Learning curve: Skills shortages across the UK economy are supporting demand for the industry

Operators in the Technical and Vocational Education industry provide courses and apprenticeships at post-secondary non-tertiary levels, typically offered through further education institutions, sixth-form colleges, secondary schools and other specialist colleges. Over the past five years, industry revenue has trended downwards as a result of large government cutbacks, which coincided with high levels of demand for vocational and technical training, resulting in industry players suffering from supply-side problems.The past five-year period has been characterised by a major skills shortage in the United Kingdom, as identified by the UK Commission for Employment and Skills in 2015...read more.

Industry Statistics & Market Size
Revenue
£814.3m
Annual Growth 14-19
-2.1%
Forecast Growth 19-24
Profit
Employment
22,459
Businesses
699

Industry Threats & Opportunities

  • Though a major skills shortage has supported demand, industry revenue has declined
  • The government has aimed to revamp the technical education system to combat an ongoing skills shortage
  • A fall in net migration from the European Union is expected to encourage investment in the industry
  • Industry Report - Industry Key Buyers Chapter

    The industry has a low level of market share concentration, as the four largest operators in the industry are expected to have a combined market share of 29.1% in 2018-19. This is partially reflective of the devolved structure of education in the United Kingdom. The government departments in England, Scotland, Northern Ireland and Wales are each responsible for providing education services in their respective jurisdictions and have developed their own systems to fund and regulate technical and vocational education. The industry has become more fragmented over the past five years. Prior to the beginning of the period, in the 2013-14 academic year, new legislation was introduced in England increasing the age at which people must remain in education from 16 to 17. Fur...purchase to read more.

    Additional Insights for the Technical & Vocational Education Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Technical & Vocational Education Industry are

  • Qualified work force
  • Ability to vary services to suit different needs
  • Accessibility to consumers/users
  • IBISWorld analysts also discuss how external factors such as Participation of 16-18 year olds in full-time education and Demand from universities in the Technical & Vocational Education industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Technical & Vocational Education Industry?

    Operators in this industry provide courses and apprenticeships at post-secondary non-tertiary levels. These courses are typically offered through further education institutions, sixth-form colleges, secondary schools and other specialist colleges. Operators also work closely with individual employers to offer on-the-job traineeships. The industry does not include education for recreational purposes.

    Industry Products
  • Preparation for life and work courses
  • Health, public services and care courses
  • Arts, media and publishing courses
  • Language, literature and culture courses
  • Retail and commercial enterprise courses
  • Business administration, finance and law courses
  • Information and communication technology courses
  • Industry Activities
  • Providing vocational training
  • Providing apprenticeships
  • Teaching NVQ and BTEC qualifications
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Participation of 16-18 year olds in full-time education
  • Demand from universities
  • Population aged 16 to 25 years
  • Public-sector funding for higher level education
  • National unemployment rate

  • Current Performance
  • Policy and legislation
  • Skills shortage
  • Increasing demand
  • Teacher shortages
  • Chart: Revenue Growth

  • Industry Outlook
  • Closing the gap
  • Education over employment
  • Profit and participation
  • Table: Technical & Vocational Education Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Technical & Vocational Education Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Book Publishing
  • Computer & Peripheral Equipment Wholesaling
  • General Building Cleaning
  • Paper Stationery Manufacturing

  • Products & Services
  • Preparation for life and work courses
  • Health, public services and care courses
  • Other
  • Arts, media and publishing courses
  • Language, literature and culture courses
  • Business administration, finance and law courses
  • Retail and commercial enterprise courses
  • Information and communication technology courses
  • Chart: Technical & Vocational Education Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Students aged between 19 and 24
  • Students aged 18 and under
  • Students aged between 25 and 49
  • Students aged 50 and over
  • Chart: Major Market Segmentation for the Technical & Vocational Education Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Technical & Vocational Education

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Technical & Vocational Education Industry

  • Industry Globalization
    Learndirect Limited, Seetec Business Technology Centre Ltd,
  • Table: Learndirect Limited - financial performance
  • Table: Seetec Business Technology Centre Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Technical & Vocational Education Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Technical & Vocational Education Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blended Learning
  • A combination of both online and traditional face-to-face instruction.
  • Distance Education
  • Education delivered to students who are not physically present in a traditional classroom or campus.
  • National Vocational Qualification (Nvq)
  • Work-based awards given in England, Wales and Northern Ireland. In Scotland, the equivalent award is the Scottish Vocational Qualification.
  • Technical Baccalaureate
  • An educational qualification awarded to students who take an approved technical level qualification, a Level 3 maths qualification, or an extended project.
  • University Technical College
  • An educational institution for 14- to 19-year-olds that is partnered with a university that helps to direct the curriculum and support the students.
  • What Our Customers Say

    Why buy this report?

    The Technical & Vocational Education market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Technical & Vocational Education:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Technical & Vocational Education market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Technical & Vocational Education, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Would you like to speak to an IBISWorld representative?

    clear