The prospects are good. The rise of early education in China is around 1998. Since 2003, overseas brands have entered the domestic market, and the industry has entered a period of rapid growth. According to the statistical data of Forecast of Early Education Industry Development Prospect and Analysis Report of Investment Strategic Planning issued by Forward-looking Industry Research Institute, the market size of early education industry in China in 2065,438+06 was 476,543.8+0.6 billion yuan, and the CAGR reached 265,438+0.3% in recent five years. It is estimated that by 2020, the market scale will reach 920 billion yuan, and the CAGR is about 14.3%.

Three driving factors: low penetration rate, the rise of the middle class and the strengthening of educational awareness.

One of the driving factors: China has a large base of infants aged 0-6, but the popularization rate of early education is low. In 20 17 years (the second full year of the implementation of the comprehensive two-child policy), although the number of births has declined, it still exceeds 170,000 in terms of body shape, and it can be estimated that infants aged 0-3 years exceed 1 100 million. In 20 16, the number of applicants for early education institutions was about15.8 million, from which it can be inferred that the penetration rate of early education industry in China is about 10~20%, which is far lower than that in developed countries.

The second driver: the rise of the middle class. The middle class pays more and more attention to children's early education. In 20 16, the population of the middle class in China was 720 million, and it is expected to increase to 980 million in 20021year, with a CAGR of about 6.3%. The population of the middle class is increasing, and the middle class pays more and more attention to children's early education, which will promote the overall early education popularization rate.

The third driving factor: the deepening of attention. Internal factors: understanding of the role of early education. After 80' s and 90' s, these parents have better education, and tend to agree that early education of 0-3 years old plays a vital role in the development of children's intelligence, personality and potential. External factors: competitive pressure is transmitted from top to bottom &; Peer pressure. Quality education resources in China are very scarce. Judging from the college entrance examination, the admission rate of 985 schools is only about 2%. In order to cope with the competitive pressure in the future, parents will prepare their children from top to bottom from high school, junior high school, primary school and even preschool. At the same time, the peer pressure brought by parents sending their children to early education institutions will also make parents think that they cannot let their children lose at the starting line.