Children Day Care Services Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, UK, Germany - Size and Forecast 2024-2028

Children Day Care Services Market Forecast 2024-2028 

The children day care services market size is estimated to grow by USD 158.67 billion at a CAGR of 8.69% between 2023 and 2028. An increase in several single-parent households can lead to a greater demand for early childhood education programs, as parents may seek additional support and resources for their children. The growing importance of early childhood education, driven by research highlighting its long-term benefits on children's development, is also contributing to market growth. Positive government initiatives, such as increased funding for early childhood education and the implementation of quality standards, can further boost the market by creating a favorable environment for the growth of early childhood education programs and services.

What will be the Size of the Children Day Care Services Market During the Forecast Period?

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Market Segmentation

The research report of the Children Day Care Services Market offers industry forecasts and segmentation based on Type which comprises center-based and home-based. It also segments the market by End-user which includes preschool children, toddler and infant, and older children. Geographically, the report covers APAC, Europe, North America, South America, and Middle East and Africa. The market size, historical data for 2018 - 2022, and future forecasts are presented in terms of value (in USD billion) for all these mentioned segments.

By Type

The center-based segment is estimated to witness significant growth during the forecast period. Center-based daycare services often provide a structured learning environment, which includes age-appropriate educational activities. This can contribute to the cognitive and social development of children. These daycare centers typically employ trained and qualified staff members with the requisite educational qualifications and experience in early childhood development. 

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The center-based segment was the largest and was valued at USD 168.61 billion in 2018. Center-based childcare often follows a consistent routine, which can be beneficial for children. Predictable schedules and routines contribute to a sense of security and comfort. Moreover, daycare centers typically have access to various resources and facilities, such as age-appropriate toys, books, outdoor play areas, and educational materials, enriching the learning environment for children. Center-based daycare services often offer flexible scheduling options, including full-time and part-time care, accommodating the diverse needs of working parents. Thus, factors such as a structured learning environment, socialization opportunities, and flexible scheduling will promote the growth of the center-based segment and boost the growth of the children day care services market during the forecast period. 

By Region

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APAC is estimated to contribute 39% 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 child day care services market is expected to grow in APAC during the forecast period. Rapid urbanization in many APAC countries has led to longer work hours and commutes for parents, making daycare services a practical solution for families with young children. Urban lifestyles often necessitate external childcare support. For instance, according to the United Nations, the Asia-Pacific region is experiencing rapid urbanization. Urbanization and changes in lifestyle in the form of dual-income households are the other factors that are driving the growth of the market in the region. India is expected to be the potential market for children's daycare services in APAC. The rising trend of nuclear families, coupled with increasing per capita expenditure on education, has increased the number of children's daycare centers in the country.

In addition, the increasing migration of youth from rural to urban areas in search of better career and academic opportunities has disintegrated the joint family system, which is giving rise to nuclear families. Furthermore, the increasing participation of women in the total labor force has necessitated the demand for children's daycare centers. Such factors are expected to drive the regional market growth during the forecast period. 

Market Dynamics and Customer Landscape

The market is witnessing a surge in demand, especially from single & working mothers seeking reliable care options. Learning technologies for children are becoming more prevalent, with organized care facilities and home-based settings incorporating tools like First Steps 4K and Jaadui Pitara to enhance educational experiences. Businesses like HomeGrown Childcare and Podium are addressing the lack of service providers, catering to the needs of millennial children. Services range from care for newborns to prekindergarten instruction for school kids, offered through both publicly and privately funded child care facilities. Organized care facilities like Little Founders are providing essential support to single-parent families, ensuring high-quality care for preschoolers and school-aged kids alike. 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.

Key Market Driver

The growing importance of early childhood education is notably driving the market growth. This recognition stems from the understanding that early education is crucial for fostering cognitive skills such as language development, problem-solving abilities, and early literacy, setting children on a path toward success in prekindergarten instruction and beyond. Moreover, parents realize that the educational experiences and foundations established during these formative years can have a profound and lasting impact on their children's educational journey.

As a result, daycare services prioritizing early childhood education are positioning themselves as essential partners in children's long-term learning trajectory, catering to the needs of newborns, preschoolers, and school kids alike. This growing recognition of the significance of early education is expected to drive the growth of both publicly and privately funded child care services in the forecast period, addressing the previously noted lack of service providers in this essential aspect of child development.

Major Market Trends

The increasing popularity of school franchisees is an emerging trend shaping the market growth. Franchisee children's daycare services have been recognized as an emerging trend owing to an increased demand for high-quality child daycare services. For instance, Goddard School is an educational facility for children aged between 6 weeks and six years. It includes after-school and summer programs for students. It is recognized as one of the top childcare franchises in the US by Entrepreneur magazine and one of the Top 200 Franchise Systems (in worldwide sales) by Franchise Times. Similarly, Primrose School Franchising Co. has more than 450 schools operating in 32 states and is continuing to explore further expansion across the US.

As a result, the continuous growth in the affluence of Millennials, coupled with the rise in social awareness of parents, has led to a positive upsurge in demand for child day care services. This provides a potential growth opportunity for investors to opt for franchisees. This will further enhance the revenue for the market during the forecast period.

Significant Market Challenge

Increased risk of infections among children in daycare is a significant challenge hindering the market growth. Childcare services are beneficial for working parents as they can easily leave their children under the supervision of quality care centers. However, it has been noted that the hygiene and health of the children are severely impacted. Children of small age groups, especially infants and toddlers, are more prone to infectious diseases. They cannot understand the basics of hygiene. Furthermore, in some cases, the staff attending these child day care services are not cautious enough to take care of the children in terms of health.

However, many of the illnesses found in child day care services include the common cold, 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. The regular trend of children falling sick in these centers may negatively impact the growth of the market during the forecast period.

Key Market Customer Landscape

The market research 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 growth strategies.

Global Market Customer Landscape

Who are the Major Children Day Care Services Market Companies?

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.

Bright Horizons Family Solutions Inc. - The company offers children day care services such as on site childcare, back up care, and toddler care.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Busy Bees Daycare
• Cadence Education
• Founding Years Learning Solutions Pvt Ltd.
• G8 Education Ltd.
• Global Childrens Center
• Goddard Franchisor LLC
• Growing Room
• JP Holdings Inc.
• Kids R Kids
• KinderCare Learning Centers LLC
• KU Childrens Services
• Learning Care Group Inc.
• Penny and Peggy Nairn 24 Hour Childcare Inc.
• Primrose School Franchising SPE LLC
• Spring Education Group
• St. Timothy Catholic Church
• Sunshine House Early Learning Academy
• The Learning Experience
• Tiny Hoppers Corp.

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.

Segment Overview

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 2018 to 2028. 

• Type Outlook 
  • Center-based
  • Home-based

•  End-user Outlook 
  • Preschool children
  • Toddler and infant
  • Older children

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing growth, driven by factors such as increasing Child care expenses and the rising need for Economic empowerment of Females in the workforce. Child caregivers are crucial in providing Early learning opportunities and ensuring Child mortality rate is reduced. Digitalization has led to the development of Digital learning platforms and Communication platforms for Child care Market. Online registration and Enrollment systems have made it easier for parents to access Early daycare & education services. To address the Infrastructure gap in Developing countries, there is a focus on Remote monitoring tools and Online training programs for child caregivers.

The market is also experiencing growth, driven by factors such as increasing demand for Center-based child care services and Pre-kindergarten and preschools centers. Attendance tracking systems are being implemented to enhance efficiency in Baby and child day centers. Family structures and Women in the workforce are influencing the need for Home-based child care services. Human capital development and Medical advancements contribute to the improvement of Infant mortality rate and Neonatal mortality rates. Publicly funded child care services and Privately funded child care services play a significant role in providing accessible care. Direct benefit transfers and initiatives like the Childcare Incentive Fund support the sector's growth, particularly in Emerging regions. The World Bank monitors these trends to support sustainable development.

Children Day Care Services Market Scope
Report Coverage	Details
Page number	160
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 8.69%
Market Growth 2024-2028	USD 158.67 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	7.26
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 39%
Key countries	US, China, India, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Bright Horizons Family Solutions Inc., Busy Bees Daycare, Cadence Education, Founding Years Learning Solutions Pvt Ltd., G8 Education Ltd., Global Childrens Center, Goddard Franchisor LLC, Growing Room, JP Holdings Inc., Kids R Kids, KinderCare Learning Centers LLC, KU Childrens Services, Learning Care Group Inc., Penny and Peggy Nairn 24 Hour Childcare Inc., Primrose School Franchising SPE LLC, Spring Education Group, St. Timothy Catholic Church, Sunshine House Early Learning Academy, The Learning Experience, and Tiny Hoppers Corp.
Market dynamics	Parent market analysis, Market Forecasting, 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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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