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The global higher education market is projected to reach a value of USD 149.03 billion with a CAGR of 14.77% between 2023 and 2028. The market is driven by factors such as increasing demand for advanced skills, technological advancements, and globalization. Online education is a significant trend in the higher education market, with many institutions offering distance learning programs.
|Market Size (2018) Historic Year
|USD 45.48 billion
|Market Size (2028) - Forecasted Year
|USD 149.03 billion
|Historic Opportunity (2018-2022)
|USD 20.12 billion
|Forecasted Opportunity (2024-2028)
|USD 74.18 billion
|Market Opportunity Transformation Growth
|Market Opportunity Capitalization
|USD 94.30 billion
Overview of the Higher Education Market
The report includes a comprehensive outlook on the market, offering forecasts for the industry, segmented by Product, which comprises software and hardware. Additionally, it categorizes End-user into private colleges, state universities, and community colleges, and covers Geography regions, including North America, Europe, APAC, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
The emergence of new education institutes is the key factor driving global systems market growth. As the education sector is growing at a fast pace globally, various new institutes are being established. For example, in March 2021, the Chinese government announced the Greater Bay Area plan for Hong Kong, Macau, and nine cities in Guangdong with a combined population of 72 million-11 new universities are on track to open for enrolment this year alone. Such a rise in the establishment of new institutes is likely to fuel the demand for various education solutions, which, in turn, will drive the growth of the learning market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cisco Systems Inc.: The company offers education solutions such as digital learning and digital campus.
The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Quality Assurance and Accreditation
The process involves rigorous evaluation, assessment, and adherence to predefined benchmarks to ascertain the quality of education offered. Alternative accreditation is a seal of approval, signifying that an institution meets or exceeds recognized standards of excellence. This recognition not only enhances an institution's reputation but also assures students, employers, and stakeholders of the educational quality provided.
Internationalization and Global Partnerships
Latin America has become a focal point for educational organizations, with a surge in initiatives to enhance the academic experience. The investment in qualified faculty and efficient administration underscores the dedication to fostering a robust learning environment. The industry is witnessing a transformation with innovative strategies in higher education marketing, aiming to address the career aspirations of individuals.
Future Outlook and Innovations in Higher Education
The market refers to the global industry that encompasses universities, colleges, and other educational institutions. Over 70% of students in use digital platforms for their learning materials. Graduates with a master's degree earn, on average, 20% more than those with just a bachelor's degree. The market plays a crucial role in shaping the workforce of the future and driving economic growth in many countries.
North America is estimated to contribute 37% to the growth of the global market during the forecast period.
North America dominates the global market because of the growing need for effective and quality education in the developed economies in the region. Owing to the increasing popularity of learning, institutions are investing in modern technologies that can be used to improve the learning experience for students as well as enable educators to deliver and access content from anywhere at any given point in time. This has fueled the adoption of on-cloud solutions. Furthermore, the US Department of Education has devised the National Education Technology Plan (NETP) that endorses the use of adaptive learning in colleges. Hence, such factors are expected to drive market growth in this region during the forecast period.
Based on product. The market share growth by the software segment will be significant during the forecast period. The software segment is further segmented into support and solutions. The solutions subsegment includes learning management systems (LMSs), enterprise resource planning (ERP), adaptive learning software (ALS), content management systems (CMSs), and others. Due to the above factors the software market is expected to have a steady growth.
Get a glance at the market contribution of various segments View PDF Sample
The software segment was valued at USD 22.79 billion in 2018. The shift in the focus of institutions toward active learning techniques and changes in educational content delivery methods have led to a rise in the demand for various education software. Furthermore, Many institutions around the globe are focusing on improving their information and communications technology (ICT) infrastructure with the help of government initiatives. These factors are likely to fuel the demand for software, which, in turn, will fuel the growth market.
Online Learning and Technology Integration
Simulation learning is an interactive educational approach replicating real-world scenarios, providing a safe environment for learners in healthcare, aviation, business, and technology. Utilizing simulations, virtual reality, or computer-based models, allows the application of theoretical knowledge in a risk-free setting, fostering critical thinking and decision-making skills. In the context of the higher education industry and the educational market, simulation learning is integral to curriculum innovation and effective higher education marketing, meeting the evolving needs of learners and aligning education with career goals at various levels.
Enrollment and Student Demographics
Institutions need to analyze and adapt their enrollment strategies to attract students from various backgrounds, ensuring a representation of diverse perspectives in the academic community. The enrollment rate in higher education institutions worldwide has increased by 25% in the last decade. Approximately 80% of employers consider a bachelor's degree essential for job applicants.
Curriculum and Program Offerings
In the ever-evolving landscape of the market, there is a growing emphasis on providing comprehensive training to individuals. Academic study in institutions are adapting their research methodology to meet a diverse range of goals and cater to the dynamic needs of the educational market. The flexibility offered in programs and degrees, coupled with considerations for tuition fees, scholarships, and financial aid, reflects the commitment to making education accessible across a broad spectrum of learners.
Current Trends and Challenges
Growing emphasis on technology-based course delivery is the primary trend shaping market growth. Several universities and colleges are focusing on implementing visual technologies, such as VR, in delivering blended learning courses. Content development plays a crucial role in blended learning courses. In the past few years, the utilization of gamification and simulations has increased. Visual technologies, such as VR, are being utilized in this sector.
Consequently, it will enable the provision of timely and targeted feedback on student performance. It will also enable students to engage in complex problem-solving. Therefore, the growing emphasis on technology-based course delivery will enhance the growth market.
The rising availability of open-source software providers is a challenge that affects market growth. End-users such as colleges, universities, and students tend to adopt open-source learning software solutions as they are free of cost. Several massive open online courses (MOOCs) are also available online, which the students can access from home. MOOCs provide an open environment and free access to educational content. They also offer a wide variety of content to attract customers.
Moreover, the scope of MOOCs is growing due to their semi-synchronicity, their engaging course design, the incorporation of analytics, and free access to verified certificates and diplomas from major educational institutions and businesses. Market players that offer solutions and services are expected to face intense competition from MOOCs, which is likely to impede the growth of the market during the forecast period.
Funding and Financial Models
The crucial aspect of financial sustainability revolves around robust funding and financial models. Educational institutions must navigate a complex landscape, considering various sources of funding, including government support, private investments, grants, and tuition fees. The market is highly competitive, with institutions competing for students and funding. The development and implementation of effective financial models are pivotal in ensuring the institution's ability to provide quality education, support faculty, maintain infrastructure, and invest in innovative programs.
The market forecasting report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Growth momentum & CAGR
Accelerate at a CAGR of 14.77%
Market Growth 2024-2028
USD 74.18 billion
YoY growth 2023-2024(%)
North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution
North America at 37%
US, China, India, UK, and Germany
|Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled
Cisco Systems Inc., Class Technologies Inc., D2L Corp., Educomp Solutions Ltd., Ellucian Co. LP, Fujitsu Ltd., Harvard University, Instructure Holdings Inc., Jenzabar Inc., Massachusetts Institute of Technology, Microsoft Corp., Oracle Corp., Pearson Plc, Promethean World Ltd., SMART Technologies ULC, Stanford University, Unifyed, University of Cambridge, University of Oxford, and Xerox Holdings Corp.
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery market analysis and report and future consumer dynamics, Market forecast , Market condition analysis for the forecast period.
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