The education market is rapidly growing worldwide. In fact, “Total revenue is expected to show an annual growth rate of 9.11%, resulting in a projected market volume of US$11.83bn by 2029” (Statista). A few key factors driving this growth include:
- Parental Demand for Supplemental Education – This includes tutoring, various enrichment programs, specialized learning, and more. According to WifiTalents, “Over 80% of parents believe that one-on-one tutoring is more effective than traditional classroom teaching.”
- Technology and E-learning – The COVID-19 pandemic quickly accelerated the adoption of technology and e-learning opportunities. Regarding online tutoring platforms, there was a “300% increase in demand reported in 2020” (WifiTalents).
- Skill Development Needs – There is also a need for vocational training and skill development in fields such as IT, healthcare, and engineering.
This growth in the education market has led to more franchises focusing on education. Popular segments within the education franchise industry include:
- K-12 Tutoring Services
- STEM and Coding Programs
- Early Childhood Education
- Test Preparation Services
- Vocational and Skill-Based Training
5 Key Trends in the Education Franchise Industry
#1 – Rise of Online & Hybrid Learning
Revenue in the online education market is expected to increase annually by “8.56%, resulting in a projected market volume of US$279.30bn by 2029” (Statista).
The growth in the online education market has naturally reduced geographic barriers to education. Not only are education opportunities more accessible, but franchisees are also able to scale their businesses more easily by reaching a broader audience.
#2 – STEM & Coding Education Demand
CodeWizardsHQ reports that “STEM jobs are projected to grow 10.8% between 2022 and 2032, almost 4x faster than non-STEM jobs.”
There is an urgent need for a more tech-savvy workforce in the United States, which is fueling the growth in STEM education franchises. These businesses are able to fill the gap by offering extracurricular programs that aren’t covered in traditional school curriculums.
#3 – Personalized Learning Solutions
The “one-size-fits-all” approach to education is becoming outdated as popular education philosophies seek to cater to students’ unique needs. Education franchises are taking advantage of this shift by leveraging data, adaptive technology, and individualized learning plans. A couple of helpful tools used for the personalized learning approach include:
- Adaptive Learning Tools – These are proprietary systems that create customized learning paths while assessing the student’s progress.
- AI and Data-Driven Insights – Franchises also use AI and machine learning tools to analyze student performance and provide targeted interventions.
#4 – Early Childhood Education Boom
“The global demand for Early Childhood Education Market is presumed to reach the market size of nearly USD 630.45 Billion by 2032 from USD 294.38 Billion in 2023.” (Value Market Research)
The rising demand for quality early childhood education stems from various factors including:
- Parental Prioritization – The need for early childhood education options is increasing as parents recognize the value of structured programs that promote early literacy, numeracy, language skills, and social-emotional growth.
- Increased Government Support – There are various government-sponsored initiatives and funding focused on making early learning accessible to a broader range of families.
#5 – Franchise Models Focused on Skill Development
Not only is there a growing interest in skill-based education that prepares individuals for specific careers, but there’s also a demand for training that allows individuals to upskill or pivot careers. As a result, there are various franchise opportunities that provide vocational training and skill certification. Some examples of the services this type of franchise might offer include:
- IT training and certification programs
- Career and business coaching
- Healthcare certifications (CNA preparation, home care assistance, etc.)
- Courses in coding, robotics, and digital literacy
- CPR and first aid certification programs
- Test preparation and language certification courses
- Personal training certification
- And more
Looking to Buy an Education Franchise?
Are you thinking about buying a franchise? With the significant growth in the education market, you might want to consider investing in an education franchise. At FranNet, our expert franchise consultants are here to help you evaluate your options and find the perfect franchise opportunity. We’ll guide you through the process from start to finish. Schedule your free consultation today!