Higher education is on the rise since the past few years. More and more educational institutes are venturing into offering advanced higher education courses that are affiliated with leading universities of the world. Introduction of technology into the educational system is also helping the higher education market to reap maximum benefits in terms of investments and business opportunities. Acquisitions from leading industry players and advancing technology are the two major driving factors for the market. Growth in traction is also attributed to the growing adoption of education technology across the developed countries as well as rising awareness about education in the emerging markets.
Drivers for Higher Education Industry
According to the experts, replacement of the basic educational devices with computer based devices is a major driver for the higher education market. Increasing connectivity and hardware assistance, growth of collaborative learning, distant learning and online learning are also crucial driving factors for the market. Personalization of the technology is a strong factor driving growth in the global market. Business opportunities in this industry are attributed to the new developments in the existing technologies and growth in strategic alliances and partnerships amongst the key market players.
Easy deployment and numerous advantages are creating rise in the rate of adoption for these technologies. Increased cost of education, reduced government funding and difficulty in the adoption of server based computing are the major challenges for the higher education market. however, growing demand from emerging markets are creating great opportunities for business and investment in this industry, which according to the experts is a very good sign for the companies in this industry.
Forecasting from 2014 to 2019
The global higher education market is expected to grow at a CAGR of over 7%, which is a steady and healthy growth rate for this rapidly developing industry. At the estimated compound annual growth rate, the global industry is expected to become worth more than $65.83 billion by the end of 2019, which was poised at $43.06 billion in the year 2013. However, according to the researchers more spending is expected from the established institutes, which is vital for driving the industry.
Budgetary restraints and rising competition amongst the existing companies in the market are anticipated to hinder the growth of the higher education market. Business expansions and adoption of high-tech solutions are expected to be the major concerns for the industry players. All in all, a lot depends on the growing demand from the emerging markets like Asia Pacific, Latin America, Middle East and Africa. Demand for software as a service is also expected to play a major role.