Market Trends of Child Care Industry
The Early Education and Daycare Segment is Expected to Witness Significant Growth Over the Forecast Period
The early education and daycare segment is expected to witness significant growth in the child care market over the forecast period owing to factors such as the increasing development of advanced learning techniques for children and growing government initiatives.
The growing number of new learning software and tools to make learning fun for children in the foundation stage are anticipated to fuel the segment's growth. For instance, in March 2023, Duolingo launched Duolingo ABC, a specially designed free-to-use app to assist children between the ages of three and eight years in learning how to read and write in English in India. The app offers over 700 concise lessons covering the alphabet, phonics, and sight words.
Rising government initiatives to promote early education and daycare services for children are expected to increase segmental growth over the forecast period. In December 2022, the Dawoodi Bohra community and Deepalaya launched a project, 'Rise - Early Childhood Care and Development Center,' to provide early childhood education and skills and nutritional and health support to underprivileged children in slum areas in New Delhi, India. The program supports around 100 children aged two to six years whose parents are daily wage workers in the adjoining factories and construction sites.
Therefore, the segment is expected to grow over the forecast period due to the launches of new learning tools for children and rising government initiatives and funding.
North America is Expected to Hold a Significant Market Share Over the Forecast Period
North America is expected to hold a significant share of the childcare market owing to factors such as the increasing demand for early daycare and education services, the rising number of single mothers, the adoption of new learning technologies for children, and growing government initiatives.
According to the 2022 statistics published by the US Census Bureau, there were approximately 11 million single-parent homes with children under 18, about 80% of which were headed by single mothers in the United States. Additionally, per the 2022 statistics published by the Canadian government, about 1.84 million single-parent families lived in Canada in 2022. The high number of single-parent families in the region increases the demand for daycare and other childcare services to raise children and give them proper education during their growth periods. This is anticipated to augment market growth over the forecast period.
Rising government initiatives and funding to support child care and education are also contributing to the market growth in the region. For instance, in September 2022, the Maine Department of Health and Human Services (DHHS) distributed USD 13.6 million in American Rescue Plan Act funds to improve Maine families' access to safe, affordable, and high-quality child care.
The Early Childhood Educator Workforce Pay Supplement Program in Maine aims to raise the general standard of care for young children, increase early childhood educators' regular salaries through monthly stipends, and encourage their continued education.
Also, in July 2022, Governor Kathy Hochul confirmed awarding nearly USD 70 million in grant funding to newly licensed, registered, or approved childcare programs in the state's "child care deserts," or regions without enough childcare spaces.
The funding supported the staff in acquiring COVID-19 vaccines and assisted new childcare providers in underprivileged communities with program development, start-up and personnel expenditures, staff recruitment, training, and retention. Such types of funding are expected to increase the number of childcare providers and their services across the region, thereby contributing to market growth.
Therefore, the market is expected to grow over the forecast period due to factors such as the rising number of single-parent families and growing government initiatives.
