Market Overview

Based on the sales of relevant businesses, the language learning market—comprising 13 categories across three sectors—was estimated at 790.6 billion yen in FY2024, representing 100.2% of the previous fiscal year’s market size.

The language class sector, which includes foreign language classes for adults, English conversation classes for children, and preschools, exceeded the size of the previous year. Specifically, the markets for foreign language classes for adults and preschools grew, while the market for English conversation classes for children declined.
Among the peripheral service sector, the markets for language exams, overseas educational arrangements, and English teacher dispatch services for kindergartens and daycare centers surpassed their respective sizes from the previous fiscal year. However, the interpretation and translation services market declined compared to the previous fiscal year.

Noteworthy Topics

The Emerge of English Coaching Services and AI-Powered English Conversation Apps

New services have emerged in the language class sector, including English coaching services and AI-powered English conversation apps.

Despite challenging conditions, such as a weaker yen and rising commodity prices, the market for foreign language classes for adults is recovering. The recovery is driven by a surge in inbound tourism and increased globalization, which is prompting more Japanese people to travel abroad. A key driver is English coaching services, in which a dedicated consultant provides personalized guidance and designs a curriculum tailored to each student’s proficiency level, helping them improve their English skills in a brief period.
In the online language learning market, major providers of online English conversation classes are struggling, while companies offering AI-powered English conversation apps are experiencing strong sales. These apps allow users to practice English conversation with AI partners to enhance their speaking skills. Since 2025, app providers have actively promoted their services through advertising, including TV commercials, which has contributed to sales growth. However, there appears to be room for further improvement in profitability.

Future Outlook

The language learning market, which comprises thirteen categories, is expected to flatten to 790.1 billion yen in FY2025, representing 99.9% of the size of the previous fiscal year.
Although uncertain factors persist, such as a weaker yen and rising commodity prices, significant technological advancements—particularly in generative AI—are blurring the boundaries between markets, including the areas of language schools and textbooks. The increasingly overlapping nature of markets are intensifying competition among businesses as they vie to attract customers.

Research Outline