As per the report published by Kings Research, the global Higher Education Market was valued at USD 506.54 billion in 2022 and is projected to reach USD 860.11 billion by 2030, growing at a CAGR of 7.03% from 2023 to 2030.
The higher education market is experiencing a positive outlook due to a surge in student enrollments worldwide. As a result, businesses and organizations are placing greater emphasis on hiring individuals with specialized degrees to stay abreast of rapidly evolving technologies. These trends are expected to accelerate market growth throughout the forecast period. In 2022, over 235 million students enrolled for undergraduate, master’s, or PhD studies.
The increasing number of international students owing to the quality of education offered in prominent regions such as Europe, North America, and Asia Pacific is anticipated to support the growth of regional revenue respectively. Europe and North America are observed to be the preferences for international studies. This is supported by the educational systems, established infrastructure, and variety of courses offered by institutions in the region.
Key Insights
- Based on the application, the undergraduate segment held the largest market share in 2022, accruing USD 287.17 billion
- Based on institution type, the State (Public) Institution segment generated the highest revenue in 2022, accounting 57.92% share
- Based on the mode of education, the offline segment dominated the revenue in 2022 and is anticipated to reach revenue of USD 411.78 billion by 2023
- On the basis of region, Asia Pacific accounted largest market share of 45.70% in 2022 and is estimated to experience the fastest CAGR of 8.17% during 2023 - 2030
Anthology and EdTech merged to upscale the operations
October 2021 – A merger between Anthology, a software solution provider for higher educational studies and Blackboard Inc., an EdTech company was completed. Post-merger, Anthology would be the parent of the two merged companies. However, Blackboard Inc. would continue its operations in its own name for several products and solutions.
Technological Developments in Higher Educational Systems to Drive Economic Mobility
Advancements in education technology, along with rising demand for vocational education & skills training and increasing student enrollment rates, are key factors driving the growth in the higher education market. Furthermore, higher education is recognized as a fundamental driver of economic mobility, with a college education being associated with more prosperous labor market outcomes compared to those attained by less-educated individuals.
The higher education market is observed to witness significant growth and development trends, particularly in North America, Europe, and Asia. Personalized education materials that cater to the unique needs of individual students, an emphasis on outcomes-based instruction, and a growing demand for vocational education and skills training are estimated to augment the market. Additionally, there has been a steady increase in online education offerings, which provide learners around the world with greater flexibility and accessibility. The higher education market is highly competitive and multifaceted, and its future trajectory will be shaped by a variety of drivers and trends.
Exponential Rise in Enrolments to Augment the Market in North America
In 2022, North America was the second-largest region in terms of revenue. North America accounted for 26.6% of global revenue and second highest growth rate, following Asia Pacific. Increasing expenditure by public and private higher education institutions owing to the rising student enrolments in U.S. and Canada is observed to be the prominent factor for growth. Strategic collaborations between private institutional players would further cater to the growth of the market. For instance, in May 2022, PowerSchool acquired Chalk company.
Europe to Observe Consistent Growth Due to Presence of Established Education Framework
Europe is anticipated to achieve a consistent growth trajectory during the projected timeframe. Europe commanded more than 20% of the global revenue in 2022, due in part to its slowly growing population and the highest literacy rate in the world. Numerous countries, including Spain, Germany, the U.K., and Russia, amongst others, have literacy rates exceeding 99%. Among these countries, Germany contributed the most substantial share of revenue in the year 2022.
Increasing Focus On Strategic Partnerships and Acquisitions for Sustainability Growth
The higher education industry is fragmented with key players such as Brain4ce Education Solutions Pvt. Ltd., Coursera Inc., Harvard University, iversity Learning Solutions GmbH, Massachusetts Institute of Technology(MIT), University of Oxford, Simplilearn Solutions, amongst others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.