The global higher education market is poised for significant growth, with projections indicating a robust CAGR of 19.6% from 2024 to 2032. Key regions driving this growth include North America, Europe, and Asia, each playing a pivotal role in the market's expansion.
Higher Education Market Outlook
In the United States, the higher education landscape is vast, comprising over 4,000 degree-granting institutions, including public, private non-profit, and private for-profit colleges and universities. Similarly, India boasts a substantial number of higher education institutions, with 54 central universities, 416 state universities, and 306 state private universities. Globally, the number of higher education students surpassed 235 million in 2020, more than doubling from 100 million in 2000. In India, the student participation rate or gross enrollment ratio (GER) in higher education has climbed to 28.4%.
Higher Education Market Growth
Higher education encompasses post-secondary education provided by universities, colleges, and various professional schools that award degrees, diplomas, or certificates upon completion. This sector also includes junior colleges, teacher-training schools, and institutes of technology.
Several factors are driving the growth of the higher education market. Technological advancements and rising student enrollment are pivotal. The increasing adoption of digital learning platforms and personal computing devices has significantly contributed to market growth. Government initiatives promoting digital learning and the proliferation of online platforms for mentorship and personal guidance have further accelerated 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 labor.
Key Trends and Developments
Emergence of Distance Learning: Universities and higher-educational institutions are increasingly offering distance courses and programs for various levels and disciplines. A significant percentage of higher education students in the USA now take at least one distance course.
Increasing Demand for Online Classes: Today's learners demand online classes, just-in-time communications, and intuitive experiences that go beyond traditional textbooks. Many students juggle jobs, children, and aging parents, seeking flexibility and cost savings while pursuing their degrees.
Rapid Technological Transformation: Colleges and universities are adopting technological solutions to enhance campus experiences, student success, and productivity outcomes. Leading institutions employ advanced technologies like Dell PowerMax and Dell Precision workstations for data storage, research tools, and student performance analysis.
Focus on Student Wellbeing: Institutions are increasingly prioritizing student wellbeing, recognizing the importance of a holistic educational experience. This trend supports the higher education market expansion by improving the quality of education and creating a supportive learning environment.
Integration of AI and ML in Education: Students today seek agile, insightful, and proactive educational experiences. Companies are offering advanced solutions, such as Oracle Student Cloud powered by AI, to meet these needs, supporting lifelong learning on a single, extensible platform.
Recent Developments
May 2024: The West Bengal Higher Education Council launched an initiative offering free PDF books in English and Bengali to provide accessible educational resources to students.
May 2024: The Tamil Nadu government announced the Moovalur Ramamirtham Ammaiyar scheme, benefiting 2.73 lakh female students with a monthly assistance of Rs 1,000 to support their higher education.
May 2024: The State Higher Secondary Council in West Bengal began uploading PDF versions of HS books for online classes, reflecting a shift towards digital education.
May 2024: OpenAI launched ChatGPT Edu, an AI tool designed for higher education institutions, providing students with free access to AI tools for various educational applications.
Higher Education Industry Segmentation
According to the EMR’s report "Higher Education Market Report and Forecast 2024-2032," the market is segmented as follows:
By Component:
- Solutions
- Services
By Deployment Type:
- On-premises
- Cloud
By Course Type:
- Arts
- Economics
- Engineering
- Law
- Science
- Others
By Vertical:
- State Universities
- Community Colleges
- Private Colleges
By Region:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Higher Education Market Share
State Universities: State universities hold the largest share, driven by their emphasis on academic excellence, research collaborations, and global partnerships. Institutions like the University of California system, the University of Toronto, and the University of Sydney exemplify their impact and reach.
Community Colleges: Known for their affordability and accessibility, community colleges are poised for significant growth. Programs tailored to local economic needs and career-oriented offerings contribute to their appeal. In the United States, there are over 1,000 community colleges.
Private Colleges: Characterized by competitive scholarship programs, flexible admission policies, and strategic marketing, private colleges hold a substantial revenue share. Renowned institutions include Stanford University, the University of Cambridge, and the University of Melbourne.
Deployment Type: The market is segmented into on-premises and cloud deployment. On-premises solutions maintain a significant share due to the need for data control and regulatory compliance, with institutions like Harvard University and Oxford University relying on them to safeguard sensitive information.
Cloud-Based Solutions: Experiencing rapid growth, cloud-based solutions offer scalability and cost-efficiency. Institutions like Stanford University and MIT are adopting cloud services, with companies like Dell EMC, Oracle Corporation, and Adobe, Inc. leading the way.
Leading Providers in the Higher Education Market
Google LLC: Founded in 1998 and headquartered in California, Google is a multinational technology company offering products like Google Search, Google Maps, Google Drive, Gmail, YouTube, Google Ads, Android, and Google Cloud Platform.
Microsoft Corporation: Founded in 1975 and headquartered in Washington, Microsoft is known for its Windows operating system, Microsoft Office suite, Azure cloud services, Xbox gaming consoles, Surface devices, and LinkedIn.
IBM Corporation: Founded in 1911 and headquartered in New York, IBM is a multinational technology and consulting company offering hardware, software, services, and research solutions.
Blackbaud, Inc.: Founded in 1981 and headquartered in South Carolina, Blackbaud specializes in cloud software for social good organizations, offering products like fundraising and CRM software, marketing solutions, advocacy tools, and financial management systems.
Other key players 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.
Higher Education Market Analysis by Region
Europe: Europe leads the global higher education sector with over 19.5 million students, 1.5 million academics, and 500,000 researchers. It boasts 42 of the top 100 universities globally, making it a dominant force in higher education.
USA: The U.S. has the second-largest higher education sector, with 39 of the top 100 universities. The presence of renowned institutions and significant student enrollment drives market growth.
India: India has a substantial higher education market with over 58,000 institutions and 43.3 million students. The country's edtech sector received nearly USD 4.7 billion in investment in 2021. Prestigious institutions like the Indian Institute of Science (IISc) and various IITs are among the global top 500 universities.
The global higher education market is experiencing dynamic growth, driven by technological advancements, increasing enrollment, and significant regional developments. With major players continually innovating and expanding their offerings, the market is set for sustained expansion, meeting the evolving needs of students and institutions worldwide.
