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Language Instruction in Canada - Market Research Report (2014-2029)

Gabriel Seiler Gabriel Seiler New York, United States Last Updated: September 2024 NAICS 61163CA

Revenue

$283.5m

2024

$283.5m

Past 5-Year Growth

Profit

$XX.Xm

Employees

7,609

Businesses

1,046

Wages

$XXX.Xm

Language Instruction in Canada industry analysis

Language instructors have faced significant headwinds since 2019. Competing language learning software programs has severely threatened enrolment at traditional language instruction centers, but instructors have preserved some demand by focusing their efforts on immigrant populations, international students and corporate clients. Commercial clients brought language instructors some relief as companies expanded overseas and invested in language training for executives, but recent economic instability and high interest rates have strained businesses' discretionary spending on language instruction. Unpredictable vacation plans led to unstable enrolment from consumers preparing for trips abroad, but solid immigration has support instructors as new Canadians seek to integrate with their communities by learning English or French. Revenue has slipped at a CAGR of 1.7% to an estimated $283.5 million over the five years through 2024 despite an expected 1.3% uptick in 2024 alone.

Trends and Insights

  • Competition is heating up. The prevalence of apps like Duolingo and Babbel have given consumers a cheaper and more flexible option for learning a language and dragged down profit for language instruction centers.
  • Consumers are the top market for language training. While corporations and governments purchase training, consumers looking to learn a language in preparation for a vacation or to better communicate with fellow Canadians make up the bulk of instructors' revenue.
  • Populous regions have more language schools. Demand is concentrated in large cities like Montreal and Toronto with dense populations and higher rates of immigration.
  • Price is key to bringing in students. Consumers looking to learn a language typically have several options located near them, so price is an important factor for them when choosing an instruction center.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 1.7 % over the past five years, to reach an estimated $283.5m in 2024.

Trends and Insights

External competitors are stifling instructors' revenue

  • Software publishers that maintain apps like Duolingo and Babbel have imposed significant headwinds to in-person instructors' growth. Their convenience, accessibility and affordability have made them a popular substitute for traditional language instruction among casual language enthusiasts.
  • Additional trends and insights available with purchase
Language Instruction in Canada
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Businesses contending with globalization will seek language instruction

  • Corporations have become an increasingly vital market for language instruction centers as they purchase language training services to equip their employees to operate in an increasingly globalized world.

Biggest companies in the Language Instruction in Canada

Company
Market Share (%)
2024
Revenue ($short_0)
2024
Profit ($short_0)
2024
Profit Margin (%)
2024

There are no companies that hold a large enough market share in the Language Instruction in Canada industry for IBISWorld to include in this product.

Products & Services Segmentation

Language Instruction in Canada
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Foreign language instruction, English language instruction and French language instruction . Foreign language instruction is the largest segment of the Language Instruction in Canada.

Trends and Insights

Economic headwinds are straining demand for foreign language instruction

  • Instruction in these services targets consumers and tourists planning to travel abroad, so demand is contingent on consumer spending, confidence and disposable income. When income and confidence are low, consumers are less likely to plan trips abroad, thereby lowering demand for language training. Sluggish discretionary spending amid inflation cut foreign language training's share of revenue.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry provides language instruction training for casual conversational skills and career and educational needs. Schools teach foreign languages, sign language and English or French as a second language.

What's included in this industry?

English language instructionFrench language instructionSign language instructionOther language instruction

Companies

Purchase this report to view all major companies in this industry.

Related Terms

BLENDED LEARNINGIMMERSION PROGRAMOUTBOUND TOURISM

Industry Code

NAICS 2007

NAICS 611630 - Language Instruction in Canada

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Competition is heating up. The prevalence of apps like Duolingo and Babbel have given consumers a cheaper and more flexible option for learning a language and dragged down pr...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Consumers are the top market for language training. While corporations and governments purchase training, consumers looking to learn a language in preparation for a vacation ...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Populous regions have more language schools. Demand is concentrated in large cities like Montreal and Toronto with dense populations and higher rates of immigration.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each province
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each province in 2024
  • Number and share of revenue each province accounts for in 2024
  • Number and share of wages each province accounts for in 2024
  • Number and share of employees in each province in 2024

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Price is key to bringing in students. Consumers looking to learn a language typically have several options located near them, so price is an important factor for them when ch...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are no major companies. Demand for language instruction is very fragmented, with local businesses capturing the majority of the industry's revenue.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    Language instructors enjoy light regulation. While becoming accredited by Languages Canada can help instructors stand out, it isn’t a requirement and there are very few legal...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2014-2029) 
    • Assistance historical data and forecast (2014-2029) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    Profit has been under pressure. While still high in comparison with other industries in the education sector, mounting competition from apps like Duolingo and Babbel is reduc...

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Investment vs. share of economy

    Data tables

    • Liquidity Ratios (2017-2022)
    • Coverage Ratios (2017-2022)
    • Leverage Ratios  (2017-2022)
    • Operating Ratios (2017-2022)
    • Assets (2017-2022)
    • Liabilities (2017-2022)
    • Cash Flow & Debt Service Ratios (2014-2029)
    • Revenue per Employee (2014-2029)
    • Revenue per Enterprise (2014-2029)
    • Employees per Establishment (2014-2029)
    • Employees per Enterprise (2014-2029)
    • Average Wage (2014-2029)
    • Wages/Revenue (2014-2029)
    • Establishments per Enterprise (2014-2029)
    • IVA/Revenue (2014-2029)
    • Imports/Demand (2014-2029)
    • Exports/Revenue (2014-2029)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2014-2029)
    • IVA (2014-2029)
    • Establishments (2014-2029)
    • Enterprises (2014-2029)
    • Employment (2014-2029)
    • Exports (2014-2029)
    • Imports (2014-2029)
    • Wages (2014-2029)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Language Instruction industry in Canada in 2024?

    The market size of the Language Instruction industry in Canada is $283.5m in 2024.

    How many businesses are there in the Language Instruction in Canada industry in 2024?

    There are 1,046 businesses in the Language Instruction industry in Canada, which has grown at a CAGR of 2.6 % between 2019 and 2024.

    Has the Language Instruction industry in Canada grown or declined over the past 5 years?

    The market size of the Language Instruction industry in Canada has been declining at a CAGR of 1.7 % between 2019 and 2024.

    What is the forecast growth of the Language Instruction industry in Canada over the next 5 years?

    Over the next five years, the Language Instruction industry in Canada is expected to grow.

    What does the Language Instruction in Canada include?

    English language instruction and French language instruction are part of the Language Instruction industry.

    How competitive is the Language Instruction industry in Canada?

    The level of competition is moderate and steady in the Language Instruction industry in Canada.

    Related Industries

    Widen your competitive advantage with related industries

    Competitors

    • Software Publishing in Canada

    Complementors

    • Colleges & Universities in Canada

    International industries

    • Language Instruction in the US
    • Art and Non-Vocational Education in Australia
    • Art and Non-Vocational Education in New Zealand

    View all industries in Canada

    Methodology

    How are IBISWorld reports created?

    IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

    Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

    IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

    What data sources do IBISWorld analysts use?

    Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

    Key data sources in Canada include:

    • Statistics Canada
    • Industry Canada
    • Canadian Business Patterns

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

    These sources include:

    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

    Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

    How does IBISWorld forecast its data?

    IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

    IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

    Learn more about our methodology and data sourcing on the Help Center.