University and Other Higher Education in Australia - Industry Market Research Report

Falling behind: Border closures reduced international student enrolments, downgrading revenue

Challenging operating conditions have caused significant changes within the University and Other Higher Education industry. Notably, the COVID-19 outbreak prompted a large shift in the industry's demand and delivery methods. Social distancing requirements and operational constraints after the outbreak caused most universities and higher education providers to pivot to online delivery methods, and remote and multimodal learning models have remained in its aftermath. Students are increasingly seeking the convenience of online learning, and these delivery methods also pose benefits to universities.

Despite benefits in terms of operational costs and staffing numbers, the COVID-19 outbreak's associated border restrictions meant that international student numbers took a significant hit. Many international students returned to their home countries and deferred their studies, constraining industry surplus and dampening revenue. Controversies surrounding casualisation and wage underpayments have also negatively influenced demand conditions for universities and higher education institutions. Overall, revenue has dropped at an annualised 1.9% to an expected $37.1 billion over the five years through 2023-24.

This trend includes a drop of 0.3% in the current year, as comparatively weak demand conditions have cut into revenue and surplus. The industry comprises accredited education providers that mainly provide undergraduate and postgraduate teaching as defined under the Higher Education Support Act 2003. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.