Global Higher Education Market Report and Forecast 2024-2032

Global Higher Education Market Size

The global higher education market is expected to grow at a CAGR of 19.6% during the period 2024-2032. North America, Europe, and Asia are expected to be key markets.

Higher Education Market Outlook

• The U.S. has over 4,000 degree-granting institutions, including public, private non-profit, and private for-profit colleges and universities.

• As per industry reports, there are 54 central universities, 416 state universities, and 306 state private universities in India.

• In 2020, there were over 235 million higher education students worldwide, more than double the 100 million students enrolled in 2000.

• The student participation rate or the gross enrolment ratio (GER) in higher education has increased to 28.4% in India.

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Higher Education Market Growth

Higher education refers to education provided in post-secondary institutions of learning. These institutions, at the end of the study course, presents a designated degree, diploma, or certificate to declare the higher studies. Higher-educational institutions include universities, colleges, and the different professional schools that provide academic courses in domains such as law, theology, medicine, business, music, and art. Higher education also include junior colleges, teacher-training schools, and institutes of technology.

Factors shaping the higher education market outlook are technological advancements and rising student enrollment. The increasing adoption of digital learning platforms and personal computing devices has significantly contributed to the growth of the market. Additionally, government initiatives promoting digital learning and the growing use of online platforms for mentorship and personal guidance have further accelerated the market expansion. These factors have led to a substantial increase in the demand for higher education, particularly in regions like North America and Asia-Pacific, where there is a growing need for skilled labour.

Key Trends and Developments

Emergence of distance learning, increasing demand for online classes, and advancements in technology and cloud solutions are key trends impacting the higher education market growth

May 2024

West Bengal Higher Education Council has launched an initiative offering free PDF books in English and Bengali. This initiative aims to provide accessible educational resources to students. The program includes a variety of subjects and is a significant update for higher education in West Bengal.

May 2024

The Tamil Nadu government has announced a scheme to benefit 2.73 lakh female students for higher education. The scheme, named Moovalur Ramamirtham Ammaiyar, aims to support girls who have studied in state government schools by providing a monthly assistance of Rs 1,000 to these students.

May 2024

The State Higher Secondary Council in West Bengal is uploading PDF versions of HS books for online classes. This initiative aims to facilitate online learning for students in the state and reflects a shift towards digital education.

May 2024

OpenAI has launched ChatGPT Edu, a new AI tool designed specifically for higher education institutions. This platform aims to provide students with free access to AI tools for various educational applications, including tutoring, writing grant applications, and reviewing resumes.

Emergence of distance learning

Universities and higher-educational institutions are increasingly offering distance courses and programs for different levels and disciplines. Reportedly, a significant percentage of higher education students in the USA take at least one distance course.

Increasing demand for online classes

Learners today demand online classes, just-in-time communications, and intuitive experiences that go beyond the textbook. Further, learners today juggle jobs, children, and ageing parents, and seek flexibility and cost savings while pursuing various types of degrees, which is contributing to the demand for online mode of education.

Rapid technological transformation

Colleges and universities are adopting technological transformation to deliver campus experiences which enhance student success and improve productivity outcomes. Leading universities employ Dell PowerMax and Dell Precision workstations for data storage, research tools, and student performance analysis.

Focus on student wellbeing

A significant trend supporting the higher education market expansion is the increasing emphasis on student wellbeing. Institutions are prioritising the overall mental health and general wellbeing of students, recognising the importance of a holistic educational experience.

Integration of AI and ML in education

Students today seek agile, insightful, and proactive educational experiences. Leading companies offer advanced solutions to meet such requirements. For example, Oracle Student Cloud, powered by AI, is a solution that supports lifelong learning on a single, extensible platform.

Higher Education Market Trends

Higher education institutions are addressing student wellbeing to enhance student satisfaction, academic performance, and retention rates. Universities like the University of California, Berkeley, and the University of Michigan have implemented comprehensive wellbeing programs, including mental health resources, stress management workshops, and peer support networks. This trend not only improves the quality of education but also contributes to creating a supportive and nurturing learning environment, ultimately impacting student success, institutional reputation, and higher education market development.

Another key trend is the changing landscape of international student enrollment in US higher education institutions. While there has been a steady increase in the proportion of international students over the years, recent reports indicate a plateau in international student numbers. Factors contributing to this shift include the rise of remote learning options, advancements in educational technology, and macroeconomic conditions affecting affordability. For example, the University of Illinois at Urbana-Champaign has seen a significant increase in online enrollment, which has helped to offset the decline in international student numbers.

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Higher Education Industry Segmentation

The EMR’s report titled “Higher Education Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Solution

• Services

Market Breakup by Deployment Type

• On-premises

• Cloud

Market Breakup by Course Type

• Arts

• Economics

• Engineering

• Law

• Science

• Others

Market Breakup by Vertical

• State Universities

• Community Colleges

• Private Colleges

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Higher Education Market Share

State universities hold the largest share, driven by their academic excellence

State universities, often funded and governed by state governments, hold a significant market share due to their emphasis on academic quality, research collaborations, global partnerships, and alignment with national development goals. Institutions like the University of California system, the University of Toronto, and the University of Sydney exemplify the impact and reach of state universities on a global scale.

As per higher education market analysis, community colleges, known for their affordability and accessibility, are poised for significant growth, driven by programs tailored to local economic needs, career-oriented offerings, and their role in providing education to a diverse demographic. As per industry reports, in the United States, there are over 1,000 community colleges.

Private colleges, characterised by their competitive scholarship programs, flexible admission policies, strategic marketing, and financial management strategies, hold a substantial revenue share in the market. Institutions such as Stanford University, the University of Cambridge, and the University of Melbourne are renowned examples of private colleges.

Based on deployment type, on premises segment leads the market as it safeguards sensitive student information

The market is segmented based on premises and cloud deployment, with on-premises solutions maintaining a significant higher education market share due to the need for data control and regulatory compliance. Institutions like Harvard University and Oxford University often rely on on-premises infrastructure to safeguard sensitive student information and intellectual property.

In contrast, the cloud-based deployment segment is experiencing rapid growth, driven by institutions like Stanford University and MIT adopting cloud services for scalability and cost-efficiency. Furthermore, as institutions like Coursera and edX expand their online learning platforms, the demand for cloud-based solutions offered by companies, such as Dell EMC, Oracle Corporation, and Adobe, Inc. is expected to grow.

Leading Providers in the Higher Education Market

Market players are expanding their offerings with digital learning platforms, personalised learning experiences, and cloud-based solutions to cater to student’s changing demands

Google LLC, founded in 1998 and headquartered in California, United States, is a multinational technology company. The company's offerings include the Google search engine, Google Maps, Google Drive, Gmail, YouTube, Google Ads, the Android operating system, and the Google Cloud Platform.

Microsoft Corporation, founded in 1975 and headquartered in Washington, United States, is a global leader in software, services, and devices. The company is best known for its Windows operating system, Microsoft Office suite, Azure cloud services, Xbox gaming consoles, Surface devices, and LinkedIn professional networking platform.

IBM Corporation, founded in 1911 and headquartered in New York, United States, is a multinational technology and consulting company that has been at the forefront of innovation for over a century. IBM offers hardware (mainframes, servers, storage systems), software (analytics, cloud computing, AI), services (consulting, IT services), and research solutions.

Blackbaud, Inc., founded in 1981 and headquartered in South Carolina, United States, is a cloud software company specialising in solutions for social good organissations. Blackbaud's products and services include fundraising and CRM software, marketing solutions, advocacy tools, peer-to-peer fundraising platforms, financial management systems, and analytics services.

Other key players in the global higher education market include Anthology Inc., Ellucian Company L.P, Oracle Corporation, SAP SE, Pearson plc, Dell, Inc, VMware, Inc, Xerox Holdings Corporation, ServiceNow, Inc, Unifyed, and Hyland Software, among others.

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Higher Education Market Analysis by Region

Europe and USA are leaders in higher education sector due to the presence of large number of universities and students

Europe has one of the leading higher education sectors in the world. Europe has over 19. 5 million students, 1.5 million academics, and 500,000 researchers active in the sector. At a global level, Europe has more world-class universities than any other region in the world, with 42 of the top hundred universities in the world. U.S.A. has the second largest higher education sector after Europe, with 39 of the top hundred universities in the world.

India also holds a large higher education market share as the country has over 58,000 higher education institutions. There are now 43.3 million students enrolled for higher education in India, up by nearly 2 million students in just one year. Moreover, Indian edtech start-ups received total investment of nearly USD 4.7 billion in 2021, up from USD 2.2 billion in 2020. According to the QS employability rankings 2023, the Indian Institute of Science (IISc), Bengaluru, six Indian Institutes of Technology (IITs), Delhi University, University of Mumbai, University of Calcutta, OP Jindal Global University, Sonipat and BITS Pilani were among the global top 500 universities.

Key Highlights of the Report

Higher Education Market Report Snapshots

Higher Education Market Size

Higher Education Market Growth

Higher Education Market Trends

Higher Education Market Share

Higher Education Companies

Higher Education Market Regional Analysis