The education system in the Kingdom is as per the Education Policy Document, which was issued by the Saudi Council of Ministers in 1969. Several organizations of the government also function together to regulate and enforce the laws pertaining to the education system in the country. The three major organizations that oversee the operations of education industry players in Saudi Arabia are the Ministry of Education, the Ministry of Higher Education, and the Technical and Vocational Training Corporation (TVTC).
Education industry in Saudi Arabia witnessed a continuous increase to USD ~ million during 2016 from USD ~ million during 2011, registering a CAGR of ~ between 2011 and 2016.
The growing concern for quality education by the education sector in the Kingdom encouraged the government to allocate USD ~ billion for education and training during its 2016 budget. This led to the expansion of the existing players and the entrance of new players to cater the growing number of students, thereby adding to the revenues of the industry during the review period.
The revenues were also affected in a positive manner due to the rising expenditure of the government on technical and vocational training by ~ to USD ~ billion between 2010 and 2014. The growing need to reduce unemployment rate resulted in more number of teachers and students getting enrolled to vocational institutes, thereby driving the overall industry revenues.
How has Saudi Arabia K-12 Education Industry Performed?
Market Size: The Ministry of Education played a significant role in augmenting the industry revenues during the review period by providing students an access to international curriculum along with laying emphasis on traditional subjects. The initiative exposed students to new areas of learning, thus helping K-12 schools to witness an increase in enrollments. K-12 education industry in the Kingdom of Saudi Arabia increased to USD ~ million during 2016 from USD ~ million during 2011, registering a CAGR of ~ between 2011 and 2016.
Saudi Arabia Vocational and Technical Training Industry Size on the basis of Revenues in USD Million and Growth Rate in Percentage, 2011-2016
Market Segmentation: Maximum teachers that were enrolled to various training institutes in the Kingdom were Saudi Nationals. Teachers were given training in various fields other than the traditional Arabic language. Both technical and non-technical courses were offered to Saudi teachers which can equip them with better knowledge that is to be provided to the students. Training institutes were the most preferred for various courses to be taken up by the teachers during 2015. The percentage of teachers enrolling to private education and training centers constituted a dominant share of ~ in the overall enrollments to various training institutes of the Kingdom in 2015.
The enrollments to training institutes constituted a dominant share of ~ in the overall enrollments to various vocational and technical centers operating in the country during 2015. Male students accounted for ~ share in the total enrollments to various training institutes during 2015. The existence of more number of courses offered by the highly qualified academicians in both Arabic and English language made the students enroll themselves to training centers owned by private entities. With a dominant share of ~ during 2015, private training institutes witnessed the maximum number of enrollments.
Future Outlook: The revenues generated by vocational and technical training institutes in Saudi Arabia are projected to augment to USD ~ million by 2021 from USD ~ million during 2016, registering a CAGR of ~ during the period 2016-2021.
How has Saudi Arabia E-Learning Industry Performed?
Market Size: E-learning industry in Saudi Arabia increased to USD ~ million during 2016 from USD ~ million during 2011, registering a CAGR of ~ between 2011 and 2016. The shift of people towards better quality education was among the major reasons for the growth of e-learning industry in the Kingdom. More number of students and professionals were exposed to the use of internet for education and training purposes through the implementation of e-learning systems in various schools, universities, corporations and governmental bodies.
Saudi Arabia E-Learning Industry Size on the basis of Revenues in USD Million and Growth Rate in Percentage, 2011-2016
Market Segmentation: The increasing numbers of K-12 schools in the Kingdom of Saudi Arabia were the major end users of e-learning technology during 2016. Adoption of e-learning in higher education colleges contributed ~ to the overall industry revenues in 2016. The increased demand for e-learning systems by corporate & government bodies added a share of ~ to the overall e-learning industry revenues in Saudi Arabia during 2016.
Content services contributed a dominant share of ~ to the overall revenues generated by e-learning industry in the Kingdom during 2016. Content services were majorly demanded by the users in educational sector, wherein improvised and advanced instructional content was offered to uplift the public sector education in the country.
Technology services, which typically include learning management systems (LMS), smart classes, and smart authoring tools, constituted ~ in the overall revenues generated by the players operating in e-learning industry in Saudi Arabia.
Future Outlook: The revenues generated by E-learning industry in Saudi Arabia are projected to augment to USD ~ million by 2021 from USD ~ million during 2016, registering a CAGR of ~ during the period 2016-2021. One of the major reasons which are expected to drive the industry in a positive manner is the continuous entrance of global e-learning market players in the space. Rising awareness about the distance learning programs of various international universities through online based technology is projected to drive the e-learning industry over long term.
Ankur Gupta, Head Marketing & Communications
ankur [@] kenresearch.com