Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
Table of Contents
Ambient Insight’s Organizational Enterprise Licensing Model .......... 2
Table of Contents ................................................................ 3
List of Tables ...................................................................... 5
List of Figures ..................................................................... 6
Abstract ............................................................................. 7
The Primary Catalysts Driving the Digital English Learning Market in North
America ..................................................................................... 7
Consumer Demand for Mobile Digital English Language Learning
Products ................................................................................. 8
Government Spending on ESL Programs ..................................... 9
Large-scale Digitization Initiatives in the Academic Segments ...... 11
High Demand for English for Specific Purposes (ESP) .................. 13
Spending on Academic English by Foreign Students .................... 15
What You Will Find in This Report ............................................... 17
Who are the Buyers? .............................................................. 18
What Are They Buying? ........................................................... 19
Sources of Data on the North America Digital English Language Learning
Market .................................................................................. 21
Related Research ................................................................... 23
2015-2020 North America Demand-Side Analysis ......................... 24
Digital English Language Learning Revenue Forecasts for North America
by Six Buying Segments (US and Canada Combined).................. 24
The United States (US) ........................................................... 25
US Consumers ..................................................................... 27
The US Consumer ESL Demographic Breakout .................................28
US Consumer Expenditures on Four Other Digital Languages .............29
US Corporations .................................................................. 30
US PreK-12 ......................................................................... 32
US Higher Education ............................................................ 36
US Federal Government ........................................................ 40
US State and Local Governments ........................................... 43
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
Canada ................................................................................. 45
Canada Consumers .............................................................. 47
Canada Corporations ............................................................ 48
Canada PreK-12................................................................... 49
Canada Higher Education ...................................................... 53
Canada Federal Government ................................................. 55
Canada Provincial and Local Governments .............................. 57
Supply-side Analysis for Four Product Types in North America: All
Countries Combined .................................................................. 59
US Supply-side Analysis .......................................................... 62
Canada Supply-side Analysis ................................................... 64
Index of Suppliers ............................................................. 66
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
List of Tables
Table 1 - 2015-2020 North America Digital English Language
Learning Revenue Forecasts for the US and Canada (in US $
Millions) .................................................................................... 24
Table 2 - 2015-2020 US Digital English Language Learning
Revenue Forecasts for North America – US and Canada
Combined (in US$ Millions) .......................................................... 25
Table 3 - 2015-2020 US Digital English Language Learning
Revenue Forecasts for the US (in US$ Millions) .............................. 25
Table 4 - 2015-2020 US Revenue Forecast for Digital English
Language Learning by Six Buyer Segments (in US$ Millions) ........... 26
Table 5 - 2015-2020 US Consumer Revenue Forecasts for
Digital Language Learning Content (in US$ Millions) ....................... 27
Table 6 - 2015-2020 US Revenue Forecasts for Digital Language
Learning in the Corporate Segment (in US$ Millions) ...................... 30
Table 7 - 2015-2020 US Revenue Forecasts for Digital Language
Learning in the PreK-12 Segment (in US$ Millions) ......................... 32
Table 8 - 2015-2020 US Revenue Forecasts for Digital Language
Learning in the Higher Education Segment (in US$ Millions) ............ 36
Table 9 - 2015-2020 US Revenue Forecasts for Digital Language
Learning in the Federal Government Segment (in US$ Millions)........ 41
Table 10 - 2015-2020 US Revenue Forecasts for Digital
Language Learning in the State and Local Government
Segments (in US$ Millions) .......................................................... 43
Table 11 - 2015-2020 Canada Digital English Language
Learning Revenue Forecasts for the US (in US$ Millions) ................. 45
Table 12 - 2015-2020 Canada Revenue Forecast for Digital
English Language Learning by Six Buyer Segments (in US$
Millions) .................................................................................... 46
Table 13 - 2015-2020 Canada Consumer Revenue Forecasts for
Digital Language Learning Content (in US$ Millions) ....................... 47
Table 14 - 2015-2020 Canada Corporate Revenue Forecasts for
Digital Language Learning Content (in US$ Millions) ....................... 48
Table 15 - 2015-2020 Canada PreK-12 Revenue Forecasts for
Digital Language Learning Content (in US$ Millions) ....................... 50
Table 16 - 2015-2020 Canada Higher Education Revenue
Forecasts for Digital Language Learning Content (in US$
Millions) .................................................................................... 53
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
Table 17 - 2015-2020 Canada Federal Government Revenue
Forecasts for Digital Language Learning Content (in US$
Millions) .................................................................................... 56
Table 18 - 2015-2020 Canada Provincial and State Government
Revenue Forecasts for Digital Language Learning Content (in
US$ Millions) ............................................................................. 57
Table 19 - 2015-2020 North America Digital English Language
Learning Revenue Forecasts for the US and Canada Combined
(in US $ Millions)........................................................................ 59
Table 20 - 2015-2020 North America Revenue Forecasts for
Digital English Language Learning by Four Product Types (in
US$ Millions) ............................................................................. 60
Table 21 - 2015-2020 US Revenue Forecasts for Digital English
Language Learning by Five Product Types (in US$ Millions) ............. 63
Table 22 - 2015-2020 Canada Revenue Forecasts for Digital
English Language Learning by Five Product Types (in US$
Millions) .................................................................................... 65
List of Figures
Figure 1 – Primary Catalysts in the 2015-2020 Digital English
Language Learning Market in North America .................................... 8
Figure 2 - 2015-2020 Digital English Language Learning Fiveyear Growth Rates in North America by Six Buyer Segments ........... 18
Figure 3 - 2015-2020 Digital English Language Learning Fiveyear Growth Rates in North America by Four Product Types ............. 20
Figure 4 – 2015-2020 United States Revenue Forecast for
Digital English Language Learning Products by Six Buyer
Segments (in US$ Millions) .......................................................... 26
Figure 5 - 2015-2020 Digital English Language Learning Fiveyear Growth Rates in North America by Four Product Types. ............ 61
Figure 6 - 2015-2020 Digital English Language Learning Fiveyear Growth Rates in the US by Four Product Types ....................... 63
Figure 7 - 2015-2020 Digital English Language Learning Fiveyear Growth Rates in Canada by Four Product Types ...................... 65
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
Abstract
The five-year compound annual growth rate (CAGR) for digital English
language learning products in North America is 8.6%. Revenues will reach
$637.6 million in 2020, up from $421.6 million in 2015.
Over 120 suppliers
operating in Canada
and the US are
cited in this report
to help international
suppliers identify
local partners,
distributors, and
resellers.
This report provides forecasts for Canada and the United States (US). The
growth rate in Canada is 10.9% and the growth rate in the US is 8.4%.
Revenues are heavily concentrated in the US. The US was the secondlargest buying country for digital English language learning
products in the world in 2015, second only to China.
Revenue growth in Canada and the US will slow in the latter part of the
forecast period, due mostly to lower price points for mobile English
language learning apps, the fastest growing digital English language
learning product type in North America.
While the Canadian and US markets have similarities, there are significant
differences in demographics and buying behaviors for digital English
language learning products in the buying segments.
Both Canada and the US have large foreign-born populations. Yet the
demographics of the ESL learners are different in each country. The ESL
community in the US is comprised of mostly native Spanish speakers. The
ESL community in Canada is comprised primarily of people who speak
Tagalog (Filipino), Chinese, and Hindi.
Forecasts for digital English language learning products are broken out by
six buying segments in both Canada and the US: consumers, PreK-12
systems, higher education institutions, federal government agencies, and
municipal/state/provincial government agencies.
In the US, consumers are the top buyers followed by PreK-12 buyers. In
Canada, government agencies are the top buyers, followed by PreK-12
buyers.
The Primary Catalysts Driving the Digital
English Learning Market in North America
The five major catalysts driving the digital English language learning
market in North America are:





Strong consumer demand for mobile English language learning apps
Government spending on English as a Second Language (ESL)
programs
Digitization initiatives in the school systems (some on massive
scales) including the digitization of ESL content
Demand for English for Specific Purposes (e.g., academic, aviation,
hospitality, medical, and business English)
Spending on academic English by foreign students enrolled in North
American higher education institutions
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
Combined, these catalysts are driving the demand for digital English across
the North America. The degree to which they impact the markets in either
country is different and a detailed analysis of those differences are
provided in this report.
Figure 1 – Primary Catalysts in the 2015-2020 Digital English Language
Learning Market in North America
Perhaps the top catalyst for digital English language learning sales in the
region is the near ubiquitous demand from consumers. Consumers in North
America are primarily buying mobile-based English language learning
products and there is a degree of product substitution as consumers opt for
mobile products over legacy learning technology types.
English language
learning apps
consistently rank in
the top ten bestselling paid Mobile
Learning apps in all
of the commercial
app stores in North
America.
Consumer Demand for Mobile Digital English Language
Learning Products
Consumers buy a large amount of mobile language learning apps and
edugames in the region. Consumers across the region "prefer" mobile
language apps over PC-based products.
US consumers are avid buyers of mobile educational apps and edugames.
Brain trainers, early childhood learning apps, and language learning apps
dominate the commercial app stores. As of April 2016 in the US:

The top selling educational app in the Apple store in the US was Age
of Learning's ABCmouse, an app with language learning content for
very young children. There were four other language-related apps in
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
the top ten best-selling education apps and all of them were for
young children.

There were four language learning apps in the top ten in the Google
App Store and all of them were for English.

There were four language learning apps in the top ten best-selling
educational apps in the Amazon store and all of them were English
apps for young children.

There were six language learning apps in the top ten best-selling
educational apps in the Windows store in the US and four of them
were for English.
LeapFrog (acquired by Hong Kong-based VTech in January 2016) is a major
supplier of English language learning content for young children in the US.
LeapFrog's US app store sells dozens of English language learning apps for
the LeapPad tablet for young children including the popular Little Pim series
designed for children under six. "Your child will love following along with
Little Pim, the adorable cartoon panda bear who serves as the teacher.
Together with Little Pim, your child can learn 360 words and phrases,
providing the essential building blocks for language learning."
LeapFrog's
Canadian app store
sells a range of
digital English
language apps for
their LeapPad
children's tablet.
Most of the mobile educational content purchased by Canadian consumers
is mobile edugames designed for young children. Parents who have
immigrated to Canada buy the products to prepare the children for the
Canadian school system. The parents also buy supplemental English for
their older children.
Canadian consumers buy mobile language learning apps, although English
is just one of the languages that they buy. As of May 2016 in Canada:

There were five language learning apps in the top ten best-selling
educational apps in the Apple store: three for English and one each
for Danish and German.

In the Google App Store, there were six language apps in the top
ten: four for English and one each for Spanish and French.
There were only three language apps in the top ten best-selling educational
apps in the Windows store in Canada in May 2016: two for English and one
for French. There was also a multi-language translation app in the top ten.
Government Spending on ESL Programs
The US federal government spends over $565 million a year on adult
English language learning. It funds the Adult Education State Grant
Program administered by the individual states. The program reaches 1.1
million English language learners a year, mostly through classroom
instruction.
The federal government subsidizes digital classes. The US Department of
Education's Office of Vocational and Adult Education (OVAE) offers free
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
digital English language learning to immigrants on the USA Learns portal
(funded by the DoE and operated by The Sacramento County Office of
Education) and free digital courses for ESL teachers on the EL/Civics Digital
portal. While the online courses are free, USA Learns has four mobile
English language learning apps that they sell for 99 cents each the Apple
and Google app stores.
The Voice of
America (VOA) hires
suppliers to produce
a wide range of
English language
learning content
including the online
portal VOA Learning
English, which
includes videobased courses,
audio-based
lessons, and
interactive courses.
In March 2013, the US Department of Education (DoE) announced funding
for a series of mobile digital English language learning apps based on the
popular cartoon character Pocoyo. The funding is part of the DoE's Ready
to Learn initiative. The apps were created by the Hispanic Information and
Telecommunications Network (a Spanish-language educational media
company) and Zinkia Entertainment, the Spanish media company that
created Pocoyo. The apps are "preparing low-income, Spanish-speaking
three- and four-year-olds for school."
US schools spent over $440 million on English language learning (ELL)
instructional content in 2015 and only 14.3% was spent on digital
products, indicating that there are significant revenues for digital English
language learning suppliers. The majority of the content purchased was for
young children in the first three grades.
The US Department of Education (DoE) estimates that there are 5.5 million
PreK-12 students classified as English language learners (ELLs), which is
10% of the total enrollment. According to the National Center for Education
Statistics (NCES), over 45,000 of the 93,600 public schools in the US have
English language learner enrollments, a number that has doubled since
2004. According to the NCES, the three states with the highest percentage
of ELLs are Nevada, California, and New Mexico at 31%, 24%, and 19%,
respectively.
There are 5.1 million primary and secondary students in the Canadian
PreK-12 system. The provinces are responsible for public education and
provide most of the funding for the schools in their province. However,
local school districts are autonomous; they set the curriculum and make
the buying decisions.
Due to a range of socio-economic conditions in Canada, education funding
for instructional content has been declining. For example, The Ontario
Ministry of Education has cut funding for learning resources and textbooks
by 15% since 2000.
While the Canadian federal government pays for English or French
language training for the adult immigrants, the schools teach the children.
Additionally, there is a demand for English language learning in schools in
the French speaking provinces and in remote First Nation areas.
All children enrolled in French public schools in the predominately Frenchspeaking province of Québec are introduced to English language learning
starting in the first grade and English language learning is compulsory
through high school.
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
The use of digital PreK-12 content is concentrated in four provinces: British
Columbia, Alberta, Québec, and Ontario. They also happen to have the
highest concentration of English language learners. According to Statistics
Canada, "The vast majority of the foreign-born population live in four
provinces: Ontario, British Columbia, Québec, and Alberta, and most live in
the nation's largest urban centres."
In Ontario, the average percentage of English language learners is 9% in
elementary schools and 24% in secondary schools. More than half of
Ontario’s primary schools (60%) and secondary schools (54%) have
English language learning students. In Toronto, the percentage is 85% in
elementary schools.
Vancouver, British Columbia accounts for the second-highest immigrant
population in Canada after Toronto, Ontario. The province has a program
called the English Language Services for Adults Network, which has a portal
that includes a directory of hundreds of ESL resources.
Alberta is a pioneer in academic online learning. In the 2014-2015 school
year, Alberta had over 80,000 students enrolled in online classes via the
province's Alberta Distance Learning Centre (ADLC). The ADLC licenses the
ESL software from US-based Imagine Learning.
In March 2013, during a round of budget cuts, Alberta reduced their ESL
instruction from 7 years to 5 years. Children past the fifth grade no longer
get formal ESL instruction in the schools. There were over 52,000 English
language learners in Alberta by the end of 2015.
In June 2013, the province of Alberta announced that they would have all
the textbooks and instructional content used in the province digitized by
March 2014.
According to Project
Tomorrow,
approximately 27%
of middle school
students and 35%
of high school
students use digital
textbooks in the US.
Large-scale Digitization Initiatives in the Academic
Segments
Large-scale digitization of educational content is now underway across
North America. Government agencies are spending a substantial amount of
money annually on digital content, live online tutoring, and custom content
services. The conversion of the print-based English language learning
content is part of this digitization wave.
It should be noted that academic digitization efforts in governmentoperated school systems are essentially policy decisions, which can literally
change overnight. A good example is the infamously botched iPad rollout in
the Los Angeles Unified School District. The district began distributing iPads
to students in 2013 and planned to spend $1.3 billion to equip every
student in the district with a tablet. In August 2015, the district canceled
its contract with Apple, essentially sidelining what would have been one of
the largest digitization initiatives in the world.
As schools in North America migrate to digital content, a massive amount
of commercial, open source, and indigenous print-based English language
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
learning content is being ported to interactive digital formats. Large-scale
national deployments of tablets in the academic segments began in the
developed economies in North America several years ago and more
recently in developing economies. PC and tablet deployments are integral
components of digitization initiatives.
The infrastructure is the foundation for learning technology tools,
platforms, personal learning devices, and digital content. The high demand
for the integration of these learning technology products into the
infrastructures represents a significant revenue opportunity for services
suppliers.
English is the top
language taught to
young children in
US schools. This is
a matter of
necessity due to
the influx of nonEnglish speaking
children into the
US.
In December 2015, the US National Center for Education Statistics (NCES)
reported that "To gain a better understanding of the role virtual schools
play in public elementary and secondary education, NCES added a flag
identifying these schools to its Common Core of Data (CCD). Twenty-eight
states and the District of Columbia reported having one or more virtual
schools for a total of 478 virtual schools in the U.S. in 2013–14. Florida
reported the most of any state with a total of 182."
The CCD distinguishes several types of local education agencies, defined by
their level of governance. Almost all virtual schools are administered by
regular, local school districts (350 schools). Most other virtual schools are
administered by independent charter school districts (116 schools), which
are districts composed exclusively of charter schools.
The two states with the largest number of students in virtual schools were
Ohio (38,169) and Pennsylvania (36,596). Idaho had the largest
percentage of students in virtual schools (2.4%), followed by Ohio (2.2%),
and Pennsylvania (2.1%).
There are dozens of companies that supply digital English language
learning to the schools. In the US education system, ESL content is defined
as supplemental curricula and different from language arts and literacy.

Reading Horizons sells ESL software primarily to the PreK-12
schools for children 4-12, but they also sell an ESL package for
homeschooled children for $239. Reading Horizons claims to have
ESL software in over 10,000 schools in the US.

In February 2012, McGraw-Hill announced a partnership with
Cambridge University Press in which Cambridge University Press will
be the exclusive distributor of McGraw-Hill's 150 digital ESL titles in
the US.

Renaissance Learning is a major supplemental educational supplier
in the US PreK-12 segment and reaches over 20 million students.
They have six ESL packages that they sell to the schools. In
February 2014, Google Capital invested $40 million in the company.

In September 2015, Cambium Learning report that revenues for
their ELL product Learning A-Z reached $13.7 million in the third
quarter, a 24% increase from the year before.
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
There are also smaller suppliers that specialize in ESL software including
Edmentum, Hatch, Exceller Software, BrainPOP, and Merit Software, that
sell institutional licenses for their ESL products to US academic buyers.
McGraw-Hill reported in January 2016 that, "California adopted math
materials in 2013, with purchases spread over 2014 and 2015, and is
scheduled to purchase English language arts materials in the beginning of
2016."
Since its creation in 1993, the Computers for Schools Program in Canada
has refurbished and donated over 1.4 million computers to schools and
not-for-profit learning organizations across Canada. The government
agency Industry Canada "leads this program for the federal government,
working with provincial and territorial governments, not-for profit
organizations as well as the private and volunteer sectors."
In June 2913, Alberta announced the closure of Alberta Education, which
stored print-based textbooks in a move to aggressively migrate to digital
content. "Moving forward, there will no longer be a need for the province to
have warehousing and shipping capacity for large quantities of K-12 print
resources."
Boeing-owned
Jeppesen has
offices in 50
countries and sells
online aviation
English courses.
They have six
offices in the US
and an office in
Montreal. Their
North American
headquarters is in
Denver.
All Alberta schools are connected to the national broadband SuperNet.
"Digital resources are accessible from anywhere, can include multimedia
and specialized software such as speech-to-text programs, can be
personalized for each student and can be updated often, unlike a
textbook." School districts decide what devices students may use and are
responsible for making sure students are equipped with the technology
they need to use the digital content.
High Demand for English for Specific Purposes (ESP)
The demand for English for Specific Purposes (ESP), also known as
vocational English, is also a catalyst for the North America digital English
language learning market. These products are purchased by corporate
buyers, government agencies, academic segments, and individuals.
Specialized vocational English types include aviation, nautical, business
(sometimes called workplace English), hospitality, finance, law, medical,
transportation, tourism, energy, information technology, and engineering
English.
Some suppliers offer highly-specialized forms of online English language
learning such as English for accounting, chemistry, architecture, human
resources, real estate, sales, and logistics. There is even a form of English
learning called automotive English.
There are dozens of global suppliers that specialize in online business
English active in North America including EF's Englishtown (rebranded as
English Live in November 2015), goFLUENT, inlingua, and GlobalEnglish
(owned by Pearson). The mainstream language learning brands like Berlitz,
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
Wall Street English (also owned by Pearson), and Rosetta Stone are active
in the North America market.

Rosetta Stone launched their Advanced English for Business in
February 2014. The courses include self-paced content, live tutors,
and mobile components and are offered for both American and
British English.

The Wall Street Journal launched their subscription-based business
English service called Newsmart in October 2015. Newsmart costs
$7.50 a month.

In December 2015, CNN launched their new CNN Learn English
service that includes legal and business English for $29 a month
each.
Both the US and Canada are member states of the International Civil
Aviation Organization (ICAO), which is a UN agency that works with "global
industry and aviation organizations to develop international Standards and
Recommended Practices (SARPs) which are then used by States when they
develop their legally-binding national civil aviation regulations."
ICAO's Aviation English Language Test Service (AELTS) is the world's
aviation English certification body and recognizes three tests: the RMIT
English Language Test for Aviation (for pilots), the Test of English
Language Level for Controllers and Pilots (TELLCAP), and the English
Language Proficiency for Aeronautical Communication (ELPAC).
Online aviation
English courses are
available all over
the world and
buyers in any given
country often
purchase courses
from suppliers
outside the country.
RMIT offers their test prep material in both print textbooks and online
courses. The TELLCAP and ELPAC are interesting exams that are delivered
by a live "examiner" and the exams are essentially conversation-based
assessments, which include ad hoc roleplay. The test taker must verbally
demonstrate English proficiency during a live interaction with the examiner.
These examinations are now often delivered via web conferencing
technology.
There are global suppliers of online aviation English. US-based DynEd is the
world market leader in online aviation English and has clients all over the
world.
Macmillan sells four packaged ICAO-compliant digital aviation English
language courses that are purchased by individuals and training companies
all over the world. Carnegie Speech was spun out by Carnegie Mellon
University and sells four subscription-based ICAO-compliant online courses
in a series called Climb Level 4.
One of the most well-known English for hospitality products in the US is
Hotel English Online developed by a Las Vegas company called Workplace
ESL and the Las Vegas PBS affiliate. The product is licensed by hotels in
North America for their ESL employees.
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
Academic English is the top selling English for Specific Purposes (ESP) type
and the demand is concentrated almost entirely in the higher education
segments in North America.
Spending on Academic English by Foreign Students
There is a very specialized form of English known as academic English (also
referred to as English for Academic Purposes, or AEP). Academic English is
intended not only to increase proficiency but also designed to teach the
cognitive skills required to be successful in English-speaking higher
education institutions. Academic English includes cognitive, linguistic, and
psychological components not found in conversational English.
Academic English is often contrasted with so-called "social" or
conversational English and is a highly-complex form of English required to
perform well in an English-speaking academic context across all the subject
areas encountered in higher education.
Macmillan sells digital Academic English courses and maintains that
"Students of English for Academic Purposes need to develop not only a high
level of linguistic competence, but also advanced academic skills."
According to the US
Department of
Commerce,
spending by foreign
students
contributed "more
than $30 billion to
the US economy in
2014."
According to the Open Doors report by the Institute of International
Education that was released in November 2015, "the number of
international students at U.S. colleges and universities had the highest rate
of growth in 35 years, increasing by ten percent to a record high of
974,926 students in the 2014/15 academic year." Chinese students
account for over 300,000 of the total.
The report identified the universities with the largest foreign student
enrollment. "Eight institutions hosted more than 10,000 international
students: New York University, University of Southern California, Columbia
University, Arizona State University, University of Illinois – UrbanaChampaign, Northeastern University, Purdue University – West Lafayette
and University of California – Los Angeles."
Academic English is relatively complex to develop and it is cheaper for the
institutions to buy commercial products rather than develop their own
material.

Macmillan sells six cloud-based academic courses for both American
and British English as well as test prep courses for the IELTS.

In September 2015, Berlitz's ELS Educational Services licensed the
digital English language learning content from US-based English
Central. ELS provides academic English classes at thirty-three
locations in the US.

Oxford University Press' Oxford Learner's Dictionary of Academic
English includes an interactive "tutor" called the Oxford Academic
iWriter. Germany-based Paragon Software developed a mobile
versions of the products that were released in late 2014 with limited
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
free access. The commercial mobile products costs $29.99,
relatively high for a Mobile Learning app.

Cambridge University Press' sells three digital products under their
Cambridge Academic English brand. "Designed specifically for
students at university and in foundation courses, this integrated
skills course develops language and real academic skills essential for
successful university studies across disciplines." The product is
available in print, digital audio, or DVD formats.

In July 25, 2013, Kaplan International Centers announced a
licensing deal with Carnegie Speech to use their "online
NativeAccent program in 23 of Kaplan’s English-language schools in
North America."
Ed2Go is a division of Cengage Learning and offers live online academic
English classes taught by teachers from local community colleges. The
average cost of a class that runs six weeks is $99, which is very low for this
type of product. "We've served more than one million students, making the
Ed2Go network the world's single largest provider of online learning
opportunities. These high volumes help us keep our prices well below
industry standards."
eCampusAlberta is
a consortium of 19
Alberta postsecondary
institutions and
offers over 900
online courses and
70 programs. The
only ESL course
offered is an online
ESL for Nursing
course.
The University of Arizona's Center for English as a Second Language (CESL)
offers live online tutoring provided by Cengage Learning's Ed2Go division
and via self-paced courses from EnglishCentral. They charge $350 for 30
hours of online English and $590 for 50 hours of instruction (plus
application and technology fees).
The UCLA Extension offers online academic English classes for up to $525
for a course that runs for six weeks. The English Language Institute (ELI)
at Florida International University (FIU) in Miami, Florida sells their tenweek online academic class for $550.
The majority of US-based EnglishCentral's consumers and academic buyers
come from outside North America, but they do compete in North America.
EnglishCentral has several US higher education institutions licensing their
platform.
The most common form of English for Special Purposes (ESP) offered by
Canadian higher education institutions to enrolled students is academic
English. For example, the University of British Columbia offers their selfpaced academic English courses for free, but charges $280 for their online
instructor-led academic English courses.
The Canadian College of Online Training (CCOT) for Professional Studies in
Toronto, Ontario provides "high quality online distance education English
language certificate courses to national and international students in areas
including academic English, TOEFL exam preparation, and business
English." They issue certificates to students that successfully complete the
programs.
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
Canadian Virtual University (CVU) is a consortium of thirteen of Canada's
leading universities specializing in online and distance education. CVU
offers a range of online academic English classes designed to prepare
foreigners and immigrants to enter Canadian colleges. They offer nine
online ESL courses from three providers.
CVU offers online test prep for the academic version of the International
English Language Testing System (IELTS). "The Academic Version is
intended for those who want to enroll in universities and other institutions
of higher education and for professionals such as medical doctors and
nurses who want to study or practice in an English-speaking country."
Over 30 colleges and universities across Canada offer Cengage's Ed2Go live
online collaboration-based course called Grammar for ESL "one of the
required courses in most college ESL programs to transfer to mainstream
English." The live online class costs $99.
ESL for Nursing is another common form of specialized English taught in
Canadian universities. The Canadian English Language Benchmark
Assessment for Nurses (CELBAN) is the exam that foreign nurses must
pass to obtain licensure in Canada. There are dozens of online sites that
offer commercial test prep content for the exam.
What You Will Find in This Report
All Canadian
revenues forecast in
this report are
expressed in US
Dollars as of the
currency exchange
rate in May 2016.
There are two sections in this report: a demand-side analysis and a supplyside analysis. In the demand-side analysis, five-year revenue forecasts are
broken out for two countries in the region: Canada and the US. In the
supply-side section, five-year forecasts are provided for the four primary
digital English learning technology types.
The demand-side analysis is broken out for both Canada and the US by six
buying segments: consumers, corporations & businesses, PreK-12 systems,
higher education institutions, federal government agencies, and
state/provincial/municipal government agencies.
This report does not include revenues for early childhood literacy products
designed for English speaking children. This report only includes revenues
for digital English as a Second Language (ESL) products, English for
Speakers of Other Languages (ESOL) products, specialized types of English
for non-English speaking people, and standardized English proficiency test
prep products.
This report does not include the revenues for online delivery of the
standardized English proficiency exams, because they are not instructional
products, per se. This report does not include products designed for English
teachers. For example, the Teaching English to Speakers of Other
Languages (TESOL) program is designed to provide instruction on how to
teach English, not how to learn it.
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Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
Who are the Buyers?
In general, the two major digital English language learning buyers in North
America are consumers and academic institutions. That said, the growth
rates are much higher in the government segments.
The digital English language learning market in the consumer segment is
now a mature market and pricing pressures are driving revenue growth
downward. Additionally, consumers are opting for mobile products that
have much lower price points than legacy products.
PreK-12 buying is heavily concentrated in products designed for young
children. Both Canada and the US have large populations of immigrant
children that speak a range of native languages and digital English
language learning products are effective at providing personalized and
adaptive learning to the children.
Figure 2 - 2015-2020 Digital English Language Learning Five-year Growth
Rates in North America by Six Buyer Segments
Most higher education institutions in North America use digital language
learning labs. They are particularly interested in academic English, business
English, and hospitality English content for the labs. They tend to develop
their own online courses with the exception of language learning courses,
which they usually license from commercial suppliers.
The federal governments in Canada and the US are major buyers of ESL
products and the growth rate for both countries combined for that segment
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18
Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
is 21.1%. The state and provincial governments are not far behind at
17.4%.
Private language schools and for-profit academic institutions are strong
buyers of third-party commercial digital English language learning
products. North America has a thriving private language school industry.
Kaplan International has 23 English language learning schools in North
America including two in Canada. They developed their own content and
delivery platform, but they do license third-party products for use in the
language learning labs.
What Are They Buying?
The current digital English language learning revenues in North America are
concentrated in four learning technology product types:




There is a degree of
product substitution
underway with
buyers opting for
mobile products
over the other
product types. This
is particularly acute
in the consumer
segment
Retail packaged Self-paced eLearning (off-the-shelf courseware)
Collaboration-based Learning (live online classes and live online
tutoring)
Digital Reference-ware (eTextbooks, ePhrasebooks, audio books,
digital videos, test prep, and digital translation dictionaries)
Mobile Learning apps and edugames
The supply side section provides revenue forecasts for each of these
products for Canada and the US. It is interesting that there are no
commercial Mobile Learning VAS products on the market in either Canada
or the US. North America is the only region in the world without operational
Mobile Learning VAS products.
This report only includes revenues for digital English language
learning content and does not provide revenues for custom development
services or language learning lab hardware. There are simulation and
game-based products on the market, but simulation-based products tend
to be expensive and the game-based products in the region are now mostly
mobile.
Self-paced English courses have a growth rate of 6.1% in North America.
The demand is being dampened by consumer preference for mobile
products and the prevalence of classroom training in the organizational
segments.
Live online classes and online tutoring have a growth rate of 11.6% with
revenues heavily concentrated in the corporate and higher education
segments. The demand is different in both segments: corporations tend to
buy a range of English for Specific Purposes (ESP), but higher education
institutions focus primarily on academic English.
The growth rate for reference-based digital English language learning is
5.9%. Revenues are derived mostly from eTextbooks and test prep
products for standardized English exams.
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19
Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
Figure 3 - 2015-2020 Digital English Language Learning Five-year Growth
Rates in North America by Four Product Types
Mobile digital English language learning apps and edugames have a growth
rate of 11.2%, yet this product will generate the highest revenues
throughout the forecast period.
The language
learning lab suppliers
are distributors and
resellers of thirdparty commercial
content.
The private language schools and both academic segments buy third-party
digital language learning labs and license commercial content for the labs.
The labs in use are still mostly PC-based software products with headsets.
The newer digital language learning labs are cloud-based and compatible
with tablets.
All of the major English international language learning publishers operate
in North America, usually selling to school systems, but selling directly to
consumers as well.
Print-based language learning textbooks, phrasebooks, and translation
dictionaries are increasingly being converted into digital formats,
particulalry in countries undertaking national digitization initiatives. Selfpaced courseware is also purchased during these initiatives.
Mobile Learning content procurement is an integral part of tablet adoption
in the schools. Many of these initiatives are nearing completion stages in
several states and provinces and buying cycles are returning to normal
cyclical replacement patterns.
Finally, there is a high demand for test prep courses and online sample test
prep for standardized English tests such as the IELTS, TOEIC, TOEFL, Aptis,
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20
Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
the LCCI Business English Test, Pearson's PTE Academic, BULATS, OPI, and
OPIC.
Academic institutions, governments, and corporate organizations use the
scores on these tests to determine eligibility for admission, immigration,
and employment (or promotion), respectively. In this context, they can be
considered "high-stakes" tests.
ETS reports that the TOEFL was taken 2.2 million times in 2015 and that
over 9,000 organizations accept the exam across the globe. The TOEIC,
LCCI Business English Test, and the BULATS are primarily used to
determine employment eligibility.
Some of these tests are relatively new on the market. Pearson launched
the PTE Academic in 2009 and is still rolling it out across the planet. The
British Council launched the Aptis in late 2012.
Most standardized English tests are administered (and scored) by the entity
that owns the test and most are still pen and paper-based. Even the digital
TOEFL iBT exam is delivered at physical testing centers. The British Council
has taken a new approach with the Aptis and grants licenses to
organizations allowing them to administer the test themselves via internal
digital platforms.
Despite the availability of free online courses, there is a cottage industry of
commercial online test prep courseware suppliers, particularly in North
America. These specialized courses can command high price points,
particularly if they include live online tutors.
There is a wave of
academic
digitization efforts
in in the region and
the governmentoperated school
systems identify
the budgets for
those multi-year
programs.
Sources of Data on the North America Digital English
Language Learning Market
The financial reports from the domestic and international education
technology companies that operate in North America provide invaluable
insight into the rapidly evolving market conditions and revenue
opportunities in the region and in specific countries.
Most of these learning technology companies focus on particular products
and buying segments with targeted types of content so their financial
reports provide details on specific buying behavior patterns.
The major international educational publishers are active in North America.
Pearson, McGraw-Hill, Cambridge University Press, Houghton Mifflin
Harcourt, ETS's Edusoft, Macmillan, Scholastic, Santillana, Elsevier, John
Wiley & Sons, Oxford University Press, Cengage Learning's National
Geographic, and Japan-based Benesse (parent company of Berlitz) all have
significant market presence in North America. Their financial reports
provide detailed data on the markets in specific countries. Oxford
University Press, ETS, and Cambridge University Press are non-profits but
they release financial reports on a regular basis.
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21
Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
It is not uncommon for firms to disclose annual revenues when they obtain
private investment. Private equity firms will also sometimes disclose annual
revenues for the companies they fund. Companies will often report annual
revenues for companies they acquire.
For example, when Pearson acquired GlobalEnglish in 2011, they reported
that the corporate-facing online English language learning company was
generating $42 million a year.
There are several analytics firms that track the top selling mobile apps in
the major app stores in countries across the planet. All of them have an
education category and it is easy to identify the top selling educational
apps (which varies from country to country). App Annie and Distimo (now
owned by App Annie) are the best-known global app analytics firms.
An excellent source of information about ELL in the US is the Migration
Policy Institute, a non-profit think tank. They publish highly-detailed
reports and fact sheets that include the breakouts for total number of ELL
students in each state and the first languages spoken (ranked in order) by
ELL students in every state.
The US Federal Government has a portal called USAspending.gov that
reports the payments made to suppliers. It is easy to search the site by a
supplier's name and get exact expenditures made to that supplier by fiscal
year.
The Canadian Federal Government has a similar portal called
Buyandsell.gc.ca that functions much like the US portal. A search on a
supplier by company name yields exact amounts paid to them.
Both Canada and the US use the North American Industry Classification
System (NAICS) system for reporting taxable revenues. The suppliers that
sell digital English language learning products generally fall into just three
NAICS codes: Education Services (611), Publishing Industries (511), and
516 for Internet Publishing.
The Publishing Industries category includes both print and digital content.
"Software publishing is included here because the activity, creation of a
copyrighted product and bringing it to market, is equivalent to the creation
process for other types of intellectual products." Both governments report
on the total revenues for each NAICS code by subsets in so-called
economic census tables, For example, the NAICS code for language schools
is 611630. These are actual revenues enabling analysts to have the exact
baseline revenues for education-related products.
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22
Ambient Insight’s 2015-2020 North America Digital English Language Learning Market
Related Research
A detailed
description of
Ambient Insight's
Evidence-based
Research
Methodology is
included in our
research taxonomy.
Buyers of this report may also benefit by the following Ambient Insight
market research:

The 2015-2020 Worldwide Digital English Language Learning Market

Ambient Insight’s 2016 Learning Technology Research Taxonomy
“We Put Research into Practice”
www.ambientinsight.com
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