Child Care Market to Grow by USD 103.73 Billion from 2024-2028, as Rising Female Workforce Participation Boosts Demand with AI Driving Market Transformation – Technavio

NEW YORK, Nov. 11, 2024 /PRNewswire/ — Report with the AI impact on market trends – The global child care market size is estimated to grow by USD 103.73 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  7.02%  during the forecast period. Increasing labor force participation of women is driving market growth, with a trend towards rising trend toward high-value child care services. However, increasing health concerns of children in child care centers  poses a challenge.Key market players include 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..

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Market Driver

The child care market is experiencing significant growth due to changing family structures, with an increasing number of nuclear families and working mothers. This trend has led to a high demand for childcare services, focusing on children’s development and early childhood education. Center-based child care centers, including daycare services, preschools, kindergartens, and Montessori schools, dominate the market. Working parents require flexible options like part-time care, drop-in services, and backup care. Early care, early education, and early daycare are essential goods and services for women’s empowerment and labor force participation. Households with dual-income families and disposable incomes are the primary consumers. Additionally, child care facilities offer academic institutions services like college coaching, tuition assistance, student debt repayment, and educational counseling. Workplace services and healthcare services are also becoming essential offerings in the child care industry. 

Child care is an essential expense for working families, with the increasing disposable income and rising female labor force participation leading to a steady growth in this market. Major vendors, like Bright Horizons Family Solutions Inc. And Learning Care Group, cater to this demand by offering high-value services such as personalized education and tuition program management. Bright Horizons also provides student loan repayment, while Learning Care Group focuses on a personalized learning experience to help children develop academic and life skills. These vendors’ offerings have attracted parents to invest in quality child care. 

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 Market Challenges

• The child care market faces several challenges due to changing family structures and the increasing number of working mothers. Nuclear families are on the rise, leading to an increased demand for childcare services. Working parents require reliable and affordable options to ensure their children’s development while they are at work. This has led to the growth of center-based child care services, including child care centers, preschools, kindergartens, and pre-kindergartens. Women’s empowerment and the growing labor force have resulted in an increase in dual-income households. Disposable incomes have risen, allowing families to afford various child care services such as part-time care, drop-in services, early care, and early education. The demand for child care services extends beyond infancy, with families seeking backup care, daycare services, and educational advising services for older children. Additionally, academic institutions and workplace services offer tuition assistance and student debt repayment to help families manage the financial burden of education. Health care is also a crucial consideration, with many families seeking child care facilities that provide medical services. The Childcare Network offers a range of services, from early childhood education to college coaching, catering to the diverse needs of families. Overall, the child care market is dynamic and evolving, presenting both opportunities and challenges for businesses. Providers must adapt to meet the changing needs of families and offer flexible, affordable, and high-quality services to remain competitive.
• Parents prioritize the health and safety of their children when choosing child care services. Concerns over contagious diseases, allergies, and hygiene standards can impact the trust and demand for child care centers. If parents perceive a higher risk of illness exposure or inadequate sanitation practices, they may hesitate to enroll their children. This reluctance can negatively affect enrollment rates and hinder the growth of the global child care market. Outbreaks of contagious diseases within child care facilities can lead to temporary closures, disrupting operations and further eroding parental trust. Ensuring rigorous health and safety protocols is essential to mitigate these concerns and maintain the market’s stability.

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Segment Overview 

This child care market report extensively covers market segmentation by 

1. Delivery 

• 1.1 Organized care facilities
• 1.2 Home-based settings

Type 

• 2.1 Early education and daycare
• 2.2 Early care
• 2.3 Backup care

Geography 

• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Organized care facilities-  Organized child care facilities hold the largest market share in the global child care industry in 2023. This dominance is due to the increasing number of working parents and the growing demand for child care. In organized facilities, there’s a focus on creating standardized methods for delivering quality child care. These centers offer an educationally enriched curriculum, promoting literacy, language development, and personality growth. Socialization opportunities among children of various age groups and the presence of multiple caregivers are additional advantages. Organized child care facilities are licensed by state governments, ensuring adherence to health, safety, and caregiver training standards. The advanced curriculum and reliable, structured care options make organized child care an attractive choice for parents. With the increasing workforce participation and the recognition of early childhood education’s importance, the demand for organized care facilities is expected to continue growing. Government initiatives to support affordable child care and improve care quality further boost this segment’s growth in the global child care market.

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Research Analysis

The child care market caters to the growing need for care and education services for children in various family structures, with a significant focus on nuclear families and working mothers. With an increasing number of women joining the labor force, the demand for child care services. Households require goods and services that support children’s development, leading to the growth of child care centers and facilities. The center-based segment, including child care centers and early childhood education, plays a crucial role in children’s development and women’s empowerment. Working parents rely on these services to balance their professional and family responsibilities, making the child care market a vital sector.

Market Research Overview

The child care market caters to the growing needs of families, particularly those with working mothers, as more women join the labor force and form nuclear families. This market offers a range of goods and services to support the development of children from early care and education to backup care and academic services. Households with disposable income invest in center-based child care services, such as child care centers and preschools, while others opt for part-time care, drop-in services, or early daycare. The market also includes early childhood education programs, such as kindergarten and pre-kindergarten, Montessori schools, summer camps, and educational advising services. Additionally, tuition assistance, student debt repayment, and educational counseling are becoming increasingly popular offerings. Workplace services and academic institutions also contribute to the market by offering on-site child care facilities and child care networks. Overall, the child care market plays a vital role in women’s empowerment and the development of children.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• Delivery
• Organized Care Facilities
• Home-based Settings
• Type
• Early Education And Daycare
• Early Care
• Backup Care
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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