Revenue declines: The elimination of VET FEE-HELP has negatively affected revenue

Regulations in the Technical and Vocational Education and Training industry are frequently changing. Student numbers and industry revenue surged with the implementation of the VET FEE-HELP scheme in 2009 and the National Partnership Agreement on Skills Reform in 2012. The increase in government funding reduced financial barriers for students seeking to access vocational education and increased the number of private vocational education providers entering the market. However, course quality concerns and budgetary constraints led to changes to industry funding, including the VET Student Loans scheme, which was implemented in January 2017. Industry revenue is expected to fall at an annualised 6.0% over the five years through 2019-20, to $9.2 billion. This includes an anticipated rise of 4.8%...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 15-20
-6.0%
Forecast Growth 20-25
Profit
Employment
69,491
Businesses
4,298

Industry Threats & Opportunities

  • Course quality concerns and budgetary constraints have affected industry funding arrangements
  • The introduction of the VET FEE-HELP scheme led to a spike in student enrolments
  • A competitive job market is forecast to encourage people to enrol in tertiary education
  • Industry Report - Industry Analysis Chapter

    Fluctuations in student demand, and amendments to government policies and funding have significantly changed the Technical and Vocational Education and Training industry over the past ten years. Amendments to government funding significantly boosted student numbers, encouraging existing firms to expand and increasing demand for the industry early in the decade. However, subsequent changes to student eligibility requirements, funding and institution accreditation requirements raised the barriers for students and institutions over the past five years, causing demand to slow and industry revenue to fall. Overall, industry revenue is expected to decline at an annualised 6.0% over the five years through 2019-20, to $9.2 billion. This includes anticipated growth of 4.8% i...purchase to read more.

    Additional Insights for the Technical and Vocational Education and Training Industry

    IBISWorld has determined the most important Key Success Factors for the Technical and Vocational Education and Training are:

  • Must comply with government regulations
  • Production of goods currently favoured by the market
  • Company's product is user/consumer friendly
  • IBISWorld analysts also discuss how external factors such as Public funding for tertiary education and Number of vocational students in the Technical and Vocational Education and Training industry impact industry performance..

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    What's in this report

    What is the Technical and Vocational Education and Training Industry?

    The industry consists of registered training organisations (RTOs) that offer technical and vocational education and training. RTOs include TAFE institutes, dual-sector institutions and other private and community providers.

    Industry Products
  • Diploma and above
  • Certificate IV
  • Certificate III
  • Certificate II
  • Certificate I
  • Other courses and programs
  • Industry Activities
  • Apprenticeship training program operation
  • Business college and school operation
  • Information technology training centre operation
  • Institute of technology operation
  • Professional and management development training
  • Secretarial training
  • Technical and further education college operation
  • Technical college operation
  • Vocational computer training
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Public funding for tertiary education
  • Number of vocational students
  • Trade-weighted index
  • National unemployment rate

  • Current Performance
  • Government funding and reform
  • Private providers
  • Student enrolments
  • Chart: Revenue Growth

  • Industry Outlook
  • Private providers
  • Government funding and reforms
  • Student enrolments
  • Table: Technical and Vocational Education and Training Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Book and Magazine Wholesaling
  • Central Government Administration
  • Computer and Computer Peripheral Wholesaling
  • Paper Product Wholesaling
  • Printing
  • State Government Administration
  • Telecommunications and Other Electrical Goods Wholesaling

  • Products & Services
  • Other courses and programs
  • Certificate III
  • Diploma and above
  • Certificate II
  • Certificate IV
  • Certificate I
  • Chart: Technical and Vocational Education and Training Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Students aged between 25 and 44
  • Students aged 45 and over
  • Students aged between 15 and 24
  • Chart: Major Market Segmentation for the Technical and Vocational Education and Training Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Department of Education and Training Victoria, Technical and Further Education Commission, TAFE Queensland,
  • Table: Department of Education and Training Victoria - financial performance
  • Table: Technical and Further Education Commission - financial performance
  • Table: TAFE Queensland - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Technical and Vocational Education and Training 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 and Vocational Education and Training Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Australian Qualifications Framework (Aqf)
  • The Australian Qualifications Framework is the national policy that underpins the system of regulated qualifications for schools, vocational education and training and higher education in Australia.
  • National Centre For Vocational Education Research
  • Compiles statistics and researches the vocational education market.
  • Tafe
  • Technical and Further Education. This can refer to courses or the institutions that provide them.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Technical and Vocational Education and Training market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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
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    This report on Technical and Vocational Education and Training:
    • 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 of 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 and Vocational Education and Training 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 and Vocational Education and Training, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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