Third-Level Education in Germany - Market Research Report (2014-2029)
Frankfurt, Germany
Last Updated: September 2024
WZ P85.42DERevenue
€75.6bn
Past 5-Year Growth
Profit
€X.Xbn
Employees
806k
Businesses
422
Wages
€XX.Xbn
Third-Level Education in Germany industry analysis
Universities are part of the tertiary education sector and offer students an academic education. They are divided into state and private universities, which differ in terms of their funding. While state universities are mainly financed by public funds, private universities are primarily financed by tuition fees. In the last five years, more and more school leavers have decided to study at university, which has increased the demand for places. The number of private universities in particular has grown. They are increasingly offering study programmes that are rarely available in this form at state universities. Turnover in the sector has risen by an average of 0.9% per year over the last five years and is expected to total 75.6 billion euros in the current year. Compared to the previous year, this corresponds to growth of 0.7%.Public spending on education has risen over the last five years, which has also increased the income of universities. In addition, spending on research and development by the state and private institutions has increased, meaning that they are awarding more research contracts to universities. With the outbreak of the coronavirus pandemic, universities have had to switch from face-to-face teaching to digital teaching at short notice and have had to make some very high investments to do so. < />In the five years up to and including 2029, average annual growth in industry turnover of 3.5% to 89.6 billion euros is expected in 2029. Due to the increasing academisation of many training occupations and a steadily growing range of courses on offer, demand for the services provided by universities is rising. Due to demographic change, however, student numbers are expected to decline in the long term, as the number of people in the relevant age group will decrease. The first signs of this can already be seen in the declining number of first-year students. It can be assumed that universities will increasingly focus on adult continuing education in the coming years.
Trends and Insights
- The number of students has risen continuously in recent years. This is partly due to the fact that many training occupations are being academised.
- Health sciences generate the highest income for universities. According to the Federal Statistical Office, studying human medicine or health sciences costs 21,880 euros per student.
- The Central region has the most universities. Students often choose universities in large cities, of which there are many in the Central region.
- The internal competition between universities is fierce. The main focus here is on reputation and resources.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.9 % over the past five years, to reach an estimated €75.6bn in 2024.
Trends and Insights
Private university types continue to gain in importance
- Studying at a university usually requires the Abitur or the Fachhochschulreife. However, there are also opportunities to study without a school-leaving qualification. The exact admission requirements are regulated by the federal states.
- 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
Demographic trends are a risk factor for the higher education sector
- Private universities in particular are attracting more and more prospective students with alternatives to traditional full-time study with face-to-face teaching, such as distance learning programmes or part-time degree courses.
Biggest companies in the Third-Level Education in Germany
| Company | Market Share (%)
2024 | Revenue (€m)
2024 |
|---|---|---|
Humboldt-Universität zu Berlin | 728.5 | |
Technische Universität München | 728.5 | |
BildungsCentrum der Wirtschaft gemeinnützige GmbH | 218.5 |
To view the market share and analysis for all 3 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 Health sciences, Central facilities of the university hospitals and Central facilities of the universities. Health sciences is the largest segment of the Third-Level Education in Germany.
Trends and Insights
Health sciences generate the highest income
- Health sciences generate the highest income for universities. According to the Federal Statistical Office, studying human medicine or health sciences costs 21,880 euros per student.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Biotechnology Research & Development in Germany
- Market Research & Public Opinion Polling in Germany
Complementors
- Book Publishing in Germany
- Software Publishing in Germany
- Software Development in Germany
- Libraries, Museums & Cultural Activities in Germany
International industries
- Colleges & Universities in the US
- Colleges & Universities in Canada
- University and Other Higher Education in Australia
- Universities in New Zealand
- Universities in the UK
Table of Contents
About this industry
Industry definition
The sector belongs to the tertiary education sector and includes all universities, universities of applied sciences, universities of applied sciences, universities of applied sciences, art colleges and theological colleges. In addition to teaching, the industry players are also active in research and development. A distinction is made between private, denominational and state universities.
What's included in this industry?
Health sciencesCentral facilities of the university hospitalsCentral facilities of the universitiesEngineering sciencesLaw, economics and social sciencesMathematics and natural sciencesCompanies
Humboldt-Universität zu BerlinTechnische Universität MünchenBildungsCentrum der Wirtschaft gemeinnützige GmbHPurchase this report to view all 3 major companies in this industry.
Related Terms
HIGH SCHOOL GRADUATION QUOTACREDITPOINTSNUMERUS CLAUSUSPerformance
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
The number of students has risen continuously in recent years. This is partly due to the fact that many training occupations are being academised.
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
Health sciences generate the highest income for universities. According to the Federal Statistical Office, studying human medicine or health sciences costs 21,880 euros per s...
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
The Central region has the most universities. Students often choose universities in large cities, of which there are many in the Central region.
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 Europe, 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
The internal competition between universities is fierce. The main focus here is on reputation and resources.
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
There are no major players in this sector. The market concentration in the university sector is low. None of the German universities has a market share of more than 5%.
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 Humboldt-Universität zu Berlin's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Technische Universität München's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of BildungsCentrum der Wirtschaft gemeinnützige GmbH's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Humboldt-Universität zu Berlin, and factors influencing its performance in the industry
- Description and key data for Technische Universität München, and factors influencing its performance in the industry
- Description and key data for BildungsCentrum der Wirtschaft gemeinnützige GmbH, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Universities must undergo regular accreditation procedures to ensure that their study programmes and research activities meet quality standards. State recognition means that ...
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
Within the sector, profit margins vary greatly between the players. This is mainly due to the different types of university funding organisations. State universities are non-...
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 Germany include:
- German Federal Statistics Office (Destatis)
- European Statistics Office (Eurostat)
- United Nations Comtrade
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 Third-Level Education industry in Germany in 2024?
The market size of the Third-Level Education industry in Germany is €75.6bn in 2024.
How many businesses are there in the Third-Level Education in Germany industry in 2024?
There are 422 businesses in the Third-Level Education industry in Germany, which has declined at a CAGR of 0.1 % between 2019 and 2024.
Has the Third-Level Education industry in Germany grown or declined over the past 5 years?
The market size of the Third-Level Education industry in Germany has been growing at a CAGR of 0.9 % between 2019 and 2024.
What is the forecast growth of the Third-Level Education industry in Germany over the next 5 years?
Over the next five years, the Third-Level Education industry in Germany is expected to grow.
What are the biggest companies in the Third-Level Education market in Germany?
The biggest companies operating in the Third-Level Education market in Germany are Humboldt-Universität zu Berlin, Technische Universität München and BildungsCentrum der Wirtschaft gemeinnützige GmbH
What does the Third-Level Education in Germany include?
Health sciences and Central facilities of the university hospitals are part of the Third-Level Education industry.
Which companies have the highest market share in the Third-Level Education in Germany?
The company holding the most market share in Germany is Humboldt-Universität zu Berlin.
How competitive is the Third-Level Education industry in Germany?
The level of competition is high and steady in the Third-Level Education industry in Germany.
