Higher Education Industry

Higher Education Market Size and Share:

The global higher education market size was valued at USD 28.36 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 116.71 Billion by 2033, exhibiting a CAGR of 19.34% from 2025-2033. North America currently dominates the market. The market is fueled by the adoption of advanced technologies, strong infrastructure, high consumer spending power, and a significant focus on innovation across industries in the region.

The higher education market is driven by increasing global demand for skilled professionals, as industries prioritize advanced qualifications. In addition, the rise of online and hybrid learning models expands access and flexibility, attracting diverse student populations, and aiding the market growth. Moreover, government initiatives and funding support educational infrastructure and affordability, boosting enrollment rates, and driving the market demand. For instance, in 2024, Academic Partnerships successfully finalized the purchase of Wiley Education’s online program management business. The rationale for this strategic move is to improve service delivery of online education services to the university partners and their students. Besides, ongoing technological advancements, such as artificial intelligence (AI) and virtual reality (VR), enhance learning experiences and outcomes, fostering the market growth. Also, the growing emphasis on lifelong learning and upskilling addresses workforce demands in a rapidly evolving economy, which is boosting the market demand. Furthermore, international student mobility and partnerships between institutions drive cultural exchange and revenue generation in higher education, thus impelling the market growth.

The higher education market in the United States (U.S.) is fueled by a strong culture of academic excellence and innovation, attracting domestic and international students. In line with this, the well-established network of prestigious universities and colleges provides diverse program offerings, driving enrollment and providing an impetus to the market. Concurrently, the rising demand for science, technology, engineering, management (STEM), and healthcare-related degrees supports specialized education, which is fueling the market demand. Additionally, the proliferation of edtech startups enhances personalized learning and administrative efficiency, contributing to the market expansion. In confluence with this, partnerships between academia and industries create tailored programs addressing labor market needs, strengthening the market share. For example, Harvard University and the Royall House and Slave Quarters in Medford, Massachusetts announced a new Memorandum of Understanding (MoU) to enhance the future partnership to research and public history projects. Apart from this, the increasing availability of financial aid and scholarships broadens access to higher education, thereby propelling the market forward.

Higher Education Market Trends:

Integration of advanced technologies

There is a rapid incorporation of AI, big data, VR, and machine learning (ML) in the higher education sector. For instance, a 2024 survey by Educase found that 60% of higher education administrators report their institutions use AI functionalities. This is benefiting educators to create more personalized and engaging learning experiences, thereby offering a positive higher education industry outlook. In line with this, the introduction of online learning platforms provides flexible and affordable access to courses that allow learners from various geographical locations to continue their studies without physical constraints. This, coupled with the development of virtual classrooms, interactive simulations, and augmented reality (AR) applications to enhance conventional teaching methods, is bolstering the market growth. For instance, Pearson expanded the availability of its generative AI beta to millions of students in leading math, science, and business titles on 14 December 2023.

Rapid globalization

International collaborations and cross-border educational programs worldwide are supporting the market growth. In addition to this, academic exchange, joint research projects, and shared curricula enhance the quality and diversity of education. According to the United Nations Educational, Scientific and Cultural Organization (UNESCO), the number of international students worldwide reached 6.4 million in 2021, reflecting a 50% increase from 2012. Besides this, the easy accessibility to study abroad, experience different cultures, and acquire skills in an interconnected global economy is impelling the market growth. Furthermore, universities are attracting international talents and diversifying their campuses allowing individuals from various regions to grab higher education. On 5 October 2023, Ellucian declared an agreement to acquire Tribal Group plc, a UK-based enterprise resource planning (ERP) and customer relationship management (CRM) software and services provider to the education sector. This allows Ellucian to provide improved products and support across various geographies while expanding its user base.

Favorable government initiatives

Government initiatives are playing a crucial role in expanding access and improving the quality of education. In addition, governing authorities are introducing funding programs that promote higher education among individuals worldwide. They are also providing scholarships, grants, low-interest loans, and tax incentives to reduce the financial barriers to education for learners. Apart from this, the rising investment by public and private players in infrastructure, research, and technology to enhance the capabilities of educational institutions fosters innovation in the market. Moreover, governments are engaging in international collaborations, aligning educational standards, and promoting mobility for students and academics. On 12 December 2023, Oracle signed a MoU with the Ministry of Higher Education, Scientific Research and Innovation, and the Ministry of Digital Transition and Administrative Reform. The MoU aligns Oracle Academy’s classroom-to-career learning materials and teaching curriculum to all Moroccan higher education institutions along with Oracle University that offers additional professional digital learning paths and certifications accessible from a dedicated Learning Portal.

Higher Education Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global higher education market, along with forecasts at the global, regional, and country levels from 2025-2033. The market has been categorized based on component, deployment mode, course type, learning type, and end user.

Analysis by Component:

• Solutions
  • Student Information Management System
  • Content Collaboration
  • Data Security and Compliance
  • Campus Management
  • Others
• Services
  • Managed Services
  • Professional Services
     

Solutions lead the market in 2024. This segment is expanding as it offers an integrated approach that combines various technologies, tools, and methodologies to address specific educational needs. They are customizable and adaptable to the unique requirements of different institutions, courses, and learners. Apart from this, they present a more cost-effective option for educational institutions by bundling services, tools, and support in a single package, thus reducing cost and complexity. On 8 April 2024, Ellucian launched ‘Ellucian Intelligent Processes (EIP)’ a new platform workflow solution that streamlines operational processes of higher education across departments.

Analysis by Deployment Mode:

• On-premises
• Cloud-based
   

Cloud-based leads the market in 2024. This deployment mode eliminates the need for physical hardware and associated maintenance by enabling access to educational resources from any device. It also facilitates real-time collaboration among students and faculty by providing tools for document sharing, communication, and project management, thus increasing the learning experience. The University of Tennessee (UT) System extended its use of Oracle Cloud by implementing Oracle Fusion Cloud Student on 10 October 2023. The UT System aims to streamline processes to make it easier for students to get the classes, financial aid, and support they need to succeed in enrollment for higher education.

Analysis by Course Type:

• Arts
• Economics
• Engineering
• Law
• Science
• Others
   

Arts leads the market in 2024. This course includes literature, history, philosophy, visual arts, and more, which appeals to a broader student with different interests and career paths. They emphasize critical thinking, creativity, and problem-solving skills that can be applied across different career paths. Apart from this, educational universities are encouraging interdisciplinary studies, and arts courses often facilitate collaboration with other fields such as science, technology, and business. EQT declared that the EQT Infrastructure VI fund (EQT) acquired a majority position in Universidad Europea from Permira on 8 April 2024. Universidad Europea is a leading private higher education platform in Spain and Portugal, which operates on 12 campuses and offers in-person and online modalities in sports, social sciences, science, technology, engineering, the arts, and mathematics (STEAM) subjects.

Analysis by Learning Type:

• Online
• Offline
   

Offline learning is expected to lead the market in 2024, with this segment expanding due to its focus on in-person lectures, seminars, and practical laboratory work. Moreover, it offers direct interaction between students and educators, which leads to more effective communication, mentoring, and personalized guidance that can enhance the learning experience. Additionally, attending a physical campus is often considered a rite of passage, as it includes extracurricular activities, social interactions, and networking, which plays a significant role in personal development. Furthermore, certain subjects, particularly in the fields of sciences and engineering, require hands-on practical work, experiments, and laboratory sessions, which are often best conducted in a physical setting. In addition, offline programs have long-standing reputations and accreditations, making them more appealing to students and employers alike. As per the India Brand Equity Foundation (IBEF), the number of colleges in India reached 43,796 in the financial year 2021, thereby showcasing growth in the physical learning platform.

Analysis by End User:

• State Universities
• Community Colleges
• Private Colleges
   

State universities lead the market in 2024. This segment is growing as it offers education at a lower tuition cost compared to private institutions. They receive funding and subsidies from the government, allowing them to pass the financial benefits to the students. This affordability attracts a broader spectrum of the population, leading to higher enrollment rates. Furthermore, state universities have multiple campuses or affiliated colleges spread across various regions, which makes higher education more accessible to people in different geographical areas. Additionally, they provide a wide array of programs and degrees catering to different interests, career paths, and educational needs. Moreover, state universities maintain rigorous academic standards and quality assurance. On 16 May 2023, Monash University partnered with Oracle to offer a new, customized, hands-on learning program for Monash Business School undergraduate students to ensure they enter the workforce with the skills they need in the digital world.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

In 2024, North America accounted for the largest market share. This demand in this region is increasing as it has many prestigious institutions recognized globally for their academic excellence, research output, and innovative teaching methodologies. In addition, North American universities are at the forefront of cutting-edge research and innovation, attracting significant public and private funding. This higher-ed market research culture fosters collaboration with industries, driving continuous technological advancements and economic growth. Apart from this, the higher education system in North America offers a wide range of programs and degrees catering to various interests, career goals, and educational backgrounds. Additionally, the region is an attractive destination for international students, owing to the presence of English as a common language. Moreover, North America has the resources to invest in education infrastructure, faculty development, student services, and scholarships, ensuring a high standard of education. On 26 May 2021, IBM and The Grainger College of Engineering at the University of Illinois Urbana-Champaign, which is located in the United States, launched a large-scale collaboration. The partnership is designed to increase access to technology education and skill development, especially in growing areas like hybrid cloud and AI and quantum information science and technology.

Key Regional Takeaways:
 

United States Higher Education Market Analysis

The U.S. higher education market is growing very well with excellent government funding and strong enrollment rates. In the fiscal year 2023, the budget for the U.S. Department of Education was about USD 79.1 billion with considerable amounts to be allocated towards research and programs for student financial aid. According to an industry report, undergraduate enrolment saw a 1.2 percent increase from last year during the fall 2023 session which added around 176,000 students to college enrollment rolls nationally. The National Center for Education Statistics noted that U.S. higher-education institutions delivered 2 million bachelor's degrees and 205,000 doctoral degrees in 2022-2023. Online education with hybrid learning is increasing market expansion, especially within technical and vocational training. Huge public universities are major players. However, along with them comes a growing category of prestigious private institutions and expanding global education offerings. The U.S. market continues to lead in higher education, attracting international students and reinforcing the country's role as a major educational hub.

Europe Higher Education Market Analysis

The European higher education market is currently experiencing significant growth, which can be attributed to high government investment, increased international student mobility, and an emphasis on research and development. In 2023, the European Union allocated around USD 87.42 billion to higher education. The region, therefore, commits to developing the opportunities of its people. Additionally, the EU invested USD 408.10 billion in research and development, strengthening its commitment to innovation within academia. The trend is to enroll more and more in European universities, and Germany and the United Kingdom (UK) have led the pack. According to an industry report, Germany saw a record number of 2.9 million students in 2023. It is not surprising that more students are going there because programs such as Erasmus+ provide international student exchange and foster academic cooperation in the region. Renowned institutions like the University of Oxford and ETH Zurich continue to draw global talent. Advances in technology, together with the emergence of online and hybrid learning models, continue to expand access to education and boost the market further.

Asia Pacific Higher Education Market Analysis

The market for higher education in Asia Pacific is growing rapidly due to the increased government investments and the expanding size of middle-class populations. According to the Ministry of Education, China spent 6.46 trillion yuan (about USD 906 billion) on education in 2023, of which a huge amount was dedicated to higher education and research activities. Higher education is expanding in India also, with 37 million students recorded in 2023, as per reports. Such emerging technologies such as artificial intelligence and online learning portals are enhancing innovation and thus market growth in the higher education sector. As a result of partnerships between local universities and their foreign counterparts, this region has strong education systems, henceforth making Asia Pacific a big hub in global higher education. Additionally, the growing popularity of technical and vocational education and the increased emphasis on skills training are driving the region's educational expansion.

Latin America Higher Education Market Analysis

In Latin America, Brazil dominates the higher education market. According to ITA, education expenditure for 2022 was approximately USD 24 billion. The budget of the Brazilian Ministry of Education for 2023 is estimated at USD 29 billion. The basic education system in Brazil encompasses 46.7 million students, with 8.3 million in preschool, 26.5 million in elementary school, and 7.7 million in high school. The higher education sector has 8.4 million enrolled students’ 75 percent of whom are in private institutions, while the government emphasizes education highly and focuses on the internationalization of higher education significantly. Distance learning is gaining increased momentum with growing lower tuition fees and the suitability of programs for working populations. According to an industry report, around 355 institutions provide distance learning, and for the first time in 2023, the number of registrations for distance learning exceeded those for in-person courses. Brazil also ranks eighth in sending foreign students to U.S. universities, with 14,897 students enrolled during the 2021-2022 academic year.

Middle East and Africa Higher Education Market Analysis

The United Arab Emirates (UAE) is a highly competitive education market within the GCC region. Both public and private institutions abound within this nation. According to ITA, education stands out as a top priority in the country, taking up 15.5% of the country's federal budget of USD 17.1 billion in 2023. The “National Strategy for Higher Education 2030” seeks to equip the labor market with technical and practical skills from students of the UAE. It also looks to improve accreditation standards and harmonize curricula with international standards. The UAE's education system is a blend of public, private, and higher education institutions, with private schools and higher education establishments playing a dominant role. Private schools provide different international curricula, such as U.S., UK, and Indian models, and the UAE hosts the Dubai International Academic City, which accommodates 28 international universities. Investments and collaborations, such as those with the Rochester Institute of Technology Dubai and New York University Abu Dhabi, bolster the higher education sector in the UAE.

Competitive Landscape:

Leading higher education companies are incorporating advanced technologies, such as AI, cloud computing, and VR, to provide personalized learning experiences, enhance teaching methods, and streamline administrative processes. Moreover, they are forming international partnerships and offering cross-border programs to reach and attract a diverse student body. Additionally, several key players in higher education market research are engaging in collaboration with industries and other academic institutions to innovate and strengthen their academic reputation. Furthermore, leading players are adopting higher education marketing strategies, such as offering flexible learning paths, professional development courses, and continuous education programs catering to the lifelong learning trend and the needs of a changing workforce. Furthermore, they are focusing on student well-being and support services to ensure a comprehensive educational experience.

The report provides a comprehensive analysis of the competitive landscape in the higher education market with detailed profiles of all major companies, including:

• Anthology Inc.
• Blackbaud Inc.
• Cisco Systems Inc.
• Dell Technologies Inc.
• Ellucian Company L.P.
• Instructure Inc.
• Oracle Corporation
• Pearson plc
• SAP SE
• ServiceNow Inc.
• Verizon Communications Inc.
• VMware Inc.
• Xerox Corporation
   

Latest News and Developments:

• In December 2024: Ellucian has allied with Stu3 to hasten the modernization of SIS at UK higher education institutions. This will help streamline the modernization process of SIS, optimize investments in technology, improve operational efficiency, and enhance student success using Ellucian's SaaS solutions and the extensive higher education experience of Stu3.
• In November 2024: Transact Campus has allied with Anthology to transform higher education by combining Anthology's suite of solutions with Transact's payment and credentialing systems. The partnership seeks to offer colleges and universities seamless integrations, enhance the experience of current and future clients, and offer flexible payment solutions that meet evolving demands.
• In November 2024: Pennsylvania's State System of Higher Education, or PASSHE, has entered into a partnership with Oracle Academy to provide cloud technology and business education across 14 campuses. This initiative offers students access to Oracle resources: cloud credits, APEX, NetSuite, and a curriculum in emerging technologies, making the workforce better prepared.
• In October 2024: Gulf University for Science and Technology, GUST, joined the SAP University Alliances on October 21, 2024. This will give the students at GUST the most relevant industry skills in AI and sustainability-focused technology, thereby boosting their competitiveness in Kuwait's job market.
• In September 2024: Pearson launched the 13th edition of Paul G. Hewitt's 'Conceptual Physics' in India, with Narayana Murthy, Infosys Founder, as the endorser. The book aligns with the vision of 'Viksit Bharat', enhancing STEM education by providing complete physics content for students and educators, keeping the focus on real-world applications and modern technology.
   

Higher Education Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the higher education market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global higher education market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the higher education industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.