Our businesses
Our business structure reflects our shift towards more digital learner-centred products
Our reporting structure
Our four reporting segments with their constituent businesses below. We are also now presenting our Enabling Functions costs, which include corporate functions.
Global Online Learning
- Virtual Schools
- Online Program Management
Global Assessment
- Pearson VUE
- US Student Assessment
International
- English
- Assessment & Qualifications
North American Courseware
- US Higher Education Courseware
Global Online Learning
Two large digital businesses, Virtual Schools and Online Program Management (OPM)
Markets
- Virtual Schools – global market size is c.$2bn1
- OPM – global market size is $3.5bn1
- Both growing 8–10% and further upside in evolving markets1
- Entering the corporate learning segment
Growth drivers
- Increased demand for online education
- In Virtual Schools: scale up in existing states to increase penetration; target states with high-growth potential
Online school provides opportunity for young students to pursue passions and achieve their dreams
Madison Kenney has a passion for STEM and wants to share that enthusiasm with other young female students. STEM is often intimidating and Madison has made it her mission to work with female students to make STEM more approachable. To allow Madison to spend more time on this mission, her mother enrolled her in Connections Academy, Pearson’s Virtual Schools business for students in K12.
- In OPM: improve conversion rates through portfolio and product innovation; optimise portfolio
- In corporate learning: target large learner base available at corporates to upskill and retain employees
Competitive advantage
- Flexibility, personalisation and market responsiveness
- Pearson courseware, assessment and platform capabilities
- Capability to match learning needs in the workplace with providers
- Deep knowledge of education
- Operational scale
Key customers
- Students of all ages in schools, higher education and corporate segments
- Key partners include universities and charter school boards
Digital progress
- Fully digital, scalable model Invested in platform to improve learner experience
Global Assessment
The largest businesses are Pearson VUE and US Student Assessment. Also includes Clinical Assessment
Markets
- US Student Assessment – market size is c.$1.15bn, stable1
- Global Certification – market size is c.$1.8bn, faster growing2
Growth drivers
- In US Student Assessment: move to fewer, smarter, digital tests with further opportunities for AI scoring; converting PARCC states to custom assessment through digital solutions
- In Pearson VUE: increased regulation in licence to practice and demand for certification
Competitive advantage
- In US Student Assessment: flexible model to offer print or digital-based tests and proven record of secure, reliable and accurate test administration
- In Pearson VUE: high operational leverage, scalable model; 450+ credential partners showing strength of our brand and breadth of relationships; network of 20,000 test centres
Key customers
- In US Student Assessment: state and institutional partners, as well as other assessment players
- In Pearson VUE: governments, academia and employers across the professional, IT and regulatory sectors
Digital progress
Digitally-enabled, scalable model with leading platforms AI scoring already in use
International
Businesses including Assessment, English, Schools and Higher Education
Growth drivers
- English: expected growth of PTE (Pearson Test of English) after UK Home Office recognition; target recognition in other comparable markets including Canada; English Language Learning as a driver of employability
- Assessment: opportunity to deliver national, high-stakes digital assessments at scale in emerging markets
- Vocational qualifications: technological change, with AI driving major shifts in work; continued need for reskilling and upskilling is growing demand for the vocational and assessment market
Competitive advantage
- Deep knowledge of market capabilities and deep customer relationships
- PTE Academic provides a world-class and convenient learner experience. AI scoring leads to unbiased results, with quick response time
- Pearson VUE test centres providing breadth of network
- Unique status – leading provider and owner of vocational qualifications and content (BTEC)
BTEC Student of the Year 2019
Josephine Kiaga, is both a creative and an inspirational voice for her peers and the wider community. She took a BTEC Subsidiary Diploma in Creative Media Production (Film and Television), as well as a BTEC Diploma in Performing Arts (Acting) at Braeburn International School Arusha in Tanzania, to support her ambitions to become a director.
Key customers
- English: adult professionals (B2C), franchisees, schools and universities
- Employability opportunities: national and regional governments, regional training providers, private school chains and employability partners
Digital progress
- Expanding our digital courseware
- PTE Academic is the only English assessment of its type that combines a fully digital experience with AI scoring
North American Courseware
US Higher Education Courseware is key business with Canadian Courseware also in the segment
Structural changes
- In 2010, Pearson had a $2bn US Higher Education Courseware business, selling 21m textbooks a year
- By 2022, we expect US Higher Education Courseware to be an almost completely digital business – increasingly based on the Pearson Learning Platform2.
Digital progress
- The Pearson Learning Platform will drive digital growth through: Share gains with better experiences and outcomes Expanding the platform segment with new product models Recapturing sales from the secondary market
- Direct-to-learner relationships
Aida – the world’s first AI-inspired calculus app
Meet Aida. The world’s first AI-enabled mobile calculus tutor. Aida is a first in education. By using multiple types of AI to tutor students, we can teach them how to learn calculus and apply it in the real world. Aida gives feedback tailored to everyone. Aida is designed based on evidence of the most effective ways to teach and learn calculus. It’s a highly personalised learning approach for a highly personalised world.
Learn more about Pearson
Market trends
In September 2019, we released the results of our inaugural Global Learner Survey, the first of its kind study that gauges the opinions of learners worldwide. Gaining a full picture on how people are learning helps to inform our strategy.
Our strategic model
We are shifting from a product-centred approach to a learner-centred model. This means our portfolio of products can now be integrated around the learner, meeting their needs throughout their learning life.
Investor Relations and Financial Media Contacts
Contact the team if you are looking for further information
2 The core US Higher Education Courseware business is expected to be almost entirely digital. We also have an Advanced Placement business selling higher education content into US schools. This, together with several other smaller, non-college channels, comprises roughly c.$200m of print revenue which has been broadly stable