With an increasing preference for higher qualifications, TAFE providers have lost market share to universities,
Melbourne, Australia (PRWEB) April 20, 2014
The Technical and Vocational Education and Training industry in Australia has grown over the past five years. Publicly funded vocational education and training (VET) is provided by many institutions, including publicly funded TAFE institutions, universities with TAFE divisions, various government institutions, schools, community providers and private providers. In 2012, 1.9 million people were enrolled in publicly funded VET programs. Most students (about two-thirds of the total) attend courses provided by TAFEs and other government providers, but private sector operators have grown in importance over the past five years. According to IBISWorld industry analyst Lauren Magner, Ttheir share of student enrolments doubled between 2008 and 2012 (to over 28.0%), as state governments pursued an increasingly market-based approach that opened the industry to more non-government operators.”
Over the five years through 2013-14, industry revenue is forecast to grow by an annual rate of 1.9% to reach $9.6 billion. The primary sources of income are government funding and student fees. In the years leading up to 2009-10, income from private sources increased at a much faster rate than government funding. “This was due to increased demand for vocational education following the global financial crisis as higher levels of unemployment prompted many people to upskill,” says Magner. However, a large decline in international student enrolments in the years following 2010 reversed this trend. In addition, government reforms in the higher education industry created more available places in undergraduate programs, and with an increasing preference for higher qualifications, TAFE providers have lost market share to universities. The industry exhibits a lows level of market share concentration with no major players.
Technical and Vocational Education and Training industry revenue is forecast to grow by 1.8% in 2013-14. International enrolments are expected to slowly return to growth as the Australian dollar weakens and conditions for overseas students improve. The continued trend of upskilling will drive enrolment growth over the next five years. However, TAFE institutions are anticipated to face intensifying competition from universities and other higher education providers as the trend towards students seeking higher qualifications persists.
For more information, visit IBISWorld’s Technical and Vocational Education and Training report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes technical and vocational education and training delivered by Registered Training Organisations (RTOs). The RTOs include TAFE institutes, dual-sector institutions, enterprises and other private and community providers.
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
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