IBISWorld Market Research
Increased demand from domestic students has helped boost industry revenue growth over the past five years.
Melbourne, Australia (PRWEB) October 12, 2014
Operators in the University and Other Higher Education industry in Australia have achieved strong growth over the past five years, largely due to increased demand from domestic students. Industry revenue is expected to grow at an annualised 3.7% over the five years through 2014-15. As universities follow the academic year and report financials for the year ending December, some discussion and tables in this report refer to calendar years, rather than financial years. Universities enrolled an estimated 1.3 million students in 2013, 24.8% of which were international students. According to IBISWorld industry analyst Lauren Magner, “The high Australian dollar has impeded growth in international student enrolments over the past five years.” The industry recorded its first decline in international student numbers in 2011, and this was followed by another fall in 2012. However, a rise in domestic enrolments due to the uncapping of university places, which began in January 2012, has offset the decline in international enrolments. In 2014-15, industry revenue is forecast to grow by 3.0% to reach $28.2 billion.
The University and Other Higher Education industry is undergoing significant reform and will continue to do so. The former federal government set a target of having 40.0% of Australians aged 25 to 34 years attain a bachelor level qualification or higher by 2025. The government removed enrolment caps as of January 2012, with funding structures switching to a demand-driven system. “This is expected to have contributed to a rise in domestic enrolments,” says Magner. Following the change in government in September 2013, a review into the demand-driven model was conducted in early 2014. The industry exhibits low levels of market share concentration. Major players include the University of Melbourne, the University of Sydney, Monash University, the University of Queensland and the University of New South Wales.
The Federal Government has addressed some of the recommendations arising from the review in the 2014-15 Federal Budget, with a number of higher education reforms to be rolled out over the next five years. This includes the removal of maximum student contribution amounts for Commonwealth supported students, allowing universities and other higher education providers to determine the appropriate fees for courses they provide. While it is still uncertain how these institutions will react, IBISWorld expects that student course fees will increase significantly.
For more information, visit IBISWorld’s University and Other Higher Education industry in Australia report page.
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.
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Executive Summary
Key External Drivers
Current Performance
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