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The Child Care Market size is forecast to increase by USD 103.73 billion at a CAGR of 7.02% between 2023 and 2028. The market experiences accelerated growth due to several factors, notably the increasing participation of women in the labor force. Additionally, growing parental awareness of the importance of early childhood education and care contributes to market expansion. Positive government initiatives aimed at enhancing the affordability and quality of child maintenance services further stimulate market growth. These factors collectively drive the demand, reflecting societal shifts towards prioritizing early education and nurturing environments for children. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The market is intricately linked to female workforce participation and family structure, especially in nuclear families and single-parent households where working mothers require reliable childcare services. Child care centers play a vital role in fostering children's development through center-based programs and early childhood education and care (ECEC) initiatives. Organizations like the National Day Nurseries Association (NDNA) and Education Policy Institute (EPI) advocate for policies like the New Education Policy (NEP) to enhance the quality of goods and services provided. Ensuring a safe and caring environment is paramount for promoting gender equality and women's empowerment through accessible child care facilities. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing parent awareness of early childhood education and care is the key factor driving the market. Female workforce participation is influenced by family structure, with trends showing a rise in working mothers in both nuclear families and single-parent households, impacting children's development and necessitating support systems for balancing work and family responsibilities. Parents play a vital role in shaping early childhood development, with engaged parenting positively impacting a child's long-term learning outcomes.
Additionally, gender equality initiatives aim to empower women by providing equal access to opportunities in both goods and services sectors, fostering inclusive growth, and supporting initiatives that promote women's participation in the center-based segment of the economy. Further, recognizing the significance of early education, parents are increasingly seeking high-quality child care services that prioritize cognitive, social, and emotional growth. This heightened awareness is driving demand for accessible, flexible, and nurturing child care solutions, fostering overall child well-being and academic success.
Increasing stress on school franchisees is the primary trend shaping the market. School franchisees often face various challenges, including regulatory compliance, financial pressures, and competition from other educational institutions. These challenges can lead franchise owners to seek additional revenue streams or diversify their services to remain competitive and sustain their businesses. One such avenue for diversification is entering the market by offering before and after-school care, preschool programs, or full-day childcare services. By expanding their offerings to include child care, school franchisees can tap into a growing market demand for flexible and convenient childcare options, especially among working parents.
Consequently, franchisee child care has been recognized as an emerging trend owing to an increased demand for high-quality child care services. For instance, Primrose School Franchising Co. has more than 450 schools operating in 32 states and is continuing to explore further expansion across the US. Thus, the continuous growth in the number of millennials, coupled with the rise in the social awareness of parents, has led to a positive upsurge in demand for such centers. This provides a potential growth opportunity for investors to opt for franchisees. This will further enhance market growth during the forecast period.
Increasing health concerns is the major challenge that affects the market growth. Parents are becoming increasingly vigilant about the health and safety of their children, especially in shared environments. Concerns over contagious diseases, allergies, and overall hygiene standards can lead to a decline in trust and demand for childcare services. Parents may hesitate to enroll their children in child care facilities if they perceive a higher risk of exposure to illnesses or inadequate sanitation practices. This reluctance can result in decreased enrollment rates, thereby hampering the growth of the market.
Additionally, outbreaks of contagious diseases within child care centers can lead to temporary closures, further disrupting operations and eroding trust among parents. Also, many of the illnesses found in child care centers include common colds, stomach bugs, conjunctivitis (pink eye), and hand, foot, and mouth diseases that are caused by viruses. These viruses can easily spread through direct and indirect contact between children who are in proximity to each other. Thus, such factors may impede market growth during the forecast period.
The market 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 growth and trends analysis strategies.
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.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 18 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.
The organized care facilities segment is estimated to witness significant growth during the forecast period. The segment captured the highest market shares in the market due to the rising number of working parents. In organized facilities, there is an increased focus on developing standards-based methods of delivering organized. These centers aim to work on the overall personality development of children.
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The organized care facilities segment was the largest segment and was valued at USD 143.85 billion in 2018. Organized facilities 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 34% 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. The US is the leading country in the region. 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.
Additionally, 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, these factors will drive the regional market during the forecast period.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028.
The market caters to diverse needs, offering services ranging from early daycare and preschool to after-school programs and summer camps. With a focus on early education and care, providers ensure a nurturing environment for infant and toddler care, kindergarten, and elementary schools. Montessori and other educational approaches enrich learning experiences. Flexible child care choices, including part-time care and drop-in services, accommodate varying schedules and disposable incomes. Moreover, adult and backup child care programs aid working parents, while college coaching and educational advising services prepare students for higher education.
Furthermore, workplace services such as tuition assistance and student debt repayment further support families, reinforcing the importance of center-based and online private school education from kindergarten through 12th grade. Further, In the market, offerings include center-based services like daycare services, kindergarten, and pre-kindergarten, as well as after-school and school-age programs and summer camp. These services promote holistic development and support families, with educational counseling available at academic institutions and high school to guide children's growth and learning journey.
Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.02% |
Market Growth 2024-2028 |
USD 103.73 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.49 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
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, Child Development Schools, CRESTAR EDUCATION GROUP, Fortune Kindergarten, Goddard Franchisor LLC, Kids and Co., KinderCare Learning Centers LLC, Pigeonhearts Corp., Poppins Corp, Primrose School Franchising SPE LLC, Smartkidz Educare Global Pvt. Ltd., Spring Education Group, The Learning Experience, Tree House Education And Accessories Ltd., and Learning Care Group Inc. |
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, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Delivery
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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