Market segmentation is the research that shows how an organization divides its market into smaller approachable groups based on factors such as personality traits, income, age, and behavior. Therefore, the education market would mean a division into several groups of cohorts (parents, pupils, and workers or teachers). This division is according to different factors.
The K-12 education is a phrase used to describe classes from kindergarten to class 12. In many countries, this level of education is free. The K-12 market aims to drive education technology resources in both the academic and non-academic sectors. LISTedTECH is a market research firm that gathers adequate information on the education market. Read further for detailed information.
The K-12 market can be segmented by application (Pre-primary, Primary, Middle, and Senior secondary), type (public K-12 education, Private K-12 education, and Online K-12 Education), and Geography. Let’s delve into these segmentations.
Segmentation by Application
This kind of segmentation covers pre-primary, primary, middle, and senior secondary schools. In broad terms, segmentation is the most popular as many would usually categorize the K-12 market into four: pre-primary, primary, middle, and senior secondary schools. This segmentation may vary in different countries. Schools around the world follow several curricula for each level of the categorization. For example, in India, many education boards have devised their educational systems. Some of these educational boards are the National CBSE and the ICSE boards; state-level boards which offer their curricula at the state levels and the international boards such as IGSCE (International General Certificate of Secondary Education), AS and A-Levels, and lastly, the International Baccalaureate Organization (otherwise known as IB)
Segmentation by Type
This kind of segmentation encompasses private k-12 education, public k-12 education, and online k-12 education. Private K-12 schools are non-public schools that are regulated in the same way most businesses are concerning safety, zoning, and registration. Technically, a private school is a business that conducts full-time instruction with a full complement of subjects at the elementary, middle, or high school level. Compared to public K-12 schools, the laws allow for some variation in curriculum and organizational structure, as opposed to the rigid alignment to the educational statutes by the state. Simply put, private schools are regulated but independent. On the other hand, public schools are not subject to all applicable local, state, and federal laws and regulations governing the business side of its modus operandi. It also subjects to the educational philosophy of the government, not the wishes of the students and their families, as private schools do.
With the development in technology, education doesn’t necessarily have to be always physical. There are several online school programs designed for pre-primary, primary, middle, and senior secondary schools. These programs are designed with a curriculum that meets educational standards and engages students’ minds and hearts. Connections Academy is an example of an online platform where wards and teenagers can learn from.
Segmentation by Geography
K-12 market, according to this segmentation, covers geographical regions such as North America, Europe, Asia-Pacific, Latin America, and sometimes, Middle-East Africa
● North America
In North America, K-12 market including public, private, and non-profit, profitable businesses, provide training and instructions to students enrolled in elementary till high schools, college, and universities. However, several factors affect their operations. For instance, funding-related challenges have a significant impact at every level of the education sector. On the other hand, public K-12 schools are vulnerable to state budget cuts, declines in local property tax revenue, and increasing federal support for alternatives to traditional public schools. There has been a sharp decline in enrollment. It is not only in private K-12 schools, but also in colleges and universities. This is partly due to rising tuition costs. As a result, this decline has stifled revenue growth in universities as well as colleges.
Below is the statistics of the number of kindergartens to grade 12 enrollments according to the National Center for Education Statistics.
Public Schools – 50.7 million
Private Schools – 5.7 million
● Europe (UK, France, Germany, Russia, and other European countries)
● Asia-Pacific (China, South-Korea, India, Japan, Rest of Asia-Pacific)
The Asia Pacific witnessed a massive growth in EdTech (Education Technology), owing to the growing prevalence of computing and smart devices among the populace. This, in turn, is a result of the growth of the Asia-Pacific region generally. Other segmentation according to geography includes Latin America and Middle-East Africa.
With the K-12 market structure, education has enjoyed some benefits, such as making students graduate at an older age and with mature minds. Additionally, K-12 education is available on-site and online. It makes education accessible to varieties of individuals despite the various curricula available. It also influences the K-12 market generally.