A survey conducted on senior university leaders across U.K. has revealed some shocking results regarding the higher education sector.

The study conducted by PA Consulting Group states that due to decreasing government grants and state budget cuts, more than 30 universities are expected to shut down in the future.

Around 80 percent leaders feel that no additional revenue or financial sources can replace lost government cash. About 78 percent of them are hoping for mergers and takeovers within the sector. The figure is an 11 percent increase from last year.

 "We are witnessing a sea-change in the dynamics of higher education. Leaders no longer expect funding or innovative thinking from officially sources and government funding is no longer part of provider's survival plans," Mike Boxall, higher education expert at PA Consulting Group and author of the report said.

Since 2006, more than 20,000 undergraduate courses have been dropped.

The survey also found that majority of the university's focus has now shifted to attracting more students as enrollment figures decline every year. This trend can be blamed on the ever increasing tuition costs.

Around 90 percent of university leaders have listed enhancing student experience as one of the 'top three' strategic priorities. According to the respondents, this can be achieved after increasing access to academic staff, wide-spread use of technology and improving graduate employ-ability through placements.

Some of the university leaders are expecting MOOCs (Massive Open Online Courses) to ameliorate student experience, by offering both flexible and blended learning experience. At the same time they are also worried about its impact on traditional campus learning that might force universities to reduce their fees.

"After years of rhetoric, students and the experiences offered to them are finally driving changes at the heart of the higher education system," Boxall said.

The survey was conducted over the last six weeks and over one-third of 170 plus university leaders have participated.

"A diverse system of different models of learning, different types of institution and different types of student experience is emerging. This trend poses a major challenge to conventional thinking about universities. Higher education leaders need to be imaginative in how they embrace these new dynamics," Paul Woodgates, higher education expert at PA Consulting Group, said.