Higher Education Market
Report ID: SQMIG25R2024
Report ID: SQMIG25R2024
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Report ID:
SQMIG25R2024 |
Region:
Global |
Published Date: May, 2025
Pages:
197
|Tables:
109
|Figures:
69
Global Higher Education Market size was valued at USD 304.06 Billion in 2024 and is poised to grow from USD 362.14 Billion in 2025 to USD 1466.12 Billion by 2033, growing at a CAGR of 19.1% during the forecast period (2026–2033).
The rising population in countries such as the United States, Canada, the United Kingdom, and India is significantly fueling the demand for higher education institutions. As more individuals seek access to quality education, the capacity of existing institutions is being tested, prompting both expansion and innovation in academic offerings. Simultaneously, the need for global connectivity and collaboration among universities has gained momentum, encouraging cross-border partnerships and international academic programs. This global interconnection is reshaping the landscape of the higher education market, fostering a more inclusive and diversified learning environment.
Moreover, the growing emphasis on lifelong learning and professional development is becoming a key trend, driven by the evolving needs of the workforce and rapid technological advancements. Individuals are increasingly pursuing graduate-level degrees, upskilling opportunities, and short-term workshops or certifications to stay competitive in dynamic job markets. This shift is expanding the higher education portfolio to include flexible learning formats, such as online courses, hybrid models, and micro-credential programs, making education more accessible and tailored to individual career goals.
How is AI Enhancing Higher Education Market in 2024?
AI enables the creation of personalized learning paths for students, tailoring educational content to individual needs. By analyzing student performance data, AI can provide real-time feedback and suggest customized learning resources. This helps address learning gaps and ensures that students' progress at their own pace.
Example (2024): In March 2024, IBM partnered with universities globally to launch AI-powered adaptive learning platforms. These platforms use machine learning algorithms to analyze students' strengths and weaknesses, offering tailored courses and resources that match individual learning preferences. This partnership aims to enhance student engagement and retention rates, particularly in STEM fields. AI is being leveraged to streamline administrative processes in higher education institutions. Tasks such as scheduling, grading, and resource allocation are becoming automated, allowing faculty and staff to focus more on teaching and student interaction.
Market snapshot - 2026-2033
Global Market Size
USD 255.3 billion
Largest Segment
Offline
Fastest Growth
Online
Growth Rate
19.1% CAGR
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Global Higher Education Market is segmented by Component, Deployment Type, Vertical and region. Based on Component, the market is segmented into Solutions and Services. Based on Deployment Type, the market is segmented into On-Premises and Cloud. Based on Vertical, the market is segmented into State Universities, Community Colleges and Private Colleges. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
The public segment accounted for 42% of the global higher education market share in 2024 and is projected to maintain its leading position throughout the forecast period. This dominance is largely driven by the availability of government-sponsored scholarships and financial aid programs, which make higher education more accessible to a broader population. Public institutions, particularly those in politically stable countries like the United States, Canada, and the United Kingdom, continue to attract international students due to their strong academic reputations, stable environments, and global recognition.
As per regional forecast, the private segment of the higher education market is projected to grow at a robust CAGR of approximately 12% between 2025 and 2032. This anticipated growth is largely driven by the flexibility in admission policies that private institutions offer, allowing them to accommodate a wider range of students, including those from non-traditional or diverse academic backgrounds. Such inclusivity positions private colleges as accessible alternatives for learners seeking personalized educational pathways.
As per the global higher education market strategies, the offline segment dominated the market in 2024, accounting for approximately 72% of the total share. Despite the digital shift, traditional classroom-based learning remains highly relevant, particularly due to its structured environment, direct peer interaction, and hands-on experiences. Interestingly, technology is playing an increasingly integral role in enhancing offline education. Leading education providers like Coursera, Inc., Udemy, Inc., and BYJU'S are introducing advanced tools and platforms that integrate seamlessly with in-person learning, making it more accessible, engaging, and cost-effective. Additionally, offline institutions are forging strategic collaborations to co-develop curriculum content and expand offerings, including internships and career placement programs, further fueling the growth of this segment.
As per the global higher education market outlook, the online segment is expected to witness the fastest growth, with a projected CAGR of around 13% from 2025 to 2032. This rapid expansion can be attributed to the flexibility and personalization that online education platforms provide. With a wide array of tailored courses and professional certifications designed to meet individual learning goals and career needs, online platforms are democratizing education. They eliminate geographic and economic barriers, allowing learners across the globe, especially those without access to elite institutions—to pursue high-quality, accredited education from anywhere.
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North America remains a dominant region in the global higher education market. The region is home to many world-renowned universities and institutions, attracting a significant number of international students. Factors like cutting-edge research, diverse course offerings, and high-quality faculty contribute to North America’s strong position. Additionally, the region benefits from strong government support and private sector investment in education. The increasing adoption of online learning and technology-driven platforms also plays a pivotal role in the continued growth and accessibility of higher education in North America.
North America, particularly the United States, holds a dominant position in the global higher education market due to its extensive network of world-renowned universities and research institutions. In the U.S., prestigious universities such as Harvard, MIT, and Stanford continue to attract students from around the world, offering advanced programs and innovative research opportunities. The strong presence of private institutions, alongside public universities, provides students with a diverse range of choices, catering to various educational and career needs. The demand for higher education in the U.S. is also driven by an increasing emphasis on skill development, career-oriented degrees, and the global reputation of American institutions.
In Canada, the education system is known for its high quality and accessibility. Universities like the University of Toronto and the University of British Columbia are internationally recognized, contributing to Canada’s position as a key player in the higher education market. The Canadian government’s focus on international student recruitment, combined with favorable immigration policies, attracts a large number of students to Canadian institutions. The growing higher education market trend of online and hybrid learning, supported by government funding, is enhancing accessibility and making higher education more flexible in the region.
The Asia-Pacific region is experiencing significant higher education market growth, driven by increasing investment in education infrastructure, a rising middle class, and a growing demand for skilled professionals. Countries in this region are increasingly focusing on building world-class universities and adopting innovative teaching methods, including online and hybrid learning models. The region's rapid digitalization and technological advancements also foster growth, with education institutions expanding access to resources, especially through e-learning platforms. As the workforce in countries like China and India grows, demand for higher education continues to rise, prompting institutions to offer a broader range of programs to cater to diverse needs.
Japan, with its rich academic history and world-class institutions such as the University of Tokyo and Kyoto University, continues to attract students from across Asia and beyond. The country's emphasis on technological innovation and research has strengthened its position as a leading player in global higher education. Furthermore, Japan's higher education system is increasingly focusing on international collaboration, offering joint degree programs and exchange opportunities to foster global learning experiences.
South Korea has experienced a significant rise in educational demand, driven by its competitive higher education landscape and globally ranked institutions like Seoul National University and KAIST (Korea Advanced Institute of Science and Technology). The Korean government's investment in education, alongside the country's focus on technology-driven programs, has contributed to the market's growth. South Korea's appeal also lies in its affordable tuition fees compared to other developed nations and its extensive network of international students.
Europe remains a major hub for higher education, with countries such as Germany, the United Kingdom, and Italy offering diverse and globally competitive educational opportunities.
Germany, known for its excellent public universities such as Ludwig Maximilian University of Munich and Heidelberg University, offers low tuition fees, making it an attractive destination for both domestic and international students. The German government’s commitment to offering programs in English, along with a focus on research and innovation, continues to enhance the country’s educational standing on the global stage.
Europe remains a key player in the global higher education market, with a rich tradition of academic excellence. The region is seeing steady demand for higher education, driven by both domestic and international students seeking high-quality academic programs. European universities are also highly regarded for their research output, with many institutions collaborating globally on research and innovation. The rise of cross-border education and international partnerships has bolstered Europe’s position as a major educational hub.
The United Kingdom remains a global leader in higher education, with world-renowned institutions like the University of Oxford, University of Cambridge, and Imperial College London. Despite challenges such as Brexit, the UK has maintained its position as a top destination for higher education due to its high-quality programs, research output, and a large population of international students. The country's flexibility in providing postgraduate and vocational training opportunities further strengthens its position.
Italy offers a rich cultural heritage, and institutions like the University of Bologna and Sapienza University of Rome contribute to its growing prominence in the higher education market. Italy's focus on providing a mix of traditional learning and innovative, research-driven programs attracts a diverse student base, particularly those interested in arts, design, and cultural studies. Affordable tuition fees, alongside Italy's growing international student community, continue to bolster its position in the European higher education landscape.
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Increasing Demand for Skilled Workforce
Government Initiatives and Funding Programs
Rising Tuition Costs and Student Debt
Skill Mismatch and Outdated Curricula
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The global higher education industry is highly competitive, characterized by the presence of both well-established academic institutions and emerging education technology companies. A key example in 2024 is the collaboration between 2U Inc. and Google, announced in February 2024, aimed at expanding access to Google Career Certificates through top-tier universities globally. This initiative reflects the trend of merging traditional degree programs with career-relevant, skill-based training, meeting the evolving demands of the modern workforce.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, institutional evaluations and rankings can also impact enrollment and income figures. Institutions of higher education have become centers for innovation and research. Increasing dependence on technology exposes institutions to risks related to cyber security. Protecting sensitive data and guaranteeing the safety of digital platforms is still a challenge in the world related to the higher education sector. Innovative technologies in the region, such as promoted, mixed and virtual reality (AR, MRI, VR), artificial intelligence (AI) and blockchain, will be integrated into learning, research and governance domains. Institutions in this industry will become more student-centric, customized educational experience, optimized program plan and comprehensive support services.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 304.06 Billion |
| Market size value in 2033 | USD 1466.12 Billion |
| Growth Rate | 19.1% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Higher Education Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Higher Education Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Higher Education Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Higher Education Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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