The higher education market size attained a value of USD 990.50 Billion in 2025. The market is expected to grow at a CAGR of 19.60% during the forecast period of 2026-2035. By 2035, the market is expected to reach USD 5931.52 Billion.
The adoption of artificial intelligence (AI) is evolving in the higher education market across personalized learning and tutoring, to automating administrative tasks. Where AI-driven tools are analysing the student data to identify learning gaps and help identify specific learning pathways for remediation, and chatbots provide 24/7 access support for admissions, advising, and technical assistance. In April 2025, Anthropic introduced a specialized version of its AI assistant Claude for Education, tailored for colleges and universities. AI technology also creates the potential for development of student engagement, retention, and operational excellence aside from truly transforming education.
Accreditation is complimenting the higher education market trends as it lies in the forefront for quality assurance, institutional legitimacy, and international reputation. In June 2025, a collective of six public university systems in the United States introduced a new accrediting body, the Commission for Public Higher Education, for prioritizing educational outcomes and developing a streamlined public colleges accreditation process. Also, accreditation creates access for public funding, research funding, and opportunities for international partnerships. With the ever-growing education market, accreditation is a key consideration for universities looking to grow reach and maintain status.
Base Year
Historical Period
Forecast Period
The U.S. has over 4,000 degree-granting institutions, including public, private non-profit, and private for-profit colleges and universities.
As per industry reports, there are 54 central universities, 416 state universities, and 306 state private universities in India.
In 2020, there were over 235 million higher education students worldwide, more than double the 100 million students enrolled in 2000.
The student participation rate or the gross enrolment ratio (GER) in higher education has increased to 28.4% in India.
Compound Annual Growth Rate
19.6%
Value in USD Billion
2026-2035
*this image is indicative*
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The higher education industry is increasingly embracing digital technology for transforming teaching, learning, and administration. Universities are adopting learning management systems (LMS) and AI tools to personalize education and improve outcomes. In November 2024, the University of Sydney upgraded to the latest version of Brightspace by incorporating AI-driven features to support student retention and personalized learning experiences. This shift is driven by student demand for convenience and institutions’ need to stay competitive.
The rapid pace of technological and economic change demands continuous skill upgrading, fuelling the importance of lifelong learning. Higher education providers are offering micro-credentials, certificates, and short courses to serve working adults seeking career advancement or transition. In August 2024, Jaro Education introduced industry‑oriented freemium courses for offering bite‑sized, interactive modules and expert‑led e‑certificates for lifelong learners. This trend expands the traditional student demographic, requiring flexible schedules and modular course designs.
Micro-credentials, badges, and certificates are gaining traction in the higher education market as flexible, targeted education options to enable learners to acquire specific skills without committing to lengthy degree programs. Partnerships with employers also legitimize these credentials, enhancing their value. For instance, in March 2025, McDonald’s introduced micro credentials for its employees, with credits transferable to university degrees at Torrens University and UniSA. The proliferation of alternative credentials further challenges traditional degree hierarchies and encourages lifelong learning ecosystems.
Universities are increasingly embedding sustainability and social responsibility into their missions, research, and curricula. Climate change, social justice, and ethical leadership are key themes. Institutions are adopting green campus initiatives, reducing carbon footprints, and promoting sustainable practices. In March 2025, Saudi Arabia’s Imam Mohammed Ibn Saud Islamic University launched a major “green” drive to plant 100,000 trees to support the Kingdom’s Green Initiative. This trend reflects broader societal shifts and impacts institutional reputation and stakeholder relations.
The higher education market outlook is heavily influenced by government policies on funding, accreditation, quality assurance, and access. In April 2025, Namibia’s government announced free tuition and registration at state universities and vocational colleges to drive access and equity effective from 2026. Regulatory frameworks shape institutional autonomy, curriculum standards, and international collaborations. Shifts in policy priorities, such as increased emphasis on STEM or vocational education, drive institutional strategies, further impacting the industry growth.
The EMR’s report titled “Higher Education Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Breakup by Institution
Key Insight: The public segment of the higher education market, comprising state universities and government colleges, plays a dominant role in providing affordable and accessible education. Government colleges, often affiliated with these universities, offer subsidized tuition and standardized curricula, making them especially attractive to middle- and lower-income families. In November 2024, the Indian government approved the PM-Vidyalaxmi scheme to financially support meritorious students, ensuring quality higher education with limited or zero cost. Their scale, government funding, and commitment to equity also ensure they remain central to the higher education ecosystem.
Breakup by Learning Mode
Key Insight: The online higher education market is rapidly growing, driven by increasing internet penetration and demand for flexible learning. Online programs enable working professionals and international students to study without relocation, enhancing enrolment. In June 2025, prominent coastal institutions in Mangaluru, India including MAHE, Yenepoya, and Nitte expanded their online and blended degree higher education programs globally. Technologies, such as AI-driven tutoring and interactive content further enrich learning experiences, contributing significantly to enrolment growth and revenue in the higher education sector.
Breakup by Course
Key Insight: The undergraduate segment is the most dominant in the higher education market, accounting for the highest enrolment globally. These programs serve as entry points for higher learning and career preparation. Institutions witness massive undergraduate enrollment each year. As per the National Center for Education Statistics, the higher education fall enrollment in the United States for 2024-2025 was up 4.5%. Programs range across arts, sciences, engineering, and business for offering degrees, such as BA, BSc, and BTech. The wide appeal, affordability and career relevance make undergraduate courses the foundation of the higher education ecosystem, especially in populous nations.
Breakup by Revenue Source
Key Insight: Tuition fees are a significant revenue source in the higher education market. Public and private universities rely heavily on student payments to fund faculty salaries, infrastructure, and operations. For instance, the University of Southampton generated £730 million in total income during the 2022/23 academic year, with 50% stemming from tuition fees and other teaching-related activity. Even in subsidized systems, international students pay premium rates, increasing institutional revenue. As global demand for degrees rises and online programs expand, tuition fees continue to be a primary financial pillar for higher education institutions globally.
Breakup by Region
Key Insight: North America, particularly the United States, holds a significant share in the higher education market. Renowned institutions including Harvard, which had a total undergraduate enrolment of 7,110 in fall 2023, attract students globally, bolstered by strong research funding, advanced infrastructure, and a wide array of academic programs. The region offers a blend of public and private institutions, with significant international student enrolment contributing to revenue. Online education platforms and partnerships with tech firms further drive innovation in this region.
Private Higher Education to Garner Huge Preference
The private segment of the higher education market offers diverse and flexible education models. Private universities attract students with industry-aligned programs, global campuses, and modern infrastructure. As per industry reports, Indian student enrolment across the United Kingdom surged by 273.9% from 2019 to 2023, driven by the country's top-ranked universities. Private colleges emphasize liberal arts and personalized learning. Though costlier, private institutions appeal to students seeking innovation, niche programs, and international exposure, contributing significantly to market diversity.
Offline Higher Education to Gain Popularity
The offline segment of the higher education industry remains essential, especially in regions valuing campus experience and direct interaction. On-campus facilities, labs, and extracurricular activities foster holistic development. For instance, in May 2025, India’s AICTE introduced 500 online ATAL Faculty Development Programs (FDPs) for 2025–26 for delivering six-day courses in emerging technologies to enhance faculty skills nationwide. The segment also maintains strong presence due to established reputations and cultural preferences for face-to-face learning, particularly in emerging economies with limited digital infrastructure.
Master's & Engineering to Boost the Uptake of Higher Education Courses
The Master’s segment contributes to the higher education market due to growing demand for specialization and career advancement. Professional degrees, like the MBA, MTech, and MSc, are catered to individuals looking to find new leadership roles or change fields altogether. These degrees offer opportunities for significantly higher earnings and degrees are more available and accessible with the internet and online-hybrid degree space. Tech-related master’s programs, such as data science and AI, are particularly popular due to high market relevance. Employers often prefer candidates with advanced degrees for research and managerial roles, making this segment a major driver in global higher education trends.
Engineering remains one of the most sought-after disciplines worldwide, especially in developing economies. Leading institutions dominate global engineering education. As per the Ohio State University, the total College of Engineering enrolment, inclusive of undergraduate as well as graduate students in all campuses surged to 11,906 students in 2024, a 7.2% rise from 2023. These degrees are tied directly to employability in high-growth sectors. With the rise of AI and green technologies, engineering education is rapidly evolving, making it one of the most dominating discipline-specific segments in higher education.
Grants, Contracts, and Gifts & Investment Returns to Compliment Market Growth
Grants, contracts, and philanthropic gifts represent a vital revenue stream of the higher education market. These funds support research, scholarships, and academic programs, especially at research-intensive universities. Several institutions receive large government research grants from agencies, as well as corporate partnerships for innovation projects. These funds are also essential for advancing academic research, infrastructure, and outreach, particularly in high-ranking global universities.
Investment returns play a strategic financial role for well-established universities with large endowments. Institutions invest endowment funds in stocks, real estate, and other assets to generate income. In April 2025, Harvard's endowment, at USD 53.2 billion, became the largest across the world, with over 70% of its portfolio offered to interests in hedge funds. Nonetheless, for elite universities, investment income offers long-term financial security and funding flexibility, complementing tuition and grants.
Europe & Asia Pacific to Witness Significant Higher Education Enrolment
Europe is a major player in the higher education market, with the United Kingdom, Germany, and the Netherlands attracting both domestic and international students. Institutions, such as Oxford, ETH Zurich, and Sciences Po are globally recognized. The Bologna Process has standardized higher education across the European Union (EU), promoting student mobility and academic compatibility. Many European universities offer low or no tuition for domestic and EU students, funded by government subsidies. The region's affordability, research strength, and cultural diversity ensure steady enrolment and global relevance.
Asia Pacific higher education market value is increasing with rapidly expanding access in China, India, Australia, and South Korea. Rising middle-class populations, government investments, and the push for innovation are driving growth. In September 2024, the British Council and the Karnataka Government in India announced four new higher education programs aimed at enhancing skill development, digital learning, and global academic partnerships. With the younger demographics and policy focus on skill development, the region is poised for some serious leadership in the future as a part of the global higher education sector.
Key players in the higher education market are pursuing a variety of strategies to remain competitive and adapt to changing student and workforce expectations. Due to institutional and budgetary constraints, institutions invested significantly in a wide variety of online and hybrid learning options. Institutions provide new flexible and accessible modes of education for new target demographics, such as working professionals or international students considering study in Canada, Australia, or the United Kingdom. Higher education institutions also use targeted internationalization strategies to reach and retain a worldwide talent pool and a more diverse cohort of students.
Addressing personalized learning experiences remains a clear priority across higher education organizations. Institutions are increasingly using data analytics and adaptive learning technologies to provide personalized curriculum and support services that would enhance student engagement and student success. There is also the growing focus by higher education institutions on programs that are career-oriented, or closely aligned with labour market demands such as STEM, Healthcare, and digital skills. Such collaborations with industry via internships, action research projects, and consultation with advisory boards or councils promotes skills and outcomes important to industry.
Fifth, higher education institutions are also expanding their resources and capacity for innovation, through strategic partnerships with edtech organizations, research organizations, institutions, and other college and university partners.
Founded in 2020 and headquartered in Washington, D.C., the United States, Anthology Inc. specializes in education technology solutions by combining student engagement tools and data analytics for improving learning outcomes. Anthology is known for integrating diverse platforms to streamline higher education administration and enhance personalized student experiences.
Established in 1981, Blackbaud is headquartered in Charleston, the United States and provides cloud-based software tailored for nonprofit organizations and educational institutions. Blackbaud is known for its fundraising, and analytics innovations, empowering organizations to increase impact through technology and data-driven decision-making.
Founded in 1998 and headquartered in California, the United States, Google is a global leader in internet services and products. Innovations, such as Google Search, Ads, and Workspace have revolutionized online information access and productivity. Google continues to push boundaries in AI, cloud computing, and digital collaboration tools.
Microsoft, founded in 1975 and based in Redmond, the United States, is a pioneer in software, hardware, and cloud services. Known for Windows OS, Office Suite, and Azure cloud platform, Microsoft drives innovation in AI, enterprise solutions, and education technology, enabling digital transformation worldwide.
Blackbaud, Inc., founded in 1981 and headquartered in South Carolina, United States, is a cloud software company specialising in solutions for social good organissations. Blackbaud's products and services include fundraising and CRM software, marketing solutions, advocacy tools, peer-to-peer fundraising platforms, financial management systems, and analytics services.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the higher education market are Ellucian Company L.P, Oracle Corporation, IBM Corporation, SAP SE, Pearson plc, Dell, Inc, VMware, Inc, Xerox Holdings Corporation, ServiceNow, Inc, Unifyed, Hyland Software, California Institute of Technology, Columbia University, Imperial College London, Massachusetts Institute of Technology, Peking University, Stanford University, Tsinghua University, The President and Fellows of Harvard College, The Trustees of Princeton University, The University of Tokyo, University of Cape Town, University College London, UCL, University of Oxford, University of the Andes, University of Pennsylvania, and Yale University, among others.
Unlock critical insights with our detailed report on higher education market trends 2026. Download your free sample now to explore market dynamics, growth drivers, and future opportunities. Stay ahead in the competitive education sector with Expert Market Research’s trusted analysis and data-driven forecasts. Act today to transform your strategic planning!
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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The market is projected to grow at a CAGR of 19.60% between 2026 and 2035.
The key strategies driving the market include digital transformation through online learning platforms, international student recruitment, partnerships with edtech firms, personalized learning experiences, and emphasis on career-oriented programs. Institutions also focus on data-driven decision-making, hybrid learning models, alumni engagement, and expanding access to underserved populations for sustainable growth.
Key trends aiding market expansion include the advancements in technology, emergence of distance learning, increasing demand for online classes, and changing student and industry expectations.
Regions considered in the market are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.
The major institutions are public, and private.
The key players in the market report include Anthology Inc., Blackbaud, Inc., Google LLC, Microsoft Corporation, Ellucian Company L.P, Oracle Corporation, IBM Corporation, SAP SE, Pearson plc, Dell, Inc, VMware, Inc, Xerox Holdings Corporation, ServiceNow, Inc, Unifyed, Hyland Software, California Institute of Technology, Columbia University, Imperial College London, Massachusetts Institute of Technology, Peking University, Stanford University, Tsinghua University, The President and Fellows of Harvard College, The Trustees of Princeton University, The University of Tokyo, University of Cape Town, University College London, UCL, University of Oxford, University of the Andes, University of Pennsylvania, and Yale University, among others.
North America led the higher education market, largely due to its advanced research, technological advancements, and scientific innovations, which make it increasingly attractive to both domestic and international students.
In 2025, the market reached an approximate value of USD 990.50 Billion.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 5931.52 Billion by 2035.
The undergraduate segment is the most dominant in the market, accounting for the highest enrolment globally.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Institution |
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| Breakup by Learning Mode |
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| Breakup by Course |
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| Breakup by Revenue Source |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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