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Online Education in Australia - Market Research Report (2014-2029)

Shelley Roque Shelley Roque Melbourne, Australia Last Updated: July 2024 ANZSIC X0008

Revenue

$11.9bn

2024-25

$11.9bn

Past 5-Year Growth

Profit

$XX.Xbn

Employees

24,425

Businesses

2,290

Wages

$X.Xbn

Online Education in Australia industry analysis

Advancements in technology and broader internet access have transformed online education into an appealing and feasible option for both learning and career progression. The COVID-19 pandemic further accelerated this trend, as social distancing measures forced many educational institutions to shift their offerings online. Consequently, online education revenue is expected to surge at an annualised rate of 8.7% over the five years through 2023-24, reaching an estimated total of $11.1 billion. This growth includes an anticipated increase of 6.5% in the current year, driven by students seeking the flexibility and accessibility that online studies provide.

Trends and Insights

  • The COVID-19 pandemic accelerated the shift to online education, reinforced by extended government funding and mandated social distancing measures. Despite a drop in international student enrolments, the industry remains resilient, using flexibility and adaptability as new opportunities for growth.
  • Online undergraduate courses are now more popular, thanks to a continuous influx of high school graduates. These courses cater to a wide array of academic disciplines, offering students from various fields the opportunity to study remotely.
  • Traditional universities venturing into online education have clustered industry activity along Australia's east coast, with nearly 80% of online education providers in major cities. These cities offer robust infrastructure, which facilitates greater reach and service quality.
  • Prominent universities and TAFEs significantly shape the online education market through their resource allocation and expansive influence. Their strategic focus on enhancing digital course delivery during the pandemic has notably increased their market dominance and reshaped the educational environment.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 4.8 % over the past five years, to reach an estimated $11.9bn in 2024.

Trends and Insights

The pandemic accelerated online platform development despite stifling student flow

  • Extended government funding in the wake of the COVID-19 outbreak provided a financial safety net, bringing stability for the Online Education industry amid volatile times.
  • Additional trends and insights available with purchase
Online Education in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Government initiatives targeting Australia's skills shortages will alter industry activity

  • Shifting Federal Government policies will shape the industry’s course over the coming years.

Biggest companies in the Online Education in Australia

Company
Market Share (%)
2025
Revenue ($m)
2025
Charles Sturt University
517.4
Kaplan Education Pty Limited
48.5
Swinburne University
164.2

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Online Education in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Undergraduate courses, Postgraduate courses and Certificates and diplomas. Undergraduate courses is the largest segment of the Online Education in Australia.

Trends and Insights

Online undergraduate courses have picked up steam as more students flow through from high school

  • Online undergraduate courses cover an expansive range of disciplines, including Commerce, Science, Arts and others.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The industry includes institutions that deliver online education to students. To be considered an online provider, over 80% of the course or unit content offered must be delivered online. For instance, students could be located off-campus for the duration of their enrolment and successfully complete a unit of study.

What's included in this industry?

Undergraduate coursesPostgraduate coursesCertificates and diplomasOnline tutoringNon-formal educationSchool education

Companies

Charles Sturt UniversityKaplan Education Pty LimitedSwinburne University

Purchase this report to view all 3 major companies in this industry.

Related Terms

DISTANCE EDUCATIONMOOCOUAUNITVET

Industry Code

ANZSIC 2006

ANZSIC 8101 - Online Education in Australia

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

The COVID-19 pandemic accelerated the shift to online education, reinforced by extended government funding and mandated social distancing measures. Despite a drop in internat...

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

Online undergraduate courses are now more popular, thanks to a continuous influx of high school graduates. These courses cater to a wide array of academic disciplines, offeri...

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

Traditional universities venturing into online education have clustered industry activity along Australia's east coast, with nearly 80% of online education providers in major ...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, 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

Prominent universities and TAFEs significantly shape the online education market through their resource allocation and expansive influence. Their strategic focus on enhancing...

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

No single online education provider exerts widespread influence across all industry channels. Given the low barriers to entry and ease of targeting specific niches, the indus...

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 Charles Sturt University's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Kaplan Education Pty Limited's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Swinburne University's performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for Charles Sturt University, and factors influencing its performance in the industry
  • Description and key data for Kaplan Education Pty Limited, and factors influencing its performance in the industry
  • Description and key data for Swinburne 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

Financial assistance for higher education students is available through various government-funded HELP schemes. These include HECS-HELP for Commonwealth-supported domestic st...

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

Wages are rising as educators hire top talent for a competitive edge and strong educational results. Demand for skilled teachers is pushing up labour costs, significantly imp...

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

  • 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)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Online Education industry in Australia in 2024?

The market size of the Online Education industry in Australia is $11.9bn in 2024.

How many businesses are there in the Online Education in Australia industry in 2024?

There are 2,290 businesses in the Online Education industry in Australia, which has grown at a CAGR of 8.4 % between 2019 and 2024.

Has the Online Education industry in Australia grown or declined over the past 5 years?

The market size of the Online Education industry in Australia has been growing at a CAGR of 4.8 % between 2019 and 2024.

What is the forecast growth of the Online Education industry in Australia over the next 5 years?

Over the next five years, the Online Education industry in Australia is expected to grow.

What are the biggest companies in the Online Education market in Australia?

The biggest companies operating in the Online Education market in Australia are Charles Sturt University, Kaplan Education Pty Limited and Swinburne University

What does the Online Education in Australia include?

Undergraduate courses and Postgraduate courses are part of the Online Education industry.

Which companies have the highest market share in the Online Education in Australia?

The company holding the most market share in Australia is Charles Sturt University.

How competitive is the Online Education industry in Australia?

The level of competition is moderate and increasing in the Online Education industry in Australia.

Related Industries

Widen your competitive advantage with related industries

Competitors

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View all industries in Australia

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 Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

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.