Colleges & Universities in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS 61131aRevenue
$562.6bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
3m
Businesses
2,327
Wages
$XXX.Xbn
Colleges & Universities in the US industry analysis
Over the past five years, investment returns for private nonprofit universities surged dramatically, largely fueled by booming private equity and hedge fund activity. In 2021, these institutions enjoyed a staggering 684.0% jump in investment returns as a result of robust recovery from the pandemic and manageable interest rates. In contrast, public universities, which typically hold smaller endowments invested more in US equities and fixed-income assets, experienced more modest gains. Meanwhile, inflation and rising interest rates in 2022 reversed the boom for private nonprofits, while public universities' endowments showed resilience, stabilizing returns because of their focus on fixed-income assets. Skyrocketing investment returns bolstered surpluses, but rising wages are have since brought down profit. Revenue has been sinking at a CAGR of 1.7% over the five years through 2024 to an estimated $562.6 billion. Revenue is set to swell 0.9% in 2024 alone.
Trends and Insights
- Revenue skyrocketed in the wake of the pandemic. Significant government stimulus, high corporate profit, rising tuition, staggering investment returns and the enrollment of recent graduates and those who took a gap year pushed revenue through the roof in 2021.
- Bachelor's degrees suffer from a stagnating number of K-12 students graduating from high schools, reducing the number of prospective students moving on to universities.
- Universities concentration follows the population distribution, with the Southeast region containing most public colleges in the country because of its large share of the population.
- Merger and acquisition activities are uncommon since each university values its own culture. Universities in this industry are also nonprofit, so they don't buy out competing schools.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.7 % over the past five years, to reach an estimated $562.6bn in 2024.
Trends and Insights
Investment returns skyrocketed but are being consumed
- Booming private equity and hedge fund activity pushed investment returns through the roof in 2021, primarily for private nonprofit universities. Private nonprofit schools' endowments are significantly higher than public schools and can reach upward of $1.0 billion in value. A strong recovery from the onset of the pandemic, paired with manageable interest rates, ushered in a staggering 684.0% jump in investment returns for private universities in 2021.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Competition with trade schools will heat up
- While the federal government has taken steps to reduce student loans, rising tuition will cause some students to choose more affordable options, like community colleges and trade schools.
Biggest companies in the Colleges & Universities in the US
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 | Profit ($short_0)
2024 | Profit Margin (%)
2024 |
|---|
There are no companies that hold a large enough market share in the Colleges & Universities in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Colleges & Universities in the US
Products & Services
Industry revenue is measured across several distinct product and services lines, including Bachelor's degrees, Master's degrees and Doctor's degrees. Bachelor's degrees is the largest segment of the Colleges & Universities in the US.
Trends and Insights
Bachelor's degrees suffer from a stagnating high school retention rate
- Undergraduate courses taught at the bachelor's degree level typically require four years of full-time study. To qualify for admission, schools require students to hold a high school diploma or pass the General Educational Development test. The high school retention rate has stagnated since 2019, leading to a continued contraction in the potential student base for universities.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Community Colleges in the US
- Trade & Technical Schools in the US
- Fine Arts Schools in the US
- For-Profit Universities in the US
Complementors
- There are no industries to display.
International industries
- Colleges & Universities in Canada
- University and Other Higher Education in Australia
- Universities in New Zealand
- Universities in the UK
- Third-Level Education in Ireland
Table of Contents
About this industry
Industry definition
This industry includes public and private universities and colleges that offer academic courses and grant baccalaureate or graduate degrees. The requirement for admission is a high school diploma or equivalent general academic training. Instruction is typically provided on physical campuses, although online education and other unorthodox settings are gaining popularity. This industry does not include for-profit institutions or community colleges.
What's included in this industry?
Providing higher education at colleges (except community colleges)Providing higher education at universitiesProviding higher education at theological seminaries offering baccalaureate or graduate degreesProviding higher education at professional schools, such as business administration, dental, law and medicalProviding higher education at college level military academiesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
TITLE IV PROGRAMSENDOWMENTGENERAL EDUCATIONAL DEVELOPMENT (GED)MASSIVE OPEN ONLINE COURSE (MOOC)Industry Code
NAICS 611310 - Colleges & Universities in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Revenue skyrocketed in the wake of the pandemic. Significant government stimulus, high corporate profit, rising tuition, staggering investment returns and the enrollment of r...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Bachelor's degrees suffer from a stagnating number of K-12 students graduating from high schools, reducing the number of prospective students moving on to universities.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Universities concentration follows the population distribution, with the Southeast region containing most public colleges in the country because of its large share of the popu...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Merger and acquisition activities are uncommon since each university values its own culture. Universities in this industry are also nonprofit, so they don't buy out competing...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no major companies. Education needs vary widely and are very localized, making it nearly impossible for any one school to control a significant share of the industr...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Steady sources of government funding help universities to continue running, even when they're losing money. Schools in this industry don't operate for profit, so they also en...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The performance of the equity market influences universities' endowment funds. Universities sometimes lose money when the stock market performs poorly. Private nonprofit scho...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Colleges & Universities in the US industry in United States in 2024?
The market size of the Colleges & Universities in the US industry in United States is $562.6bn in 2024.
How many businesses are there in the Colleges & Universities in the US industry in 2024?
There are 2,327 businesses in the Colleges & Universities in the US industry in United States, which has declined at a CAGR of 0.2 % between 2019 and 2024.
Has the Colleges & Universities in the US industry in United States grown or declined over the past 5 years?
The market size of the Colleges & Universities in the US industry in United States has been declining at a CAGR of 1.7 % between 2019 and 2024.
What is the forecast growth of the Colleges & Universities in the US industry in United States over the next 5 years?
Over the next five years, the Colleges & Universities in the US industry in United States is expected to grow.
What does the Colleges & Universities in the US in United States include?
Providing higher education at colleges (except community colleges) and Providing higher education at universities are part of the Colleges & Universities in the US industry.
How competitive is the Colleges & Universities in the US industry in United States?
The level of competition is moderate and increasing in the Colleges & Universities in the US industry in United States.
