Over the five years to 2017, industry operators have benefited from rising income levels and growth in the percentage of households earning more than $100,000 each year, both of which have enabled consumers to afford the industry's rising tuition rates. Though total enrollment in industry institutions has declined consistently over the past decade, substantial growth in average tuition rates has significantly bolstered industry revenue growth. Over the five years to 2022, as economic conditions continue to improve, household income levels are expected to increase, making it easier for families to afford private school tuition. Industry institutions are also forecast to continue raising tuition to sustain revenue. Fortunately for the industry, enrollment declines will also lessen in coming years, resulting in more stable demand for private schools.
The Private Schools industry comprises primary (kindergarten through sixth grade) and secondary (seventh through 12th grade) educational institutions that are predominantly funded through tuition fees and other private sources. While these schools may receive indirect government funding through special programs, these sources of income constitute a small portion of industry revenue. Government-funded schools are included in the Public Schools industry (IBISWorld report 61111a).
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.