Medical education M&A activity remains robust

The medical education sector is experiencing robust growth, fueled by healthcare industry expansion, mandatory continuing education requirements, and the accelerating digitization of clinical training. Mergers and acquisitions remain highly active, with strong interest from both strategic and financial buyers pursuing assets that can address the full lifecycle of a healthcare professional’s education — from pre-licensure through continuous career development.

The U.S. medical education market was valued at approximately $39.2 billion in 2023 and is projected to reach $61.4 billion by 2028, growing at a 9.4% compound annual growth rate. The continuing medical education (CME) submarket alone is forecast to expand from $3.35 billion in 2024 to $4.67 billion by 2030. These figures reflect a sector with durable demand drivers, recurring revenue characteristics, and long-term tailwinds tied to healthcare workforce expansion and regulatory complexity.

In this sector update, we examine the forces shaping M&A activity in medical education — from the 34 deals recorded since June 2024 and private equity’s 68% share of transaction volume, to the rise of simulation-based learning, AI-integrated curricula, and the platform roll-up strategies reshaping the competitive landscape.

Medical education sector at a glance

The U.S. medical education sector encompasses the training and development of healthcare professionals through medical schools, continuing medical education (CME) programs, online learning platforms, and simulation-based training. The sector plays a critical role in addressing demand for skilled healthcare workers amid an aging population and rapidly evolving medical technologies. It is characterized by resilient, non-cyclical demand; recurring revenue models tied to licensure maintenance; and strong technology adoption tailwinds.

Broader healthcare education estimates place the global market at approximately $118 billion in 2024, projected to reach $268 billion by 2034 (8.5% CAGR). North America dominates the global market with approximately 36.5% share, led by the United States’ advanced infrastructure and high investment in education technology. While major hubs remain concentrated in California, New York, and Massachusetts, online and digital platforms have extended sector reach nationwide and globally, enabling access for rural and international learners.

Key segments

The sector can be segmented into five categories, each with distinct growth drivers: continuing medical education (CME), driven by mandatory credit requirements covering new clinical guidelines, drug therapies, and surgical techniques; exam preparation & licensing, designed to help students and professionals pass critical exams such as USMLE, MCAT, and NCLEX; simulation-based learning, the fastest-growing segment, using high-fidelity manikins, VR and AR to train clinical skills in risk-free environments; online learning & digital platforms, including e-learning modules, mobile apps, and learning management systems that offer flexibility and scalability; and graduate programs, residency and fellowship support, including interview preparation, application consulting, and placement services for medical graduates seeking specialized training positions.

M&A trends & drivers

M&A activity in medical education remains robust and is characterized by strong competition for high-quality assets. The market has transitioned from post-pandemic normalization in 2023 to a renewed surge through 2024 and into 2025, driven by pent-up demand from strategic buyers and significant dry powder held by private equity sponsors. The prevailing strategy is “platform-and-add-on,” where a financial or strategic buyer acquires a large platform company and subsequently bolsters it with smaller, synergistic tuck-in acquisitions to expand product offerings, geographic reach, or customer segments.

Over the last twelve months, the medical education M&A market has remained steady, with 34 deals recorded since June 2024. The sector saw a significant spike in investment activity during Q2 2025, with 14 total deals — 10 of which came from private equity investors. With the number of physicians and healthcare workers projected to grow over the next several years, transaction volume is expected to remain elevated. Strategic buyers accounted for 32% of 2025 YTD transactions (11 deals), while financial buyers accounted for 68%, a notable shift toward sponsor-led consolidation.

Key drivers of M&A activity

The high level of M&A activity is not a transient phenomenon but is driven by fundamental, structural factors: a fragmented market opportunity, with hundreds of small privately-owned providers specializing in niche areas and ripe for consolidation; recurring revenue and defensive characteristics, with CME and licensing exam prep largely immune to economic cycles because healthcare professionals must maintain credentials regardless of macro conditions; the digital transformation imperative, as acquirers seek proprietary technology, SaaS platforms, and innovative learning tools that are faster to acquire than to build; the strategic need for comprehensive solutions, as acquirers build one-stop-shops across the learner lifecycle from textbook through simulation to test readiness; and favorable demographic and regulatory tailwinds, with an aging population increasing healthcare service demand while licensing bodies continually expand credential requirements.

Emerging trends reshaping medical education

Medical education is undergoing significant transformation driven by technological advancements, evolving healthcare needs, a focus on personalized learning, and a renewed emphasis on clinician well-being and career longevity. Several emerging trends are reshaping the competitive landscape and influencing both organic growth strategies and M&A investment theses across the sector.

AI integration into core curricula

Medical schools are increasingly embedding AI education directly into their programs, moving beyond concerns about its disruptive potential to actively teaching its applications. This includes introductory courses on AI tools, ethics, and prompt engineering, as well as hands-on training in using AI for diagnostics, treatment planning, and research. By 2025, surveys indicate that over 77% of U.S. and Canadian medical schools already cover AI in their curricula, with expectations for this to become universal to ensure graduates can responsibly integrate AI into patient care.

Competency-based education, ethics, and physician well-being

Competency-based education (CBE) shifts from time-based progression — four years of medical school, three years of residency — to mastery of specific skills and competencies, allowing students to progress at their own pace with a focus on practical application and real-world clinical scenarios. CBE is gaining traction for its flexibility and alignment with modern healthcare demands. At the same time, as AI becomes integral, education is emphasizing ethical use, bias mitigation, and human judgment to avoid over-reliance that could erode critical thinking or empathy. The sector is also seeing a systemic shift from reactive burnout treatment to proactive training in mindfulness, stress management, and finding meaning in work — aimed at creating a more sustainable training environment that produces healthier, more resilient physicians.

Workforce shortage tailwinds

Many of these trends are emerging in response to expected workforce shortages. The Association of American Medical Colleges (AAMC) projects a shortage of 86,000 physicians by 2036, driven by high burnout rates, an aging population, and lack of residency spots. According to the U.S. Health Resources and Services Administration, an estimated 19,000 physicians are needed to overcome current shortages. A recent AMA survey of 18,000 physicians found that 32% reported interest in leaving their current jobs within the next two years — a slight improvement from 36% in 2023, but still a persistent retention challenge that compounds the workforce pipeline opportunity for sector acquirers.

Notable transactions

Four representative transactions from the past year illustrate the major themes driving sector consolidation: CME content acquisitions in specialized therapeutic areas, radiology education consolidation through platform roll-ups, simulation and VR as a strategic priority, and exam prep expansion through complementary content acquisitions.

Buyer universe

Navagant has long-standing relationships with many of these firms through recent transactions in the medical education sector. We have also tracked buyers that have been highly acquisitive across continuing medical education, exam preparation, simulation-based learning, and digital healthcare learning platforms. Our sector expertise and network provide us with unique insights into the buyer universe and growth drivers of the companies within it.

Navagant case studies

Representative transactions from Navagant’s medical education practice, showcasing our expertise across continuing medical education and high-stakes healthcare exam preparation.