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The Child Care Market Size is forecast to increase by USD 189.07 billion at a Compound annual growth rate (CAGR) of 12.8% between 2022 and 2027.The market's expansion hinges on various factors, including the rising awareness among parents regarding the importance of early childhood education and care, the increasing participation of women in the labor force, and favorable government initiatives supporting childcare. As parents become more cognizant of the benefits of early education, demand for childcare services is on the rise. Additionally, with more women entering the workforce, the need for reliable childcare solutions has increased. Positive government initiatives aimed at improving childcare accessibility and affordability further drive market growth, creating a conducive environment for its development.
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The market is witnessing significant growth driven by various factors, including the increasing demand for daycare facilities and early childhood education programs. Particularly, single and working mothers rely on these services, emphasizing the importance of accessibility and personalized care for their children's well-being. With rising expenditure on childcare and wages for service providers, there's a notable shift towards home-based services and non-profit daycare centers like Nature Nurtures Farm and HomeGrown Childcare. Moreover, advancements in new technologies and technological advancement are reshaping the landscape, enabling internet and e-commerce platforms to offer a wide range of childcare products and services. As the market continues to evolve, there's a growing emphasis on child health and wellness and the provision of backup care solutions to meet the needs of working single parents in Tier-II cities and towns. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, market growth and trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing parent awareness of early childhood education and care is notably driving the child care market growth. A crucial role is played by parents in ensuring early childhood development. Parents who are actively involved with their children can have a positive and lasting impact on their learning abilities.
Furthermore, children who are properly stimulated by their parents from birth to age five do better in the long run than other children. This means that properly taught children are more likely to graduate, achieve better academic results, and lead healthier, more productive lives as adults. Thus, the increasing participation of parents will fuel the growth of the market during the forecast period.
The market's regulatory framework and licensing requirements play a crucial role in ensuring the safety, supervision, and socialization of children in nurseries. Studies emphasize the significance of stringent regulations governing enrollment procedures, promoting both affordability and availability of quality child care services. The supply and competition within the child care industry are influenced by these regulations, impacting the overall dynamics of the day care market. Balancing regulations with children's health considerations is essential for sustaining a robust and reliable child care market, where the regulatory framework acts as a cornerstone in shaping the industry's standards and ensuring a safe and nurturing environment for children.
Corporations offering corporate childcare services to their employees is an emerging trend in the market. Companies nowadays are offering childcare services at workplaces. This has been recognized as a major help for working parents. For instance, at the time of the pandemic, Amazon announced its plan to provide family care benefits to 650,000 part-time and full-time Whole Foods Market and Amazon employees through Care.com in June 2020. The program offered to provide subsidized emergency backup child care for up to 10 days to every employee till January 2021.
Employer-sponsored childcare schemes not only reduce work absenteeism but also help in increasing employee retention rates. It has been noted that companies in the US lose approximately more than USD4 billion annually due to childcare breakdowns. Moreover, a few companies offer working mothers 11 weeks of paid time off for new mothers and six weeks of paid leave for new fathers. Therefore, such factors will boost the global market trends and analysis during the forecast period.
The future outlook of the child care market is promising, with an increasing focus on comprehensive studies and reports to address key questions surrounding childcare services. Daycare centers and organizations are investing in innovative approaches to enhance the quality of childcare, ensuring a nurturing environment for children. Some of these initiatives involve incorporating engaging activities in nurseries and promoting cost-effective solutions. Australia, as a significant player in the childcare network, is witnessing a surge in demand for quality babysitting services. Ongoing studies highlight the importance of addressing costs and exploring sustainable models to meet the evolving needs of families in the child care landscape.
The rise in unemployment rates is a major challenge impeding the market. Unemployment is a situation when a person is job-ready and is seeking a job but cannot find one. The rise in the unemployment rate has a two-fold impact on the global market. First, it leads to a fall in household income, which leads to less spending on children care. Second, with a greater number of parents forced to stay home, the demand for childcare declines.
Furthermore, the significant rise in the cost of childcare services has forced a few parents to quit their jobs. Parents also resort to other informal arrangements, such as grandparents or other family members. It has been noted that the burden of paying for child care is one of the major reasons for the decline in female participation in the total labour force in the US. Owing to such factors, market growth is expected to be hampered during the forecast period.
The market growth and forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market forecasting strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cadence Education LLC - The company offers a wide range of childcare programs such as Infant Programs, Toddler Care, and Preschool, Pre-K and Kindergarten Club, and Private Kindergarten. The key offerings of the company include childcare solutions.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies , including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
This market research and growth report extensively covers market segmentation by delivery (organized care facilities and home-based settings), type (early education and daycare, early care, and backup care), and geography (North America, Europe, APAC, South America, and Middle East and Africa). Furthermore, the report includes historic market data from 2017 to 2021.The market is experiencing notable growth driven by various factors, including the rising demand for early daycare and education services. This trend is particularly significant for single and working mothers who rely on such facilities to balance work and childcare responsibilities. With increasing disposable incomes and shifting customer perceptions towards the importance of child health and wellness, there's a growing adoption of childcare services. Moreover, advancements in new learning technologies are revolutionizing the childcare landscape, catering to the needs of millennial children. Companies like Softbank-backed Brainbees are playing a pivotal role in this market, offering innovative solutions and onsite care facilities. As the market continues to evolve, consultancy firms like Redseer provide valuable insights to stakeholders navigating replacement cycles and changing regulatory landscapes.
The market share growth by the organized care facilities segment will be significant during the forecast period. The segment captured the highest market shares in the global market in 2022. This is attributed to the rising number of working parents, and the growing demand is expected to drive the segment during the forecast period.
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The organized care facilities were valued at USD 114.63 billion in 2017 and continued to grow until 2021.In organized facilities, there is an increased focus on developing standards-based methods of delivering organized. These centers aim at working on the overall personality development of children. They are more likely to provide an educationally enriched curriculum that promotes literacy, language development, personality development, and others. Furthermore, children get better opportunities to socialize with their peers. These beneficial factors are increasing the demand for organized facilities, thereby increasing the revenue of the market Companies . Therefore, these factors will drive segment growth during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In 2020 the US was recognized as the major market in North America followed by Canada. The increasing participation of women in the labor force, the growing number of millennials, and an upsurge in disposable income of households are expected to drive the growth of the regional market.
Canada is also recognized as a potential market. The need has been growing steadily owing to the greater participation of women in the workforce, resulting in a corresponding increase in dual-income families. Furthermore, the increased attention of these childcare centers in overall personality development has rationally grabbed the attention of new-age parents. Furthermore, the Government of Canada has also taken active steps in fostering early childhood learning. Therefore, the abovementioned factors will drive the regional market during the forecast period.
The child care undergoes a paradigm shift, Early daycare & education services emerge as a cornerstone for working parents, particularly single & working mothers. The integration of learning technologies for children introduces innovative methods, backed by government funding and state-level initiatives. Technological advancements play a pivotal role in streamlining child care delivery types, ensuring efficiency and responsiveness. Funding mechanisms, like the First Steps 4K initiative, contribute to accessible and quality child care, especially for lower-income families. In this dynamic landscape, the collaboration between government entities, child care providers, and technology-driven solutions paves the way for a comprehensive and inclusive child care system.
The market is influenced by various factors, including the needs of single-parent families and the emphasis on providing a home-like environment for children under five. With the increasing number of working women and their demand for reliable childcare, employers are recognizing the importance of offering backup care services and monetary support. Moreover, favorable laws and government grants aimed at improving early education and daycare contribute to market growth. As the market expands, there is a rising adoption of premium products in segments like apparel, toys, diapering, and baby food, driven by the perpetual demand in multi-channel retailing platforms. Organizations like the Education Policy Institute play a crucial role in shaping the landscape of early childhood education and care (ECEC).
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.8% |
Market growth 2023-2027 |
USD 189.07 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.0 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies , Market Positioning of Companies , Competitive Strategies, and Industry Risks |
Key companies profiled |
Beanstalk Education Group, Benesse Holdings Inc., Bright Horizons Family Solutions Inc., Cadence Education LLC, Child Development Schools, Crestar Education Group, Fortune Kindergarten, G8 Education Ltd., Goddard Systems Inc., Goodstart Early Learning, Kids and Co., KinderCare Learning Centers LLC, Learning Care Group, Pigeonhearts Corp., Poppins Holdings Inc., Primrose School Franchising SPE LLC, Smartkidz Educare India Pvt Ltd., Spring Education Group, The Learning Experience, and Tree House Education And Accessories Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
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