A for effort: Revenue has risen despite reductions to the annual maximum fee movement

The Universities industry has performed modestly over the past five years. This is partially due to revenue growth constraints put in place by the New Zealand Government, which sets an annual maximum fee movement (AMFM) each year for tertiary education institutions. This constrains industry revenue growth. Prior to 2016, the AMFM was capped at 4.0%, meaning that universities could increase their course fees by up to 4% each year. However, the government reduced the AMFM to 3.0% in 2016, with a further reduction to 2.0% announced for 2017 due to persistent low inflation. Consequently, industry revenue is expected to increase at a lacklustre annualised 1.4% over the five years through 2017-18...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • International student enrolments are anticipated to increase over the next five years
  • Industry Report - Starting a New Business Chapter

    Barriers to entry in the Universities industry are high due to high regulation, high market share concentration and significant initial capital costs. A university must meet strict education and research standards for the government to grant it university status, which inhibits the entry of new player. Additionally, the strong and long-standing reputations of the existing universities pose a significant competitive challenge for any prospective entrant.Starting a university requires a large amount of capital to establish sufficient facilities for student learning and accommodation requirements. Sourcing these funds can be difficult, particularly given how challenging it can be to succeed in the industry due to competition from existing players. Ong...purchase to read more.

    Additional Insights for the Universities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Universities 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 Universities industry impact industry performance..

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    What's in this report

    What is the Universities in New Zealand Industry?

    The industry includes accredited tertiary education providers that provide undergraduate and postgraduate teaching, as defined under the Education Act 1989.

    Industry Products
  • Bachelor's degree and other graduate qualifications
  • Other postgraduate qualifications
  • Master's and doctorate degrees
  • Certificates one-through-six
  • Research
  • Industry Activities
  • Postgraduate school operation
  • Research school operation
  • Undergraduate school 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
  • Secondary school retention rate
  • Trade-weighted index

  • Current Performance
  • Annual fee movements
  • Student enrolments
  • Government funding
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Fees and enrolments
  • Workforce challenges
  • Funding dependence
  • Table: Universities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Universities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Scientific Research and Environmental Science Services in New Zealand
  • Consumers in New Zealand

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

  • Products & Services
  • Bachelor's degree and other graduate qualifications
  • Research
  • Master's and doctorate degrees
  • Other postgraduate qualifications
  • Certificates one-through-six
  • Chart: Universities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic students aged 18-25 years
  • Research
  • Domestic students aged over 25
  • International students
  • Chart: Major Market Segmentation for the Universities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Surplus
  • Wages
  • Depreciation
  • Purchases
  • Rent
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Universities

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Universities Industry

  • Industry Globalization
    University of Auckland, University of Otago, Massey University, Victoria University of Wellington, Auckland University of Technology, University of Canterbury,
  • Table: University of Auckland - financial performance
  • Table: University of Otago - financial performance
  • Table: Massey University - financial performance
  • Table: Victoria University of Wellington - financial performance
  • Table: Auckland University of Technology - financial performance
  • Table: University of Canterbury - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Universities 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 Universities Industry
  • 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
    Full-Time Equivalent
  • A measure that equates part-time students to full-time students. Full time students undertaking a full year of study are counted as one unit.
  • International Students
  • Students from overseas that travel to New Zealand for the purpose of study.
  • Student Allowance
  • Government grants that are designed to assist students from low-income backgrounds with living expenses while studying.
  • What Our Customers Say

    Why buy this report?

    The Universities in New Zealand 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 Universities in New Zealand:
    • 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 Universities in New Zealand 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 Universities in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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