Higher Education Market Size, Share, and Trends 2024 to 2033

Higher Education Market Size and Growth 

The global higher education market size was USD 739.12 billion in 2023, calculated at USD 828.85 billion in 2024 and is expected to reach around USD 2,324.45 billion by 2033, expanding at a CAGR of 12.14% from 2024 to 2033. The rising developments in the educational sector across the world are driving the growth of the higher education market.

Higher Education Market Key Takeaways

• The North America higher education market size reached US$ 251.30 billion in 2023 and is predicted to cross around US$ 801.94 billion by 2033, at a CAGR of 12.30% from 2024 to 2033.
• North America led the market with the largest revenue share of 34% in 2023.
• Asia Pacific is expected to expand at the fastest CAGR of 13.02% during the forecast period.
• By institution, the private segment has held a major revenue share of 57% in 2023.
• By learning mode, the offline segment has contributed more than 71% of revenue share in 2023.
• By learning mode, the online segment is estimated to grow with the highest CAGR of 13.04% during the forecast period.
• By course, the undergraduate segment has contributed more than 80% of revenue share in 2023.
• By course, the master’s degree segment is expected to grow at a solid CAGR of 14.05% in 2023.
• By revenue source, the tuition fees segment has recorded more than 37% of revenue share in 2023.
• By revenue source, the grants, contracts, and gifts segment is estimated to grow with the highest CAGR of 12.05% during the forecast period.

Higher Education Market Size and Growth 2024 to 2033

The U.S. higher education market size was valued at US$ 188.48 billion in 2023 and is expected to be worth around US$ 605.46 billion by 2033 with a CAGR of 12.37% from 2024 to 2033.

North America held the largest market share in 2023. The growth of this region is mainly driven by the rising government initiatives in countries such as the U.S., Canada, Mexico, and others to develop the educational sector. The growing developments in the IT industry, along with the presence of well-established public and private institutions, drive market growth. Also, the rising advancements in science and technology, along with the establishment of several research institutions and innovation centers, are likely to drive market growth. Moreover, presence of several renowned universities and colleges such as Massachusetts Institute of Technology, California Institute of Technology, Stanford University, University of Pennsylvania, and some others are constantly developing their higher education courses and adopting several strategies such as launches, collaborations, and expansions, which in turn drives the growth of the higher education market in this region.

• In March 2023, the California Institute of Technology collaborated with Peer Institutions. This collaboration is done to launch a new initiative to improve outreach efforts for informing prospective students and their families on any campus across California.

Asia Pacific is expected to be the fastest-growing region during the forecast period. The growth of this region is mainly driven by the growing demand for bachelor’s and master’s degrees to secure high-paying jobs. Also, rising investments by public and private sector entities for developing the higher education sector are boosting the market growth. The growing incidences of chronic diseases in this region increase the demand for treatment by high-quality doctors. This, in turn, increases the demand for bachelor’s and master’s degrees in the medicine domain, thereby driving market growth. Additionally, the rise in the number of government colleges providing a variety of courses, along with the growing trend of online learning, has driven the market growth in this region.

Moreover, the rise in government initiatives for strengthening the education sector along with the presence of several renowned universities and colleges for higher education, such as the University of Tokyo, the Peking University, AIIMS, the National University of Singapore, and some others are adopting several strategies such as launches, partnerships, and expansions, which is likely to drive the growth of the higher education market in this region.

• In February 2022, the National University of Singapore announced the launch of a new course. This new course includes subjects such as data analytics and sustainable urban development that will attract several students from across the world to study higher education at this university.

Market Overview

The higher education market is one of the most important industries in the human resource domain. This industry mainly deals with providing education to students who have completed secondary education. There are two main types of educational institutions: public and private institutions. These institutions provide several learning modes, such as online and offline. Also, there are several degrees in the higher education level that mainly include undergraduate, Master's, PhD, and some other professional courses. Nowadays, the trend of gaining higher education degrees from renowned institutions to secure high-level jobs is boosting the growth of this industry. The technological developments related to educational sectors and rising government investment in strengthening educational sectors are likely to augment the market growth positively.

Higher Education Market Growth Factors

• Technological advancements in the educational industry are expected to drive the growth of the higher education market.
• The rising government initiatives to strengthen the educational sector have driven the market growth.
• The growing developments in public and private colleges across the world foster market growth.
• The rise in the number of scholarship programs for higher education has boosted the market growth.
• The growing investments from public and private sector entities for developing the higher education industries also boost the market growth.
• The rising integration of modern technologies in private colleges is likely to impact the market growth positively.
• The increase in the number of online educational platforms also propels the market growth.
• The ongoing trend of international student mobility is expected to boost higher education market growth.

Higher Education Market Scope

Higher Education Market Dynamics

Driver

The rising trend of globalization in education

In current times, students are highly interested in getting a degree from renowned colleges and universities. The trend of studying abroad is reflected in the large number of students in low- and middle-income countries. Moreover, several universities have started providing scholarships and other schemes to international students so that they can enroll in their degrees. Also, the rise in the number of banks providing educational loans at subsidized interest rates for studying abroad has helped students to move out for higher education. Thus, the ongoing trend of globalization of education is likely to augment the growth of the higher education market during the forecast period.

• In March 2024, Propelld launched a new education loan scheme in India. This loan will be applicable to students residing in metros, Tier 2 and Tier 3 cities for studying abroad, and the maximum loan amount will be Rs 50 lakhs with a return period of a maximum of 10 years.
• In November 2023, the Imperial College of London launched a scholarship program for Indian students. This scholarship includes the total tuition cost and accommodations for master’s degree students studying natural sciences, engineering, medical, and business research.

Restraint

Data breaches and high-cost

The education sector is changing rapidly with the advancements in technologies and the trend of digital learning. Although digital learning comes with numerous advantages, there are several issues associated with it. During the online classes, students have to provide their personal information along with other credentials. Nowadays, hackers have started stealing students' credentials to blackmail them in the future. Thus, security issues related to digital learning are expected to restrain market growth. Moreover, the costs of some professional higher education courses are gradually increasing, which, in turn, is expected to restrain the growth of the higher education market.

Opportunity

Integration of AI and ML in the education sector

The advancement in artificial intelligence (AI) and machine learning (ML) technology is an integral part of the development of the higher education industry. The rising integration of these technologies in the educational sector to enhance the learning experience is gaining popularity in present times. With the use of AI and ML in education, students can get added benefits such as personalized education, smart content, task automation, tutoring, and revising, along with providing education to students with disabilities. Thus, the growing integration of AI and ML technology in the educational system is expected to create ample growth opportunities for higher education market players in the future.

• In January 2024, Penn State launched Lionchat. Lionchat is an AI-enabled chatbot that assists students with queries related to enrolment, scholarships, transcripts, and other topics.

Learning Mode Insights

The offline learning segment dominated the market in 2023. The growth of this segment is generally driven by the rise in the number of modern colleges across the world. Also, offline learning has several advantages, such as hands-on learning, face-to-face interaction, reduced distractions, and some others, which are likely to boost market growth. Moreover, the integration of smart classes in universities attracts students to take up offline modes of learning, which in turn drives the growth of the higher education market during the forecast period.

• In February 2024, Huawei launched the Smart Classroom 3.0 Solution. This AI-powered solution will benefit students of Ningxia University in China by providing them with high-quality education.

The online learning segment is estimated to grow with the highest CAGR during the forecast period. The growth of this segment is mainly driven by the rising penetration of the internet across the world. Also, the growing adoption of smart gadgets such as smartphones, tablets, laptops, and others for educational purposes, along with several launches of online learning platforms, boosts the growth of the online learning segment, thereby driving the market growth. Moreover, there are several benefits of online learning, such as flexibility, lower cost, personalized education, enhanced time management, and some others are aiding the growth of the higher education market.

• In November 2023, the University of Cambridge collaborated with Cambridge University Press & Assessment, Catalyst IT, and Amazon Web Services. This collaboration is done to launch an online English learning platform for the people of Ukraine.

Course Insights

The undergraduate segment dominated the market in 2023. The growth of this segment is generally driven by the growing number of colleges offering undergraduate courses. Also, an undergraduate degree provides increased access to job opportunities along with personal growth and developed self-esteem that, in turn, boosts market growth. Moreover, the rise in the number of scholarship schemes and educational grants for pursuing bachelor’s degrees is driving the growth of the higher education market.

• In May 2024, the American University of Sharjah (AUS) launched a new undergraduate scholarship program. This scholarship will be provided to talented students from UAE and other countries who want to pursue undergraduate degrees.

The master’s segment is estimated to grow with the highest CAGR during the forecast period. The growth of this segment is driven by the rising preference of students to build credibility and reputation. Also, a master’s degree provides in-depth knowledge of a specific field and helps students gain a high-paying job, which in turn drives market growth. Moreover, the growing number of universities that provide scholarships to pursue master’s degrees is driving the growth of the higher education market.

• In November 2023, the University College London (UCL) launched a scholarship program. This scholarship program will help the top 100 Indian students to pursue a master’s degree in one of the top universities in the U.K.

Revenue Source Insights

The tuition fees segment held the largest market share in the higher education market in 2023. The growth of this segment is generally driven by the rising demand for high-quality studies. Also, the rise in the number of online tutoring services is expected to boost market growth. Moreover, the growing trend of studying in renowned and expensive institutions across the world is also driving the growth of the higher education market.

The grants, contracts, and gifts segment is expected to be the fastest-growing segment during the forecast period. The growth of this segment is generally driven by the rising number of scholarship schemes across the world. Also, the growing application of educational grants to enhance new educational methods, online learning platforms, research activities, and some others is likely to boost the growth of the higher education market.

Institutions Insights

The public segment held the largest market share in 2023 and is expected to continue its dominance during the forecast period. The growth of this segment is generally driven by the rise in a number of government institutions across the world. Also, the rising developments in the state universities, along with the integration of modern facilities in government institutions, are expected to drive market growth. Moreover, the increasing preference for educational degrees obtained from government institutions to secure high-paying jobs is likely to boost the growth of the higher education market. Furthermore, the rise in the number of government initiatives for strengthening state universities and government colleges is driving market growth.

The private segment is expected to grow significantly during the forecast period. The growth of this segment is generally driven by the growing advancements in community colleges.  Also, rising initiatives of private sector entities for enhancing branding and marketing strategies for private colleges boost the growth of the higher education market. The adoption of digital marketing strategies for promoting private institutions, along with the rise in the number of attractive scholarship schemes in private colleges, drives market growth. Moreover, private colleges are equipped with modern facilities to maximize the comfort levels of students, which in turn is expected to boost market growth.

Recent Developments

• In June 2024, OpenAI unveiled ChatGPT Edu. This specialized AI tool is designed for universities to enhance several capabilities, such as document summarization and data analysis, along with code assistance to allow students to have a dynamic and superior learning experience. 
• In May 2024, Stanford University collaborated with the Corporations and Society Initiative (CASI). This collaboration is done to launch a Capitalism and Democracy program to explore the complex interactions among markets, democratic institutions, and private sector entities.
• In February 2024, the University of Tokyo launched an integrated higher education program. This program is a five-year integrated bachelor’s and master's degree program in the stream of sciences and humanities. 
• In January 2024, Oxford University launched the Podium Institute. This institute is inaugurated for research and development of sports medicine and technology.
• In October 2023, Columbia University launched the Institute of Global Politics (IGP). Through this launch, several policymakers and political leaders can develop new solutions for political affairs and train the next generation of political leaders.

Higher Education Market companies

• California Institute of Technology
• Columbia University
• Imperial College London
• Tsinghua University
• Peking University
• The President and Fellows of Harvard College
• The Trustees of Princeton University
• The University of Tokyo
• University of Cape Town
• Massachusetts Institute of Technology
• Stanford University
• University College London, UCL
• University of Oxford
• University of the Andes
• University of Pennsylvania
• Yale University

Segments Covered in the Report

By Learning Mode

• Online
• Offline

By Course

• Undergraduate
• Master's
• PhD

By Institution

• • Public
  • State Universities
  • Government Colleges
  • Others
• Private
  • Private Colleges
  • Community Colleges
  • Others

By Revenue Source

• Tuition Fees
• Grants, Contracts, and Gifts
• Investment Returns
• Others

By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa