Private Education Sector Statistics and Forecasts

This article was written by our expert who is surveying the industry and constantly updating the business plan for a private school.

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The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the private school market.

What is the current market size of private education (global and by key regions)?

Global private education is a large minority of the $7.3T total education market.

K-12 private education is ≈$431.5B in 2025, and private higher education is ≈$700B in 2024. Asia Pacific is the largest education region overall and leads private growth; North America is large but slower; the Middle East & Africa are accelerating from a smaller base.

To help site selection, benchmark local fee levels and expatriate density in each target city; capacity constraints in public systems raise private demand. Where voucher or PPP programs exist, private operators can tap public funding streams.

You’ll find detailed market insights in our private school business plan, updated every quarter.

Use these benchmarks to size your first campus and phase expansion.

How fast has private education grown over the last five years?

Private K-12 grew ~7.9% per year on average globally over the past five years.

Some APAC and GCC markets ran double-digit growth thanks to urbanization, expat inflows, and premium positioning. Digital programs and test prep outpaced bricks-and-mortar in several countries, lifting blended revenue per student.

In mature markets, growth came from premium niches, international programs, and specialized SEN offerings rather than broad-based volume. Pricing discipline, scholarships, and ancillary services helped protect occupancy during economic slowdowns.

This is one of the strategies explained in our private school business plan.

Model your plan on 5-year CAGR scenarios by segment.

Which regions and countries are growing the fastest?

Asia Pacific and the GCC show the strongest momentum for private schools.

China, India, Vietnam, and Thailand drive APAC expansion, while Saudi Arabia, the UAE, and Qatar lead the GCC with supportive policy and high expat shares. Latin America and wider Middle East also post robust growth from regulatory reforms and rising incomes.

City-level growth often exceeds country averages where public capacity is tight and international curricula are in demand. New campuses cluster near urban corridors with high-income families, multinational employers, and transport access.

We cover this exact topic in the private school business plan.

Prioritize metros with fee headroom and stable licensing processes.

What share of students are in private vs. public schools across major markets?

Private enrollment is a minority globally but exceeds 20% in several APAC/GCC cities.

Developed markets typically show 6–12% private K-12 shares; select emerging markets and expatriate hubs run significantly higher. Use the ranges below to benchmark likely penetration.

What are the main revenue streams for private schools?

Tuition is the core, but diversified ancillary income raises margin and resilience.

Key streams include base tuition, enrollment and activity fees, transport, meals, uniforms, boarding, after-school care, extracurriculars, test prep, camps, summer school, and digital program subscriptions. International student services (visa counseling, homestay, pathway programs) add incremental yield.

Hybrid/online modules expand reach beyond physical capacity and can lift EBITDA per student. Corporate partnerships (scholarship seats, language upskilling) create stable B2B demand.

It’s a key part of what we outline in the private school business plan.

Design at least three auxiliary lines that fit your target families.

How has demand for online and hybrid private education evolved?

Digital education is scaling fast and complements campus capacity.

The digital education market is projected to more than double from ≈$404B (2025) to ≈$850B by 2030 (~16.3% CAGR). Online learning penetration is expected to rise from ~5.5% to ~12% globally in five years, with strongest adoption in urban markets.

For a private school, hybrid can reduce timetable friction, extend advanced courses, and support SEN and language tracks. Fees for digital electives and summer modules add flexible high-margin revenue.

Get expert guidance and actionable steps inside our private school business plan.

Pilot hybrid electives before full timetable integration.

What growth rates are expected over the next 5–10 years?

Private education is forecast to grow strongly through 2030 and beyond.

Overall education spending may reach ≈$10T by 2030 (~6.5% CAGR). Private K-12 is projected around ~9% CAGR into 2029, while digital education may grow at ~16.3% CAGR.

Higher education private revenues are projected to expand ~5% CAGR through 2031, with growth concentrated in Asia and international pathway programs. Premium K-12 and bilingual/IB tracks should outpace mass-market schools where incomes rise.

This is one of the many elements we break down in the private school business plan.

Plan capacity in phases tied to realistic intake ramps.

Which demographic shifts most drive demand for private schools?

Urbanization, income growth, and expatriate inflows are the strongest demand drivers.

Middle-class expansion increases ability to pay; public-school crowding pushes families to private options. Lower birth rates in some developed markets shift strategy toward retention, premium offerings, and international students.

Migratory flows cluster demand in specific districts; commute times and safety remain decisive for parents. Dual-income households value extended day care, after-school activities, and meal services on campus.

Align program mix with your city’s household income bands and commute patterns.

Use demographics to set catchment, transport routes, and fee ladders.

Who are the major private education providers and how much of the market do they control?

• Nord Anglia Education – Global premium K-12 network across APAC, EMEA, and the Americas; significant share within the premium international segment.
• GEMS Education – Large GCC/APAC footprint; price tiers from mid-market to premium; strong expatriate orientation.
• Cognita Schools – Diverse international portfolio; emphasis on bilingual and international curricula.
• Regional groups (e.g., Indian and Chinese school networks) – Material share in-country; often fastest growth due to local licensing and land access.
• Edtech platforms (tutoring, test prep, digital curricula) – Growing share of wallet, especially in exam years and language learning.

How do government policies and regulation shape private school growth?

Policy sets the rules of the game for private schools.

Licensing, fee caps, curriculum approval, teacher qualifications, and foreign investment rules directly influence speed to market and achievable pricing. Subsidies or vouchers (and PPPs) can enlarge the addressable market, particularly in GCC and selected APAC countries.

Stable, transparent regulation reduces project risk and cost of capital; abrupt rule shifts can impact fee schedules, international programs, and ownership structures. Early legal review and regulator engagement shorten lead times.

Build compliance milestones into your pre-opening critical path.

Maintain a policy watchlist and update your pricing model quarterly.

How do private school costs compare to household incomes, and what are the affordability trends?

Affordability varies widely; private fees often grow faster than median incomes.

Tiered pricing, scholarships, and hybrid modules are increasingly used to protect occupancy while maintaining yield.

What proportion of revenue comes from tuition vs. online, extracurricular, and test prep?

Tuition typically supplies the majority, with auxiliaries lifting total yield per student.

In growing private schools, 70–85% often comes from tuition and core fees, with 15–30% from transport, meals, activities, test prep, summer/camps, boarding, and digital modules. Digital electives can be margin accretive due to low incremental cost.

Track revenue per student, activity attach rates, and classroom utilization to optimize mix. Cross-sell after-school and holiday programs to stabilize cash flow across the year.

You’ll find detailed market insights in our private school business plan, updated every quarter.

Plan auxiliary lines that match your families’ schedules and budgets.

What is the online/hybrid share of the private education market today?

Online/hybrid is a rising share of private education spend.

Global online/digital education is around $404B in 2025, with penetration expected to approach ~12% in five years. Private schools increasingly bundle hybrid subjects, advanced electives, and intervention supports.

Adopt digital for AP/IB extension, language labs, and SEN supports to widen course breadth without full-time faculty for every subject. Audit device access and bandwidth in your catchment before launching.

Pair hybrid with measurable outcomes and clear parent communications.

Use hybrid to unlock schedule and facility constraints.

What are the main risks and challenges for private schools?

• Regulatory volatility – Fee caps, curriculum limits, and foreign ownership rules can shift economics.
• Affordability pressure – Tuition outpacing incomes can dent occupancy; scholarships and pricing tiers are essential.
• Teacher and leader supply – Recruiting/retaining qualified staff is a growing constraint in fast-growing cities.
• Technology disruption – Rapid digital shifts can outdate pedagogy and raise capex/opex needs.
• Competition – New entrants and upgraded public schools intensify local battles for students.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. HolonIQ — Size & Shape of the Global Education Market
2. HolonIQ — 2025 Global Education Outlook
3. Research & Markets — K-12 Private Education Market Report
4. GlobeNewswire — K-12 Private Education Opportunities & Strategies
5. 6Wresearch — Global Private Higher Education Market
6. Custom Market Insights — K-12 Private Education Market
7. Mordor Intelligence — GCC Private K-12 Education
8. IBISWorld — US Private Schools Industry Report
9. Custom Market Insights — Global K-12 Education Market
10. SSRN — Global Education Spending Analysis