A steep learning curve: New funding and regulatory changes force universities to adapt

Universities provide higher education, leading to qualifications such as bachelor’s degrees, foundation degrees, master’s degrees and higher education diplomas. Cuts in government funding and an increase in tuition fees just prior to the start of the period have led to a shift in universities’ sources of income, with tuition fees now making up approximately 50%. Funding from bodies, such as research councils and charities, also comprises a large portion of income for most universities.Over the five years through 2018-19, the industry is expected to grow at a compound annual rate of 1.9%...read more.

Industry Statistics & Market Size
Revenue
£36.4bn
Annual Growth 14-19
1.9%
Forecast Growth 19-24
Profit
Employment
454,492
Businesses
156
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising student enrolment has supported revenue growth over the past five years
  • Part-time student numbers fell due to the government raising the cap on fees
  • University income through commercial activity is expected to increase over the next five years
  • Industry Report - Starting a New Business Chapter

    The main barriers preventing new universities from entering the industry are heavy regulation, land and infrastructure costs, gaining accreditation for courses, attracting talented staff and developing a good reputation. Reputation is critical to success in education, because students are attracted to courses and institutions with a strong standing in order to improve their own future financial prospects. Postgraduate students are especially drawn to research-intensive universities such as the Russell Group institutions. These universities are some of the oldest institutions in the United Kingdom and have long-standing reputations; new entrants to the industry will face challenges in drawing students away from them...purchase to read more.

    Additional Insights for the Universities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Universities Industry are

  • Having a good reputation
  • Use of specialist equipment or facilities
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Participation of 16-18 year olds in full-time education and National unemployment rate in the Universities industry impact industry performance..

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    What's in this report

    What is the Universities Industry?

    Operators in this industry provide full and part-time teaching and training that leads to both undergraduate and postgraduate qualifications.

    Industry Products
  • First degrees
  • PGCEs and ProfGCEs
  • Foundation degrees
  • HND and DipHE
  • Other undergraduate qualifications
  • Taught master's degrees
  • Doctorate and research master's degrees
  • Other postgraduate qualifications
  • Industry Activities
  • Teaching first degrees
  • Teaching taught and research master's degrees
  • Teaching postgraduate certificates in education
  • Teaching foundation degrees
  • Teaching other undergraduate and postgraduate professional qualifications
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Participation of 16-18 year olds in full-time education
  • National unemployment rate
  • Public-sector funding for higher level education
  • Real household disposable income
  • Population aged 16 to 25 years

  • Current Performance
  • Part-time problems
  • Tuition fee policy
  • Academic competition
  • Trimming costs
  • Chart: Revenue Growth

  • Industry Outlook
  • Funding changes
  • Surplus investments
  • Examining regulation
  • Leaving the

    European Union

  • Table: Universities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Universities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Financial Management
  • Consultant Engineering Services
  • Hospitals

  • Key Selling Industries
  • Computer & Peripheral Equipment Wholesaling
  • Health Care, Education, Cultural Services and Other Social Services Regulation
  • Newsagents & Stationery Stores
  • Office Furniture Wholesaling

  • Products & Services
  • First degrees
  • Taught master's degrees
  • Doctorate and research master's degrees
  • Other undergraduate qualifications
  • Other postgraduate qualifications
  • PGCEs and ProfGCEs
  • HND and DipHE
  • Foundation degrees
  • Chart: Universities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Students aged 20 and under
  • Students aged between 21 and 24
  • Students aged 30 and over
  • Students aged between 25 and 29
  • Chart: Major Market Segmentation for the Universities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Universities

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Universities Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Universities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Universities Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Higher Education Funding Council For England
  • A body of the Department for Business, Innovation and Skills that distributes funding to English higher education institutions.
  • Higher Education Statistics Agency
  • An agency that collects and publishes data about higher education in the United Kingdom.
  • Russell Group
  • Represents 24 leading UK universities that are committed to the highest levels of academic excellence in both teaching and research.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Universities market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Universities:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Universities market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Universities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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