A new quarterly report from Validated Insights shows that MBA programs are growing again and predicts 3% annual growth through 2030 to reverse earlier declines.
MBA Enrollments and Completions Tick Upward Reports Validated Insights in New Research
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According to the newly released report from higher education firm Validated Insights, Masters in Business (MBA) programs are beginning to grow again, with further growth projected through 2030.
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The most recent report from Validated Insights, MBA Insights, brings together data sources and reports related to MBA program demand to provide a robust picture of the past, current, and future demand for these programs. From 2018 to 2024, MBA enrollments declined at a -2.3% CAGR, however in 2024 Validated Insights estimates that MBA enrollments ticked up 1.6% year-over-year. (Graphic: Business Wire)
After broad declines in enrollments and program completions from 2017 to 2020, key MBA growth indicators from the Validated Insights report include:
- Since 2020, enrollments in MBA programs have grown at a compound annual rate of 0.9%.
- Validated Insights predicts that MBA programs will grow even more quickly, at more than 3% annually, through 2030.
- MBA completion rates have also rebounded, up 0.9% over the previous year.
- Applications to MBA programs are at the highest level in the past five years.
- Increased interest in MBA programs meant an estimated 192,563 potential new MBA students in 2023 (the addressable market).
“The growth we’re seeing in MBA programs, in applications, enrollments, and completions is big news for colleges and universities, many of which have invested heavily in expanding or upgrading MBA and other graduate programs,” said Yelena Shapiro, Founder and CEO at Validated Insights. “Our projection of three percent growth over the next five years is significant, and it tells us that these very important students are on their way back to school, and perhaps in big numbers.”
Among other key findings in the MBA report are that:
- As of Fall 2023, an estimated 58% of MBA enrollments are in online programs.
- Enrollments in online MBA programs grew at a strong 2.2% compound annual growth rate from 2018 to 2023, while enrollments in on-campus MBA programs declined.
- Interest in online programs among prospective MBA students doubled between 2018 and 2023, from 22% to 44%. The plurality of MBA prospects now express a preference for online offerings.
- Although they represent just 30% of the pool of MBA prospects, those who take the GRE or GMAT are significantly more likely to be interested in on-campus programs than those who do not take these tests – 75% to 22%.
“It would be a mistake, based on our research, to consider future MBA students as being all in one bucket, to assume that they all want online programs,” Shapiro said. “Many do. But some very important segments of program seekers clearly are not thinking that way.”
The new report also finds that online search terms for MBA programs are growing, but shifting.
Meanwhile, the cost of an MBA continues to increase. From 2008 until 2020, the average annual tuition and fees paid by MBA students grew at a 5.3% compounded rate, to $17,058. For comparison, average annual undergraduate tuition and fees grew at a more modest 1.8% clip in that time, and tuition and fees for master’s degrees grew at 3.7% – both much slower than MBA prices.
The detailed report also examined hiring and wage trends for MBA programs, as well as how school leaders viewed the programs at their institutions. Highlighted among these findings is that while an MBA wage premium exists, it has experienced continued stagnation in recent years. Better news for MBA students and aspirants is that from October 2023 to October 2024, while total job openings declined 10.8%, MBA job postings grew an impressive 35.6%.
“MBA programs are highly visible and deeply important to schools and graduates, as well as to the labor market and economy overall,” said Brady Colby, Head of Market Research at Validated Insights and founder of Thirty Two Edu, which was acquired by Validated Insights in 2023. Colby and Thirty Two Edu provided the data and analysis used in previous market reports from Holon IQ and others. “Understanding how the MBA market is moving can give us crucial insights across a wide landscape of trends and impacts,” he said.
Validated Insights, which recently released widely publicized reports on the online program management (OPM) sector and trade school trends, will release updates on MBA programs quarterly, along with other timely and relevant information about higher education and the higher education market. For the latest higher ed market research and insights, follow Higher Ed News by VI on LinkedIn.
About Validated Insights
Validated Insights is an agile marketing agency specializing in helping higher education institutions achieve and exceed their goals. With a comprehensive suite of services, including digital marketing, paid search, paid social, and web strategy, Validated Insights delivers data-driven strategies and measurable results. The agency's agile testing approach enables short- and long-term growth through better creative, strategy, media execution and continuous brand building. Validated Insights is the only agency in the higher education space to offer a performance guarantee in KPIs in the first 60 days - and continuous growth beyond that.
For the latest higher ed market research and insights, follow Higher Ed News by VI on LinkedIn or learn more at ValidatedInsights.com.
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Understanding how the MBA market is moving can give us crucial insights across a wide landscape of trends and impacts.
