#InfraestructureForEducation
Educational sector in Mexico
Overview
FIBRA EDUCA target market
Educational System Structure
Pre-Primary Education
Primary Education
Lower Secondary Education
Master’s Degree Programs / Specialization Programs
Doctoral Degree Programs
Doctoral Degree Programs
Bachelor’s Programs
Technical Professional Education
Upper Secondary Education
Mexico’s dual education landscape: public vs private sector comparison
Public Education
- Funding and Governance:Government-funded, free tuition; overseen by the Ministry of Public Education (SEP)
- Curriculum: Standardized national set of courses for consistency
- Challenges:Faces limited resources, inadequate facilities, and teacher shortages, especially in rural areas
- Access and Equity:Compulsory for ages 3 to 15; quality varies between urban and rural areas
Private Education
- Funding and Autonomy:Tuition-based, allowing flexibility in set of courses and resources. Largely funded through out-of-pocket contributions from families
- Curriculum:Offers diverse and specialized programs, including bilingual and international options
- Growth and Accessibility: Significant growth in urban areas; tuition fees limit access, but some scholarships are available
- Regulatory Oversight:Requires program validity recognition (REVOEs) from authorities to ensure standards
Distribution of educational institutions in Mexico
Key highlights
1
Mexico’s largest age group (20 – 24 years old) will sustain a strong higher-education market through 2030
2
Socioeconomic segments A/B, C, and C- are growing fastest, driving increased demand for private education
3
Nearshoring and economic growth are boosting demand for degrees and specialized skills
4
Undergrad degree holders earn ~34% more than those with only high school, reinforcing the value of higher education
5
~86% of higher education students pursue undergraduate degrees, with 70% focused on social sciences, education, health, and law
6
The higher education market remains highly fragmented, with consolidation potential across geographies and socioeconomic tiers
Evolution of higher private education market size in Mexico
(Revenue - US$bn)
Penetration forecast for higher education in Mexico
(Population between 25 – 64 years old)
| 2023E | 2024E | 2025E | 2026E | 2027E | 2028E | 2029E | 2030E | |
|---|---|---|---|---|---|---|---|---|
| Market size (US$bn) | $8.9 | $9.1 | $9.2 | $9.4 | $9.5 | $9.7 | $9.8 | $10.0 |
| Total target population (mm) | 64.6 | 65.7 | 66.7 | 68 | 68.9 | 70.1 | 71.1 | 72.1 |
| Population with High Education (mm) |
14.1 | 14.8 | 15.5 | 16.3 | 17.1 | 17.8 | 18.6 | 19.4 |
| Penetration (%) | 21.8% | 22.5% | 23.3% | 24.0% | 24.7% | 25.4% | 26.1% | 26.6% |
Higher Education in Mexico
In Mexico, it takes between 6 months and 2 years to certify a program with RVOE, yet it is not obligatory for institutions
RECOGNITION OF OFFICIAL VALIDITY OF STUDIES (RVOE) FOR
PRIVATE INSTITUTIONS
- The Recognition of Official Validity of Studies (RVOE) in Mexico is the formal endorsement by authorities to integrate programs offered by a private institution into the national education framewor
- Obtaining the RVOE for private institutions is optional, however, if they don’t have it they must clearly state their unincorporated status
RVOE APPLICATION PROCESS
1
Submission of application: submit educational program in line with all federal and state requirements – (e.g., faculty qualifications, facilities/digital architecture, etc.)
2
Compliance review: institution’s evaluation of legal requirements
3
Program review: ensure all standards are met – assess enrollment & graduation requisites, social service modalities, courses, etc.
4
Issuance of RVOE: i if all requirements are met by the institution
TIMING AND CONSTRAINTS
- Reviews are stated to last around 6 months, but times vary based on 4 main types of program applications:
- Common program in existing campus / digital infrastructure:
~6 months - Common program in new campus / digital infrastructure:
~1 year - New program in common campus / digital infrastructure:
~1 year - New program in new campus / digital infrastructure:
~2 years
INSTITUTIONS THAT ENDORSE RVOE
The Ministry of Public Education, state educational authorities, and public universities and institutions of higher education are authorized to grant the RVOE:
- UABCS: Universidad Autónoma de Baja California Sur
- UACJ: Universidad Autónoma de Ciudad Juárez
- UACOAH: Universidad Autónoma de Coahuila
- UACH: Universidad Autónoma de Chihuahua
- UDG: Universidad de Guadalajara
- UAEH: Universidad Autónoma del Estado de Hidalgo
- UAEMEX: Universidad Autónoma del Estado de México
- UAEMOR: Universidad Autónoma del Estado de Morelos
- UANL: Universidad Autónoma de Nuevo León
- UAQRO: Universidad Autónoma de Querétaro
- UQROO: Universidad de Quintana Roo
- UADY: Universidad Autónoma de Yucatán
- IPN: Instituto Politécnico Nacional
- UNAM: Universidad Nacional Autónoma de México
Mexico's national coverage and enrolled students continues to increase on a yearly basis driven in part by a +4% higher absorption
Evolution of total higher education enrollment in Mexico
College absorption in Mexico
Access & Growth
Mexico has a strong potential to increase higher education gross enrollment rates nationwide...
Gross higher education enrollment rate by state
States with the highest enrollment rates typically have large cities that attract students from other areas
Mexico’s national average education penetration is 43.5%, highlighting the need to reduce educational gaps by investing in accessible, quality education across the country
Significant regional disparities exist, with states like Mexico City exceeding 70% enrollment, while southern states such as Chiapas remain below 20%
Top 10 states with the highest number of students in Mexico
...as well as a potential expansion of the private education segment
Nationwide, private
enrollment has been
increasing its share, with
potential expansion
opportunities evident in the
northern states
Mexico’s evolution of total private and public higher education enrollment
(millions of students)
~52% of new private higher
education institutions have
emerged in seven states,
leading to increased
saturation in the central
and southwestern regions
Mexico’s number of institutions for private and public higher education
(number of institutions)
| 17-18 | 22-23 | Delta | |
|---|---|---|---|
| Institutions | 3,223 | 3,733 | +510 |
| Total Schools/Campus | 5,645 | 6,530 | +885 |
Higher education in Mexico has a low concentration given its large number of regional players, implying potential to consolidate
Evolution of the total number of institutions in Mexico
(% of total institutions)
| Year | 14-15 | 15-16 | 16-17 | 17-18 | 18-19 | 19-20 | 20-21 | 21-22 | 22-23 |
|---|---|---|---|---|---|---|---|---|---|
| HHI Total | 0.92% | 0.90% | 0.90% | 0.85% | 0.84% | 0.82% | 0.87% | 0.88% | 0.87% |
| HHI Public | 1.79% | 1.77% | 1.77% | 1.70% | 1.72% | 1.71% | 1.79% | 1.83% | 1.82% |
| HHI Private | 1.04% | 0.99% | 1.02% | 1.07% | .98% | 0.93% | 0.95% | 0.96% | 1.04% |
Herfindahl–Hirschman Index (HHI)
The Herfindahl–Hirschman Index (HHI) is a widely used measure of market
concentration. It is calculated by summing the squares of the market shares
of each firm competing in the market. The total is then divided by 100
to express it as a percentage.
| Index | Interpretation |
|---|---|
| 0 – 15% | Low concentration |
| 15 – 25% | Moderate concentration |
| 25 – 100% | High concentration |
Industry concentration has remained low due to: i) low barriers to entry, with a constant influx of new players; ii) the geographic landscape, characterized by regional
country divisions; and iii) fierce competition.
country divisions; and iii) fierce competition.
Education & Market Forces
Private Education Groups in Mexico
~450,000
students
between
NG and Lottus
~$20 - $100
$400 - $600
$144 - $650
~$20 -
$100
$300 - $600
$85 - $150
A Snapshot of How Mexico’s Education System Compares to Other Regions
 |
 |
 |
 |
|
|---|---|---|---|---|
| Real Estate Model | University campuses operated by private education groups |
Urban campuses operated by private groups; demand-side PPPs via government programs |
Focus on student housing; academic infrastructure mostly public-owned |
Campuses owned by public universities; private capital focused on student housing |
| Infrastructure Funding | Private-sector led due to insufficient public investment |
Mixed public-private model; expansion driven by student subsidy-backed demand |
Mix of public and private funding |
Campuses publicly funded; private sector active in housing |
| Government Involvement | Minimal in private education; regulatory oversight only |
Voucher programs (FIES, ProUni) enable private sector access |
Deep involvement via federal loans, grants, and infrastructure |
High public funding |
| Education Financing | Tuition-based, no public financing in private sector |
Government subsidizes access to private universities |
Students rely on federal loans/grants |
Student loans and public subsidies fund most costs |
| Online vs. In-Person | In-person dominant in low- to lower-middle segment due to tech access gaps |
Online education growing, especially in secondary cities |
Widespread online and hybrid learning |
Hybrid model growing; strong on-campus culture persists |
| % of low-income students with access to computer / internet |
~40–45% | ~55% | ~95% | ~98% |
Driven by a private sector-led model and growing enrollment needs, Mexico’s education sector relies heavily on physical
campuses, creating a unique real estate opportunity
Mexico’s Most Relevant Macroeconomic Factor:
Nearshoring will Impact the Higher Education Market in the Near Future
Trend description
Potential impact
Higher economic growth
It is estimated that nearshoring could boost in 3% Mexico’s GDP in the next 5 years
Exports could increase from ~US$50.6bn in 2024 to more than US$1.1bn in 2030
Higher disposable income for individuals and families, which is expected to boost consumption, including expenditure in education
Increased Foreign Direct Investment
Foreign Direct Investment in Mexico has surged, with manufacturing rising by an average 20% annually since 2019
Influx of investment is driven by companies seeking to diversify their supply chains and capitalize on competitive advantages
Increased demand of highly skilled workforce, boosting the need for higher education investments
Investments for private education are expected to fill the gap needed to suffice the workforce demand
Manufacturing as Key Enabler
Manufacturing currently represents more than 50% of FDI and this trend is expected to increase
Manufacturing could become more than 80% of the country’s total exports
Higher demand for technical labor and engineering; particularly states that have a high focus on manufacturing (i.e., Nuevo Leon, San Luis Potosi, Coahuila, etc.)
Opportunity for Science, Research and Innovation
New challenges will arise in terms of optimization, supply chain and mathematical models to satisfy nearshoring demands (e.g., diver allocations, network optimizations, etc.)
Greater demand for data
scientists and engineers who can help companies solve complex supply chain and identify patterns
to satisfy needs