Market Overview

The total educational service market for FY2022 (total 15 major categories) by the sales at businesses declined by 0.3% from the previous fiscal year to 2,849,970 million yen.

The market had shrunk during FY2020, as various classes and schools had been strictly restricted, being asked to close and even to refrain from student recruitment activities. For FY2021, the entire market recovered, due to availability of business continuity on the condition of taking COVID-19 infection prevention measures, system establishment for providing services by combining face-to-face and online classes, and continuous favorable demand for educational services which had expanded amid the corona crisis. However, ten of fifteen service categories showed negative growth for FY2022 due to demand changes after the lift of behavior regulations that had been imposed during the corona crisis, which led the market to shrink once again, . Decline of the correspondence education categories geared respectively to infants, students, and businesspersons particularly affected the entire market shrinkage. For FY2022, increase from the previous fiscal year was observed only for the following five categories: Cram schools and university preparatory schools, Schools for qualification acquisition, Physical activities and exercises for infants, Corporate business training services, and E-learning.

Noteworthy Topics

Demand Changing after Lift of Corona Behavior Restrictions in Progress

For FY2022 whilst lift of behavior deregulations from corona crisis reduced the demand for correspondence education and e-learning that are parts of rapidly expanded remote education, demand recurrence for face-to-face education was underway. The tendency is reflected especially in considerable 10.0% decline in correspondence education for businesspersons, partly because of increased consumption for outing, entertainment, and amusement.

The category of cram schools and university preparatory schools that occupies the largest market size among 15 categories showed a slight rise by 0.1% from the preceding fiscal year but returning of events and club activities at schools (normalization of school activities) and smaller concerns or sense of crisis for delayed learning and declined academic performance reduced the opportunities and eagerness for attending cram schools or university preparatory schools.

Future Outlook

The total educational service market for FY2023 (total 15 major categories) by the sales at businesses is projected to rise by 0.5% from the previous fiscal year to 2,863,270 million yen.

As this fiscal year observes a change in the classification of COVID-19 to class 5 under the Infectious Diseases Control Law, which makes the economic activities in the society to back to normal, the market is likely to see mixed statuses of increase and decrease in the fifteen categories. Of fifteen educational services, seven categories (Schools for qualification acquisition, Qualification and certification examinations, Language schools and classes, Entrance exam preparatory schools for infants, Physical activities and exercises for infants, Corporate business training services, and E-learning) are likely to grow, which can expect increase in the entire educational service market.

Research Outline