Community Colleges in the US Industry Market Research Report Now Available from IBISWorld

Share Article

Constrained state funding will limit growth of junior colleges; however, revenue will grow steadily in the next five years. In particular, the industry will rely on tuition increases and federal funding growth. Also, increased globalization will lead institutions to provide more distance learning programs, providing an opportunity for future industry growth. For these reasons, industry research firm IBISWorld has updated its report on Community Colleges industry.

IBISWorld Market Research

IBISWorld Market Research

Rising tuition and private sector growth will aid demand, despite state funding constraints.

The Community Colleges industry provides postsecondary education services to individuals seeking associate degrees, vocational and technical training and preparation for four-year universities. “Despite low government funding for universities,” says IBISWorld industry analyst David Yang, “the industry exhibited modest growth over the past five years thanks to strong labor market demand for technical training.” High tuition in the competing Colleges and Universities (IBISWorld report 61131a) and For-Profit Universities (IBISWorld report 61131b) industries also increased demand for less-expensive community colleges. The high school retention rate slowly increased, which further increased demand for postsecondary education. As a result of these factors, IBISWorld estimates that industry revenue will grow at an annualized rate of 0.8% in the five years to 2012. However, industry revenue is expected to decline 4.2% to $60.8 billion in 2012 due to particularly low government funding.

Over the past five years, the high unemployment rate caused individuals to seek higher education to improve employment prospects. Downstream demand is especially high for technical training in healthcare, electrical work and other skilled professions. Public four-year institutions were unable to support the demand for education due to low government funding, which caused students turn to community colleges. However, operators in the Community Colleges industry also had difficulty meeting the demand for postsecondary education for similar reasons. As a result, “many students have turned to for-profit institutions for increased flexibility and course availability,” Yang says. Online education growth also helped industry institutions expand enrollment and course offerings.

In the five years to 2017, the industry is projected to return to growth due to increased government funding. The economic recovery will increase state and local tax revenue, which allows the government to increase funding for higher education. While the recovering labor market will cause some individuals to skip school, steady demand for skilled professions will bolster enrollment in technical and vocational courses. Widespread adoption of online education will also reduce allow community colleges to easily expand operations under budget constraints. As a result, IBISWorld projects industry revenue to grow during the next five years. For more information, visit IBISWorld’s Community Colleges in the US industry report page.

Follow IBISWorld on Twitter:!/IBISWorld
Friend IBISWorld on Facebook:

IBISWorld industry Report Key Topics

Community colleges are post-secondary educational institutions. Community colleges offer college transfer courses and programs (including the first two years of college instruction); vocational, technical and semi-professional occupational programs; and general education programs. Community colleges confer associate degrees, certificates or diplomas below the baccalaureate level. This industry includes public, private non-profit and for-profit community colleges.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website