University and Other Higher Education in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: June 2024
ANZSIC P8102Revenue
$38.9bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
130k
Businesses
42
Wages
$XX.Xbn
University and Other Higher Education in Australia industry analysis
The University and Other Higher Education industry is grappling with the post-pandemic landscape. The COVID-19 outbreak prompted a large shift in the industry's demand and delivery methods. Social distancing requirements and operational constraints caused most universities to pivot to online delivery methods. These have remained embedded into teaching post-pandemic, providing convenience for students and profitability benefits for universities. Although international student numbers are rebounding, enrolments still remain below pre-pandemic benchmarks. A heightened focus on research during the pandemic offset revenue lost from declines in tuition fees. Although private-sector research funding has waned post-pandemic, federal funding continues to rise, particularly for health and medical research.
Trends and Insights
- Increased government funding and favourable economic influences have assisted the industry's post-pandemic recovery. However, staff underpayment controversies have strained industry relations and university reputations.
- A rising population of 18- to 25-year-olds in Australia has led to domestic students making up a larger share of revenue. Although international student demand is recovering post-pandemic, it remains below pre-pandemic levels.
- Australia's major metropolitan areas in Queensland, Victoria and New South Wales house most universities and higher education institutions. Many major universities have also expanded, building multiple campuses across metropolitan and rural locations.
- A preference for convenience among domestic students restricts market share concentration among Australian universities. The top revenue-earning universities, despite having expanded in the past five years, only account for just over 30.0% of total revenue.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.9 % over the past five years, to reach an estimated $38.9bn in 2024.
Trends and Insights
International student numbers and enrolments are recovering following pandemic struggles
- Domestic students can access assistance measures like the Higher Education Loan Program (HELP). The government subsidises Commonwealth-supported students by paying some of their tuition and students pay a student contribution. Students can defer payments until their annual income reaches the compulsory repayment threshold, which is $51,550 in 2023-24.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The industry will benefit from changing labour market conditions
- The outlook for the University and Other Higher Education industry over the next five years appears optimistic, underpinned by demographic trends and pressures from the employment market. Higher enrolments are forecast, particularly as the population of Australians aged 18 to 25 is set to expand.
Biggest companies in the University and Other Higher Education in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
University of Melbourne | 3,326.3 | |
Monash University | 3,163.6 | |
University of Sydney | 3,142.6 |
To view the market share and analysis for all 9 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Bachelor's degrees, Master's degrees and Research. Bachelor's degrees is the largest segment of the University and Other Higher Education in Australia.
Trends and Insights
Returning international students have supported growth bachelor’s degrees’ revenue share
- Traditional undergraduate bachelor's degrees involve three or four years of full-time study. Four-year programs often allow students to graduate with a double degree in two disciplines.
- More insights available in the full report
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Competitors
- Technical and Vocational Education and Training in Australia
- Art and Non-Vocational Education in Australia
Complementors
- Private Schools in Australia
- Government Schools in Australia
International industries
- Community Colleges in the US
- Colleges & Universities in the US
- For-Profit Universities in the US
- Colleges & Universities in Canada
- Universities in New Zealand
Table of Contents
About this industry
Industry definition
The industry comprises accredited education providers in Australia that provide undergraduate and postgraduate qualifications as defined under the Higher Education Support Act 2003.
What's included in this industry?
Bachelor's degreesOther undergraduate programsMaster's degreesDoctoral and other postgraduate programsNon-award and enabling coursesResearchCompanies
University of MelbourneMonash UniversityUniversity of SydneyPurchase this report to view all 9 major companies in this industry.
Related Terms
HECS-HELPFEE-HELPOS-HELPIndustry Code
ANZSIC 8102 - University and Other Higher Education in Australia
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
Increased government funding and favourable economic influences have assisted the industry's post-pandemic recovery. However, staff underpayment controversies have strained i...
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
A rising population of 18- to 25-year-olds in Australia has led to domestic students making up a larger share of revenue. Although international student demand is recovering ...
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
Australia's major metropolitan areas in Queensland, Victoria and New South Wales house most universities and higher education institutions. Many major universities have also ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, 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
A preference for convenience among domestic students restricts market share concentration among Australian universities. The top revenue-earning universities, despite having ...
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
The University of Sydney is investing more in research. In April 2024, the university received government funding to establish Quantum Australia, a new national centre for qu...
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
- Overview of University of Melbourne's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Monash University's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of University of Sydney's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 6 additional companies
Detailed analysis
- Description and key data for University of Melbourne, and factors influencing its performance in the industry
- Description and key data for Monash University, and factors influencing its performance in the industry
- Description and key data for University of Sydney, and factors influencing its performance in the industry
- Description, key data and performance trends for 6 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Public sector support includes tuition subsidies and assistance from the Commonwealth Grant Scheme and the Higher Education Loan Program. Private sector support comes from Un...
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 industry’s profitability fluctuated during the pandemic, with a sharp decline in 2019-20. While online course delivery helped universities cut back on expenses during 202...
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
- 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 Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments 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 University and Other Higher Education industry in Australia in 2024?
The market size of the University and Other Higher Education industry in Australia is $38.9bn in 2024.
How many businesses are there in the University and Other Higher Education in Australia industry in 2024?
There are 42 businesses in the University and Other Higher Education industry in Australia, which has declined at a CAGR of 0.5 % between 2019 and 2024.
Has the University and Other Higher Education industry in Australia grown or declined over the past 5 years?
The market size of the University and Other Higher Education industry in Australia has been declining at a CAGR of 0.9 % between 2019 and 2024.
What is the forecast growth of the University and Other Higher Education industry in Australia over the next 5 years?
Over the next five years, the University and Other Higher Education industry in Australia is expected to grow.
What are the biggest companies in the University and Other Higher Education market in Australia?
The biggest companies operating in the University and Other Higher Education market in Australia are University of Melbourne, Monash University and University of Sydney
What does the University and Other Higher Education in Australia include?
Bachelor's degrees and Other undergraduate programs are part of the University and Other Higher Education industry.
Which companies have the highest market share in the University and Other Higher Education in Australia?
The company holding the most market share in Australia is University of Melbourne.
How competitive is the University and Other Higher Education industry in Australia?
The level of competition is moderate and steady in the University and Other Higher Education industry in Australia.
