The recovering economy and increased globalization will strengthen industry growth.
Los Angeles, CA (PRWEB) August 16, 2013
In today's increasingly globalized world, strong intercultural relationships are more vital than ever before. This characteristic is particularly evident in the rising popularity of student exchange programs that spark college and high school students' thirst for traveling, learning new languages and diving into different cultures. More students are taking advantage of study abroad programs that not only expand their knowledge of another culture and language, but also equip them with a competitive edge in the workplace. “Demand for student exchange program services has also been underpinned by international student numbers that have trended upward over the past five years thanks to government streamlining of student visa policies, college recruitment and the depreciated US dollar,” says IBISWorld industry analyst Anna Son. “As a result of growing demand, the Student Exchange Program Services industry has recorded strong growth over the five years to 2013.” During the period, IBISWorld expects that industry revenue will grow at an average annual rate of 4.0% to $1.6 billion, including a 4.4% rise in 2013.
A growing interest of American students to study in "nontraditional countries" has further contributed to the steady growth in demand for the Student Exchange Program Services industry. “In the past, the majority of students gravitated toward studying in Western Europe,” adds Son. “Countries in Latin America, Asia, Africa and the Middle East are viewed as nontraditional destinations. However, the rapid growth of emerging markets with their thriving economies, growing population and emphasis on higher education is spurring interest in exploring these countries.”
The industry is highly fragmented, and its market share concentration is low. Most exchange programs are based within educational institutions that do not disclose their finances; therefore, estimating their market share is difficult. There are also many small-scale exchange programs that run on a regional basis and only serve their particular location. Over the five years to 2013, market share concentration has not changed much and remains relatively constant. While the Institute for International Education and Rotary Clubs of America have a large presence, each establishment operates individually on a regional, district and international level.
Although budget cuts hindered capacity growth and reduced enrollment numbers for many services, the recovering economy and globalization trends will support industry growth over the next five years. College enrollment will continue to expand, and international student growth will persist, driven by high demand from China and India. The industry will continue to make productivity gains, spurred by rising competition. Additionally, the increased use of technology, such as the internet and computerized reservation systems, coupled with improvements in back-office administration, will help reduce operating expenses and improve operators' profit margins. For more information, visit IBISWorld’s Student Exchange Program Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides educational and cultural opportunities for high school and university students to live, study and work abroad. Most exchange programs are either conducted through government organizations or private organizations.
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