Technical and Vocational Education and Training in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: March 2024
ANZSIC P8101Revenue
$12.7bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
50,785
Businesses
10,973
Wages
$X.Xbn
Technical and Vocational Education and Training in Australia industry analysis
Amid the turmoil of the COVID-19 pandemic, the Technical and Vocational Education and Training industry has demonstrated resilience. The closure of international borders in March 2020 led to decreased overseas enrolments, creating a nationwide shortage of students and skilled labour. In an effort to counter this downturn, the government boosted industry funding and introduced fee-free courses for locals, supporting industry revenue. With the reopening of international borders in 2023, there was a surge in immigration. Concurrently, the weakening Australian dollar made the prospect of studying in Australia an attractive proposition for international students. This resulted in an annualised revenue hike of 2.7% over the past five years through 2023-24, reaching $12.7 billion. This includes a 1.9% uptick in in 2023-24.
Trends and Insights
- Latent enrolment demand from international students is set to boost industry revenue. Border closures due to the COVID-19 pandemic limited the international student market, but these restrictions have since been lifted.
- Skills shortages in Australia have increased demand for certificates and diplomas. Certificate III qualifications are a particularly popular option for employers wishing to upskill their existing workforce.
- Highly populated states have the highest number of institutions. New South Wales boasts the largest share of industry establishments, in parallel with its population being the highest of Australia’s states and territories.
- Online courses have made technical and vocational study more accessible to students and teachers. Flexibility in course delivery promotes higher student enrolments, with less labour required for online services.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.7 % over the past five years, to reach an estimated $12.7bn in 2024.
Trends and Insights
A pandemic-induced digital transition is fortifying industry profitability
- A pandemic-induced shift to online learning platforms significantly offset increased costs for essential physical resources like stationery and tools, driving down purchase costs and enhancing overall profitability.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Public sector funding will be important for industry revenue
- The 2023-24 Federal Budget included around $9.8 billion in funding for TAFEs over the next five years. The National Skills Agreement, announced in October 2023, then boosted this investment to $12.6 billion over the five years from January 2024. This funding is set to support an upswing in industry revenue over the life of the program.
Biggest companies in the Technical and Vocational Education and Training in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
TAFE NSW | 2,377.0 | |
Department of Education and Training Victoria | 1,705.4 | |
TAFE Queensland | 773.8 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Diploma and above, Certificate IV and Certificate III. Diploma and above is the largest segment of the Technical and Vocational Education and Training in Australia.
Trends and Insights
Certificate I qualifications have faced declining demand in recent years
- Certificate I is the base level educational qualification available under the Australian Qualifications Framework (AQF).
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- University and Other Higher Education in Australia
- Art and Non-Vocational Education in Australia
Complementors
- Private Schools in Australia
- Government Schools in Australia
International industries
- Trade & Technical Schools in the US
- Technical and Vocational Education and Training in New Zealand
- Technical & Vocational Education in the UK
Table of Contents
About this industry
Industry definition
The industry comprises registered training organisations (RTOs) that deliver technical and vocational education and training programs. These entities encompass a wide range of institutions, including TAFE institutes, dual-sector institutions that offer both higher education and vocational education, and other private and community providers.
What's included in this industry?
Certificate ICertificate IICertificate IIICertificate IVDiploma and higher qualificationsNon-award coursesSubject-only enrolmentsStatements of attainmentMicro-credentialsCompanies
TAFE NSWDepartment of Education and Training VictoriaTAFE QueenslandPurchase this report to view all 6 major companies in this industry.
Related Terms
NATIONAL CENTRE FOR VOCATIONAL EDUCATION RESEARCHAUSTRALIAN QUALIFICATIONS FRAMEWORK (AQF)TECHNICAL AND FURTHER EDUCATION (TAFE)VOCATIONAL EDUCATION AND TRAINING (VET)REGISTERED TRAINING ORGANISATION (RTO)Industry Code
ANZSIC 8101 - Technical and Vocational Education and Training in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Latent enrolment demand from international students is set to boost industry revenue. Border closures due to the COVID-19 pandemic limited the international student market, b...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Skills shortages in Australia have increased demand for certificates and diplomas. Certificate III qualifications are a particularly popular option for employers wishing to u...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Highly populated states have the highest number of institutions. New South Wales boasts the largest share of industry establishments, in parallel with its population being th...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Online courses have made technical and vocational study more accessible to students and teachers. Flexibility in course delivery promotes higher student enrolments, with less...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Innovation in course delivery has created new growth opportunities for TAFE NSW. Online courses and international partnerships have aided TAFE NSW in growing its revenue.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of TAFE NSW's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Department of Education and Training Victoria's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of TAFE Queensland's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for TAFE NSW, and factors influencing its performance in the industry
- Description and key data for Department of Education and Training Victoria, and factors influencing its performance in the industry
- Description and key data for TAFE Queensland, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Fluctuations in revenue can be attributed to government intervention. Government funding in response to ongoing skills shortages have created high revenue volatility.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit continues to climb, despite setbacks during the COVID-19 pandemic. International student numbers are set to rise as borders reopen, despite tightened visa criteria.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Technical and Vocational Education and Training industry in Australia in 2024?
The market size of the Technical and Vocational Education and Training industry in Australia is $12.7bn in 2024.
How many businesses are there in the Technical and Vocational Education and Training in Australia industry in 2024?
There are 10,973 businesses in the Technical and Vocational Education and Training industry in Australia, which has grown at a CAGR of 3.5 % between 2019 and 2024.
Has the Technical and Vocational Education and Training industry in Australia grown or declined over the past 5 years?
The market size of the Technical and Vocational Education and Training industry in Australia has been growing at a CAGR of 2.7 % between 2019 and 2024.
What is the forecast growth of the Technical and Vocational Education and Training industry in Australia over the next 5 years?
Over the next five years, the Technical and Vocational Education and Training industry in Australia is expected to grow.
What are the biggest companies in the Technical and Vocational Education and Training market in Australia?
The biggest companies operating in the Technical and Vocational Education and Training market in Australia are TAFE NSW, Department of Education and Training Victoria and TAFE Queensland
What does the Technical and Vocational Education and Training in Australia include?
Certificate I and Certificate II are part of the Technical and Vocational Education and Training industry.
Which companies have the highest market share in the Technical and Vocational Education and Training in Australia?
The company holding the most market share in Australia is TAFE NSW.
How competitive is the Technical and Vocational Education and Training industry in Australia?
The level of competition is moderate and increasing in the Technical and Vocational Education and Training industry in Australia.
