School's out: Industry revenue has declined amid rising legal battles

Over the five years to 2018, 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. As a result, total enrollment in industry institutions has plummeted during the five-year period...purchase to read more.

Industry Statistics & Market Size
Revenue
$14bn
Annual Growth 13-18
-10.6%
Forecast Growth 18-23
Profit
Employment
142,966
Businesses
1,024

Industry Threats & Opportunities

  • Many students have had problems finding gainful employment upon graduation, causing many to question the quality of education
  • Many students leave for-profit schools with a large amount of debt due to the high cost of tuition
  • A variety of macroeconomic conditions will bolster the industry's performance
  • Industry Report - Industry Locations Chapter

    Physical campuses have become less important for industry operators in recent years, as a growing share of students enroll strictly in online courses. With online enrollment representing the majority of the student body for some major players, many institutions have essentially become clusters of computer servers. In this way, for-profit universities can serve additional students by adding more computing power. Furthermore, students do not necessarily have to be geographically close to a school to attend classes.Nevertheless, the number of campuses in a specific geographic market often depends on the region's population, availability of educational alternatives and demographics. The...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?

    The For-Profit Universities 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 under the age of 18
  • 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
    ProfitWagesMarketingOther
  • 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 Education Group Inc.,
  • Table: Adtalem Global Education Inc. - financial performance
  • Table: Apollo Education 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • National unemployment rate (2009-2023)

  • 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?

    IBISWorld’s For-Profit Universities Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the For-Profit Universities industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on For-Profit Universities:
    • 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 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

    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 For-Profit Universities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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