Global Child Care Market by Care Type (Backup Care, Early Care, Early Education Care, Daycare), By Delivery (Home based Settings, Centre based), by Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033

Report Overview

Global Child Care Market size is expected to be worth around USD 479.3 Billion by 2033 from USD 305.7 Billion in 2023, growing at a CAGR of 4.6% during the forecast period from 2024 to 2033.

Child care is a broad terminology use to narrate any aggregate or grouping or settings in which the central accountability is caring for a young child. The robustly heightening demand for child care services can be ascribed to the fact that in a case by solution or prerequisite bulk of the mothers are now engaged in working. Around 1 in a 4 young children are in a single parent abode.

The market is further accelerated by escalating involvements of women in labor force, particularly in developed countries. The market for childcare is anticipated to augment during the forecast period due to transfer of family framework into nuclear families. The unmet needs for childcare services further leads to rising demand for child care services. To meet these needs, many major companies are into investing to promote high quality services supporting child’s development, working parents’ well being and enhance the availability and affordability of the services.

• According to Better Jobs & Brighter Future report, in December 2020, there was a need for child care services for approximately 40% of the global primary-school-entry-age population.
• In June 2022, around the USD 50 million will be provided by the U.S. Agency for International Development in the next five years to the Childcare Incentive Fund of the World Bank. This world bank is the USD 200 million public-private partnership to minimize infrastructure gap, promote early learning and human capital for children and bolster employment opportunity for women.

Key Takeaways

• Market Size: Global Child Care Market size is expected to be worth around USD 479.3 Billion by 2033 from USD 305.7 Billion in 2023.
• Market Growth: The market growing at a CAGR of 4.6% during the forecast period from 2024 to 2033.
• Care Type Analysis: Early education and day care segment accounting a commendable market revenue shares of 61.2% in 2023.
• Delivery Analysis: A most prominent role is played by centre based segment accounting an impressive revenue share of 64.6%.
• Regional Analysis: North America leads the global chid care market capturing an abundant market share of 41.2% in the year 2023
• Technological Integration: Adoption of technology in child care settings, including the use of management software for administrative tasks and educational technologies to enhance learning experiences, is a growing trend.
• Competitive Landscape: The market features a mix of small independent providers and large chains, with significant competition based on service quality, location, and price.

By Care Type Analysis

Education Care & Daycare segments plays a pivotal role in recent years

Based on care type, the child care market is broadly categorized into Backup Care, Early Care, Early Education Care and Daycare segments. The child care market in 2023 is predominately overshadowed by early education and day care segment accounting a commendable market revenue shares of 61.2%. The segments are playing an instrumental role owing to the combination of factors including escalating development of advanced learning technique for children and rising initiatives by government.

Furthermore, the market propels robustly with the growing number of new learning software and tools aiming to enable children to learning in a more fun way in the foundation stage. In addition to this, the market is anticipated to expand during the prophecy period by virtue of rising government initiatives to promote early education and daycare services for children.

• In March 2023, Duolingo ABC was launched by Duolingo, a specially designed free to use app assitng children between the ages of 3 to 8 years to read and write in English. Around 700 concise lessons covering the alphabets, phonics, and sight words are offered by the app.
• In December 2022, a project, “Rise-Early Childhood and Development Centre” was launched by Dawoodi Bohra community and Deepalaya. The project aimed to provide early childhood education and skills combined with health and nutritional support to underprivileged children in slum areas of New Delhi, India.

By Delivery Analysis

Center based settings segment attracted large parent pool

Based on delivery, the child care market is fragmented into home based settings and centre based segments. A most prominent role is played by centre based segment accounting an impressive revenue share of 64.6% dominating the global child care market in the year 2023. The predominance of center based segment is due to the provision of education and school like environment with an organized schedule it offers, which is highly preferred by working parents. The market is further anticipated to boost by the launch of centre based services by many renowned companies during the foreseeable days.

• In August 2023, 3 new spaces in child care centers was launched by Bright Horizons Family Solutions in the United States.

Home based settings on the other hand is anticipated to showcase fastest growth during the forecast period. The expectation is strongly overseen due to more flexible schedules these settings provide which seems to be much affordable and accessible, better aligning with the parents’ needs.

• In March 2023, an article published in Child Trends reports, approximately 1/3^rd of children under 5 years of age are into home based child care services in United States.

Key Market Segments

By Care Type

• Backup Care
• Early Care
• Early Education Care
• Daycare

By Delivery

• Home Based Settings
• Centre Care Settings

Drivers

Increasing women workforce participation

The global child care market is robustly fostering due to increasing number of women entering into workforce, influencing economies and society across the globe. This led to a demand for various goods and services including child care being one of the main benefactors. The participation of women in workforce is as a result of combining factors, amongst which gender equality marks as the primary one. Secondary, to retain financial stability many households now require two income workers by virtue of shifting economic landscape and increasing life style expenditures.

In addition to this, more women are participating into labour due to improvements in education and employment prospects. The availability of education forms a major driving factor for women to excel in workforce nowadays. Thus, child care facilitites is highly adopted by parents where both mother and father are into professional fields, providing an organized and supervised environment supporting early childhood education and development.

• According to US Bureau of Labor Statistics, womens’ participation in the US labor force has up scaled since World War II, which is 32.7% in 1948 to 56.8% in 2016.

Premature childhood education

The idea of premature childhood education is the another crucial factors propelling the market dimensions. Parents are now involved to arrange organizing schedules that provides assembled learning encounters, social and emotional advancements and stimulating cognitive from a premature age. Thus, this stress on premature education necessitates an evergrowing demand for child care services, thereby fostering the market growth.

Restaints

Increasing potential of infections among children

The global child care market is on the possibility of hindrance due to rising risk of infection among children in daycare. Though child care services are benefitting working parents by leaving their children under the supervision of quality care services, unfortunately the hygiene and health of children is getting compromised. This case is more oftenly witnessed in care of toddlers and infants being more susceptible to infectious diseases, as basics of hygiene is not understood at such a small age.

In addition, the staff attending the children at daycare is not cautious enough to maintain hygiene practices around children. Some of the common illnesses being spread through child care services include stomach bugs, conjunctivitis, hand, foot and mouth diseases caused by viruses and common cold. Thus, the continuous trend of children falling sick in these centres is pessimistically impacting the market growth during the prophecy period.

Opportunities

Advancing education and related facilities offers huge growth

The market is witnessing huge growth opportunities with the increasing single and working mothers seeking reliable care options. In addition, the market is advancing with the innovative ideas incorporation into child education with organized facilities and home based settings such as First Steps 4K and Jaadui Pitara, enhancing educational experiences.

Wide range of child care services ranging from care for newborns to prekindergarden instruction for school kids through both publicly and privately funded child care facilities are being offered. Single-parents are benefitted by organized care facilities such as Little Founders, ensuring high quality care for preschoolers and school aged kids alike.

In addition, the rising popularity of school franchisees is an emerging trend shaping the markets’ trajectory, fulfilling the increasing demand for high quality child day-care services. Thus, market is benefitted to a large extent, offering lucrative opportunities for the market players operating into child care market.

• Goddard School is an educational facility for children aged between 6 weeks and 6 years, recognized as a top childcare frnachise in the US. by Entrepreneur magazine and one of the top 200 Franchise Systems by Franchise times. The facility involves afterschool and summer programs for children.
• Primrose School Franchising Co, comprise more than 452 schools operating in 32 states and further continuous to explore expansion across the United States.

Latest Trends

Sustainibility and Eco-Friendly Practices: Child care settings are incorporating sustainable and eco-friendly products into their services. For instance, the use of organic or locally sourced food, implementation of recycle and composting programs and creation of outdoor play spaces that aids in coordinating children with nature.

Early Childhood Education: The rising awareness regarding early childhood education is significantly helping in child’s development. The inclusion of advanced offering by child care providers such as structured educational activities including STEAM (Science, Technology, Engineering, Arts and Mathematics) programs, literacy focused curriculum and language immersion is robustly boosted the child care market.

Impact of Macroeconomic Factors

The global child care market is been heavily impacted by a combination of factors. One of the primary factor impacting the market includes increasing employment rates. The demand for child care services up scales with the rise in parents’ employment rate, thus leading to the market economy growth. The market is actively impacted by government policies including subsidies or tax credits for childcare expenses. The fluctuations in subsidy or funding allocations impact the overall children provision environment as subsidies makes childcare affordable for families.

In addition to this, the high cost of living is the another factor influencing the demand for child care services. The regions with high cost of living results in high operating costs for childcare providers, where the expense is further passed on to parents in the form of high fees. Thus, such expense can impact parents’ decisions, thereby constraining the childcare services.

Regional Analysis

Large market portion is withheld by North America

North America leads the global chid care market capturing an abundant market share of 41.2% in the year 2023. The regions’ predominance is highly attributed to increasing ultimatum for early daycare and education services, increasing number of single-mothers combined with rising adoption of new learning technologies and escalating government initiatives. The high number of single parents in the region demands for daycare and other related services to raise their children and provide appropriate education.

• According to United States Census Bureau Statistics 2022, around 11.3 million single parent homes with children under 18, about 80% of which were headed by single mothers in United States.
• According to Canadian Government Statistics 2022, around 1.84 million single parent families lived in Canada.
• In September 2022, Maine Department of Health & Human Services, distributed the USD 13.6 million in American Rescue Plan Act funds with the aim to improve Maine families’s access to safe, affordable, and high quality child care.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The market is fragmented with the presence of numerous companies in developed and developing economies. This intensifies the competition and companies are involved in furthering their market presence and position through various strategic initiatives. These include product advancements, distribution partnerships, sales & marketing activities, regional expansion, partnerships, and mergers and acquisitions. In addition, numerous key players are now concentrating on different marketing strategies, such as increasing awareness about advanced features, which is expanding the growth of target products.

Market Key Players

Listed below are some of the most prominent global childcare industry players:

• Bright Horizons Family Solutions, Inc.
• KinderCare Education
• Learning Care Group, Inc.
• Cadence Education
• Goodstart Early Learning
• Spring Education Group
• Primrose School Franchising SPE, LLC.
• G8 Education, ltd.
• Kitty International School & Preschool
• Klay.co.in

Recent Developments

• Expansion and New Programs: In January 2023, KLAY expanded its services by launching a new preschool center in Ahmedabad, planning further expansion into Japan later in the year. KLAY also introduced programs like “Learn@Home” and “Kare@Home,” which provide in-home child care and online education, highlighting a shift towards more flexible child care solutions​.
• Regulatory Challenges and Innovations: The child care market continues to navigate complex regulatory environments, which vary significantly by region. These regulations impact everything from staffing ratios to facility standards, posing challenges but also driving innovations as providers seek to meet these stringent requirements.
• Technological Integration: There’s a growing integration of educational and management technologies in child care settings. These technologies are used for everything from streamlining administrative tasks to enhancing learning experiences for children, demonstrating a significant trend towards digitalization within the sector.
• Focus on Early Education and Quality Standards: The early education segment, particularly for younger children, remains a dominant force in the market. This segment benefits from increased awareness of the importance of early childhood education and the societal push towards improving quality standards across child care services​.
• Government Initiatives and Funding: Various government initiatives, including substantial funding allocations and policy reforms, are shaping the market. For example, the U.S. Department of Health and Human Services proposed new rules in 2023 to reduce child care costs for families and improve the financial stability of child care providers, which could significantly impact market dynamics if enacted​.

Report Scope