Higher Education Market Report 2026

The higher education market size has grown strongly in recent years. It will grow from $748.45 billion in 2025 to $822.63 billion in 2026 at a compound annual growth rate (CAGR) of 9.9%. The growth in the historic period can be attributed to expansion of global student enrollment rates, increasing government investment in education infrastructure, rising demand for specialized professional education, growth of private higher education institutions, wider adoption of digital education platforms.

The higher education market size is expected to see rapid growth in the next few years. It will grow to $1204.78 billion in 2030 at a compound annual growth rate (CAGR) of 10%. The growth in the forecast period can be attributed to increasing focus on lifelong learning programs, rising demand for skill-based and industry-aligned courses, expansion of cross-border online education, growing adoption of immersive learning technologies, increasing use of analytics for academic outcomes. Major trends in the forecast period include increasing adoption of online and hybrid learning models, rising use of ai-based personalized learning platforms, growing deployment of learning management systems, expansion of virtual and immersive learning environments, enhanced focus on data-driven student performance analytics.

The expansion of international student mobility is anticipated to drive growth in the higher education market. International student mobility involves individuals crossing borders for educational purposes, contributing to the diversity and global reach of higher education institutions. As of November 2023, data from the Institute of International Education Inc. indicates a significant increase in international student enrollment in American higher education institutions, with over 1,057,188 students from 210 countries during the 2022/23 academic year, marking a 12% rise from the previous year. This trend underscores the pivotal role of international student mobility in shaping the higher education landscape.

Leading companies in the higher education sector are leveraging innovative technologies, including AI tools, to enhance teaching and learning experiences. AI tools harness artificial intelligence capabilities to perform tasks traditionally requiring human intelligence, such as problem-solving and decision-making. For instance, in August 2023, OpenAI introduced an advanced version of ChatGPT, a powerful tool poised to revolutionize the learning environment in universities. ChatGPT holds promise for personalized learning experiences, research assistance, automated grading, and enhanced student services. Its integration into higher education represents a shift towards more adaptable and interactive learning environments, placing greater emphasis on student-centered approaches. While the adoption of ChatGPT in higher education continues to evolve, ongoing evaluation and discussions focus on ensuring its ethical and effective implementation across campuses.

In October 2025, Encoura LLC, a U.S.-based educational technology and research organization, acquired Ruffalo Noel Levitz (RNL) for an undisclosed amount. Through this acquisition, Encoura aims to expand and integrate its solutions to support the full student lifecycle, spanning enrollment marketing and recruitment to student success and alumni fundraising. Ruffalo Noel Levitz LLC is a U.S.-based provider of higher education services, specializing in strategic enrollment management, student retention, and institutional fundraising solutions for colleges and universities.

Major companies operating in the higher education market report are Verizon Communications Inc., Dell Technologies Inc., Panasonic Corporation, The International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Adobe Inc., VMware Inc., ServiceNow Inc., Xerox Holdings Corporation, Pearson plc, Educomp Solutions Limited, New Oriental Education & Technology Group Inc., Bright Horizons, Blackbaud Inc., Ellucian Company L.P., Coursera Inc., Instructure Inc., Desire2Learn Inc., Smart Technologies Inc., Anthology Inc., Leverage Edu, SAP SE, Unit4 Education Solutions

North America was the largest region in the higher education market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the higher education market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the higher education market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The higher education market includes revenues earned by entities by providing services such as academic programs, student support services, research opportunities, library and information resources, and extracurricular activities. The market value includes the value of related goods sold by the service provider or included within the service offering. The higher education market also includes sales of projectors, laptops, tablets, science labs, and research equipment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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