Education Buildings Market Opportunities and Strategies to 2033

This report describes and explains the education buildings market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global education buildings market reached a value of nearly $695.41 billion in 2023, having grown at a compound annual growth rate (CAGR) of 5.45% since 2018. The market is expected to grow from $695.41 billion in 2023 to $848.82 billion in 2028 at a rate of 4.07%. The market is then expected to grow at a CAGR of 3.29% from 2028 and reach $1.02 trillion in 2033.

Growth in the historic period resulted from the growing emphasis on sustainable building practices, increasing demand for higher education and increase in the number of private colleges and universities. Factors that negatively affected growth in the historic period include rising costs of construction materials.

Going forward, the rising number of schools, increasing government funding for schools, increasing company investments in educational buildings and increasing government support will drive the market. Factors that could hinder the growth of the education buildings market in the future include a lack of skilled workers and increasing maintenance costs in construction.

The education buildings market is segmented by construction type into new construction, repair and maintenance, refurbishment and demolition. The new construction market was the largest segment of the education buildings market segmented by construction type, accounting for 53.25% or $370.32 billion of the total in 2023. Going forward, it is expected to be the fastest growing segment in the education buildings market segmented by construction type, at a CAGR of 4.95% during 2023-2028.

The education buildings market is segmented by application into schools and institutions. The schools market was the largest segment of the education buildings market segmented by application, accounting for 60.74% or $422.42 billion of the total in 2023. Going forward, the institutions segment is expected to be the fastest growing segment in the education buildings market segmented by application, at a CAGR of 4.94% during 2023-2028.

The education buildings market is segmented by end user into private and public. The public market was the largest segment of the education buildings market segmented by end user, accounting for 68.41% or $475.74 billion of the total in 2023. Going forward, the private segment is expected to be the fastest growing segment in the education buildings market segmented by end user, at a CAGR of 5.79% during 2023-2028.

Asia-Pacific was the largest region in the education buildings market, accounting for 43.27% or $300.92 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the education buildings market will be Africa and South America, where growth will be at CAGRs of 12.76% and 11.06% respectively. These will be followed by the Middle East and Eastern Europe, where the markets are expected to grow at CAGRs of 10.06% and 5.39% respectively.

The global education buildings market is highly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 0.98% of the total market in 2023. Skanska AB was the largest competitor with a 0.25% share of the market, followed by Hochtief AG with 0.18%, Balfour Beatty plc with 0.15%, DPR Construction with 0.11%, AECOM with 0.08%, STO Building Group with 0.07%, Gilbane, Inc with 0.04%, CallisonRTKL (Arcadis) with 0.04%, McCarthy Holdings, Inc with 0.03% and HDR Inc with 0.03%.

The top opportunities in the education buildings market segmented by construction type will arise in the new construction segment, which will gain $101.27 billion of global annual sales by 2028. The top opportunities in the education buildings market segmented by application will arise in the schools segment, which will gain $79.0 billion of global annual sales by 2028. The top opportunities in the education buildings market segmented by end user will arise in the public segment, which will gain $81.97 billion of global annual sales by 2028. The education buildings market size will gain the most in China at $20.22 billion.

Market-trend-based strategies for the education buildings market include focus on prioritizing environmentally conscious construction by incorporating energy-efficient designs, renewable energy sources and eco-friendly materials, incorporating modular construction methods, investing in state-of-the-art infrastructure to support technology-enhanced learning experiences and technology integration to build future-focused tech buildings.

Player-adopted strategies in the education buildings market include strengthening business operations through securing new contracts and enhancing business capabilities through project portfolio expansions.

To take advantage of the opportunities, the analyst recommends the education buildings companies to focus on sustainability and green building practices, focus on modular construction, focus on technology integration, focus on the refurbishment segment for growth, focus on the schools segment, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions and focus on public education buildings.