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US NAICS 61121 | Industry Report

Community Colleges in the US Industry Data and Analysis

MB
Marley Brocker
Analyst New York, United States June 2025

Community colleges in the US are undergoing a significant transformation, shaped by shifting student demand, economic pressures and volatile public policy in the wake of COVID. Between 2020 and 2025, community colleges have transitioned from pandemic emergency response to a phase of strategic recovery and adaptation. Following a dramatic enrollment decline during COVID-19, when students paused their education because of public health concerns, economic instability and the rapid transition to online learning, the industry is now experiencing a significant rebound. In spring 2025, two-year colleges saw a 5.4% surge in attendance, the strongest growth among all undergraduate settings. Several factors drove this growth: inflation and rising living costs made community colleges’ lower tuition more attractive, while skepticism about the value of a four-year degree prompted more students to seek affordable, flexible programs that quickly build in-demand skills. Despite rising enrollment, revenue has increased at a CAGR of 0.9%, reaching an estimated $75.2 billion in 2025, because most new students pay low tuition, state funding growth remains modest and operating challenges strain resources. As a result, colleges benefit from stronger demand without a corresponding boost in revenue or profit.

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What's included in this industry analysis

IBISWorld's research coverage on the Community Colleges industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released June 2025.

About this industry

What's this industry report about?

The Community Colleges industry in the United States operates under the NAICS industry code 61121. This industry includes public, private, nonprofit and for-profit community colleges. These post-secondary educational institutions offer college transfer courses and programs as well as occupational and general academic programs. Community colleges award associate degrees, certificates or diplomas below the baccalaureate level. Related terms covered in the Community Colleges industry in the United States include title iv, online education and high school retention rate.

What's included in this industry?

Products and services covered in Community Colleges industry in the United States include Liberal arts and sciences associate degrees, Healthcare profession associate degrees and Business associate degrees.

What companies are included in this industry?

The Community Colleges industry in the United States is highly fragmented with no companies holding a market share greater than 5%.

Performance

What's included in the Performance chapter?

The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Community Colleges industry in the United States.

Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.

Products & Markets

What's included in the Products and Markets chapter?

The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Community Colleges industry in the United States.

Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.

Geographic Breakdown

What's included in the Geographic Breakdown chapter?

The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Community Colleges industry in the United States.

Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.

Competitive Forces

What's included in the Competitive Forces chapter?

The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Community Colleges industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.

Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.

Companies

What's included in the Companies chapter?

The Companies chapter covers Key Takeaways, Market Share and Companies in the Community Colleges industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.

Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.

External Environment

What's included in the External Environment chapter?

The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Community Colleges industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.

Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.

Financial Benchmarks

What's included in the Financial Benchmarks chapter?

The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Community Colleges industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.

Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.

Industry Data

What's included in the Industry Data chapter?

The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Community Colleges industry in the United States.

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Frequently Asked Questions

What is the market size of the Community Colleges industry in the United States in 2026?

The market size of the Community Colleges industry in the United States is $75.2bn in 2026.

How many businesses are there in the Community Colleges industry in the United States in 2025?

There are 370 businesses in the Community Colleges industry in the United States, which has declined at a CAGR of 2.6 % between 2020 and 2025.

How may import tariffs affect the Community Colleges industry in the United States?

The Community Colleges industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Community Colleges industry in the United States?

The Community Colleges industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Community Colleges industry in the United States grown or declined over the past 5 years?

The market size of the Community Colleges industry in the United States has been growing at a CAGR of 0.9 % between 2020 and 2025.

What is the forecast growth of the Community Colleges industry in the United States over the next 5 years?

Over the next five years, the Community Colleges industry in the United States is expected to grow.

What does the Community Colleges industry in the United States include?

Providing associate degree education and Providing technical and vocational certificate education are part of the Community Colleges industry in the United States.

How competitive is the Community Colleges industry in the United States?

The level of competition is low and increasing in the Community Colleges industry in the United States.

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