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UK SIC P85.421 | Industry Report

Universities in the UK Industry Data and Analysis

JK
Jessica Kent
Analyst London, United Kingdom October 2025

Over the five years through 2025-26, the Universities industry's revenue is expected to grow at a compound annual rate of 0.6% to £54.9 billion. The increase in tuition fees to £9,250 in 2017-18 has been an important driver of revenue growth. However, with tuition fees frozen until 2024-25, inflation, particularly in the two years through 2023-24, has meant their real value has plummeted. This has also put a strain on profit over the past five years. The cap on undergraduate student numbers in the UK was lifted in 2020-21, leading to a rise in student enrolments, which has helped prop up universities’ income.

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What's included in this industry analysis

IBISWorld's research coverage on the Universities industry in the United Kingdom includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released October 2025.

About this industry

What's this industry report about?

The Universities industry in the United Kingdom operates under the SIC industry code P85.421. Universities offer higher education, leading to qualifications like bachelor’s degrees, foundation degrees, master’s degrees and higher education diplomas. They provide full and part-time teaching and training that leads to both undergraduate and postgraduate qualifications. Related terms covered in the Universities industry in the United Kingdom include russell group, postgraduate and undergraduate.

What's included in this industry?

Products and services covered in Universities industry in the United Kingdom include First degrees, PGCEs and ProfGCEs and Foundation degrees.

What companies are included in this industry?

Companies covered in the Universities industry in the United Kingdom include University of Oxford, University College London and University of Cambridge .

Performance

What's included in the Performance chapter?

The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Universities industry in the United Kingdom.

Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.

Products & Markets

What's included in the Products and Markets chapter?

The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Universities industry in the United Kingdom.

Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.

Geographic Breakdown

What's included in the Geographic Breakdown chapter?

The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Universities industry in the United Kingdom.

Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.

Competitive Forces

What's included in the Competitive Forces chapter?

The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Universities industry in the United Kingdom. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.

Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.

Companies

What's included in the Companies chapter?

The Companies chapter covers Key Takeaways, Market Share and Companies in the Universities industry in the United Kingdom. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.

Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.

External Environment

What's included in the External Environment chapter?

The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Universities industry in the United Kingdom. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.

Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.

Financial Benchmarks

What's included in the Financial Benchmarks chapter?

The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Universities industry in the United Kingdom. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.

Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.

Industry Data

What's included in the Industry Data chapter?

The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Universities industry in the United Kingdom.

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Frequently Asked Questions

What is the market size of the Universities industry in the United Kingdom in 2026?

The market size of the Universities industry in the United Kingdom is £54.9bn in 2026.

How many businesses are there in the Universities industry in the United Kingdom in 2025?

There are 174 businesses in the Universities industry in the United Kingdom, which has grown at a CAGR of 1.7 % between 2020 and 2025.

How may import tariffs affect the Universities industry in the United Kingdom?

The Universities industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Universities industry in the United Kingdom?

The Universities industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Universities industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Universities industry in the United Kingdom has been growing at a CAGR of 0.6 % between 2020 and 2025.

What is the forecast growth of the Universities industry in the United Kingdom over the next 5 years?

Over the next five years, the Universities industry in the United Kingdom is expected to decline.

What are the biggest companies in the Universities industry in the United Kingdom?

The biggest companies operating in the Universities industry in the United Kingdom are University of Oxford, University College London and University of Cambridge

What does the Universities industry in the United Kingdom include?

First degrees and Taught master's degrees are part of the Universities industry in the United Kingdom.

Which companies have the highest market share in the Universities industry in the United Kingdom?

The company holding the most market share in the Universities industry in the United Kingdom is University of Oxford.

How competitive is the Universities industry in the United Kingdom?

The level of competition is high and increasing in the Universities industry in the United Kingdom.

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