Simba Information’s The State of College Course Materials 2024-2026 delivers an unparalleled analysis of the higher education course materials market, combining rigorous data-driven insights with strategic recommendations.
The report highlights significant shifts in enrollment patterns, including a 3.4% increase in total undergraduate enrollment alongside a 5.5% increase in freshmen enrollment. These trends reflect broader demographic and systemic challenges, including the upcoming “enrollment cliff,” which will create new obstacles for institutions relying on traditional student recruitment models. Additionally, demand for micro-credentials surged by 8.4%, as students and institutions pivot toward workforce-oriented education.
The affordability of instructional materials remains a pressing issue, with the average student spending on course materials dropping to a 16-year low of $342 annually. This decline is driven by the growing adoption of Open Educational Resources (OER) and inclusive access models, which provide cost-effective, digitally integrated solutions. However, affordability remains a barrier, with 70% of students expressing concerns over the high cost of required materials, and 31% considering stopping coursework due to financial constraints. Despite declining material costs, the rising costs of tuition, housing, and other college-related expenses continue to put financial strain on students, making affordability a more complex issue than course materials alone.
The report also explores how AI is reshaping the landscape. While 86% of students use AI tools for academic purposes, faculty adoption lags significantly at 14%, presenting opportunities for professional development and innovation in instructional design. Publishers, including Pearson and McGraw Hill, are investing in AI-driven content delivery and expanding their digital offerings, while competing with emerging digital-first providers offering modular and flexible resources.
Policy changes at the state and federal levels further complicate the landscape. State and local government funding for higher education totaled $132.5 billion in fiscal year 2024, reflecting an 8.1% increase in state contributions and a 6.3% increase in local government contributions. Additionally, enhanced Pell Grant funding and transparency regulations are forcing publishers and institutions to rethink pricing strategies. As institutions grapple with these challenges, the report offers actionable insights for navigating the complexities of an evolving market.
In addition to the market size analysis and segmentation, Simba’s State of College Course Materials 2024-2026 provides insights into various issues, trends, and forces shaping the market. These include:
- the type of institutions students are enrolling
- the condition and prospects of distance education
- federal and state policy and funding
- print vs. digital growth in instructional materials
- the rise of subscriptions and inclusive access plans
- new technology trends
- the development of Open Educational Resources (OER)
- company mergers and acquisitions
- operating performance of key companies: Pearson, Cengage, McGraw Hill, and Wiley
Methodology
The State of College Course Materials 2024-2026 report provides a comprehensive analysis of the higher education course materials market using a rigorous methodology developed by Simba Information. The report segments the market into new print textbooks and digital materials, using annual sales figures from the Association of American Publishers as a foundation. These figures are further refined through Simba’s proprietary analysis of enrollment patterns, shifts in institution types, and student preferences for course materials. The projections account for economic and regulatory influences, with particular attention to the adoption of cost-saving measures such as Open Educational Resources (OER) and inclusive access programs, which have driven a continued decline in student spending on materials.
The State of College Course Materials 2024-2026 from Simba Information provides a grounding in the market for instructional resources in higher education in the US, including the changes in the market landscape and how the instructional materials industry is addressing and adapting to those changes. This new edition focuses on several main areas:
- Current landscape conditions and trends in the higher education market.
- Competitive environment for publishers and distributors of instructional resources for college programs.
- Market segment projections for digital and print materials through 2026.
- Simba provides both sizing and context to the market segments of new course materials, both digital and print.
In sizing the market segments for this report, Simba follows the procedure it established in 2015 for how it breaks down market segments. Simba uses the market size for new course materials as provided by annual sales figures from the Association of American Publishers. Simba further breaks down that segment into new print textbooks and digital materials. Those breakdowns are Simba’s own estimates based on its ongoing research in the area of instructional materials in higher education.
Simba’s segment projections are its own and are reached based on several factors, including enrollment patterns, trends in student preferences for study materials and buying habits, and landscape market influences and events.
Additionally, Simba tapped other third-party resources, and their contributions are cited throughout the report. Among those sources are: The College Board, the State Higher Education Executive Officers Association, the National Association of College Stores, the National Student Clearinghouse Research Center, the US Department of Education National Center for Education Statistics/Integrated Postsecondary Education Data System (IPEDS), the US Department of Labor, Bay View Analytics, Student Monitor; leading trade and news publications, World Economic Forum, State Higher Education Finance, National Governors Association, Apprenticeship.gov, Gallup, AAP, and company reports and financial statements.
The research focuses on several critical areas, including national and institutional enrollment trends, shifts in freshmen enrollment, and the popularity of short-term credential programs like undergraduate certificates. It also evaluates the impact of federal and state policies, including increased Pell Grant funding and transparency initiatives targeting textbook costs. The report highlights the ongoing evolution of course materials, examining the rise of digital formats, the adoption of inclusive access models, and the growing influence of OER in driving affordability. Additionally, it explores industry innovations such as AI-driven tools and the strategic realignments of major publishers in response to changing market dynamics.
Data are cross-referenced from multiple independent sources to confirm consistency, while expert analysts review findings to contextualize trends and refine insights. Historical comparisons are used to benchmark current developments against past data, providing a clear picture of how the market has evolved over time. This combination of comprehensive data collection, detailed segmentation, and meticulous validation ensures that the findings and projections presented in this report are both credible and actionable.