Educational Services

Performance Highlights

The industry dodged heavy losses through the pandemic, with primary and secondary schools playing an essential role in the US. Discretionary educators, such as sports coaches and language instructors, struggled to attract students amid economic uncertainty and inflation. A shrinking youth population is posing a long-term threat to the sector.

Geographic Distribution

The Southwest and West regions have the most educational institutions, driven by high population densities. California, being the most populous state, has the highest number of establishments in the nation.

Industry Outlook

Revenue is expected to grow at a CAGR of 0.9% from 2024 to 2029, reaching $2 trillion. Growing disposable income and rising employment will push revenue upward.

Competitive Forces

The industry is characterized by low concentration and moderate competition. Barriers to entry are high, with significant legal requirements and start-up costs. Successful businesses develop strong reputations and maintain effective cost controls.

Major Companies

Notable players include the New York City Department of Education (1.6% market share), University of California (1.4% market share), California Community Colleges (0.2% market share).

Revenue

$1.9 trillion

Employees

14 million

Businesses

1 million

Wages

$1.1 trillion

Economic and External Factors

The federal government allocated $100 billion for education through the Recovery Act. Institutions in the sector endure a heavy level of regulation and are subject to several major legislations.