The higher education sector across EMEA has weathered much change in recent times and is still navigating a period of transformation. Technology and automation are reshaping the job market; skills creation is battling to keep up and universities are exploring ways to equip their students for the workplace. Tuition fee changes in the UK and elsewhere, together with funding constraints, have added to pressures on higher education institutions (HEIs), prompting them to look at ways they could diversify their revenue streams.
Online learning—transitioned to so rapidly in the COVID pandemic years—has challenged models of learning and now artificial intelligence (AI) is opening up a range of exciting opportunities. Whilst online is now more established as an alternative to face-to-face only tuition for many, it is still a new way of working and learning.
Against this backdrop, what will 2025 bring? Here, we consider challenges and opportunities for HEIs in regions across EMEA.
Challenges
1. Financial Pressures and Budget Constraints
Declining public funding, fluctuations in tuition fees and increased funding competition place HEIs under considerable financial pressure around the region. In Ireland, for example, funding is the biggest issue facing universities with the student contribution Irish students pay scheduled to reduce by €1,000 a year in the new academic year. There have been calls for an increase in core funding and suggestions that funding shortfalls make it difficult for Irish universities to compete internationally.
2. Technological Advances
Adapting to technology is challenging and it takes time, which most educators don’t have. Added to that, technology doesn’t stand still, it continually advances whether education is ready or not.
AI is the latest innovation, and it provokes as much mistrust as it does excitement. It is now used more and more in universities but educators’ concerns about the potential for cheating remain. Despite this, students’ expectations are growing. According to insight from Jisc in the UK, students/learners in further and higher education expect, “educators to be able to use genAI competently, to comprehensively integrate genAI across education, and to implement policy to ensure fair and effective use.” The pressure is therefore on for institutions to adapt to technological change and use digital tools to their best advantage to benefit students and tutors.
3. Transitioning to Online and Blended Learning
The rapid shift online during COVID-19 was necessary but disruptive, and many organisations are refining their digital strategies still. That is challenging enough, but in South Africa HEIs have the added problem of equity of access, a lack of digital equipment, students’ domestic circumstances not necessarily conducive to learning, and inconsistent levels of online connectivity.
At D2L, we speak often of the importance of adapting for digital, because online and blended (a mix of online and face-to-face) learning are not fully effective if material usually delivered face to face is simply put online. We see widespread understanding of this among D2L customers. Steve Bentley of the University of Huddersfield, says: “We want the VLE [virtual learning environment] to be a place where learning happens—an active learning environment—not just a repository for PowerPoint files.” And Dr Saskia Glas, Radboud University, says: “Technology is a medium. It should amplify what you’re trying to do through learning goals and objectives and make this understandable for students. Technology is intertwined with the message and learning outcomes.”
The role of the VLE/learning management system (LMS) has changed therefore from a content repository to an integrated educational tool. However, to adapt tutoring approaches to use it effectively, educators need the right skills. Unfortunately, those can be lacking as a UK report from the Digital Poverty Alliance shows—it cites a 2023 finding that less than one in five educators (17%) were receiving training on digital tools and edtech advances.
4. Declining Student Enrolments and the Need to Bridge Skill Gaps
HEI’s funding depends on attracting students and international enrolments often form a key part of this. However, among the universities of the Netherlands, international intake has declined by 6%. In the UK, over 30,000 fewer sponsored study visas were issued in the year to March 2024, resulting in an estimated £1.2bn loss in tuition fee income. The visa restrictions prompted one university to blame politicians for a 40% year-on-year drop in international student recruitment at English universities.
Student retention also impacts budgets, so dropout rates are monitored keenly alongside enrolments. In South Africa, those statistics make for worrying reading, ranging as they do from 40% to as high as 60%.
Many factors will contribute to students not finishing their degrees. One South African online school principal talks about the need to bridge the gap between schools and universities so students can think critically and be self-directed in their learning. This speaks to the ‘step up’ from school—where pupils may be used to memorising facts—and higher education with its emphasis on critique, debate and application.
These skills are needed also in the workplace so employees can assess problems, manage their own time and be effective in decision-making. Digital skills are another ‘must have’ so the pressure is on education to nurture these amongst its learners. This is also no easy ask for HEIs, illustrated by one South African study that reveals 73% of students received no ICT or computer training before university.
Opportunities
Technology, new teaching formats and collaboration can help meet some of the challenges HEIs face. In 2025, a range of opportunities can help students and organisations to develop and succeed:
1. Micro-Credentials for Lifelong Learning, Upskilling and Revenue Generation
There is growing demand for lifelong learning and skills-based education. HEIs can take advantage of this by offering micro-credentials, short courses and professional development programmes tailored to the needs of working professionals.
In 2022, the EU adopted a recommendation on a European approach to define microcredentials, describe standard elements for them and establish principles for designing and issuing them. This helps learning institutions in EU member states develop and compare microcredentials consistently.
But what are they? Micro-credentials offer a flexible and scalable approach to learning. They have clear learning outcomes to help learners achieve a range of learning goals. Successful students earn a microcredential badge, which signifies they have achieved specific competencies. The badge is verified by the issuing institution, and learners can share it across platforms such as digital portfolios and social media.
This study format can help make higher education more accessible and enable part-time learners to acquire specific skills quickly and affordably. It can help lifelong learners upskill and provide HEIs with new revenue streams, critical for sustaining competitiveness.
2. AI and Digital Transformation
AI is here to stay and will only grow in popularity thanks to the opportunities it creates. In 2025, educators can use AI to enhance human-centric learning and take advantage of its timesaving benefits.
AI can help reduce the burden of repetitive, manual tasks, and at the same time elevate courses to deliver dynamic learning experiences. It can suggest and integrate engaging course elements, such as interactive quizzes, gamified learning modules, simulations, real-time feedback and opportunities to collaborate. These elements make learning more interesting; help cater to different learning styles and reduce the time educators must spend on content creation.
AI can also help with lesson plans and tailoring learning materials to, for example, meet special educational needs. It can analyse large data sets to provide insights into student progress and help identify those who may need help. As educators’ time continues to be a limiting factor in 2025, AI can help HEIs create high-quality learning experiences, increase student engagement and save time.
3. Student-Centred, Flexible Online Learning
In 2025, HEIs will be expected to deliver high-quality learning experiences and the LMS can help with this. It provides a digital foundation for course delivery and management which goes beyond housing content online. It can support HEIs as they expand their digital offerings to create more flexible, accessible learning environments.
By adopting blended learning models, universities can cater to a wider range of students, including those who need remote access due to geographic limitations, or flexible schedules due to other commitments. This is so in South Africa where we find evidence that mobile phones widen access for students to online resources.
4. Industry Partnerships and Work-Integrated Learning
In 2025, HEIs can strengthen industry partnerships to provide more opportunities for work-integrated learning through internships, apprenticeships and cooperative education programmes. Micro-credentials can pave the way for further collaboration among education, government and industry to bring these institutions, with their shared interest in tackling skills shortages, closer together in 2025. This can improve student employability, but also ensure academic programmes align more closely with labour market needs.
What Is Your Higher Education Digital Strategy in 2025?
A well-organised LMS, providing simple access to feature-rich courses can help universities tackle challenges and embrace opportunities in 2025, to retain students and produce graduates with employable skills. In the LMS, multimedia elements, assessments, interactive content and collaborative spaces can support applied learning, where students consume content in a variety of formats to gain knowledge, then apply that knowledge in discussions and problem-solving to demonstrate their critical thinking processes.
As you hone your 2025 strategy, why not talk to D2L about your plans? Take a look at our LMS for colleges and universities.
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