The language schools market - Italy (2024)

1.2 The global market

The size of the global language learning market in terms of revenue was US$** billion in ****and is expected to reach uS$***.* billion in ****, growing with a CAGR (***) of ** percent from **** to ****. Language learning includes online and offline platforms, which provide resources, courses, and interactive features to help learners and acquire new languages. The individual learner segment held about ** percent of the language learning market share in **** and holds more than $** billion in revenue in ****, due to a student preference for self-directed learning, where they can control the time and speed of their language learning journey.

Value of the global language school market World, ****-****, in billions of dollars (***) Global Market Insights

Foreign language learning in the European context

Language diversity is actively encouraged in many European educational institutions and workplaces. Schools and other primary and secondary educational institutions provide the main opportunity for language learning for the vast majority of people. There are currently ** official languages recognized in the European Union, as there have been since Croatia's accession. There have always been fewer official languages than the number of member states because some of the EU member states share common languages, for example in Belgium where the official languages areDutch, ...

1.3 The local market

To visualize the value of the Italian language school market, consider Ateco Code **.**, related to Services in education (***).

Value of turnover of enterprises active in "Education services nca" (***) Italy, ****-****, in millions of euros (***) Istat

2.1 Demand characteristics

To visualize the demand in the analyzed service, we consider the item of monthly household spending in education courses that cannot be defined by level. Specifically, it can be seen that from **** to **** there was an increase in the expenditure item of**.*%. **** represents the year with the highest value in the last five kept under analysis, and it is noted that from **** onward, there was a gradual but substantial decrease. Specifically, from **** to **** the decrease is -**.*%.

Average monthly household expenditure item in non-definable education courses by level Italy, ****-****, in current &euro Istat

2.2 Demand drivers

There are several motivations for individuals to approach foreign language study in ****. **% are compelled in order to excel within their field of work, while **% believe it is necessary to expandtheir children's cultural background. **% study a new language with a view to moving to another state. A significant percentage (***) decide to study a foreign language for personal culture.

Why are people learning a new language? Italy, ****, % Preply

In ****, **.*% of Italians claim to know foreign languages. But then, when asked about their actual ability to use the unknown foreign language, the confidence drops: **.*% consider their level to be scholastic , **.*% justify their level as good , and *.*% rate it as very good.

Italians and the study of foreign languages Italy, ****, % Opsonline in the Center (***) regions. Knowledge of foreign languages by macro-region Italy, ****, % Opsonline

**.* percent of those who speak a foreign language exploit that knowledge to take trips abroad, **.* percent to relate to friends and relatives, and **.* percent exploit the knowledge to read books or watch movies.

How knowledge of a foreign language is exploited on a daily basis Italy, ****, % Opsonline Although ** percent of respondents are convinced of the importance of languages to improve their job success, both in terms of job search and career ...

2.3 Geographical distribution of demand

To visualize the geographic distribution of Italian households' demand in services related to other education not defined by level (***), comprising the South and Islands.

2.4 Languages most in demand in the world of work

Knowledge of the most in-demand languages in the working world is crucial: mastering one or more foreign languages offers both professional and cultural advantages. To identify the languages most worthy of personal and professional investment, one can consult the Power Language Index (***), a gauge that evaluates the power of each individual language; this complex assessment is based on twenty different indicators, including number of speakers, use in diplomacy and media, travel facilitation, and economic impact.

The podium of the most in-demand languages

The most in-demand languages are:

English: English emerges as the preeminent language in the global landscape, supported by its status as the most studied and spoken language in the world. In Italy, mastering English is an essential prerequisite for many sectors, particularly finance, technology and information technology. Mandarin Chinese: More than *.*** billion people speak Mandarin Chinese, making it a crucial language in the context of international trade, especially for economic dynamics between Italy and China. Although learning Mandarin Chinese can be a daunting challenge, those who invest in the study of this language gain a valuable competitive advantage, especially in sectors such as import-export, with unique career opportunities and prominent international professional prospects. French: French is the third most ...

3.1 Market structure and dynamics

To delve into the dynamics of this market, an overview of active enterprises belonging to Ateco Code **.** of the Istat database is proposed. From **** to **** there was an increase of *.** percent, a value that slightly decreased in **** by *.** percent in ****. In **** , active enterprises in the sector grew again by **.*% from the previous year, suggesting a highly positive trend.

Active enterprises in "other education services" Italy, ****-****, thousands of units Istat

The sector consists mainly of sole proprietors, freelancers and self-employed workers(***), a characteristic that suggests the considerable autonomy of enterprises with the following legal form.*.*% of enterprises in the sector are Limited Liability Companies while *.*% are Social Cooperative Companies.

Legal form active enterprises (***) Italy, ****, % Istat As for the number of employees of active enterprises in the sector, it can be seen that the value has grown significantly from **** to ****, registering an increase of *.*%. Employees active enterprises in "other education services" Italy, ****-****, thousands of employees Istat

3.2 Value Chain

The value chain in the language school market can be analyzed by following several main steps, involving both the creation and distribution of language education services.

Development of educational materials: at this stage, educational materials are developed, designing courses to meet the specific needs of students. Technology and platforms: a key aspect for online language schools, the development of advanced platforms and technologies is crucial. This includes learning software, mobile applications, and learning management systems that facilitate interaction and monitoring of student progress. Teaching and service delivery: qualified teachings are at the center of the value chain. They provide effective instruction by guiding students through the course material and assessing their progress.

3.4 Main actors

The following is an overview of the main market players (***):

The market also consists of enterprises operating exclusively online, such as:

4.1 Type of Offering

Regarding the type of offerings, it is noted that language courses can be of two types:

Individual courses: suitable for those who have specific needs and urgency to perfect the language. In this case, lessons are tailored to the student's pace of study and learning. Individual courses can have an intensive frequency (***), providing for learning a language in a short period of time depending on the students' needs. Group courses: these are courses dedicated to those who want to take a regular language course in the classroom or with other learners. The number of learners tends to be limited in order to create homogeneous level classes.

In addition to the regular language courses divided by level (***), it is possible to find:

Conversation courses: strengthening and reinforcing the ability to speak the chosen foreign language is the basis of this type of course; students learn to express themselves in the language by having to deal with everyday life situations. Language courses for children: children are developmental sponges, so starting to speak a foreign language is a useful benefit for the individual's education. Specialized courses (***): useful courses for those working in technical, commercial or other professional fields.

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Online language courses

Learning a ...

4.2 Prices

The following is a current price list of a language school, which is useful for providing a general overview of the field:

Language English, French, German, Spanish Italian (***)

One-person lessons adults: hourly cost €**.**; course materials and registration €**.**. Two-person lessons - adults: hourly cost **.**€; course materials and registration **.**€. Adult group course: €***.** all inclusive (***). Children *+ years: individual lesson €**.**; two-child lesson €**.** per child; three-child lesson €**.** per child; four-child lesson €**.** per child. Registration and materials €**.** (***). Children's group mini course (***): €***.** all inclusive.

Language Russian, Chinese, Arabic, Portuguese (***)

Adult individual lessons: hourly cost **.**€; course materials **.**€; registration **.**€. ** hour course ****.**€ (***). Two-person classes - adults (***). Adult group course: ***.**€ and includes course materials, registration and complimentary online lessons. Children *+ years: individual lesson **.**€; two-child lesson **.**€ per child; three-child lesson **.**€ per child; four-child lesson **.**€ per child. Registration and materials **.**€ (***).

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4.3 Apps for learning foreign languages

Unlike years past, today it is possible to learn new languages through different modes:

synchronous solutions: teacher in realtime on an online platform; asynchronous solutions: that is, e-learning, in which the language is learned independently.

Regarding asynchronous solutions, there has been an explosion of possibilities in recent years. Among the advantages of this app are:

possibility of studying anywhere from one's smartphone; possibility of microlearning (***); affordability: some apps are free, others are paid but with low costs; fun: they often assume elements of gamification and competition.

Below is an overview of the main apps on the market:

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5.1 Rules and regulations

Regarding the purely regulatory sphere, we appeal to DL ***/****, later converted into Law **/**** regarding the regulation of private schools and courses. These kinds of courses are no longer subject to obtaining recognition from the Ministry of Education (***) with the consequence that today anyone can undertake the following activities without requiring any ministerial recognition or control. A more expeditious way of acquiring credit with one's language school is to apply for accreditation from the relevant region, as provided for in DM ***/****. In this way, the business is recognized as a provider of high-quality training services.

Opening a new business

One of the fundamental steps in opening the new activity is to draw up a business plan, which analyzes in detail every aspect related to the new activity to be carried out; this business plan must contain the kind of services to be offered (***). The choice of languages has a fundamental weight in the business: English, French and Spanish are the most common choices and capable of attracting more clientele, but so-called "emerging" languages, such as Russian, Chinese and Arabic, should also be taken into consideration.

From the administrative and bureaucratic point of view, the steps to be taken are not different from ...

5.2 Youth culture card 2024

Law No. *** of December **, **** (***) introduced new tools that will be operational from ****, namely the Youth Culture Card and the Merit Card, both aimed at allowing the purchase of tickets for theater and film performances and live shows, books, subscriptions to newspapers and periodicals including in diglital format, recorded music, autovisual publishing products,... Added to this is the possibility of using the bonus to support costs related to foreign language courses.[***]

Features of the new bonuses

Carta Cultura: is a ***-euro voucher dedicated to Italian residents with an ISEE up to **,*** euros. Merit Card: offers the same amount of *** euros to new **-year-olds who have graduated with top marks by the time they turn **.

Both vouchers can be combined, allowing beneficiaries to take advantage of a total of *,*** euros. The new benefits are intended for those who turn ** on or after January *, **** (***). For those born in ****, nothing changes from the old **app Culture Bonus. They could apply for the €*** bonus by October **, **** and use it by April **, ****. The changes only affect those who have turned ** years old since January *, ****, i.e., those born in ****, who can take advantage of the new bonuses starting in ****.[***]

6.1 Segmentation

"Physical" schools

Language App

• The British School Of Milan
• Wall Street English
• Myes Firenze
• GoFluent
• Duolingo
• Babbel
• Memrise
• Wlingua