New educational approaches being tried in Chinese institutions
• Concept of education management has been introduced
• Great need for management development and training has emerged
in institutions and education authorities
• English language teaching and training programs that lead to
professional qualifications have multiplied
• Growing demand for Continuing Professional Development,
particularly on taught postgraduate courses, and distance education
Source: British Council Market
Intelligence
© 2005 NIIT. All Rights Reserved.
The Opportunities
 Chinese IT Education & Training market to grow at a CAGR of 19%
from 2007 to 2011
• Driving Force
• Chinese government promoting vocational education in a big
way.
• IT education & training is more employment-competitive for the
industry than traditional academic education.
• Technological progress & gap of IT talents foster good
opportunities for development of the market.
• Hampering Factor
• Industry development model is not yet robust.
Source: CCIDC Consulting Annual
Report on China’s IT education &
training market
© 2005 NIIT. All Rights Reserved.
The Indicators - India
• All this points to the fact that the education market in India will
remain robust and keep growing for at least a couple of decades.
• The Five-Year Plans in India are beginning to reflect increased
government spend on education.
• Given the special focus on education in the Eleventh Five-Year
Plan(2007-2012), I have no hesitation in calling this Plan a ‘National
Education Plan’- Prime Minister Mr. Manmohan Singh
• Even Tax structure contains an extra Education cess.
© 2005 NIIT. All Rights Reserved.
The Product Portfolio - India
• TextBooks – Indian education market uses about $2B of textbooks every year.
There is a strong need for improving quality of content and coming up with new
content for vocational training and skill development.
• Test Prep Products – Annual market is $1.7B with a Career development focus.
• Educational CD-ROMs – Current market size is $120M mostly in the K-12 space
but growing rapidly.
• Vocational Training – includes staff training and improvement of skills like
English Language Improvement. Current market size is $1.4B per year.
• Emerging Corporate & Retail e-Learning products – This is the fastest growing
avenue, to grow 10 times in 5 years
• Multimedia inside schools is a new wave
Source: CLSA Research Report(APAC
Markets), March 2008
© 2005 NIIT. All Rights Reserved.
The Challenges
• Adaptation of content needed to suit Indian & Chinese markets
• Strong Local players tapping the market
• Localization/Translation of content
• Prevalence of secondhand book usage
© 2005 NIIT. All Rights Reserved.
Thanks!!
© 2005 NIIT. All Rights Reserved.
Descargar

Market Size - Professional Scholarly Publishing