US Education Market Size Likely to Reach at a CAGR of 4.45% By 2034

As per the current market research conducted by the CMI Team, US Education Market size is expected to record a CAGR of 4.45% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 1.34 Trillion. By 2034, the valuation is anticipated to reach USD 1.92 Trillion.

US Education Market: Overview

According to industry experts at CMI, education is the process of acquiring knowledge, skills, beliefs, and habits through various modes of learning, instruction, or experience. It is typically carried out in formal settings such as schools and colleges, but it can also occur informally through self-study, social interactions, and life experiences.

The US education market is being driven by several factor such as growing demand for e-learning, technological advancements, increasing internet penetration and rising government initiatives. However, the inequality in access and quality, teacher shortage and burnout and rigid education structures hamper the industry expansion.

US Education Market: Growth Factors and Dynamics

Increasing partnership

The increasing partnership among educational authorities drives the industry expansion. For instance, in November 2023, the American Council on Education (ACE) and the Institute of International Education (IIE) have announced a new collaboration to co-design programmatic offerings that will address escalating challenges in higher education internationalization while also meeting the evolving internationalization needs of diverse higher education institutions such as historically black colleges and universities, minority-serving institutions, and community colleges.

Rising corporate investment in training

Numerous companies’ dedication to investing much in training is indicative of a significant factor propelling market expansion. According to the Employment and Training Administration’s (ETA) Financial Year 2024 President’s Budget, the Reentry Employment Opportunities program is also expected to get $55 million in funding, for a total of $170 million.

By providing critical workforce development programs to underserved groups facing significant employment barriers, it seeks to increase employment opportunities and reduce recidivism rates.

Additionally, the budget includes $200 million to launch the Sectoral Employment through Career Training for Occupational Readiness (SECTOR) program, which will build and expand industry partnerships, provide comprehensive support, and develop training programs tailored to emerging industries. Therefore, the increasing corporate investment to train the employee is expected to florish the industry expansion.

Shifting demographics

The shifting demographics in the US is one of the major restraining factors for the industry growth as the increasing number of diverse student body. Schools must accommodate children from diverse cultural, linguistic, and socioeconomic backgrounds, which necessitates additional resources, training, and support, which in turn to increase expense. Thus, shifting demographics in the US hamper the industry expansion.

Report Scope