Child Care Services Market Size, Share & Trends Analysis Report By Delivery Type (Center-based, Home-based), By Region, And Segment Forecasts, 2024 - 2030

Child Care Services Market Size & Trends

The global child care services market size was valued at USD 295.6 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 4.33% from 2024 to 2030. The market's growth can be attributed to the rising female workforce participation, especially in developing countries, and the change in family structure to shift towards nuclear families. Moreover, changing demographics, such as the rise in working mothers and single-parent households, are expected to contribute to the market's growth over the forecasted period.

The demand for child care services is constantly rising with the substantial increase in unmet need for these services. According to Better Jobs and Brighter Futures report by the World Bank Group in December 2020, around 40% of the global primary-school-entry-age population need childcare services and do not have access to them. Hence, companies are investing in high-quality services to support children's development, promote working parents' well-being, and enhance the availability and affordability of the services. For instance, in June 2022, the U.S. Agency for International Development (USAID) announced to provide USD 50 million in the next five years to the Childcare Incentive Fund of the World Bank, which is a USD 200 million public-private partnership to reduce the infrastructure gap, promote early learning and human capital for children, and boost employment opportunities for women.

Moreover, the growing number of child care centers owing to increasing enrollment rates globally is expected to boost the growth of the market over the forecast period. According to Child Care Aware of America (CCAoA) 2022 Child Care Affordability report, the number of licensed child care centers in the 41 states of the U.S. increased from 92,597 in 2019 to 93,124 in 2022. This is expected to expand availability and affordability of the services to parents and increase enrollment rates substantially, contributing to the market's growth over the forecast period.

Market Concentration & Characteristics

Digitalization in the industry, including online registration & enrollment systems, attendance tracking systems, digital learning platforms, remote monitoring, communication platforms, online training programs, and many other applications, contributes to the market’s growth. These types of digitization collectively contribute to creating a more efficient, secure, and transparent industry, benefiting both providers and parents.

Several market players, such as Bright Horizons Family Solutions Inc., Only About Children, and Busy Bees Group, are constantly involved in merger and acquisition activities to expand their geographic presence and service offerings.

There are no international legal regulations and standards for the market. Hence, market players have to adhere to local or regional regulations. This is expected to reduce the scope of regional expansion as the companies must adhere to different regulations in different regions.

The level of regional expansion is low in the market owing to changes in regulatory frameworks, specific demand of the target population, and unorganized nature of the industry in many low-and middle-income countries.

Delivery Type Insights

The center-based segment dominated the market with a revenue share of 55.15% in 2023. With the shift toward nuclear families, the demand for center-based services is constantly growing. These centers offer an educationally enriched and school-like environment with a structured schedule, which the working parents prefer. Moreover, many companies are launching center-based care services contributing to the growth of the market over the forecast period. For instance, in August 2023, Bright Horizons Family Solutions opened three new spaces in child care centers in the U.S.

The home-based segment is expected to witness the fastest growth over the forecast period. This can be attributed to its more flexible schedules and affordable & accessible care, which better suits the needs of parents. For instance, according to the article published in Child Trends in March 2023, around one-third of children under 5 years of age in the U.S. are in home-based child care services.

Regional Insights

Asia Pacific region held the largest market share of over 35.70% in 2023. This can be attributed to the presence of affordable, quality, and accessible childcare services and facilities supported by growing investment in child care. Moreover, the long working hours in the region are contributing to the high share of the market in the region. According to the International Labour Organization (ILO) report published in January 2023, South and East Asia reported the highest average working hours globally, with around 49 average working hours in South Asia and around 48.8 hours in East Asia.

However, Latin America is expected to witness the fastest growth over the forecast period. This can be growing initiatives and investments to improve the accessibility of childcare services. Moreover, the changing demographics in the region to shift towards fewer extended families and increase in participation of women in the labor market is expected to boost the demand for child care services over the forecast period.

Key Companies & Market Share Insights

The market is highly fragmented, with the presence of many country-level players. The threat of rivalry in the market is low. However, as demand for quality services grows, existing providers may boost competition by offering innovative programs or expanding their facilities. Reputation, regulatory compliance, and pricing are critical in the industry. The threat of rivalry is higher in densely populated areas where several child care centers provide services for same pool of families.

• Bright Horizons Family Solutions, Inc., KinderCare Learning Centers LLC, and Learning Care Group, Inc. are some of the dominant players operating in market.

• Bright Horizons Family Solutions, Inc. provides a range of services, including child care, elder care, and career and education help. The company operates with more than 26,000 employees.

• Learning Care Group, Inc. provides child care services with around 1,070 schools across the U.S. serving around 156,000 children through more than 20,000 employees.

• Klay.co.in, G8 Education Limited, and Cadence Education are some of the emerging market players functioning in market.

• Klay.co.in, is one of the largest child care chain in India offering care services to more than 60,000 children with holistic child development approach, health & safety, and world-class infrastructure.

• G8 Education Limited is a child care services and early education provider based in the Australia with more than 430 centers.

Recent Developments

• In September 2023, KinderCare Learning Centers LLC partnered with the University of Notre Dame to provide new on-campus child care centers for the children aged 6 weeks and 3 years old.

• In May 2022, Bright Horizons Family Solutions Inc. signed a definitive agreement to acquire remaining assets of Only About Children (OAC) for around USD 320 million.

Child Care Services Market Report Scope

Global Child Care Services Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global child care services market report based on delivery type, and region:

• Delivery Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Center-based

  • Home-based

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait