Two reports indicate a massive growth trend impacting the childcare market this year. Moreover, the movement should extend well into the future. This article will explore how much the childcare market may grow, how the pandemic has impacted the industry, and what changes to expect to deliver childcare services in the future.
What Is Childcare?
Childcare services usually take place in center-based facilities or in-home. They are aimed at children ranging in age from 0 to 14 years and include such offerings as:
- Infant care
- Toddler care
- Preschool care
- Pre-kindergarten care
- Kindergarten care
- Before school care
- After school care
Growth Projections According To Source
The Child Day Care Services Global Market Report 2021: COVID-19 Impact and Recovery to 2030 estimates that the global child day care market will grow to $295.99 billion in 2021 and reach $415.96 billion by 2025. Both figures have a CAGR (compound annual growth rate) of 9 percent. Expanding on that is the Children’s Day Care Services Market by Application and Geography – Forecast and Analysis 2021-2025, which projects overall growth of $176.29 billion from 2020 to 2025 with a CAGR of 9.23 percent.
How The Market Is Segmented
There are two primary segments of the childcare services market. The definitions separate them by application and geography.
Application
There are two distinct classifications defining the type of childcare service application. First, they are center-based and home-based. Second, center-based childcare services are provided through a childcare center or facility that focuses primarily on child personality development, achieved through a program curriculum that includes language development, literacy, personality development, and more.
Center-based child care requires the delivery of the child to the site. Home-based childcare services revolve around various activities offered in the home. The majority of child care services are center-based.
Geography
The childcare services market has five different global classifications. They include APAC (Asia Pacific), Europe, North America, South America, and the Middle East and Africa (MEA). APAC holds the largest share of the market.
What Is Pushing This Growth Trend?
According to these market reports, childcare services are growing simply because the child mortality rate has decreased. However, challenges will slow market growth, such as the increasing cost of raising children. In addition, the pandemic also impacted the industry with protocols that forced capacity limits.
The impact on the childcare market as children were removed from care to be home with their parents when many parents had to work remotely. This transition resulted in the widespread closures of center-based child care services. There are also many underserved regions across the country, and the low pay and marginal profit margin for childcare operators. However, all have contributed to the speed of growth within the market.
Other Factors To Consider
On the plus side, projections point to an increase in women gaining employment in the forecast period of both market reports. This increase will push for further growth within the childcare sector. As a result, the US projections estimate that the share of women in the workforce will go up to 47.2 percent by 2024.
With this increase comes the need for more on-site child care services at workplaces. Fortunately, there are federally-funded programs that support more women entering the labor market, which will assist in the growth of the childcare market.
The Upside To The Pandemic
Although the coronavirus outbreak forced changes in all labor market segments, the market reports see positive results despite severely impacting the childcare sector. In addition, the effects of the pandemic did not touch many social services markets, and that did not slow down their operations.
The further analysis gives weight to the belief that recovery will be easy for the childcare market. The reports refer to the pandemic as a ‘black swan’ event in the history of childcare, meaning it is a rare circumstance that will likely never occur again.
How Technology Drives The Future of Childcare
Childcare service providers are using new technology to assist with their services. The goal is to permit parents to maintain a connection with their children. For example, it is becoming commonplace for a childcare facility to have an app available that offers video streaming of activities taking place in the classroom. In addition, some apps enable childcare operators to take photos of children and send them to parents throughout the day.
This purpose is to allow parents access to tools to monitor and track their children at childcare facilities when working. For example, the Parent Care Network teamed up with Trust Child Care Centers in Canada. The partnership provides videos to parents over the internet to facilitate parental monitoring.
Where Child Care Services Are Used Most
According to the market analysis reports, five critical countries worldwide have the most demand for childcare services. China holds down the top spot on the list. The United States comes in second, followed by India, Germany, and the United Kingdom.
The Asia Pacific region has the largest child care market globally, with 33 percent of the market (in 2020). Western Europe was next with 23 percent of the global market. On the other end of the scale, Africa has a minor portion of the market.
Final Thoughts
There is no better time to get involved in childcare services than now. Analysis shows that there has been tremendous growth to date and that growth will continue. Recovery from the pandemic, which hit the market hard, is expected to be swift. In addition, with more women entering the workforce in the coming years, the demand for childcare services will only increase.
This market shows excellent long-term potential, with a Year-over-Year growth projected at 8.01 percent. With a childcare curriculum focusing on child personality development, enrolling your child in such a program only makes sense.
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Sandra Chiu works as Director at LadyBug & Friends Daycare and Preschool.
Categories: News
Source: thpttranhungdao.edu.vn/en/
