This study examines the development of the special education market through changes in demand and supply and discusses its implications on the system of education of students in need of special support informed by two theoretical perspectives. The study found out that the number of students and schools in the special education market has increased. The relative size of the special education market on the demand side has remained stable while an increase is observed on the supply side. The results also show that the private sector has grown relatively better than the public sector on both the demand and supply sides. Almost all the market segments have increased on both the demand and supply sides, especially the resource schools in the special education market segment. Based on these results, three implications are observed and discussed, namely a diverse and an extended special education system, increasing segregation within the special education system and a relative stability in the incidence of student exclusion.