US Higher Education Market Size Likely to Surpass at a CAGR of 13.24% By 2033

The CMI Team’s most recent market research predicts that from 2024 to 2033, the US higher education market will grow at a CAGR of 13.24%. In 2024, the market size is projected to reach a valuation of USD 218.27 Billion. By 2033, the valuation is anticipated to reach USD 668.33 Billion.

US Higher Education Market: Growth Factors and Dynamics

The Higher Education Market Presents Significant Growth Opportunities Due to Several Factors

• Increasing Demand for High-Quality Education: There is a gradual increase in demand for distinct high-quality educational programs that provide learners with effective teaching, top-notch research practice, and an improved learning environment. Students, educators, and investors seek high-quality higher education institutions; their usage and creation are promoted.

• Rise in Online and Hybrid Learning Models: The trend of turning to net-based and blended classroom learning contributes to the practical concerns of flexibility and openness in education. Combining course delivery with web-based technologies for learning management systems has enhanced institutions’ enrolment and learners’ engagement.

• Technological Advancements: Educational technology is still being upgraded, as can be seen in the e-learning system, the analytical platform with artificial intelligence, virtual training solutions, etc., all of which make higher learning mature in quality and marketability. These innovations interest students and educators, giving students better, individualized tutorials.

• Expansion of Global Education Markets: The rise in transnational education providers and the international education trend are driving up higher education demand. The desire for easy and flexible means through which learners can study at universities beyond their home countries enlarges the market coverage of renowned universities and colleges.

• Growth in Health and Wellness Trends: As knowledge of the impact of mental health and wellness on learning outcomes increases, supportive environments in higher education are becoming more prevalent. Campus facilities providing comprehensive mental health services and strong wellness initiatives benefit a growing population of student consumers.

• Increase in Lifelong Learning and Professional Development: The increased demand for continuing learning and professional improvements leads to new possibilities for HEIs. People spend money on these goals to gain valuable educational experience that will help them succeed in further employment.

• Urbanization and Economic Growth: This is because urbanization and economic growth, especially in developing countries, increase the demand for higher education. These regions have an educated populace that is registering high enrolment in higher education institutions to meet the new emerging market demands in a growing economy and diversified urban human endeavours.

• Increasing Investments in Education and Research: Higher Investment in the education and research sector by governments, private companies, and NGOs increase the market network of higher education institutions. This part of the economy contributes to global market development while creating new educational programs or research projects.

US Higher Education Market: New Partnership

• In July 2024, Atlanta, United States-based Spelman College, an education of women of African descent, signed an agreement establishing a framework for collaboration with three Lagos-based universities: the University of Lagos, Lagos State University, and Pan-Atlantic University. This agreement, signed in recognition of the 50-year Sister Cities partnership between Lagos and Atlanta, aims to deepen U.S Nigeria educational ties and support teaching, research, and student and faculty exchanges, with a focus on women’s education; science, technology, engineering, and mathematics (STEM); and the creative industries.

• In May 2024, the US signed a historic Framework for Cooperation with the Government of Kenya to support new partnerships between universities and industry to drive innovation, research, and job growth in STEM-related fields in Kenya and globally. USAID Counselor Clinton White signed the Enhancing Science, Technology, Engineering, and Math (STEM) Education for Economic Development Framework for Cooperation alongside Kenyan Prime Cabinet Secretary Wycliffe Musalia Mudavadi as part of Kenyan President William Ruto’s State Visit to the US. The signing took place at Spelman College in Atlanta, where representatives of the U.S. and Kenyan governments were gathered to discuss investments in higher education, partnerships in STEM education at the post-high school level, and how science, technology, engineering, and math education can contribute to Kenya’s economic growth.

• In June 2023, A Norwegian vision, transforming higher education with VECOIL partnerships As Norway invests in higher education and initiatives like VECOIL, it moves closer to its goal of having 50% of higher education students participate in study abroad programs by 2030. In Norway’s enchanting fjords and endless summer daylight, educators gather at the Western Norway University of Applied Sciences in Bergen.

Report Scope

US Higher Education Market: COVID-19 Analysis

The higher education sector has a lot to gain and lose due to the COVID-19 pandemic—perhaps more than any other sector. International trade in education and student mobility has been perhaps the most impacted. Restrictions on movement and delays in achieving required visas have paved the way for a reduction in cross-country enrollment, which affects income for many such entities.

Decreased demand also occurred as learning from home became the most practical approach, lessening the requirement for physical amenities such as shelter and food. There were regulatory bottlenecks with alterations in institutional accreditations and the structuring of costs of providing financial assistance, as well as risks related to health safety measures and attention deficiency.

In return, institutions began responding. Digitalization allowed for the incorporation of remote teaching and the retrieval of administrative duties. Such changes sometimes help colleges stay in the market without compromising the lobbying of enrollment recruiting systems and data management. Increased concern regarding sustainability has furthermore initiated eco-campus and green initiatives. In conclusion, the pandemic has reshaped the higher education market, encouraging institutions to innovate and adapt in the face of immediate disruptions and long-term shifts in student and market needs.

List of the prominent players in the US Higher Education Market:

• Massachusetts Institute of Technology (MIT)
• Stanford University
• Harvard University
• California Institute of Technology (Caltech)
• University of Chicago
• Princeton University
• Columbia University
• University of Pennsylvania
• Yale University
• University of California, Berkeley (UC Berkeley)
• University of California Los Angeles (UCLA)
• University of Michigan Ann Arbor
• Johns Hopkins University
• Northwestern University
• New York University (NYU)
• Others

The US Higher Education Market is segmented as follows:

By Institution Type

• Public Universities
• Private Universities
• Community Colleges
• For-Profit Institutions

By Program Type

• Undergraduate Programs
• Graduate Programs
• Certificate and Diploma Programs
• Continuing Education and Professional Development

By Mode of Delivery

• Traditional Classroom-Based Learning
• Online Learning
• Hybrid Learning
• MOOCs (Massive Open Online Courses)