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Driving Schools in the US Industry Data and Analysis
Driving schools have experienced steady revenue growth in recent years, driven by long-term shifts from public to private instruction and sustained regulatory pressure. Private providers have become the primary access point for teen drivers and commercial driver's license (CDL) candidates, with public schools withdrawing from offering free or subsidized driver's ed. A combination of mandatory training requirements in many states and a broader societal need for driving credentials, particularly as licensing becomes more tightly regulated, has underpinned growth. Expanding state interest in improving access for underserved populations, through grants, legislative proposals or pilot programs, has also supported enrollment growth for driving schools by reducing financial barriers. At the same time, a rising demand for commercial driver's licenses (CDLs), fueled by ongoing labor shortages in the trucking and logistics industries and new federal training requirements, has prompted many schools to add or expand CDL training programs. Growing interest in other specialized courses, like defensive driving and advanced skills training, enables schools to reach new markets beyond their traditional teen clientele. Collectively, these trends have led revenue to expand at a CAGR of 5.3% over the past five years to reach an estimated $1.9 billion, including expected growth of 1.0% in 2025.
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What's included in this industry analysis
IBISWorld's research coverage on the Driving Schools industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released June 2025.
About this industry
What's this industry report about?
The Driving Schools industry in the United States operates under the NAICS industry code OD4995. Driving schools are institutions or businesses that teach people how to drive vehicles safely and legally. They typically offer classroom instruction on road rules, traffic laws and behind-the-wheel training with a licensed instructor. The goal is to prepare students to pass their driving tests and become responsible drivers. Related terms covered in the Driving Schools industry in the United States include instructor's brake, driver's education, learner's permit and certified driving instructor.
What's included in this industry?
Products and services covered in Driving Schools industry in the United States include Occupational training, Teen driving lessons and Adult driving lessons.
What companies are included in this industry?
The Driving Schools industry in the United States is highly fragmented with no companies holding a market share greater than 5%.
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 Driving Schools industry in the United States.
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 Driving Schools industry in the United States.
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 Driving Schools industry in the United States.
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 Driving Schools industry in the United States. 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 Driving Schools industry in the United States. 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 Driving Schools industry in the United States. 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 Driving Schools industry in the United States. 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 Driving Schools industry in the United States.
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Frequently Asked Questions
What is the market size of the Driving Schools industry in the United States in 2026?
The market size of the Driving Schools industry in the United States is $2.0bn in 2026.
How many businesses are there in the Driving Schools industry in the United States in 2025?
There are 23,946 businesses in the Driving Schools industry in the United States, which has grown at a CAGR of 4.2 % between 2020 and 2025.
How may import tariffs affect the Driving Schools industry in the United States?
The Driving Schools industry in the United States 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 Driving Schools industry in the United States?
The Driving Schools industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Driving Schools industry in the United States grown or declined over the past 5 years?
The market size of the Driving Schools industry in the United States has been growing at a CAGR of 5.3 % between 2020 and 2025.
What is the forecast growth of the Driving Schools industry in the United States over the next 5 years?
Over the next five years, the Driving Schools industry in the United States is expected to grow.
What does the Driving Schools industry in the United States include?
Teaching driving lessons for teens and Teaching driving classes for adults are part of the Driving Schools industry in the United States.
How competitive is the Driving Schools industry in the United States?
The level of competition is moderate and increasing in the Driving Schools industry in the United States.
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