Child Care Market Definition
The child care market consists of the sales of child care services such as babysitting and learning services and related goods by entities (organizations, sole traders and partnerships) that provide care for infants or children either in the home of the child, in the home of the registered child caregiver or in a child care center. Child care is the care provided for infants and toddlers, preschoolers, and school-aged children by government or an organization while parents are at work or absent for other reasons. Establishments in this industry provide care services for preschool children, and for older children when they are not in school. Some of these establishments also offer pre-kindergarten education. This market includes both government sponsored and private child care services. This market also includes subsidies and direct benefit transfers by governments to child care providers.
Child Care Market Size
The global market for child care reached a value of nearly $339.1 billion in 2018, having grown at a compound annual growth rate (CAGR) of 8.3% since 2014, and is expected to grow at a CAGR of 11.3% to nearly $520.4 billion by 2022.
Growth in the historic period resulted from economic growth in emerging markets, the rise in awareness of the benefits of early learning, government funding in developed nations towards child care costs and an increase in the number of families with both parents working. Factors that negatively affected growth in the historic period were increased unemployment rates and falling fertility rates.
Going forward, government initiatives to support child care, rising corporate profits which enable companies to spend more on social benefits to employees, and awareness of the benefits of early-life education due to rising internet penetration, will drive growth. Factors that could hinder the growth of the child care market in the future include rising minimum wages and security issues.
Child Care Market Drivers
The Key driver of the child care market include:
Increase In Two Working Parent Families – An increase in the numbers of families where both parents are employed and a steady change in gender roles occurred in the historic period. For instance, the proportion of families with both parents working in the USA increased from 46% in 2015 to 61.9% in 2017. Improved incomes and the illegality and stress burden of leaving children at home alone led working parents to enroll their children at child care centers or provide other child care, benefitting the child care market.
Child Care Market Restraints
The key restraints on the child care market include:
Shortages Of Skilled Human Resources – The child care market is expected to be limited by a shortage of caregivers in both developed and developing countries. Developing countries face a high shortage of caregivers because of relatively low pay rates and lack of secure employment opportunities. Developed nations are also experiencing a similar crisis. This is mainly due to the lack of right skills, and lack of education and right work experience among the candidates. Going forward, the shortage of caregivers is likely to continue to act as a restraint on the child care market.
Child Care Market Trends
Major trends influencing the child care market include:
Corporate Child Care Centers– Corporates are offering corporate child care services to help employees to achieve work life balance. Corporate child care is a specific form of child care sponsored or managed by an employer. Companies are either offering in-house child care centers or partnering with the local child care centers to offer the services at discounted rates for attracting and retaining top employees. For instance, Goldman Sachs, an American investment bank and financial services company, has opened an on-site child care center in their offices in Tokyo and New York. In locations where they are not able to provide onsite nursery facilities, Goldman Sachs has partnered with local child care centers. Exxon Mobil has selected Bright Horizons to operate a child care center in its Houston campus.
Flexible Service Hours– Child care services providers are offering their services at flexible hours to help parents minimize costs on child care and keep the children in respective child care centers. Child care centers are providing an option of flexible hours based on the financial status of the families, allowing parents to decrease their expenditure on child day care. This approach helps child care centers keep the retention rate of children high. Child care providers are reducing fees and providing flexible hours to retain budget-minded families by providing ways to reduce costs while maintaining a quality care program for the children. For example, Great Beginnings, an Australia-based child care services provider, offers child care at flexible hours to reduce pocket costs and increase access to subsidized hours.
Opportunities And Recommendations In The Child Care Market
Opportunities – The top opportunities in the global child care market will arise in the baby and child care segment, which will gain $124.9 billion of global annual sales by 2022. The child care market size will gain the most in China at $52.1 billion. Market-trend-based strategies for the child care market include leveraging technology to optimize services and enhance customer satisfactory levels, partnering with corporates to increase revenues and market shares, using AI technology for better childcare management, and adopting interest-driven learning methods to make learning more enjoyable for children. Player-adopted strategies in the child care industry include expanding operations through acquisitions, increasing public commitment to high quality learning, and building capable work force.
Recommendations – To take advantage of these opportunities, The Business Research Company recommends the child care companies to focus on use of technological advances, expand in emerging markets, focus on expanding through collaborations, price competitively, leverage social media to maximize reach and focus on the middle-class population in emerging countries.
Child Care Market Segmentation
The Child Care market is segmented by type of facility, by location of facility, by expenditure, and by geography.
By Type Of Facility-
The child care market can be segmented by type of facility into
Pre-Kindergarten And Preschool Centers had the highest growth rate of nearly 8.9% during the historic period. The fastest growth of the pre-kindergarten and preschool centers can be attributed to the rise in the awareness levels about benefits of early leaning and care.
- a) Baby And Child Care
- b) Pre-Kindergarten And Preschool Centers
- c) Nursery Schools
By Location Of Facility-
The child care market can be segmented by location of facility into
By Type Of Expenditure-
The child care market can be segmented by type of expenditure into
- a) Center-Based
- b) Home-Based
By Geography- The child care market is segmented into
- a) Public Expenditure
- b) Private Expenditure
- o North America
- o Western Europe
- o Asia Pacific
- Hong Kong
- New Zealand
- South Korea
- o Eastern Europe
- Czech Republic
- o South America
- o Middle East
Asia-Pacific is the largest market for child care, accounting for almost 38.4% of the global market. It was followed by Western Europe, North America and then the other regions. Going forward, Africa and South America will be the fastest growing regions in this market.
Child Care Competitive Landscape
- Saudi Arabia
- o Africa
- South Africa
Major Competitors are:
Other Competitors Include:
- • Bright Horizons Family Solutions, Inc.
- • KinderCare Education
- • Goodstart Early Learning
- • Primrose Schools
- • G8 Education Limited
- • Learning Care Group, Inc.
- • Noble Learning Communities
- • KU Children`s Services
- • PLASP Child Care Services
- • JP Holdings, Inc.
- • Apple Kids
- • Euro Kids
- • Gymboree Play and Music
- • Kangaroo Kids
- • KidZee
- • Noah Education Holdings
- • Oriental Baby Care Consulting
- • Shemrock
- • Tree House Education
- • Rockmybaby
- • ADO Mini-Explorers Outdoor Pre-school
- • Asquith Hendon Pre-School & Day Nursery
- • Kindergärten City
- • Bilingual Montessori School of Paris and La Caseta Kindergarten
- • American Embassy Day Care/Pre-School
- • British Embassy Playgroup
- • British International School Kindergarten and Pre-Schools
- • Busy Bees Playschool
- • Early Years Centre
- • Kinder care education
- • Learning care group
- • Bright Horizons Family Solutions
- • Goddard Systems
- • Prim rose schools
- • Childcare Network
- • Kids ‘R’ Learning Academies
- • Nobel Learning Communities
- • The Learning Experience
- • Cadence Education
- • kids & Company
- • Collab & Play
- • Instituto Cultural y Educativo
- • Jardin De Niños Leche Kids
- • Gymboree
- • First Christian Church Day Care
- • Brazil Resource Center-Head Start
- • Kiddie Academy
- • St. Matthew`s College North
- • Kid`s Corner Preschool
- • Babilou Nursery
- • WIZO
- • Dubai Autism Center (DAC)
- • Bambinos Daycare
- • C.H.I.L.D. Center UAE
- • Bizzy Beez Group
- • Parkmore Nursery School
- • Bloubosrand Montessori Pre-School
- • Kidz College Nursery School
- • Baby Bloom Nursery
- • Brainiac Nursery and Preschool