Aiming higher: Growing school retention rates have boosted industry demand and revenue

The University and Other Higher Education industry has undergone significant review and reform over the past five years. In 2012, the Federal Government introduced a demand-driven funding model for universities, prompting higher domestic student enrolments over the period. However, uncapping Commonwealth-supported places has significantly increased public expenditure on universities, creating budgetary pressures for the Federal Government. Changes to student visa requirements and a depreciating Australian dollar over the past five years have also caused international enrolments to grow strongly alongside domestic enrolments. Industry revenue is expected to expand at an annualised 2.9% over the five years through 2017-18, to $31.2 billion. This includes an expected 1.1%...read more.

Industry Statistics & Market Size
Revenue
$31bn
Annual Growth 13-18
2.9%
Forecast Growth 18-23
Profit
Employment
127,789
Businesses
44

Industry Threats & Opportunities

  • International and indigenous student enrolment numbers have risen over the past five years
  • The depreciation of the Australian dollar has boosted international enrolments
  • International student enrolments are forecast to remain strong over the next five years
  • Industry Report - Industry Investment Chapter

    The University and Other Higher Education industry exhibits a moderate level of capital intensity. For every dollar invested in capital, an estimated $6.78 is expected to be spent on wages in 2017-18. Highly qualified professors, lecturers and tutors are required to conduct classes with students and perform research. Universities aim to attract and retain effective and well-qualified employees that deliver excellent research outcomes and student results. Consequently, teaching and research positions draw high salaries. Institutions also employ non-academic staff, including general administrative staff, librarians and security guards. The...purchase to read more.

    Additional Insights for the University and Other Higher Education Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the University and Other Higher Education Industry are

  • Use of specialist equipment or facilities
  • Market research and understanding
  • Ability to raise revenue from additional sources
  • IBISWorld analysts also discuss how external factors such as Population aged between 18 and 25 and Public funding for tertiary education in the University and Other Higher Education industry impact industry performance..

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    What's in this report

    What is the University and Other Higher Education Industry?

    The industry comprises accredited education providers mainly engaged in providing undergraduate and postgraduate teaching as defined under the Higher Education Support Act 2003.

    Industry Products
  • Bachelor's degrees
  • Other undergraduate programs
  • Master's degrees
  • Doctoral and other postgraduate degrees
  • Other education courses
  • Research
  • Industry Activities
  • Postgraduate school operation
  • Research school operation
  • Undergraduate school operation
  • University operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Population aged between 18 and 25
  • Public funding for tertiary education
  • Trade-weighted index
  • Secondary school retention rate

  • Current Performance
  • Policy developments
  • International developments
  • Massive Open

    Online Courses

  • Research developments
  • Enrolment trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Education reforms
  • Online courses
  • Staff shortages
  • Enrolment trends
  • Table: University and Other Higher Education Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - University and Other Higher Education Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Scientific Research Services
  • Consumers

  • Key Selling Industries
  • Computer and Computer Peripheral Wholesaling
  • Newspaper and Book Retailing
  • Paper Product Wholesaling

  • Products & Services
  • Bachelor's degrees
  • Master's degrees
  • Research
  • Other undergraduate programs
  • Doctoral and other postgraduate degrees
  • Other education courses
  • Chart: University and Other Higher Education Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic students (other)
  • International students
  • Research markets
  • Domestic students (low SES)
  • Chart: Major Market Segmentation for the University and Other Higher Education Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs University and Other Higher Education

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the University and Other Higher Education Industry

  • Industry Globalization
    University of Sydney, University of Melbourne, Monash University, University of New South Wales, University of Queensland,
  • Table: University of Sydney - financial performance
  • Table: University of Melbourne - financial performance
  • Table: Monash University - financial performance
  • Table: University of New South Wales - financial performance
  • Table: University of Queensland - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the University and Other Higher Education Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the University and Other Higher Education Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fee-Help
  • An interest-free loan facility available to fee-paying undergraduate and postgraduate students in accredited coursework programs.
  • Hecs-Help
  • An interest-free loan available to eligible students enrolled in Commonwealth-supported places.
  • Os-Help
  • A government loan for people taking part in study overseas.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s University and Other Higher Education market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on University and Other Higher Education:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The University and Other Higher Education market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on University and Other Higher Education, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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