Upskilling has increasingly become part of the Australian education culture
Melbourne, Australia (PRWEB) September 16, 2012
IBISWorld estimates revenue for the University and Other Higher Education industry will expand at an annualised rate of 2.9% over the five years through 2012-13. The high Australian dollar has impeded international student enrolment growth. The industry recorded its first decline in international student numbers in 2012 and IBISWorld expects another decline to follow in 2012-13. However, the uncapping of university places starting January 2012 has enabled universities to increase enrolments. The Commonwealth Grants Scheme will match the rise in student numbers. Thus, despite a projected reduction in international student numbers, the rise in domestic enrolments is expected to stem the decline in revenue. According to IBISWorld Industry analyst Ee Jen Lee, “in 2012-13, the industry is forecast to grow 1.4% from the previous year to $26 billion”. The postgraduate market has been growing faster than the undergraduate market over the last five years, suggesting that upskilling has increasingly become part of the Australian education culture. Higher education is undoubtedly in-trend.
The industry will continue to undergo significant reform. In order to meet Federal Government's policy target of 40% of 25-34 year olds holding a bachelor's degree by 2025, new legislation has been passed. The most pertinent change will be the removal of enrolment caps from 2012 as the funding structure switches over to a demand driven funding system. “Universities will be more responsive to student demand and consequently, university enrolments are anticipated to rise”, says Lee. Following the 2008 Bradley Review of Higher Education, several other reviews have followed. These all aim to maintain the competitiveness of Australia's highest education sector, which is also Australia's third-largest export industry. Reviews on student income support, regional funding for universities, international student visas and base funding will form the framework for changes in the higher education sector in the coming years. Considering these factors, industry revenue is forecast grow over the next five years.
The University and Other Higher Education industry displays moderately low market share concentration. Changes are expected over the coming years, as the Federal Government embarks on reform measures. The demand driven funding system that was discussed in the Bradley Review is likely boost enrolment numbers in some universities while some may decline depending on how a university chooses to deal with cost pressures under the demand driven funding system. Several university leaders have stated that institutions will need to specialise and merge to remain competitive. The four largest players in the industry are Monash University, University of Melbourne, University of Sydney, and University of New South Wales.
For more information, visit IBISWorld’s University and Other Higher Education report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
The industry comprises accredited providers of university undergraduate or postgraduate teaching and research. The industry also includes colleges of education, which offer advanced level courses.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.