Live and learn: Despite regulation uncertainty, the sector will benefit from high enrollment rates

The Educational Services sector comprises 13 subsectors of the US economy, ranging from public schools to testing and educational support operators. Many of the services provided by operators are staples, such as primary and secondary education, whereas others are more discretionary in nature, like business coaching and tutoring services. Operators in the public schools, private schools, community colleges, nonprofit universities and colleges and for-profit universities generate over 90.0% of sector revenue. As a result, the sector has benefited from increases in government funding for primary and secondary education, as well as funding for universities, since the primary source of revenue in these five subsectors comes from government funding at the local, state and federal level...purchase to read more.

Industry Statistics & Market Size
Revenue
$2tr
Annual Growth 13-18
1.2%
Forecast Growth 18-23
Profit
Employment
12.4m
Businesses
1.3m

Industry Threats & Opportunities

  • Consumers have become more willing to pay for private education and discretionary educational programs during the period
  • Boosts in disposable income have enabled consumers to make more discretionary purchases
  • Government funding for universities will grow due to rising enrollment rates
  • Industry Report - Industry Products Chapter

    Public schoolsThe Educational Services sector is dominated by public schools in the United States. This industry (see IBISWorld report 61111a) includes elementary and secondary schools supported by government funds to provide free education for a community or district's children from kindergarten through grade 12. All public schools operate on a nonprofit basis. This subsector's majority share of industry revenue is primarily due to the sheer size of the industry. Over the five years to 2018, this subsector's share of revenue has decreased slightly as a result of other major industries, such as the Colleges and Universities industry (61131a), growing in size. However, the industry itself has grown at an annualized rate of 2.1% o...purchase to read more.

    Additional Insights for the Educational Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Educational Services Industry are

  • Proximity to transport
  • Having a good reputation
  • Availability of resource
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Government funding for primary and secondary education in the Educational Services industry impact industry performance..

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    What's in this report

    What is the Educational Services Industry?

    Educational Services sector is primarily involved in providing education across a broad spectrum of subjects and at diverse levels. Services offered by this sector include elementary and secondary schools, colleges and universities, technical and trade schools, fine art schools and language schools. Services provided by this sector are largely marketed toward public consumers, private consumers, business/commercial/government users and international students studying in the United States.

    Industry Products
  • Public and private elementary and secondary schools
  • Community colleges
  • Not-for-profit and for-profit universities and colleges
  • Business coaching, certification & IT schools
  • Trade & technical schools
  • Other schools and instructions
  • Educational support services
  • Industry Activities
  • Elementary and secondary schools
  • Junior colleges
  • Colleges, universities and professional schools
  • Business and secretarial schools
  • Professional, management development and computer training
  • Technical and trade schools
  • Fine art schools
  • Sports and recreation instruction
  • Language schools
  • All other schools and instruction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Government funding for primary and secondary education
  • Government funding for universities
  • Number of college students
  • Number of K-12 students

  • Current Performance
  • Government funding and regulation
  • Consumer trends
  • Sector landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Over the five years to 2023, the Educational Services sector is expected to continue growing, aided by more anticipated government funding, expected growth in per capita disposable income and a forecasted higher number of households earning more than $100,000 in income annually. However, expected declines in the Consumer Confidence Index is expected to present challenges to the sector as consumers cut back on discretionary purchases, specifically on larger, costlier goods like postsecondary education. Additionally, increased competition as a result of a shift toward online courses and programs is anticipated to constrain revenue growth. Overall, over the five years to 2023, total revenue generated by the Educational Services sector is estimated to increase at an annualized rate of 1.3% reaching $1.6 trillion by 2023. The average profit margin is expected to remain relatively stable, accounting for 6.2% in 2023.
  • Funding and enrollment
  • Income and unemployment
  • Sector services
  • Future policy changes
  • Table: Educational Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Educational Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Educational Services

  • Key Selling Industries
  • Wholesale Trade

  • Products & Services
  • Public and private elementary and secondary schools
  • Not-for-profit and for-profit universities and colleges
  • Community colleges
  • Other schools and instructions
  • Educational support services
  • Business coaching, certification & IT schools
  • Trade & technical schools
  • Chart: Educational Services Industry Products and Services Segmentation

  • Demand Determinants
  • Demographics
  • Cost
  • Macroeconomic trends

  • Major Markets
  • Individuals under the age of 25
  • Individuals aged 45 to 54
  • Individuals aged 35 to 44
  • Individuals aged 25 to 34
  • Individuals aged 55 to 64
  • Individuals aged 65 and older
  • Chart: Major Market Segmentation for the Educational Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Educational Services

  • Basis of Competition
  • Reputation, quality and service offerings
  • Cost
  • Government funding and location

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Educational Services Industry

  • Industry Globalization
    University of California, New York City Department of Education, California Community Colleges, Adtalem Global Education Inc., Nobel Learning Communities Inc.,
  • Table: University of California - financial performance
  • Table: New York City Department of Education - financial performance
  • Table: California Community Colleges - financial performance
  • Table: Adtalem Global Education Inc. - financial performance
  • Table: Nobel Learning Communities Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Educational Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Educational Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Charter School
  • An independent public school designed by educators, parents, community leaders, educational entrepreneurs and others that want to provide quality education tailored to students' needs.
  • Operating Budget
  • Applies to not-for-profit schools. Refers to total budget minus pension and debt service costs.
  • Parochial School
  • A primary or secondary school supported by a religious organization.
  • Pedagogic
  • Discipline that encompasses the theory and practice of teaching and how these factors influence learning.
  • What Our Customers Say

    Why buy this report?

    The Educational Services industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

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    This report on Educational Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Educational Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Educational Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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