Market Overview

Based on the sales of relevant businesses, the language education business market—comprising 13 categories across three sectors—was estimated at 790.6 billion yen in fiscal year 2024 (FY2024), representing 100.2% of the previous fiscal year’s market size.

The language school business market, 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 English conversation classes for children declined.
Among the related businesses, the markets for language exams, overseas education arrangements, and English teacher dispatch services for kindergartens and nurseries surpassed their respective sizes in the previous year. However, the interpretation and translation services market declined compared to the previous fiscal year.

Noteworthy Topics

Emerge of New Services, i.e., English Coaching Services and AI-Powered English Conversation Apps

In the Language School and Online Class Sector, new services such as English coaching services and AI-powered English conversation apps have emerged.

The market for foreign language classes for adults is on the path to recovery, driven by a surge in inbound tourism and increased globalization, which has led to more Japanese people going abroad. This recovery comes despite challenging external factors such as the weaker yen and rising commodity prices. A key market driver is the English coaching service, 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 on TV, which has contributed to sales growth. However, there still appears to be room for further improvement in sales performance.

Future Outlook

The language education business market, which comprises thirteen categories, is expected to remain stable at 790.1 billion yen in FY2025, representing 99.9% of the previous fiscal year’s size.

Although uncertainty persists due to external factors such as the weaker yen and rising commodity prices, significant technological advancements—particularly in generative AI—are blurring the boundaries between markets, including those of language schools and textbooks. These increasingly overlapping markets are intensifying competition among businesses as they vie to attract customers.

Research Outline