Colleges & Universities in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS 61131aCARevenue
$46.7bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
343k
Businesses
207
Wages
$XX.Xbn
Colleges & Universities in Canada industry analysis
The primary funding sources for colleges and universities in Canada have significantly shifted over the past five years. Provincial government funds historically made up the most significant revenue stream for the industry, but lacklustre growth and significant declines in some provinces have pushed universities to rely more on tuition fees. The growing influx of international students has proven lucrative for the industry, though the COVID-19 pandemic forced many international students to return home. Investments, endowments and charitable contributions were exceptionally volatile as a result of pandemic-induced disruption in investment activity, though these revenue streams make up only a minor portion of revenue. Online learning has augmented in-person operations, bringing strong profit in the form of surpluses that postsecondary schools have reinvested into new programs and campuses. Revenue has been sinking at a CAGR of 1.5% over the five years through 2024, even as revenue climbs an estimated 1.9% in 2024 alone.
Trends and Insights
- Colleges and universities provide a vital service to any functioning economy. Demand is relatively steady because of the many benefits of a good education. Downstream employers rely on universities to educate their labour force.
- Bachelor's degrees are the industry’s largest service segment. College certificates and associate degrees also account for a significant portion of demand.
- Ontario includes dense cities. This boosts demand since a large population broadens the available consumer base. Universities in this province receive less funding than any other province, though.
- The cost of tuition and financial aid are the primary bases of competition. Both of these are affected by levels of government funding.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.5 % over the past five years, to reach an estimated $46.7bn in 2024.
Trends and Insights
Provincial funding is proving sluggish
- Government programs supply nearly half the industry's total revenue. Several provinces cut funding for postsecondary education just prior to the current period, leading to initial layoffs and budget cuts.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Expanding government budgets will reverse revenue declines
- Public funding for universities and colleges accounts for nearly half the industry's revenue, so the size of federal and provincial government budgets are significant drivers of growth for postsecondary schools.
Biggest companies in the Colleges & Universities in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
McGill University | 1,680.1 | N/A | N/A | |
York University | 1,383.6 | N/A | N/A |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Bachelor's degree, Master's degree and Doctorate degree. Bachelor's degree is the largest segment of the Colleges & Universities in Canada.
Trends and Insights
Bachelor's degrees account for over half the industry's revenue
- Most students enroled in colleges and universities pursue a bachelor's degree. These degrees typically require four years of full-time study and equip graduates to work in a wide range of careers. Four-year programs are the most popular for postsecondary students since they greatly expand job prospects for graduates without more a significant time investment.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Language Instruction in Canada
Complementors
- There are no industries to display.
International industries
- Global Higher Education
- Community Colleges in the US
- Colleges & Universities in the US
- For-Profit Universities in the US
- University and Other Higher Education in Australia
Table of Contents
About this industry
Industry definition
The Colleges and Universities industry in Canada provides public and private postsecondary education services. Industry institutions grant certificates, as well as associate, baccalaureate and graduate degrees. This industry does not include for-profit institutions.
What's included in this industry?
Providing postsecondary education Providing higher education at colleges and universitiesProviding higher education at theological seminaries offering baccalaureate or graduate degreesProviding higher education at professional schools (e.g. business administration, dental, law and medical)Providing higher education at college level military academiesCompanies
McGill UniversityYork UniversityPurchase this report to view all 2 major companies in this industry.
Related Terms
ENDOWMENTMASSIVE OPEN ONLINE COURSES (MOOCS)COLLEGESIndustry Code
NAICS 611310 - Colleges & Universities in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Colleges and universities provide a vital service to any functioning economy. Demand is relatively steady because of the many benefits of a good education. Downstream employe...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Bachelor's degrees are the industry’s largest service segment. College certificates and associate degrees also account for a significant portion of demand.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario includes dense cities. This boosts demand since a large population broadens the available consumer base. Universities in this province receive less funding than any o...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The cost of tuition and financial aid are the primary bases of competition. Both of these are affected by levels of government funding.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The University of Toronto is the largest public research university. Since the University of Toronto is a public institution, the provincial government regulates university t...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of McGill University's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of York University's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for McGill University, and factors influencing its performance in the industry
- Description and key data for York University, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The majority of colleges and universities in Canada are public institutions. This means the industry is subject to a high level of government oversight.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Labour costs are very high because of the industry’s specialized nature. Skilled labourers are needed to properly teach the wide variety of subjects that colleges and univers...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Colleges & Universities industry in Canada in 2024?
The market size of the Colleges & Universities industry in Canada is $46.7bn in 2024.
How many businesses are there in the Colleges & Universities in Canada industry in 2024?
There are 207 businesses in the Colleges & Universities industry in Canada, which has grown at a CAGR of 0.1 % between 2019 and 2024.
Has the Colleges & Universities industry in Canada grown or declined over the past 5 years?
The market size of the Colleges & Universities industry in Canada has been declining at a CAGR of 1.5 % between 2019 and 2024.
What is the forecast growth of the Colleges & Universities industry in Canada over the next 5 years?
Over the next five years, the Colleges & Universities industry in Canada is expected to grow.
What are the biggest companies in the Colleges & Universities market in Canada?
The biggest companies operating in the Colleges & Universities market in Canada are McGill University and York University
What does the Colleges & Universities in Canada include?
Providing postsecondary education and Providing higher education at colleges and universities are part of the Colleges & Universities industry.
Which companies have the highest market share in the Colleges & Universities in Canada?
The company holding the most market share in Canada is McGill University.
How competitive is the Colleges & Universities industry in Canada?
The level of competition is moderate and increasing in the Colleges & Universities industry in Canada.
