Thirst for knowledge: Increased enrolment numbers have aided industry revenue growth

The University and Other Higher Education industry has undergone significant review and reform over the past five years. In 2012, the Federal Government removed enrolment caps for universities and introduced a demand-driven system, enabling industry operators to offer a higher number of places for most degrees, boosting domestic student enrolments during the first half of the period. The uncapping Commonwealth-supported places under the Commonwealth Grants Scheme has significantly increased public expenditure on universities, creating budgetary pressures for the Federal Government. In 2017, government funding for bachelor courses was capped at 2017 levels, with this cap remaining in place for the 2018 and 2019 calendar years, limiting growth in funding over the past two years...read more.

Industry Statistics & Market Size
Revenue
$34bn
Annual Growth 14-19
3.7%
Forecast Growth 19-24
Profit
Employment
136,639
Businesses
43

Industry Threats & Opportunities

  • Changes to government funding for higher education and research have slowed industry expansion
  • The depreciating Australian dollar has boosted international enrolments over the period
  • Changes to government funding for bachelor’s courses are forecast to constrain revenue growth
  • Industry Report - Industry Investment Chapter

    The industry has low capital intensity. For every dollar invested in wages, an estimated $0.11 is expected to be spent on capital costs in 2018-19. Highly qualified professors, lecturers and tutors are required to teach classes and conduct research. Universities aim to attract and retain effective and well-qualified staff 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. Players have implemented strategies to reduce costs over the period, including wages expenses. The...purchase to read more.

    Additional Insights for the University and Other Higher Education Industry

    IBISWorld has determined the most important Key Success Factors for the University and Other Higher Education 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 that mainly provide 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
  • 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
  • Newsagents and Book Retailers
  • Paper Product Wholesaling

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

  • Demand Determinants
    Major Markets
  • Domestic students
  • International students
  • Research and consulting 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
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the University and Other Higher Education Industry

  • Industry Globalization
    Monash University, University of Melbourne, University of Sydney, University of New South Wales, University of Queensland,
  • Table: Monash University - financial performance
  • Table: University of Melbourne - financial performance
  • Table: University of Sydney - 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • 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?

    The University and Other Higher Education market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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
    • Quickly build competitive intelligence
    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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