In This Article:
The U.S. education market is poised for substantial growth in 2025, driven by shifts in industry demand, government initiatives and technological advancements. Increasing demand for specialized post-secondary education, particularly in healthcare, skilled trades and technology fields, is opening growth avenues. This trend is fueled by the rising need for a trained workforce as more individuals seek career-focused programs that equip them with the skills necessary to succeed in today’s job market.
The U.S. higher education market, valued at $6 billion in 2024, is expected to grow to $16.8 billion by 2033, seeing a CAGR of 12.2% from 2025 onward, according to IMARC Group. This growth is largely driven by the rise of e-learning platforms, which allow institutions to offer a wider range of programs without physical infrastructure constraints. As more students seek flexible, career-aligned educational pathways, e-learning presents an opportunity for institutions to cater to these needs.
Government initiatives, such as student loans, grants and funding for community colleges, are enhancing the accessibility and affordability of education, particularly in high-demand fields like data science, cybersecurity and renewable energy. These efforts are helping address the growing need for a well-trained workforce as universities and colleges align their programs with the demands of modern industries.
Although the Zacks Schools industry has declined 1.3% in the year-to-date period, against the broader Zacks Consumer Discretionary sector's 11% growth, expectations of regulatory easing under President Trump’s administration could provide a boost. As Trump begins his term in January 2025, the anticipated policy changes may support growth prospects for the industry.
Factors Driving US Education Market Growth Through 2025
Leveraging AI to Drive Skill-Based Education: AI is revolutionizing education with personalized learning and efficient tools. In the United States, the use of AI in the education market is growing rapidly, driven by tech adoption, investments, and the rise of remote and hybrid learning. Institutions are leveraging AI to prepare students for STEM careers.
Growing International Student Enrollment: As the demand for global education rises, U.S. universities are well-positioned to benefit from this influx of international students, contributing to the continued success and competitiveness of the U.S. education market through 2025 and beyond. The U.S. education market stands to expand further, with an increasing number of students seeking diverse and high-quality educational opportunities.
Healthcare Education Demand: The U.S. healthcare sector faces a shortage of skilled professionals, risking care quality and widening disparities. To address this issue, education providers are expanding programs in nursing, medical technology and healthcare administration. This effort is driving growth in healthcare education, focusing on specialized skills to meet rising service demands and improve care access.
Growth in Alternative Credentials & Flexible Learning: Alternative credentials like certificates and apprenticeships are gaining popularity as students prioritize career-focused, flexible and cost-effective learning options. These programs, especially in high-demand fields like technology and healthcare, provide practical, job-ready skills. Undergraduate enrollment rose 2.5% in the Spring of 2024, with notable growth at community colleges and institutions offering associate degrees.