Preschool or Child Care Market in India 2016-2020

Overview of the preschool or child care market in India

Market research analysts at Technavio have predicted that the preschool or child care market in India will grow impressively during the forecast period and will also post a CAGR of almost 22% by 2020. Technavio’s preschool industry analysis has identified that the low regulatory requirements in the country to start a preschool or child care center is one of the primary growth factors for the growing number of preschools in India. The rise in competition among students to secure admissions in privileged schools will induce parents to focus on providing education to their children from early childhood days. This will result in the rise in a number of student enrollments in preschools. Moreover, the requirements such as license and infrastructure are not regulated, and there is no federal authority in the country that oversees preschools or child care centers, eventually leading to the significant growth of childcare market size. Also, the requirement of very low investments, low-interest rates from banks, and the ability to expand geographically using franchise structures are other major factors that induce vendors to enter the market.

The market has a huge potential for growth, and this will attract several international schools and kindergartens to get into the market. This, in turn, will lead to a significant change in the educational curriculum. Since the international curriculum helps children to experience various activities and eventually helps them in building the character, there will be a rise in the interest of parents in the blended learning of both the Western and Indian educational system. This will induce new and regional vendors to adopt the international preschool lesson plans.

Competitive landscape and key vendors

The preschool market is characterized by the presence of diversified international and regional child care service providers. The international players constantly increase their footprint in the market, and regional vendors are finding it difficult to compete with them especially, in terms of on quality, ambiance, and pricing. The expected increase in service extensions, technological innovations, and M&As are likely to intensify the competitive environment in this market. In the next four years, the international players will also grow inorganically by acquiring regional or local players. Since all vendors compete to gain a greater share of the market, this industry appears to be highly competitive. To survive the competition and gain a significant share of the market, the vendors have to distinguish their product and service offerings through a clear and unique value proposition.

The leading vendors in the market are -

• EuroKids
• Kidzee
• Modern Montessori International
• Tree House

The other prominent vendors in the market are Shemrock, Mother’s Pride, Apple Kids, Kangaroo Kids, Globe Tot’ers, Smartkidz, and Little Elly.

Segmentation by cities and analysis of the preschool or child care market in India

• Tier 1 cities
• Tier 2 and Tier 3 cities

During 2015, the Tier 1 cities segment accounted for about 65% of the total share of the market and dominated this industry. The recent increase in the number of working women population and the rise in disposable income are the major factors that will fuel the growth of the preschool education market in Tier 1 cities. Also, the increase in competition for securing admissions in premium schools will compel parents to enroll their children in preschools or child care centers, leading to the rapid growth of preschool industry in India.

Segmentation by ownership and analysis of the preschool or child care market in India

• Organized preschools
• Unorganized preschools

According to this market study, the unorganized preschools segment dominated the industry during 2015 accounting for a total market share of about 67%. The lack of proper regulations for the establishment of preschools and no defined curriculum to be followed by institutions are major factors that lead to the growth in the number of unorganized preschools. Though government measures to regulate the early childhood care and education (ECCE) activities will decrease the share of unorganized preschools and child care centers, this segment will continue to dominate the preschools and child care industry in the next four years as well.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the preschool or child care market in India?
• What are the key market trends impacting the growth of the preschool or child care market in India?
• What are the challenges to market growth?
• Who are the key vendors in the preschool or child care market in India?
• What are the market opportunities and threats faced by the vendors in the preschool or child care market in India?
• Trending factors influencing the market shares of India.
• What are the key outcomes of the five forces analysis of the preschool or child care market in India?

Technavio also offers customization on reports based on specific client requirement.

Related reports

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• Pre-school or Child Care Market in China 2016-2020

Child care or the preschool education system in India involves free activities in a modified educational environment that is customized according to human characteristics - the characteristics of children at different ages and to the individual personalities of each child. This learning environment allows the child to be independent in all areas, according to his or her inner psychological directives. Due to a surge in enrollments and admission applications, most schools have tough entrance tests and exams to admit students. As the K-12 education is intensely competitive, most parents are prompted to begin the structured education of their child at a very early stage.

The report, preschool or child care market in India, is part of Technavio’s education portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as education technology, K12 and higher education, and school and college essentials. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.