School's out: Heightened government regulation and intense public scrutiny will cause the industry to continue contracting

Over the five years to 2017, the For-Profit Universities industry has experienced a significant decline as operators have garnered lawsuits and negative press for providing poor education to students. Prior to the five-year period, high unemployment encouraged individuals to return to school, bolstering industry revenue growth. However, over the past five years, many students have sued for-profit universities for providing less than adequate education. Meanwhile, demand for industry services fell as the unemployment rate decreased and the economy bounced back, encouraging many consumers to pursue full-time employment instead of enrolling in industry courses...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Total enrollment in industry institutions has plummeted during the five-year period
  • Many students leave for-profit schools with a large amount of debt due to the high cost of tuition
  • Many operators will likely circumvent marketing regulations by purchasing private nonprofit schools
  • Industry Report - Industry Key Buyers Chapter

    The For-Profit Universities industry exhibits a low level of market share concentration as the industry's four largest players are estimated to account for 25.1% of total industry revenue in 2017. This industry is also highly fragmented, as the United States contains an estimated 1,292 for-profit university establishments in 2017. Concentration can be high in specific geographic regions; the number of players competing in a specific geographic market often depends on an area's population and its demographics. Large schools often have multiple locations in cities where traffic is a problem. However, the number of campuses from which a for-profit university operates has become less indicative of its overall market strength over the past five years. Dur...purchase to read more.

    Additional Insights for the For-Profit Universities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the For-Profit Universities Industry are

  • Ability to take advantage of Title IV programs
  • Having a good reputation
  • Aggressive marketing and recruiting
  • IBISWorld analysts also discuss how external factors such as High school retention rate and National unemployment rate in the For-Profit Universities industry impact industry performance..

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    What's in this report

    What is the For-Profit Universities Industry?

    This industry includes colleges and universities that offer academic courses at associate, baccalaureate or graduate levels on a for-profit basis. A high school diploma or equivalent academic training is generally an admission requirement. Instruction may be provided in a variety of settings such as educational institutions, the workplace, the home, training facilities and through correspondence, TV, the internet or other electronic or distance-learning means.

    Industry Products
  • Associate courses
  • Bachelors' courses
  • Masters' courses
  • Doctorate courses
  • Industry Activities
  • Providing college and university education on a for-profit basis (except junior colleges)
  • Providing professional school education on a for-profit basis (e.g. business administration, dental, law, medicine)
  • Providing doctorate and master's education on a for-profit basis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • High school retention rate
  • National unemployment rate
  • Per capita disposable income
  • Percentage of services conducted online
  • External competition for the For-Profit Universities industry

  • Current Performance
  • Tuition and student debt
  • Growing public scrutiny
  • Chart: Revenue Growth

  • Industry Outlook
  • Mixed revenue conditions
  • Troubling default rates
  • Seeking new markets
  • Table: For-Profit Universities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - For-Profit Universities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services
  • Healthcare and Social Assistance
  • Consumers

  • Key Selling Industries
  • Book Publishing
  • Book, Magazine & Newspaper Wholesaling
  • Colleges & Universities
  • Computer Manufacturing
  • IT Consulting
  • Janitorial Services
  • Office Stationery Wholesaling

  • Products & Services
  • Bachelors' courses
  • Masters' courses
  • Doctorate courses
  • Associate courses
  • Chart: For-Profit Universities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Students aged 30 and older
  • Students aged 22 to 29
  • Students aged 18 to 21
  • Students aged 17 and younger
  • Chart: Major Market Segmentation for the For-Profit Universities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs For-Profit Universities

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the For-Profit Universities Industry

  • Industry Globalization
    Adtalem Global Education Inc., Apollo Group Inc.,
  • Table: Adtalem Global Education Inc. - financial performance
  • Table: Apollo Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the For-Profit Universities 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 For-Profit Universities Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • National unemployment rate (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Cohort Default Rate
  • The percentage of borrowers at a school who begin repayment of certain loan programs and default by the end of the next year.
  • Gainful Employment Rule
  • The requirement that programs prove they prepare students for gainful employment in a recognized occupation.
  • Nontraditional Student
  • A student who does not fit the typical profile of a college-bound student; they often work, attend classes part-time, do not have a high school diploma or come from low-income households.
  • Title Iv Program
  • A program authorized under Title IV of the Higher Education Act that makes up the major source of federal student aid; it includes loans, grants and federal work-study.
  • Traditional Universities
  • Public and private nonprofit schools, where primary enrollment studies on campus.
  • What Our Customers Say

    Why buy this report?

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    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    The For-Profit Universities 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

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