Global Higher Education Market Size By Application (Undergraduate, Master’s, PhD) Institution Type (State (Public) Institution, Private (Non-Public) Institution) Mode of Education (Offline, Online) and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030

Market Perspective

Global Higher Education Market size was worth around USD 506.54 billion in 2022 and is anticipated to grow to around USD 860.11 billion by 2030 at a CAGR of around 7.03% between 2023 - 2030.

The higher education market refers to the sector encompassing educational institutions, platforms, and services that provide post-secondary education and training. Internationalization and Global Mobility are key drivers fueling the growth of this market. With the rise of globalization and the desire for diverse educational experiences, more students are seeking opportunities to study abroad or participate in international exchange programs. This trend is driven by the need to develop cross-cultural competencies and gain a global perspective, which enhances their employability in an interconnected world. Internationalization in higher education opens doors for students to access educational opportunities beyond their home countries, facilitating the exchange of knowledge and fostering a more interconnected and culturally diverse learning environment. As a result, the higher education market is experiencing growth due to the increasing demand for international educational experiences and the benefits they bring to the personal and professional development of students.

Key Insights

• Based on application, the undergraduate segment held the dominating position with a market value of USD 287.17 billion in 2022
• Based on institution type, the state (public) institutions segment is expected to generate the largest share of 54.57% by the end of the forecast period
• Based on mode of education, the offline education segment dominated the market, with the largest industry share of 77.14% in 2022
• On the basis of region, Asia-Pacific is expected to generate the highest revenue of USD 424.88 billion by 2030

Skills Gap and Workforce Demands Drive the Market Growth

Due to the rising competition in the job market, the skills required by employers are constantly evolving due to technological advancements and shifting industry demands. This has created a skills gap, where employers struggle to find qualified candidates with the necessary expertise. Higher education institutions have emerged as crucial players in bridging this gap by providing relevant and specialized education. They understand the need for graduates who possess the skills and knowledge that employers demand. To meet these evolving demands, these institutions are adapting their curriculum and programs to align with the changing workforce landscape. By offering industry-relevant courses, internships, and experiential learning opportunities, higher education institutions are equipping students with the skills required to succeed in the job market. This driver of the skills gap and workforce demands is fueling the growth of the higher education market as it strives to produce job-ready graduates who can meet the evolving needs of employers.

Regulatory and Accreditation Challenges Impede Market Growth

The growth of the higher education market is being hindered by regulatory and accreditation challenges. Stringent government rules, quality standards, and accreditation processes make it difficult for educational institutions to comply, requiring valuable resources and time. These requirements can be complicated and may take attention away from core educational activities, posing obstacles to innovation and flexibility. Institutions may struggle to experiment with different teaching methods, curriculum designs, and educational approaches, which can limit their ability to adjust quickly to the ever-changing educational landscape.

Recent Developments

May 2023: Massachusetts Institute of Technology (MIT) launched a new partnership called Catalyst for Global Impact to expand opportunities for its community and enhance the impact of its work around the world. The initiative included multiple programs and resources aimed at supporting students seeking higher education, faculty, and alumni in their efforts to create actionable, scalable, and sustainable solutions to global challenges. The partnership also included collaborations with industry, government, and other academic institutions to drive innovation and impact.

April 2023: Harvard University and Massachusetts Institute of Technology launched a new nonprofit organization called College Access Now, aimed at increasing college access for students from underserved communities. The organization will provide resources and support to help prepare students for higher education, including mentoring, tutoring, and college application assistance. It will also work to expand access to online courses and other educational resources to students who may not have the opportunity to access them.

Segmentation Analysis

Based on application, the market is segmented into undergraduate, master’s, and Ph.D. The undergraduate segment is dominating the market with a share of 56.69% in 2022. This dominance can be attributed to its large student population and increasing demand for bachelor's degrees. Many individuals opt for undergraduate programs to gain foundational knowledge and skills, making it the most preferred segment in the higher education market. The accessibility and affordability of undergraduate programs attract a significant number of students, contributing to its dominant position in the market.

Based on institution type, the market is bifurcated into state (public) institutions and private (non-public) institutions. The state (public) institutions segment is dominating the market and is expected to generate the highest revenue of USD 4.69 billion by 2030. This growth is due to its wide accessibility and comparatively lower tuition fees. Public institutions receive government funding, making education more affordable for students. Their established reputation and comprehensive programs attract a significant number of students, making them a primary revenue driver in the higher education market.

Based on the mode of education, the market is bifurcated into offline education and online education. The online education segment is expected to grow with the highest CAGR of 7.87% over the review period due to increasing internet penetration, technological advancements, and the growing demand for flexible and accessible learning options. Online platforms offer diverse courses and degrees, attracting learners worldwide, making it a key driver for the rapid growth of the segment.

Asia-Pacific is the Dominating Region Owing to the Widespread Adoption of Higher Education

Asia-Pacific is the dominating region in the global higher education market with a valuation of USD 231.49 billion in 2022 owing to its significant population and rising demand for quality education. The region houses some of the world's fastest-growing economies and technological hubs, attracting students seeking diverse educational opportunities. Asia-Pacific's focus on science, technology, engineering, and mathematics (STEM) fields, along with advancements in online learning, contributes to its prominence. Moreover, the region's cultural diversity and favorable policies for international students enhance its appeal, solidifying its leading position in the higher education market.

North America is the Second Fastest Growing Region in the Market

North America emerges as the second fastest-growing region in the global higher education market during the forecast period. With a strong emphasis on research, innovation, and advanced learning technologies, the region is slated to experience a CAGR of 6.77% through the assessment timeline. Factors such as the highly developed infrastructure, quality educational institutions, and diverse course offerings contribute to its rapid growth. Additionally, North America's commitment to fostering a knowledge-driven economy fuels the increasing demand for higher education in the region.

Competitive Landscape

The global higher education market is fragmented with key players such as Massachusetts Institute of Technology, Stanford University, University of Oxford, Harvard University, University of Cambridge, California Institute of Technology, Princeton University, Yale University, Imperial College London, University of Chicago, 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.

The global higher education market is segmented as follows:

By Application

• Undergraduate
• Master’s
• PhD

By Institution Type

• State (Public) Institution
• Private (Non-Public) Institution

By Mode of Education

• Offline
• Online

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • South Africa
  • North America
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America