North America Study Abroad Market Outlook, 2029

North America Study Abroad Market Outlook, 2029

The North American study abroad market is a vital segment of the global education industry, showcasing large volumes of outbound students going overseas for studies. Over the past ten years, such volume was underpinned by steady growth characterized by increasing globalization, diverse cultural experiences desired, dispensation in academic and career opportunities, and comprehensive scholarship programs. It presents some of the greatest living and learning diversity in the world for international students. From the Atlantic to the Pacific, Canada to Mexico, Greenland to the Caribbean, the options are endless for those seeking abroad studies in North America. Tens of thousands of students from both the United States and Canada study abroad annually. North American students tend to be hosted by countries such as the United Kingdom, Canada, Australia, Germany, France, and Spain, as well as China. This partly be because such destinations offer very high-quality education, types of English-language programs, or lively university populations. Over the past years, spots such as South Korea, Japan, and some European countries outside these usual destinations showed growing interest. The significant struggles in the market include high costs for studying abroad, visa and immigration issues, and cultural adjustment. Nevertheless, from the many challenges noted above, there are numerous opportunities opened, including increased funding and scholarships, growth in Virtual Study Abroad Programs, partnerships between North American and foreign institutions, and the enhanced support services for students. The United States and Canadian governments encourage study abroad programs by offering various scholarships, grants, and exchange programs. The U.S. Fulbright Program and the International Scholarship Program of the Canadian Government are highly significant.

According to the research report ""North America Study Abroad Market Outlook, 2029,"" published by Bonafide Research, the North America Study Abroad market is anticipated to grow at more than 12% CAGR from 2024 to 2029. Disruptions caused by the COVID-19 pandemic on the study abroad market have been huge. Many programs were postponed or just canceled due to travel restrictions and safety concerns. The number of students studying abroad reduced. Most institutions and organizations bypassed this problem by implementing virtual study abroad programs and hybrid models where their students could still have an international experience digitally. With the opened-up world, reduced travel restrictions, and vaccination rates, recovery of the study abroad market is now taking place; interest in international programs gets reinvigorated. The U.S. has a large, healthy study abroad market; it sends a huge number of students to other countries, bound for various international programs. Many of these universities have very organized study abroad offices offering many different options, from faculty-led programs to exchange-chance partnerships. Another important feature of Canadian universities is their international collaborative and exchange agreements, especially with institutions in Europe and Asia. Such programs underline cultural immersion among other factors, whereby one gets the chance to experience new cultures, languages, and lifestyles. As a result, this appears to be an element very critical to students in pursuit of personal growth and global awareness. This could turn out to be academically rewarding as well by accessing a variety of courses and instructional methodologies, through which students are able to research in international settings, they are able to build their academic resumes. Many employers and graduate schools actually view the study abroad experience as very valuable.

In North America, each university and college has its own study abroad office to provide resources, counsel, and monetary aid to students, establishing relationships with foreign institutions, and managing exchange programs. Technology is also increasingly being used to enable study abroad experiences, such as virtual exchange programs and online pre-departure orientations. The emphasis is also the emerging one with respect to making study abroad accessible to very diverse student populations, particularly from underrepresented backgrounds. Harvard, Yale, Stanford, University of Toronto, and McGill University are some leading universities that have extensive study abroad programs and partnerships with institutions around the world. Organizations like Institute of International Education, Council on International Educational Exchange, and International Studies Abroad play an instrumental role in placing students abroad for studies. There are also government-sponsored programs that fund study abroad experiences, like the Gilman Scholarship Program and Boren Awards. The cost of studying abroad is generally a very wide-ranging expense, depending on the destination, type of program a student takes up, and duration of stay. In most instances, these costs include tuition, accommodation, travel, and living. Western Europe and Oceania are normally the more expensive destinations, whereas a good number of Asian and Eastern European countries offer more affordable options. The cost can be offset by various scholarships and grants, not to mention institutional scholarships, government grants like the Fulbright Program, Rhodes Scholarships, and DAAD Scholarships for studying in Germany.

Market Drivers
• Quality of Education and Institutional Prestige: North American institutions are globally recognized for their high academic standards, cutting-edge research facilities, and accomplished faculty. Universities like Harvard, MIT, and Stanford in the US, and the University of Toronto and McGill University in Canada, consistently rank among the top in global education. These institutions offer a diverse range of programs and specializations that attract students seeking a comprehensive and rigorous education. The prestige associated with a degree from a North American university can significantly enhance career prospects, making the region an attractive destination for international students.
• Extensive Scholarship Programs: The availability of scholarships and financial aid is a major driver for international students. Governments, universities, and private organizations in North America offer a plethora of scholarships tailored for international students, reducing the financial burden and making higher education more accessible. Programs like the Fulbright Scholarships, the Canadian Commonwealth Scholarship Program, and numerous institutional scholarships provide funding for tuition, living expenses, and research opportunities, encouraging students from diverse economic backgrounds to pursue their studies in North America.

Market Challenges
• High Cost of Living and Tuition: The cost of living and tuition fees in North America are some of the highest globally, especially in major cities like New York, San Francisco, and Toronto. This financial burden can be daunting for international students and their families, even with the availability of scholarships. Expenses such as accommodation, health insurance, and day-to-day living costs add up, making it challenging for students to manage their finances while focusing on their studies.
• Visa and Immigration Policies: Stringent visa and immigration policies present significant hurdles for international students. Policies such as the H-1B visa cap in the US and the frequent changes to immigration regulations create uncertainties and stress for students. The process of obtaining and renewing student visas is complex and often time-consuming, with students facing potential delays and rejections that can disrupt their educational plans.

Market Trends
• Increased Focus on STEM Programs: There is a notable increase in the number of international students enrolling in STEM (Science, Technology, Engineering, and Mathematics) programs in North America. These programs offer robust career opportunities, higher earning potential, and pathways to residency and employment in tech-driven economies. Universities are expanding their STEM offerings, investing in advanced research facilities, and forming partnerships with tech industries to attract more international students.
• Growth of Community Colleges: Community colleges in North America are becoming popular among international students due to their affordability and transfer agreements with prestigious universities. These colleges offer lower tuition rates, smaller class sizes, and flexible schedules, providing a cost-effective pathway to a bachelor’s degree. Students can complete the first two years of their education at a community college and then transfer to a four-year institution to complete their degree, making higher education more accessible.

The dominance of undergraduate programs is that it provides comprehensive and flexible programs that can support a wide range of academic and personal growth objectives.

Undergraduate programs in US and Canada provide a wide range of courses and majors that attract a wide diversity of international students towards these countries. Such programs are designed in a holistic manner and provide educational experiences that offer both academic rigor and attrition to personal development, making them very attractive to most international students. They have the flexibility of the courses one can choose; the student can select many courses across wide arenas of disciplines, far and beyond his or her line of discipline study. This high flexibility, coupled with globally recognized high-quality education and degrees, means degrees obtained from such programs in North America are held in even higher regard than in other destinations around the world. Such programs are popular for experiential learning that involves incorporating internships, co-op programs, and projects that basically equip the student with practical skills and experiences, thus boosting the level of employability immediately after graduation.

The programs of direct enrollment have come up as among the top choices for students seeking international studies within North America owing to the immersive and authentic academic and cultural experience that unfolds within these programs.

Direct enrollment programs do not contain the gateway models such as visit and exchange, since this kind of program allows a student to enroll directly in a foreign institution. The fact that this kind of approach allows a student to align oneself fully with the country and its environment, both culturally and academically, should be noted. Therefore, there is an integration process within which the student benefits from better language skills, cultural awareness, and certainly – better liberalization of the mind. An important plus of direct enrollment programs is that a student has access to many more courses and academic choices. Students are free to enter into any course that the host institution offers rather than a set of pre-approved courses prescribed by a study abroad provider. This flexibility enables students to shape their academic experience based on their individual needs and interests and to take courses they might not be able to pursue at their home institution. The direct enrollment programs often have research and internship opportunities that will enhance the academic and professional development of students through other practical study activities. An important advantage of direct enrollment programs is the extent of cultural immersion that such students find themselves in. International students can experience the host country first-hand by studying with indigenous students and participating in on-campus activities and events. These factors immerse students more and more into the language, which is extended beyond the classroom; these phenomena prepare and smoothen compatibility, with cultural subtleties of a new environment. This cultural immersion can also affect students deeply on a personal and professional level, allowing for a broader view of life and a deeper appreciation of diversity, the ability to be intercultural sensitive.

The USA leads in the study abroad market due to its quality educational system and the wide range of education options.

The United States is the land of the free, that has had a tradition of excellence in academic fields; it houses some of the finest and most superiorly ranked universities and colleges in the world. This gets a large number of international students every year. The country aims at stringent academic standards, new pedagogies, and an expansion of research facilities. It has ultra-modern facilities and a wide range of courses available to service a whole array of academic interests and objectives in respect of careers. Practical learning forms the bedrock of universities in the U.S. This gives students the opportunity for practical experience by way of internships, research programs, and work-study employment. This fusion of theoretical and practical learning hence will not only leave a student job-ready but also proficient enough to face challenges in the global work arena. Furthermore, cultural diversity on campus and lively campus life make it an extraordinary and enriching experience for studying abroad in the U.S. to international students. In the United States concerning OPT is temporary employment while one is still pursuing their major area of study under the F-1 student visa status. Students who are well qualified and have at least one year of study can make an application to the US Citizenship and Immigration Services for this kind of application, which, when granted, permits one to get post-completion OPT employment authorization.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Study Abroad market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Education Level
• Undergraduate Programs
• Postgraduate Programs
• High School Programs
• Vocational and Technical Programs

By Program Type
• Direct Enrolment Programs
• Exchange Programs
• Third-Party Provider Programs
• Internships and Work-Study Programs
• Short-Term Programs

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Study Abroad industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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