The demand for higher education is continuously growing due to the increasing global population and economic growth in most emerging markets. While international higher education has been a privilege to a smaller segment of society in the past, nowadays attending a university abroad has become a real alternative for many middle-class families too.

In our strongly globalised world, this fast-growing middle-class seeks quality education for their children. Having said that, the higher education industry remains on a growth path and has not reached its full potential yet by far.

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Traditional vs. Non-Traditional Study Destinations

The higher education market has been dominated by a few leading study destinations during the last few decades. Besides China – the world's largest student market, additional important source markets have been developed in the past 5-7 years by the leading destinations. These additional source markets play a pivotal role in the growth of the higher education industry. The Indian subcontinent, Western Africa, and Indonesia are the basis for the success of many traditional study destinations in recruiting students on a large scale. 

The traditional study destinations, the so-called big five (US, Canada, UK, Australia & NZ), compete with non-traditional study destinations such as those in Europe. European universities offer a wide range of English-taught study programmes with affordable tuition fees and attractive migration opportunities for their graduates.

There is economic pressure on these countries to attract young talents because the lack of skilled professionals slows down economic growth in most European countries. The demographic change in most western societies put pressure on universities to look beyond their domestic market and create a strategic recruitment plan to attract international students. 

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The Meteoric Rise of European HE

From the European perspective, all EU study destinations have gained some market share against the traditional education destinations in the past 10 years. All European Union member states attract students from both EU and international markets on a large scale.

While Western Europe remains the number one destination for most international students, Central European countries were also able to build up their reputation and target a different segment in their large source countries. To give an example: Hungarian universities have built a strong brand for their English-taught medical programmes. Germany has been known for its Engineering programmes, but today French, German, and Dutch universities continue to break records in their overall international student numbers year by year regardless of the discipline area of studies.

The rise of these European countries experienced an additional push after Brexit. Besides Germany and The Netherlands, France has also been able to continuously grow its international student population. After the UK left the European Union, most European students still sought after higher education within Europe but mainly in Germany and the Netherlands.

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Beyond Europe and the Big 5

Besides Europe, education hubs in the Middle East and satellite campuses through TNE partnerships in Southeast Asia play a major role in fostering global education. If we take Dubai as an example, it can be agreed upon that the UAE has been able to establish a strong brand for Dubai as an education city and has attracted multiple universities to open branch campuses there.

Although international markets keep growing for universities, institutions face new challenges after the years of the pandemic and in the middle of the Ukrainian war. Traditional classroom-based education will be transformed more and more into blended learning. The highest standards in world-class education and first-class delivery require universities to invest in the newest technology to create a unique and digital learning experience.

While the number of students seeking higher education keeps growing, economic matters – such as increasing inflation – will affect the attractiveness of all study destinations. Not only will tuition fees further increase, but the living cost in each country will play a major role in the decision-making process for or against a study destination. 

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Conclusion

What can European destinations learn from the big five? European study destinations can learn from British and Australian universities about how to create a brand for higher education for an entire nation. European countries, or even regions, should build clear value propositions for students, both for studies as well as post-study work opportunities beyond their education.

Europe has the potential to overcome economic slowdowns through the recruitment of young and talented students. These students will contribute to the economy, enrich our society, and help to close the gap in the European labour market.