London, United Kingdom (PRWEB) June 11, 2012
The recession has encouraged a large number of Britons to apply for undergraduate courses in the past three years. However, according to IBISWorld industry analyst Ee Jen Lee, “Universities have struggled to meet growing demand due to tight budgets, putting downward pressure on industry surpluses”. Although the United Kingdom is in recession and the economy is forecast to remain weak for the 2012-13 academic year, there is expected to be lower commencements as the tuition cap was lifted from £3,290 to £9,000 across most of the United Kingdom. However, the near trebling of tuition fees is expected to offset the drop in enrolments. Consequently, over the five years through 2012-13, the Undergraduate Education industry is forecast to grow at an annualised 4.0% to reach £29.9 billion. A significant portion of this growth is attributable to the 5.4% growth expected in 2012-13, due to the substantial rise in tuition fee income.
Over the five years through 2017-18, the industry is forecast to grow as the maximum tuition cap of £9,000 will apply to subsequent commencing students and the students on the old tuition cap will be phased out. This takes into account the lower student commencements in the following years because of the higher student debt. An estimated 90% of undergraduate students are from within the United Kingdom, with the number of international student enrolments rising year on year despite the economic crisis in 2009. “Most of this growth has been due to an influx of students from China”, Lee adds. As China continues to be the engine of global economic growth, international student enrolments are forecast to rise over the next five years, thus boosting the United Kingdom's education exports.
The Undergraduate Education industry has a low level of market share concentration. The Open University is the largest provider of undergraduate education in the United Kingdom. The next two largest institutions are the University of Wales and the University of London. These two universities are in fact federations of smaller colleges, which reflects the fragmented industry. The low level of concentration is typical of the education sector, with institutions distributed in a similar pattern to population and often with the mandate to provide access to all. Furthermore there are limits to the benefits of increased size, with many colleges choosing to remain small and specialise in a certain field or area.
For more information on the Undergraduate Education in the UK industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
The industry includes universities and other institutions that offer courses that lead to the award of first degree or equivalent (ISCED level 5). The first degree is the most common programme of study, but the industry also offers foundation courses, the Professional Graduate Certificate of Education and some professional qualifications. The minimum requirement for admission is a diploma at the upper secondary education level.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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