Essentials Magazine Essentials Summer 2014 | Page 24

K-12 MARKET PROJECTIONS K-12 MARKET SIZE AND PROJECTIONS THROUGH 2016-17 By Dr. Robert Resnick | Education Market Research A ccording to Education Market Research’s exclusive data, the K-12 instructional materials market, including textbooks, supplemental materials, and technology products, totaled $19.430 billion in sales in the 2012-13 school year. It is projected that sales in 2013-14 will be $20.979 billion, a 7.9 percent increase compared to the prior year. That very large sum of money is spread each school year among more than 180,000 district administrators, over 115,000 school principals, and more than 5 million K-12 educators. K-12 MARKET SIZE BY SEGMENT The following is an overview of the K-12 market size for the 2006-07 through 2013-14 school years. Table 2.1 | Total K-12 Market Size: Projections Through 2016-17($ in millions) Market Segment 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 Avg Inc. Technology Products: Hardware, Software, Internet 6,950 7,089 7,230 7,592 8,025 8,813 9,650 10,712 6.4% Instructional Materials: Textbooks 3,185 3,312 3,358 3,404 3,506 3,594 3,666 3,739 3.3% Instructional Materials: Supplements 2,140 2217 2270 2320 2406 2483 2,520 2,646 3.1% Other: Trade Books, Book Clubs & Fairs, Periodicals, Tests 2,777 2,994 3,014 3,086 3,271 3,446 3,594 3,882 4.9% 15,052 15,562 15,872 16,402 17,268 18,336 19,430 20,979 4.9% Total MARKET SIZE BY GRADE LEVEL Taking the estimated dollars spent (excluding technology products) in 2013-14, and spreading them by grade level yields a matrix in which the Pre K-5 market constitutes about 48 percent of the total (based on enrollments and spending patterns), and the secondary market (grades 6-12) is about 52 percent. The following table shows the estimated market size by grade level for the 2013-14 school year. Table 2.2 | K-12 Market Estimates By Grade Level, 2013-14 SY (Excluding technology sales) ($ in millions) Grade Level Est. % of Total Text Mkt. Size Supp. Mkt. Size Total Pre K-5 48% $1,795 $3,133 $4,928 6-8 23% $860 $1,501 $2,361 9-12 29% $1,084 $1,894 $2,978 Total 100% $3,739 $6,528 $10,267 Source: Education Market Research 24 essentials | summer 2014