A recent Gray Decision Intelligence PES analysis of Business Analytics programs, specifically at the master’s level, presents a compelling, yet nuanced, review. Should you start, stop, or grow a Business Analytics master’s program at your institution?
High Demand, Lucrative Careers, but Intense Competition
The national data strongly suggests that growing or, if not already offered, starting a Business Analytics master’s program may be a worthwhile endeavor, but with a crucial caveat: reviewing regional markets is essential, especially for this program and award level. Business Analytics master’s programs have very high student demand and employment opportunities, but you may face stiff competition (depending on your regional market), which could limit growth potential.
Student Demand: Overwhelmingly Positive
Student interest in Business Analytics master’s programs is very strong and continues to grow. Completions at US institutions almost doubled over the past three years, rising from 22,918 in 2020 to 44,367 in 2023. This increase accounted for almost a quarter (23%) of the total growth in master’s program completions during this time period—all from a single program.
Leading indicators suggest growth may continue. Google searches for Business Analytics programs (across all award levels) grew 17 percent year over year from 2023 to 2024 and an astounding 107 percent from 2022 through 2024.
Students are doing more than just searching for the program—they are progressing down the funnel and enrolling in it as well. New enrollments in Business Analytics master’s programs increased 53 percent from fall 2020 to fall 2024. This growth contrasts sharply with an overall decline in new enrollments in master’s programs nationwide, which dropped five percent during this time.
Employment: Strong Outcomes, But Room for Improvement
Strong student demand often goes hand in hand with employment opportunities – and that holds true for this program. Graduates of Business Analytics master’s programs enjoy strong career prospects. Entry-level salaries average $87,775 (90th percentile compared to all master’s programs), climbing to a median of $119,289 post-entry (93rd percentile). While there are 1.7 job postings per graduate (77th percentile), indicating a reasonable match between supply and demand, there’s a catch. A significant 34% of graduates are underemployed (63rd percentile). This suggests a need for programs to better align curriculum with specific industry needs. The field itself is growing, with a 5% one-year historical job growth (72nd percentile) and a 6% three-year growth (93rd percentile) as per BLS data.
Competitive Intensity: A Major Hurdle
Despite the robust demand and promising career outcomes, the program faces a major challenge: intense competition. If you want to launch the program at your school or grow the program you already have, you need to know what is happening in your local and regional market. Some markets are becoming increasingly saturated, while others are less so. How can you tell what is happening in yours?
Tracking a few key saturation metrics can help. Let’s take a look at a few markets in the Southeast. Institutions in Florida face stiff competition. Ten schools offer the program at their campuses, and 65 schools enroll Florida students online. The average cost-per-click (CPC) for program-related keywords is $16.59, and the Google competition index, which evaluates competition relative to all other programs, is 0.88 on a scale of zero to one.
The market for Business Analytics programs in Mississippi, on the other hand, is decidedly less saturated, with all metrics being more favorable.
Even with an increasingly competitive landscape, the potential for growth across all markets remains strong. The median program size increased from 34 completions per campus in 2020 to 38 completions in 2023. The growth in average program sizes was even more pronounced, rising from 99 completions in 2020 to 135 in 2023.
Strategic Implications for Institutions
Business Analytics master’s programs have tremendous potential, but success requires a strategic approach. Institutions considering starting or expanding such programs should:
- Conduct a thorough regional market analysis: Don’t just look at national trends. Understand the competitive landscape in your specific region. How many other institutions offer similar programs? What national online schools have a presence in your region?
- Focus on differentiation: What unique value proposition can your program offer? This could be a specialized curriculum, partnerships with local businesses, or a focus on a particular industry.
- Consider online options carefully: While online programs offer flexibility, the number of online programs is growing. If you choose to offer an online program, ensure it is high-quality and effectively marketed. Identify which competitors are drawing students from your market and develop a strategy to compete effectively.
By analyzing market data, institutions can increase their chances of success in the increasingly competitive landscape of Business Analytics master’s programs.
