Revitalizing Education：Opportunities in dynamics

The Report

“Revitalizing Education: Opportunities in dynamics” was compiled jointly by Deloitte Education Industry and Deloitte Research. With the increasingly maturity of global artificial intelligence(AI) technology and the long-term development goal of educational informatization in China, AI technology has been gradually applied in the field of education. In this context, a new education system is taking shape. Policy, capital, technology and consumption will work together to drive the development of AI + education in China, and promote China's education towards the era of intelligence. The following is the key points summarized in the report:

Viewpoints / key findings

I. Education sector guided by policies and regulations

• The adjustment of China's education policy will deeply influence the subdivisions of preschool education, K12 education and vocational education. Educational enterprises will face more challenges and development opportunities in the changing market,
• Driven by favourable policies and increasingly mature technologies, AI + education, education companies are expected to continue to increase their tech investments and obtain dividends therefrom.

II. The education sector in capital markets

• Special training has been one of key market segments for investment and financing in recent years. Among them, language, quality and vocational education are key investment areas for VC/PEs. On the other hand, the current global economic downturn, education policies and other factors may lead to a reduced number of IPOs in the short term.
  

III. Increasing activity in AI+education

• AI + education is flourishing worldwide, different factors including policy, capital, technology and consumption are driving the development of AI + education.
• Globally, AI + education is becoming a hot investment target. With active application of the technology in recent years and distinct market advantages, as well as frequent investment activity, China is developing rapidly into one of the most popular markets for AI + education investment. Among which, AI + education companies in tier-1 provinces/cities attract the most investment; K12 is the most attractive segment for AI + education investors.
• Globally, an increasing number of companies are stepping into adaptive education, and AI-based education is potentially a lucrative business. However, China is still at the initial stage in the application of adaptive learning technology. Domestic AI + education still requires common efforts across different dimensions including the traditional education sector, policy and technology.
• With the rapid development of AI + education in China, the roles and responsibilities of participants in the education ecosystem are changing. In addition to early players, technology start-ups are investing more in AI + education.

IV. A new era for vocational education

• Driven by demand for talent, industry iteration and policy incentives, vocational education will evolve in scale and models and play an increasingly important role in China’s education system.
• As China’s economy has entered a new normal, the pace of industry upgrading and economic structure adjustment has accelerated, boosting demand for technical talent and making vocational education more important. In particular, demands for talented graduates from emerging and specialized majors have promoted the fast development of school-company cooperation and higher vocational schools.
• Traditional non-academic training will remain in rigid demand, with a focus on online-offline integration to help students improve the effectiveness and efficiency of their studies. Meanwhile, with more frequent job hopping, longer working lives, upgraded industrial structures and booming entrepreneurship, ”recruitment + vocational education” and “entrepreneurship and innovation + vocational education” are emerging trends in non-academic training: