In 2022, about 37.7 percent of the U.S. population who were aged 25 and above had graduated from college or another higher education institution, a slight decline from 37.9 the previous year. However, this is a significant increase from 1960, when only 7.7 percent of the U.S. population had graduated from college. Demographics Educational attainment varies by gender, location, race, and age throughout the United States. Asian-American and Pacific Islanders had the highest level of education, on average, while Massachusetts and the District of Colombia are areas home to the highest rates of residents with a bachelor’s degree or higher. However, education levels are correlated with wealth. While public education is free up until the 12th grade, the cost of university is out of reach for many Americans, making social mobility increasingly difficult. Earnings White Americans with a professional degree earned the most money on average, compared to other educational levels and races. However, regardless of educational attainment, males typically earned far more on average compared to females. Despite the decreasing wage gap over the years in the country, it remains an issue to this day. Not only is there a large wage gap between males and females, but there is also a large income gap linked to race as well.

The United States higher education market size was valued at USD 6.0 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 16.8 Billion by 2033, exhibiting a CAGR of 12.20% from 2025-2033. The market is driven by the growing adoption of e-learning platforms that enable institutions to offer various courses without physical infrastructure restraints, along with the rising establishments of community colleges that make higher education more affordable.

IMARC Group provides an analysis of the key trends in each segment of the United States higher education market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on component, deployment mode, course type, learning type, and end user.

According to a survey conducted in 2025, ***** percent of non-traditional undergraduate college students, including those enrolled in online, hybrid, and low residency study, reported studying Arts and Humanities in the United States, compared to ** percent who studied business.

Community colleges in the US are undergoing a significant transformation, shaped by shifting student demand, economic pressures and volatile public policy in the wake of COVID. Between 2020 and 2025, community colleges have transitioned from pandemic emergency response to a phase of strategic recovery and adaptation. Following a dramatic enrollment decline during COVID-19, when students paused their education because of public health concerns, economic instability and the rapid transition to online learning, the industry is now experiencing a significant rebound. In spring 2025, two-year colleges saw a 5.4% surge in attendance, the strongest growth among all undergraduate settings. Several factors drove this growth: inflation and rising living costs made community colleges’ lower tuition more attractive, while skepticism about the value of a four-year degree prompted more students to seek affordable, flexible programs that quickly build in-demand skills. Despite rising enrollment, revenue has increased at a CAGR of 0.9%, reaching an estimated $75.2 billion in 2025, because most new students pay low tuition, state funding growth remains modest and operating challenges strain resources. As a result, colleges benefit from stronger demand without a corresponding boost in revenue or profit. Community colleges' policy and regulatory landscape is evolving rapidly at the federal and state levels. Recent federal actions, including the Trump administration’s elimination of race-based admissions practices and equity action plans, signal a move from earlier diversity and accountability requirements tied to federal funding. Persistent FAFSA processing delays and confusing changes have disrupted access to financial aid and uncertainty around Pell Grant structure and funding complicates efforts to support low-income students. State policy directions vary widely: while states like Ohio are imposing new restrictions on DEI initiatives and faculty rights, and New Jersey is contemplating a $20.0 billion funding cut, others like Illinois are expanding community colleges’ authority to offer bachelor’s degrees in high-demand fields. While ongoing policy reforms, demographic shifts and affordability concerns will continue to shape the industry, community colleges are poised to play a crucial role in broadening access to higher education and supporting targeted workforce growth. Colleges face strong tailwinds from increased demand for affordable, career-focused programs, growing interest in upskilling and new private-sector partnerships. However, uncertain funding, regulatory volatility and persistent financial aid challenges remain significant headwinds. Converting higher enrollment into stronger financial health will require stable resources, policy agility and ongoing innovation to serve a diverse student population. Overall, revenue is forecast to rise slowly at CAGR of 0.1%, reaching $75.5 billion in 2030.

The USA executive education market is led by the country's most prestigious universities, and its elite business schools, focusing on corporate leaders and professionals who want to improve their skills. Leaders in this market are the likes of Harvard Business School, Wharton, and Stanford, which hold about 60% market share.

The Educational Services sector comprises 13 subsectors of the US economy, ranging from public schools to testing and educational support services. Primary, secondary and postsecondary schools alone generate 92.0% of the sector's revenue. Most of these institutions rely entirely on government funding, and nearly three-quarters of the educational services revenue comes from public schools and public universities. Accordingly, strong federal, state and local support for all levels of education has driven revenue upward over the past five years. Expanding discretionary budgets made private schools and higher education more affordable for students and parents, but the Trump administration's changing policies have brought new complications. Still, substantial funding and skyrocketing investment returns for private nonprofit universities have elevated revenue. Revenue has climbed at a CAGR of 4.6% to an estimated $2.7 trillion through the end of 2025, when revenue will rise by 1.1%. Solid state and local government funding for education has helped support the sector's success despite fluctuating enrollment. Faltering birth rates are leading to lower headcounts in K-12 schools, and ballooning student debt has made many would-be college students skeptical of the return on investment of an expensive degree. While student loan forgiveness efforts slowed a decline in the number of college students, the new presidential administration's end to these efforts has begun to exacerbate price-based and quality-based competition among higher education institutions. President Trump's scrutiny of course curricula has made public funds harder to acquire for schools, and the administration's efforts to close the Department of Education have begun to deter would-be students from attending college. Trends in the domestic economy are set to move in the Educational Services sector's favor over the next five years as prospective students become better able to pay for rising tuition rates and premium education options. Government funding for primary, secondary and postsecondary institutions will continue to escalate through the next period, though lackluster enrollment will temper revenue growth. Public schools, which account for over half the sector's revenue, will continue to post losses and drag down the average profit for educational services. New school choice initiatives, including Texas's new, largest-ever voucher program, will make private schools more affordable for parents. However, heightened oversight and continued efforts to close the Department of Education will remain a significant pain point for many educational services. Overall, revenue is set to climb at a CAGR of 0.8% to $2.8 trillion through the end of 2030.

Graph and download economic data for All Employees: Education and Health Services: Private Education and Health Services in Florida (FLEDUH) from Jan 1990 to Jun 2025 about health, education, FL, services, employment, and USA.

Over the past five years, for-profit universities have faced mounting headwinds amid regulatory tightening, inflation and negative public perception. While data from the National Center for Education Statistics (NCES) reports that overall postsecondary enrollment grew by just 0.5% from 2020 to 2025, enrollment at for-profit institutions shrank by 4.1%. Ballooning student debt and rising tuition, made worse by inflation in 2022 and 2023, have driven many recent graduates and adult learners to second-guess the value of higher education, especially degrees from for-profit schools with poor graduate earnings. Government regulations added further strain as the Biden administration's 2024 reinstatement of gainful employment rules once again linked access to federal funding to graduate debt-to-income ratios. At the same time, for-profit schools battled declining revenue as affordable nonprofit and vocational programs drew away budget-conscious students. Industry revenue has dropped at a CAGR of 0.5% to an estimated $13.6 billion over the five years through 2025. A faltering reputation has played a major role in the industry's decline. According to Federal Student Aid data, for-profit universities are repeatedly criticized for low graduation rates, weak graduate earnings and high student loan default rates—the highest across any demographic. Allegations of predatory practices remain in the headlines, exemplified by Walden University's $28.5 million lawsuit settlement in 2024. Although these institutions offer flexible scheduling and lower tuition rates that appeal to low-income and nontraditional students, the public remains wary. Studies indicate that most programs with no positive return on investment are at for-profit colleges. Meanwhile, stricter government scrutiny and the widespread availability of earnings and debt data have made poor outcomes highly visible, solidifying the negative perception. Many for-profit universities have shuttered, though some have managed to retain profit by closing physical locations. For-profit universities will continue facing a decline over the next five years. IBISWorld expects for-profit university enrollment to drop at an annualized 1.1% through 2030, outpaced by modest growth at nonprofit and vocational schools, where graduates see better employment outcomes. Uncertainty in regulations, including the possible repeal of the 90/10 rule, adds more volatility, while the lack of broad student loan forgiveness will likely suppress affordability and demand. As students and job seekers prioritize educational outcomes and cost, one in seven for-profit universities is expected to close by 2030. For-profit universities' revenue is set to sink at a CAGR of 0.3% to an estimated $13.4 billion through the next five years.

For the academic year of 2024/2025, the University of Oxford was ranked as the best university in the world, with an overall score of 98.5 according the Times Higher Education. The Massachusetts Institute of Technology and Harvard University followed behind. A high number of the leading universities in the world are located in the United States, with the ETH Zürich in Switzerland the highest ranked neither in the United Kingdom nor the U.S.

Endowment returns for many universities skyrocketed early in the current period, largely fueled by booming private equity and hedge fund activity. In 2021, private nonprofit universities saw a staggering 684.0% jump in investment returns. In contrast, public universities, which typically hold smaller endowments invested more in US equities and fixed-income assets, experienced more modest gains. Meanwhile, inflation and rising interest rates in 2022 reversed the boom for private nonprofits, while public universities' endowments' focus on fixed-income assets stabilized their returns. Skyrocketing investment returns bolstered surpluses, but rising wage expenditures among expanding staff sizes have since brought down profit. Revenue has been sinking at a CAGR of 1.3% over the five years through 2025 to an estimated $591.0 billion despite an expected 0.7% rise in 2025 alone. Colleges and universities are contending with sluggish enrollment growth. Lackluster job placement rates and the highly publicized student debt crisis have made many potential students skeptical of a college degree's return on investment. With judicial reviews rendering the Biden administration's efforts to ease the burden of student debt unsuccessful, student loans remain a major deterrent for consumers. Many have instead opted for cheaper trade schools with reliable connections to employers. Community colleges' affordable prices are also making them a larger competitive threat to four-year universities. In response, universities are hiring capable staff and ramping up marketing campaigns to promote the value of their degree programs. Mounting automation will encourage many to enroll in a university to switch to a new field with more job security. Student loans will become more attractive as inflation stabilizes and the Federal Reserve continues to lower interest rates, encouraging traditional university enrollment. Still, the Trump administration's end to student debt forgiveness initiatives will lead to more price sensitivity among potential students, intensifying competition both between universities and with other cheaper options for postsecondary education. The new budget reconciliation bill will also impose both benefits and challenges for universities, including higher taxes on endowments, lower graduate program borrowing limits and tightened gainful employment rules. International students will remain a valuable revenue stream, especially as legislative changes in Canada promote higher education in the US with students from overseas. Revenue is set to swell at a CAGR of 0.7% to an estimated $610.8 billion through the end of 2030.

Labor force with advanced education (% of total working-age population with advanced education) in United States was reported at 71.87 % in 2023, according to the World Bank collection of development indicators, compiled from officially recognized sources. United States - Labor force with advanced education (% of total) - actual values, historical data, forecasts and projections were sourced from the World Bank on August of 2025.

The higher education market, valued at $85.66 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 18.9% from 2025 to 2033. This significant expansion is driven by several key factors. Increasing demand for skilled labor in a globally competitive job market is pushing more individuals to pursue higher education. Technological advancements, particularly in online learning platforms and educational software, are enhancing accessibility and affordability, broadening the market reach. Furthermore, government initiatives aimed at improving educational infrastructure and promoting lifelong learning are contributing to market growth. The market segmentation reveals strong performance across various sectors. Software solutions for educational management and student support are witnessing high adoption rates, alongside growth in specialized hardware for research and teaching in universities. Private colleges, state universities, and community colleges represent key end-user segments, each with specific technological needs and investment capacity. The North American market, particularly the US, is currently a significant revenue generator, but the Asia-Pacific region is expected to show the fastest growth due to rising disposable incomes and expanding access to education. Competition within the higher education technology market is intense, with established players focusing on mergers and acquisitions to expand their market share. Companies are deploying various competitive strategies, including developing innovative products, forging strategic partnerships, and aggressively marketing their solutions to educational institutions. Industry risks include economic downturns impacting government funding and institutional budgets, as well as the challenge of keeping pace with rapidly evolving educational technologies and student expectations. Successful companies will focus on adapting to changing learning styles, integrating advanced technologies, and delivering cost-effective solutions. The forecast period (2025-2033) anticipates continued strong growth, driven by the factors mentioned above, but with potential fluctuations based on macroeconomic conditions and technological innovation cycles.

Editor’s Choice

• The Healthcare IT market size is expected to be worth around USD 1728 Bn by 2032
• According to a report by UNESCO, countries in South and South-West Asia have the highest number of illiterate adults in the world, estimated at 388 million.
• Approximately 36% of adult Americans possess only basic or below basic health literacy skills.
• Only 12% of Americans are considered proficient in their health literacy skills.
• Health literacy levels in China increased from 6.48% of the population in 2008 to 23.15% in 2020.
• A recent study analyzing global health literacy research from 1995 to 2020 identified the United States, Australia, and the United Kingdom as major contributors to the international collaboration network on health literacy.
• Mental health has been the most active research field in recent years in the context of health literacy.

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US Early Childhood Education Market Size 2025-2029

The US early childhood education market size is forecast to increase by USD 5.37 billion at a CAGR of 4.1% between 2024 and 2029.

The market is experiencing significant growth due to several key factors. One major trend is the increasing number of parents returning to the workforce, leading to a rising demand for high-quality early childhood education programs. Another growth driver is the launch of new education initiatives aimed at improving early childhood development and preparing children for future academic success. The child education system is evolving, with technology-driven innovations such as artificial intelligence, machine learning, applied learning, and personalized learning playing a significant role. However, the market also faces challenges such as workforce shortages and high turnover rates, which can impact the quality of education and consistency for children. Addressing these challenges through strategies like increased funding for teacher training and retention programs will be crucial for the continued growth of the market.

What will be the Size of the market During the Forecast Period?

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The market encompasses a range of services and programs designed to foster psychological, social, emotional, and biological development in young children. With a growing awareness among parents and policymakers of the importance of early childhood development, the market has seen significant activity in recent years. Play-based learning, social development, and emotional preparedness are key focus areas, with an emphasis on creating high-quality learning environments that support childcare workforce professional development and early literacy, numeracy, and creativity. 


Early intervention programs address developmental milestones and special needs, while preschool enrollment and kindergarten programs aim to ensure school readiness. Funding and subsidies play a crucial role in making early childhood education more accessible and affordable for working parents. Innovation In the sector includes the integration of technology such as augmented reality and virtual reality, dual language programs, and social-emotional learning. Overall, the market continues to evolve, driven by ongoing research and a commitment to providing comprehensive, developmentally appropriate programs for young children.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

School Level

  Preschool
  Kindergarten
  Day care


Sector

  Public
  Private


Type

  Full work day
  Part day
  Full school day


Geography

  US

By School Level Insights

The preschool segment is estimated to witness significant growth during the forecast period. A key feature of preschools is their structured learning environment, which emphasizes early academic concepts. This structured approach helps children develop foundational literacy, numeracy, and cognitive skills. Additionally, preschools incorporate play-based learning, which encourages exploration and creativity. This method of learning through play is fundamental to preschool education, as it fosters a love for learning and supports the development of critical thinking skills.

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Market Dynamics

Our market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of US Early Childhood Education Market?

Rising parental workforce participation is the key driver of the market. The Early Childhood Education (ECE) market In the US is experiencing significant growth due to the increasing number of earning parents. According to the US Bureau of Labor Statistics, the percentage of children under six with both parents In the workforce increased from 65% in 2015 to 69% in 2023. This trend is particularly prominent in MidWestern and North Eastern states. This shift in workforce demographics has led to a heightened demand for dependable and superior ECE programs. Trained professionals, comprehensive child development, and evidence-based practices are becoming essential components of these programs. Early childhood learning is recognized as crucial during the impressionable age, and educational institutions are integrating technology-integrated classrooms, interactive whiteboards, online learning platforms, educational apps, and self-directed play to cater to individual needs.
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According to an online survey conducted in February 2025 in the United States, ********* of LinkedIn users held a bachelor degree or equivalent. Additionally, ** percent of LinkedIn users in the U.S. held a masters degree or equivalent.

Private schools have struggled to maintain enrollment and revenue as the population of children in the K-12 age range evaporates. The Federal Reserve Bank of Dallas and the International Monetary Fund report that the fertility rate has continued to plunge further below replacement levels, and the National Center for Health Statistics reports a drop of over 100,000 births per year since 2020. This demographic shift has led to fewer children entering the K-12 age range and smaller graduating classes. Immigration helps reduce low birth rates' impact on the US population, but less than a tenth of immigrating students attend private K-12 schools. Ultimately, the National Center for Education Statistics projects a drop in private school enrollment from 6.0 million in 2020 to 5.5 million by 2025. To mitigate these challenges, many private schools have increased tuition fees, which may exclude families unable to afford the higher costs. Revenue has been sinking at a CAGR of 1.5% to an estimated $79.3 billion over the five years through 2025, including an expected 0.3% slump in 2025 alone. Declining birth rates, alongside the rise of charter schools, have reshaped the educational landscape. Charter schools now operate in 45 states, offering specialized education at lower costs than private schools and attracting many parents. This expansion has resulted in only a slight 2.3% slump in public school enrollment since 2020, compared to an 8.2% drop in private schools. However, government assistance is beginning to help private schools become more accessible. School choice programs, especially vouchers and Education Savings Accounts (ESAs), are becoming especially prevalent and have the full support of the Trump administration. Private schools will continue becoming more accessible as parents gain the ability to use public funds for private education. Birth rates will continue dropping, but government assistance and growing incomes will help stave off further dips in revenue. Larger, well-established private schools may better navigate challenges by balancing tuition hikes with financial aid offerings targeted at higher-income families. To stay competitive with charter and public alternatives, private schools might offer more personalized educational experiences. By leveraging potential government support and adjusting their strategies, private schools will buoy enrollment and revenue amid persisting headwinds. Revenue is set to see stagnant growth and will reach $73.4 billion by the end of 2030.

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Graph and download economic data for Unemployment Rate - College Graduates - Bachelor's Degree, 25 to 34 years (CGBD2534) from Jan 2000 to Jul 2025 about 25 to 34 years, tertiary schooling, education, unemployment, rate, and USA.

Public schools have managed to maintain revenue growth despite significant shifts in funding, enrollment and parental preferences. Class sizes are shrinking every year as birth rates drop and the high school retention rate stagnates, straining revenue as smaller schools see lessened funding from governments. Public schools have contended with heightened competition from alternative education options, especially homeschooling and private institutions, as parents seek more personalized educational experiences. States have increasingly adopted school choice systems, allowing parents to use public funds or tax credits to pay for private schooling. The Trump administration has taken steps to promote these programs even more and has proposed establishing a federal voucher system. Despite heightened competition and a rigorous competitive atmosphere, strong per-pupil funding amid strong state and local budgets has buoyed public schools. Public schools' revenue has been climbing at a CAGR of 1.4% to an estimated $1.0 billion over the five years through 2025, including a rise of 0.9% in 2025 alone. Governments fully fund public schools. Support from state and local governments is especially vital, as they provide nearly nine-tenths of public schools' revenue. Despite a slight dip in 2022, strong tax income pushed up government funding for primary and secondary schools by 6.2% in 2023. These resources are enabling public schools to invest in tutoring and counseling to improve their educational outcomes and better compete with alternative primary and secondary schools. Public schools also used funds to help transition to online and augmented education and have avoided taking on further losses as shrinking class sizes leave them without pressure to continue purchasing new laptops or tablets. Still, public schools are not profitable and largely operate at a loss every year. Public schools are set to face a continued drop in enrollment as well as intensifying competition. To sustain revenue and support, schools will focus on retaining students and improving academic outcomes despite potential federal funding changes. The expansion of school choice programs will compel public schools to enhance their quality and offer additional services like after-school programs to sustain enrollment and win parental support as families gain more access to private schools. Still, charter schools will leverage their unique value propositions to remain competitive and buoy enrollment in the public school system. Public schools' revenue is set to stagnate, swelling at a CAGR of just 0.2% to an estimated $1.0 billion through the end of 2030.

AskTED is the online Texas Education Directory. This system provides contact and address information for Texas public schools, districts, and Education Service Centers. To learn more about AskTED, please visit https://tealprod.tea.state.tx.us/Tea.AskTed.Web/Forms/Home.aspx.