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Colleges & Universities in the US Industry Data and Analysis
Public and nonprofit colleges and universities are navigating uneven performance as slowing public funding growth, tuition affordability pressures, weaker international enrollment and volatile investment income partially offset support from philanthropy, research activity and demand for workforce-focused education. State and local appropriations remain important to public institutions, but slowing per-student support raises pressure to control costs and secure other revenue sources. Federal research funding is less predictable, especially for research-intensive universities, even as charitable giving and endowment income supplement operating budgets. Tuition growth continues to be constrained by affordability concerns, while deep discounting and concern over student debt push cost-sensitive students toward community colleges, trade schools and shorter credentials. International enrollment also presents a growing risk as visa uncertainty and elevated living costs reduce the reliability of a historically high-surplus student segment. Heavy endowment-related volatility means that revenue has dropped at a CAGR of 3.6% over the five years through 2026 to an estimated $738.3 billion, with surpluses also dropping from their extreme 2021 high. Excluding 2021 as an outlier, however, revenue has swelled at a CAGR of 6.4% over the past four years. Universities’ revenue is set to grow by 0.7% in 2026 alone.
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What's included in this industry analysis
IBISWorld's research coverage on the Colleges & Universities industry in the United States includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released September 2026.
About this industry
What's this industry report about?
The Colleges & Universities industry in the United States operates under the NAICS industry code 61131a. This industry includes public and private universities and colleges that offer academic courses and grant baccalaureate or graduate degrees. Admission requires a high school diploma or equivalent general academic training. Instruction is typically provided on physical campuses, although online education and other unorthodox settings are gaining popularity. This industry does not include for-profit institutions or community colleges. Related terms covered in the Colleges & Universities industry in the United States include title iv programs, endowment, general educational development (ged) and massive open online course (mooc).
What's included in this industry?
Products and services covered in Colleges & Universities industry in the United States include Bachelor's degrees, Master's degrees and Doctor's degrees.
What companies are included in this industry?
Companies covered in the Colleges & Universities industry in the United States include University of California.
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 Colleges & Universities 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 Colleges & Universities 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 Colleges & Universities 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 Colleges & Universities 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 Colleges & Universities 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 Colleges & Universities 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 Colleges & Universities 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 Colleges & Universities industry in the United States.
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Frequently Asked Questions
What is the market size of the Colleges & Universities industry in the United States in 2026?
The market size of the Colleges & Universities industry in the United States is $738.3bn in 2026.
How many businesses are there in the Colleges & Universities industry in the United States in 2026?
There are 2,483 businesses in the Colleges & Universities industry in the United States, which has grown at a CAGR of 1.5 % between 2021 and 2026.
How may import tariffs affect the Colleges & Universities industry in the United States?
The Colleges & Universities 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 Colleges & Universities industry in the United States?
The Colleges & Universities 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 Colleges & Universities industry in the United States grown or declined over the past 5 years?
The market size of the Colleges & Universities industry in the United States has been declining at a CAGR of 3.6 % between 2021 and 2026.
What is the forecast growth of the Colleges & Universities industry in the United States over the next 5 years?
Over the next five years, the Colleges & Universities industry in the United States is expected to grow.
What are the biggest companies in the Colleges & Universities industry in the United States?
The biggest company operating in the Colleges & Universities industry in the United States is University of California
What does the Colleges & Universities industry in the United States include?
Providing undergraduate instruction leading to bachelor's degrees and Providing graduate instruction leading to master's degrees are part of the Colleges & Universities industry in the United States.
Which companies have the highest market share in the Colleges & Universities industry in the United States?
The company holding the most market share in the Colleges & Universities industry in the United States is University of California.
How competitive is the Colleges & Universities industry in the United States?
The level of competition is moderate and increasing in the Colleges & Universities industry in the United States.
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