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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 is experiencing significant growth due to several key drivers. The increasing labor force participation of women is a major factor, as more mothers enter the workforce and require reliable backup care solutions. Another trend is the rising demand for high-value child care services, including daycare, preschool, and college coaching, as parents prioritize their children's education and development. Additionally, health concerns have become a significant consideration in child care, leading to an increasing focus on providing quality medicine administration and health services in child care centers. The childcare network is also evolving, offering more comprehensive services to meet the diverse needs of modern families.
The market has experienced significant growth due to the changing family structure, with an increasing number of nuclear families and working mothers. The labor force participation rate of women has risen, leading to a higher demand for child care services to support their roles as breadwinners and caregivers. Households with children represent a large and growing consumer base for goods and services related to children's development. Child care centers have become increasingly popular, particularly in the center-based segment, which accounts for a significant share of the market. These facilities offer early childhood education and development opportunities, addressing the need for high-quality care and education for children.
Dual-income families, in particular, rely on child care facilities to ensure the care and safety of their children while they work. Women's empowerment and the increasing recognition of the importance of early childhood education have further fueled the demand for child care services.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The organized care facilities segment is estimated to witness significant growth during the forecast period. The market holds the largest market share in 2023, driven by the increasing number of working women and the growing demand for reliable child care solutions. Organized child care facilities prioritize delivering standardized, quality services, focusing on the holistic development of children. These centers offer educationally enriched curriculums that foster literacy, language development, and personality growth. Additionally, they provide children with valuable opportunities to socialize with their peers, enhancing their overall development. The rising emphasis on women's empowerment and labor force participation has fueled the growth of this segment, making organized child care a vital component of modern households.
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The organized care facilities segment was valued at USD 143.85 billion in 2018 and showed a gradual increase during the forecast period.
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.
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The market is experiencing significant growth due to several factors, particularly in the center-based segment. The increasing number of women joining the labor force is a major driving force behind this trend. According to the Bureau of Labor Statistics, the percentage of women participating in the labor force in the United States increased from approximately 56.1% in 2021 to 58.6% in 2022. This growth is expected to continue, leading to an increased demand for child care services. Additionally, the rise in disposable income among households, especially those with millennial parents, is contributing to the expansion of this market. The United States is currently the largest market for child care in North America, with a growing number of child care centers opening to meet the needs of working mothers and fathers.
This trend is not only fueling the growth of the child care industry but also promoting women's empowerment by enabling them to pursue careers while ensuring the care and well-being of their children.
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.
Increasing labor force participation of women is the key driver of the market. The market is experiencing significant growth due to the increasing number of working mothers worldwide. This trend is driven by the evolving family structure, with an increasing number of nuclear families, as well as societal shifts towards women's participation in the labor force. In recent years, the female labor force participation rate has been on the rise, reaching 30% for women aged 15 and above in India, for instance.
This trend is influenced by various factors, including changing social values, the availability of employment opportunities, rising household income, and the total spending on child care services. As a result, the demand for child care centers and other child care services has rised, with a focus on children's development and ensuring their well-being while parents are at work.
Rising trend toward high-value child care services is the upcoming trend in the market. The market has experienced significant growth due to the changing family structure and increasing number of working mothers. With an upward trend in household income and the female labor force participation rate, the demand for quality child care services has risen. Major companies in this market offer personalized education and development programs to cater to the unique needs of children.
For instance, Bright Horizons Family Solutions Inc. provides tuition program management and student loan repayment solutions, while Learning Care Group offers a personalized learning experience to help children build academic and life skills. These high-value services have attracted parents towards investing in quality child care for their children's holistic development.
Increasing health concerns of children in child care centers is a key challenge affecting the market growth. The family structure has evolved significantly over the years, with an increasing number of nuclear families and working mothers requiring childcare services. However, concerns over the health and safety of their children in shared environments, such as child care centers, can impact the demand for these services. Parents are increasingly vigilant about potential risks, including contagious diseases and allergies, which can lead to a decline in trust and enrollment rates.
Inadequate sanitation practices and outbreaks of illnesses within child care centers can further disrupt operations and erode trust among parents. These factors may hamper the growth of the market, as parents may hesitate to enroll their children in facilities perceived as having higher risks of exposure to illnesses.
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 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.
Beanstalk Education Group - The company offers child care such as kindergarten which provides teaching for children aged 2 to 6.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 market is driven by the increasing number of working mothers in nuclear families, leading to a higher demand for childcare services. With women's empowerment and the shift towards dual-income families, households are spending more on goods and services related to children's development. The child care services market caters to various segments, including center-based services and home-based services. Center-based services, which include child care centers, preschools, and kindergartens, account for a significant share of the market. Working parents require child care facilities for early care, early education, and backup care. Early childhood education is crucial for children's development, making early daycare and preschools popular choices. Moreover, the part-time care and drop-in services cater to the flexible needs of working parents. Additionally, the market offers various services such as medicine administration, educational advising, tuition assistance, and student debt repayment.
The labor force participation of women and the rise of disposable incomes have fueled the growth of the child care services market. The market is expected to continue growing as more families seek affordable and quality child care solutions. Creating a safe and caring environment is essential in early education and care, from infant and toddler care to kindergarten and pre-kindergarten. Flexible childcare choices, including daycare services and Montessori programs, cater to diverse family needs. Academic institutions, such as elementary schools and high schools, prioritize fostering a supportive atmosphere that encourages learning and growth. Educational advising services and counseling play a vital role in guiding students through their academic journey, including online private school education for those seeking alternatives. Summer camps offer enriching experiences, ensuring children from kindergarten through 12th grade can explore and thrive in a nurturing setting. Ultimately, a safe environment lays the foundation for lifelong learning and development.
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, market forecast, 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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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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