Making the grade: Higher school enrollment will support demand amid cuts to education funding

Overall, the Testing and Educational Support industry has experienced surging growth over the five years to 2018 as rising student enrollment in US schools has been bolstered by steady growth in levels of US corporate profit and disposable income. For instance, with a growing number of high school graduates taking the SAT or the ACT exams, competition for college placement is high, boosting demand for college admissions consulting and test preparation materials. At the same time, industry revenue growth has been somewhat limited during the period by prolonged state budget deficits and shifting fiscal priorities, both of which have constrained the level of government funding for education...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Industry revenue growth has been somewhat limited during the period by prolonged state budget deficits
  • Declining levels of government funding for education have somewhat constrained growth
  • Enrollment growth in elementary and secondary schools will remain steady
  • Industry Report - Industry Products Chapter

    Educational support servicesThe development of textbooks, online academic courses and test preparation programs represents the industry's largest source of income, accounting for an estimated 35.3% of total industry revenue. This product segment includes materials targeting elementary, secondary and postsecondary students, as well as working professionals, English language students and other consumers in need of educational support. For instance, the industry's largest player, Pearson PLC, produces textbooks, ebooks, practice tests and other materials designed to help students prepare for graduate admission exams such as the GRE and the GMAT, as well as college entrance exams such as the SAT and the ACT. Ove...purchase to read more.

    Additional Insights for the Testing & Educational Support Industry

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

  • Understanding government policies and their implications
  • Fast adjustments made to changing regulations
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Number of college students and Number of K-12 students in the Testing & Educational Support industry impact industry performance..

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    What's in this report

    What is the Testing & Educational Support Industry?

    Operators in this industry provide noninstructional support services for education industries. The major segments of this industry are educational testing services and educational consultants. This industry does not include computer software designers that develop education support software; those operations are included in the IT Consulting industry (IBISWorld report 54151).

    Industry Products
  • Educational support services
  • Testing services
  • Educational consulting services
  • Other educational services
  • Contributions
  • Industry Activities
  • Providing college selection services
  • Providing educational consulting services
  • Providing educational guidance counseling services
  • Providing educational support services
  • Providing educational testing services
  • Providing school bus attendant services
  • Facilitating student exchange programs
  • Table of Contents

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

  • Current Performance
  • Growing student enrollment
  • Limited government funding
  • Industry participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Strong revenue conditions
  • Growth in online education
  • Government legislation and support
  • Table: Testing & Educational Support Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Testing & Educational Support Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Community Colleges
  • Public Schools
  • Private Schools
  • Colleges & Universities
  • For-Profit Universities

  • Key Selling Industries
  • Book Publishing
  • Commercial Leasing
  • Software Publishing

  • Products & Services
  • Educational support services
  • Testing services
  • Contributions
  • Other educational services
  • Other
  • Educational consulting services
  • Chart: Testing & Educational Support Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Postsecondary students
  • Elementary and secondary students
  • English language students
  • Governments
  • Private donors
  • Other
  • Chart: Major Market Segmentation for the Testing & Educational Support 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 Testing & Educational Support

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Testing & Educational Support Industry

  • Industry Globalization
    Pearson PLC, Educational Testing Service,
  • Table: Pearson PLC - financial performance
  • Table: Educational Testing Service - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Testing & Educational Support 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 Testing & Educational Support Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Number of college students (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    American College Testing (Act)
  • A commonly used college admissions examination.
  • Graduate Record Examination (Gre)
  • A commercially run standardized test that is an admission requirement for many graduate schools in the United States and other English-speaking countries.
  • National Assessment Of Educational Progress (Naep)
  • A periodic assessment of student progress conducted in the United States by the National Center for Education Statistics, a division of the US Department of Education.
  • No Child Left Behind (Nclb)
  • Legislation signed into law by President Bush in 2002 that sets performance guidelines for all schools' students and stipulates what must be included in accountability reports to parents.
  • Test Of English As A Foreign Language (Toefl)
  • A test required by many institutions for international students who are applying to study in the United States.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Testing & Educational Support provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

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    This report on Testing & Educational Support:
    • 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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    • 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 Testing & Educational Support 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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