Child Care Services Market Share, Size, Trends, Industry Analysis Report, By Delivery Type (Center-based, Home-based), By Type, By Region, And Segment Forecasts, 2024- 2032
- Published Date:Jan-2024
- Pages: 116
- Format: PDF
- Report ID: PM4184
- Base Year: 2023
- Historical Data: 2019 – 2022
The global child care services market was valued at USD 223.41 billion in 2023 and is expected to grow at a CAGR of 7.8% during the forecast period.
The market is fueled by the increasing participation of females in the workforce, particularly notable in developing countries. Additionally, shifts in family structures toward nuclear families, coupled with changing demographics like the rise in working mothers and single-parent households, are anticipated to be significant contributors to the market's expansion throughout the forecast period. The demand for childcare services is expected to rise as societal and economic factors continue to evolve, emphasizing the importance of reliable childcare solutions.
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The implementation of digitalization in the childcare services industry has introduced various technological advancements, such as online registration and enrollment systems, attendance tracking systems, digital learning platforms, remote monitoring tools, communication platforms, and online training programs. This widespread digitization plays a crucial role in enhancing the overall efficiency, security, and transparency within the industry. Providers and parents alike benefit from these digital tools as they streamline processes, improve communication, and provide accessible and convenient solutions. The adoption of digital technologies in childcare services contributes to a more modern and effective approach to managing and delivering childcare.
In June 2022, the U.S. Agency for International Development (USAID) unveiled a significant commitment, pledging USD 50 million over the next five years to the Childcare Incentive Fund, a collaborative initiative led by the World Bank. This fund, amounting to a total of USD 200 million and operating as a public-private partnership, is designed to address several critical objectives. Firstly, it aims to alleviate the infrastructure gap in child care services, recognizing the need for accessible and well-equipped facilities to cater to the growing demand for child care. Additionally, the initiative seeks to promote early learning opportunities, emphasizing the importance of early childhood education and development.
Moreover, the focus on enhancing human capital for children underscores the commitment to nurturing the potential of the younger generation, recognizing it as an investment in the future. Finally, the initiative aims to create employment opportunities for women, acknowledging the vital role of women in the workforce and the potential positive impact on their economic empowerment. By channeling financial support into this multifaceted endeavor, USAID and the World Bank aim to address critical aspects of childcare infrastructure, education, and women's empowerment, contributing to broader societal development goals.
The research study provides a comprehensive analysis of the industry, assessing the market on the basis of various segments and sub-segments. It sheds light on the competitive landscape and introduces Child Care Services Market key players from the perspective of market share, concentration ratio, etc. The study is a vital resource for understanding the growth drivers, opportunities, and challenges in the industry.
Furthermore, the market is poised for growth due to the rising prevalence of childcare centers and increased enrollment rates on a global scale. As per the 2022 Child Care Affordability Report by Child Care Aware of America (CCAoA), there has been a notable increase in the number of licensed childcare centers across 41 U.S. states. Specifically, the count rose from 92,597 in 2019 to 93,124 in 2022. This surge in the availability of licensed childcare centers is anticipated to have a positive impact on both the accessibility and affordability of childcare services for parents. The expansion of these centers is expected to significantly elevate enrollment rates, thereby contributing to the overall growth of the childcare services market throughout the forecast period.
- Rising demand for child care services drives the market
The burgeoning demand for childcare services has become an undeniable force propelling the market into a phase of rapid expansion and innovation. This escalating need can be attributed to a myriad of driving factors that collectively underscore the essentiality and significance of quality child care in contemporary society.
Firstly, the evolving dynamics of the modern family structure have contributed significantly to the rising demand for child care services. With an increasing number of dual-income households and single-parent families, the traditional model of stay-at-home parenting has become less prevalent. Consequently, parents are seeking reliable and professional child care solutions to ensure their children's well-being and developmental needs are adequately met while they attend to their professional commitments.
Furthermore, the growing recognition of early childhood education as a critical determinant of a child's future success has intensified the demand for high-quality child care services. Parents are increasingly prioritizing programs that offer structured learning experiences, fostering cognitive, social, and emotional development from an early age. This emphasis on early education underscores the transformative impact of quality child care in laying the foundation for lifelong learning and academic achievement.
The market is primarily segmented based on type, delivery type, and region.
By Delivery Type
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By Delivery Type Analysis
- Center based segment accounted for the largest market share in 2023
Center based segment accounted for the largest share in 2023. Center-based facilities are favored by working parents as they provide an educationally enriched environment with a structured schedule akin to a school setting. The consistent growth in demand is further fueled by the proactive initiatives of companies entering the child care services sector with a focus on center-based offerings. For instance, Bright Horizons Family Solutions, which, in August 2023, expanded its footprint by opening three new child care centers in the United States, contributing to the overall expansion of the market during the forecast period.
The home-based segment will grow rapidly during the forecast period. Growth is driven by its appeal to parents due to more flexible schedules and the provision of affordable and accessible care. This model aligns well with the preferences and requirements of parents seeking child care services. Notably, a March 2023 article published by Child Trends highlights that approximately one-third of children under five years of age in the United States are enrolled in home-based child care services. This statistic underscores the significant demand and acceptance of home-based child care, making it a key driver for the projected robust growth in this segment over the coming years.
- APAC dominated the global market in 2023
The Asia-Pacific region dominates the global market due to the availability of affordable, high-quality, and easily accessible childcare services and facilities. Significant investments in the childcare sector support this. The region is also known for having long working hours, which greatly contributes to its high market share. According to a report released by the International Labour Organization (ILO) in January 2023, South and East Asia have the highest average working hours globally, with approximately 49 average working hours in South Asia and around 48.8 hours in East Asia. The demanding work schedules in these regions highlight the crucial role of child care services in supporting working parents, resulting in a substantial presence of the market in the region. The Asia-Pacific region dominates the global market due to the availability of affordable, high-quality, and easily accessible childcare services and facilities. Significant investments in the childcare sector support this. The region is also known for having long working hours, which greatly contributes to its high market share. According to a report released by the International Labour Organization (ILO) in January 2023, South and East Asia have the highest average working hours globally, with approximately 49 average working hours in South Asia and around 48.8 hours in East Asia. The demanding work schedules in these regions highlight the crucial role of child care services in supporting working parents, resulting in a substantial presence of the market in the region.
Latin America will grow at a substantial pace. The region’s growth is due to increasing initiatives and investments aimed at enhancing the accessibility of childcare services. The region is witnessing a shift in demographics, moving towards smaller extended families, and a notable rise in the participation of women in the labor market. These demographic changes are expected to fuel the demand for childcare services as more parents seek support in balancing work and family responsibilities. As the need for reliable and quality childcare services grows, investments and efforts to expand childcare accessibility in the region are likely to play a pivotal role in driving the robust growth of the market in the region.
Key Market Players & Competitive Insights
The Child Care Services market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market include:
- Bright Horizons Family Solutions Inc.
- KinderCare Learning Centers LLC.
- Learning Care Group, Inc.
- Spring Education Group
- Cadence Education
- Primrose School Franchising SPE, LLC.
- G8 Education Ltd.
- Kitty International School and Preschool
- The Learning Journey Day Nursery Ltd.
- In September 2023, KinderCare Learning collaborated with the University of Notre Dame to establish novel on-campus child care facilities catering to children aged 6 weeks to 3 years.
- In May 2022, Bright Horizons Family Solutions has entered into agreement to purchase the assets of Only About Children (OAC) for approximately USD 320 million.
Child Care Services Market Report Scope
Market size value in 2024
USD 240.66 billion
Revenue forecast in 2032
USD 437.74 billion
7.8% from 2024 – 2032
2019 – 2022
2024 – 2032
Revenue in USD billion and CAGR from 2024 to 2032
By Delivery type, By type, By Region
North America, Europe, Asia Pacific, Latin America; Middle East & Africa
Report customization as per your requirements with respect to countries, region and segmentation.
The Child Care Services Market report details key market dynamics to help industry players align their business strategies with current and future trends. It examines technological advances and breakthroughs in the industry and their impact on the market presence. Furthermore, a detailed regional analysis of the industry at the local, national, and global levels has been provided.
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The global child care services market size is expected to reach USD 437.74 million by 2032
Key players in the market are Bright Horizons Family, KinderCare Learning, Learning Care, Spring Education
Asia-Pacific contribute notably towards the global child care services market
The global child care services market is expected to grow at a CAGR of 7.8% during the forecast period.
The child care services market report covering key segments are type, delivery type, and region.