Child Day-Care Centres in Germany - Market Research Report (2014-2029)
Frankfurt, Germany
Last Updated: May 2024
WZ Q88.91DERevenue
€50.9bn
Past 5-Year Growth
Profit
€X.Xbn
Employees
870k
Businesses
4,735
Wages
€XX.Xbn
Child Day-Care Centres in Germany industry analysis
Because of the growing number of inhabitants under the age of six and increased employment, there is a growing demand for childcare services in Germany. Although there is, in principle, a legal entitlement to a childcare place for children under the age of three and children from the age of three until they start school, this cannot be fulfilled everywhere. In particular, childcare for children under the age of three has been massively expanded in recent years, but demand cannot currently be met. The centres' revenues are made up of public funds and parental contributions. The latter only make up a comparatively small proportion. In the period from 2019 to 2024, industry revenue grew by an average of 2.3% per year, meaning that it is likely to amount to €50.9 billion in the current year. Turnover in the sector is expected to increase by 0.2% compared to the previous year.One of the biggest challenges currently facing the sector is the shortage of skilled labour, which is expected to increase further in the coming years due to growing demand. The federal government is currently planning various measures to make the profession of educator more attractive. For example, school fees have already been abolished in some federal states. In addition, the federal government would like to use a pilot project to demonstrate to the federal states the advantages of abolishing school fees and offering remuneration during training. As part of the Daycare Centre Quality Act, the state is investing in the creation of equal living conditions for children growing up in Germany. Early childhood education projects in the areas of language, nutrition and exercise are to be established in daycare centres. While the declining number of residents under the age of six in the current year is likely to limit demand, the expected increase in the number of births will have a positive effect on demand in the future.In the period from 2024 to 2029, turnover in the sector is expected to increase by an average of 3.4% per year, reaching 60 billion euros in 2029. More and more parents are dependent on childcare places for their children in order to be able to reconcile family and work, which is leading to a sharp increase in demand. From 2026, children of primary school age will also have a legal entitlement to a childcare place after school. It remains to be seen to what extent the measures taken by the federal states will help to meet the massive demand for childcare.
Trends and Insights
- There is a shortage of childcare places in Germany. According to the German Social Code, every child is entitled to a place in a daycare centre from the age of one. However, daycare centres are currently unable to meet the extremely high demand.
- Most daycare centres are run by private non-profit organisations. The organisations with the most facilities in Germany include the German Paritätische Wohlfahrtsverband, the Diakonische Werke, the Protestant Church, Caritas and the Catholic Church.
- The southern region is home to the largest number of childcare centres. Both Bavaria and Baden-Württemberg have a large population and several large cities.
- There is little competition in the sector. Demand clearly exceeds supply. In fact, parents are more likely to compete for places in the daycare centre of their choice.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.3 % over the past five years, to reach an estimated €50.9bn in 2024.
Trends and Insights
Despite high investments, the shortage of childcare places persists
- According to the German Social Code, every child is entitled to a place in a daycare centre from the age of one. However, daycare centres are currently unable to meet the extremely high demand and offer every child a place.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The recognition and training of educators must be reformed
- The German Daycare Association is calling for a rethink in the debate on skilled labour and more flexibility and responsibility for daycare providers when filling vacancies.
Biggest companies in the Child Day-Care Centres in Germany
| Company | Market Share (%)
2024 | Revenue (€m)
2024 |
|---|---|---|
Elbkinder Vereinigung Hamburger Kitas gGmbH | 304.1 | |
Fröbel e. V. | 251.9 | |
AcadeMedia GmbH | 80.1 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Child day care centres run by public providers, Day-care centres run by private non-profit organisations and Day care centres run by private providers. Child day care centres run by public providers is the largest segment of the Child Day-Care Centres in Germany.
Trends and Insights
Most daycare centres are run by private non-profit organisations such as the church
- The private non-profit organisations are among the independent providers that operate the majority of daycare centres. The organisations with the most facilities in Germany include the German Paritätische Wohlfahrtsverband, the Diakonische Werke, the Protestant Church, Caritas and the Catholic Church.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- There are no industries to display.
International industries
- Child Care Services in Australia
- Child Care Services in New Zealand
- Child Day-Care Centres in the UK
- Preschools in China
Table of Contents
About this industry
Industry definition
The daycare centre sector can be divided into daycare for children under the age of three, daycare for children from the age of three until they start school in daycare centres, daycare for schoolchildren under the age of 14 in after-school care centres and daycare for children with disabilities. The transitions are partly fluid, as some facilities offer a wide range of childcare services.
What's included in this industry?
Day-care centres run by private non-profit organisationsChild day care centres run by public providersDay care centres run by private providersCompanies
Elbkinder Vereinigung Hamburger Kitas gGmbHFröbel e. V.AcadeMedia GmbHPurchase this report to view all 4 major companies in this industry.
Related Terms
ELEMENTARY CHILDRENSUPERVISION RATESKILLED WORKER-CHILD RATIOIndustry Code
WZ 88.91 - Child Day-Care Centres in Germany
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
There is a shortage of childcare places in Germany. According to the German Social Code, every child is entitled to a place in a daycare centre from the age of one. However, ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Most daycare centres are run by private non-profit organisations. The organisations with the most facilities in Germany include the German Paritätische Wohlfahrtsverband, the...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The southern region is home to the largest number of childcare centres. Both Bavaria and Baden-Württemberg have a large population and several large cities.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
There is little competition in the sector. Demand clearly exceeds supply. In fact, parents are more likely to compete for places in the daycare centre of their choice.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no major players in the childcare centre sector. The largest players in the sector are also predominantly regional. Most centres are small and only have a few group...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Elbkinder Vereinigung Hamburger Kitas gGmbH's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Fröbel e. V.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of AcadeMedia GmbH's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Elbkinder Vereinigung Hamburger Kitas gGmbH, and factors influencing its performance in the industry
- Description and key data for Fröbel e. V., and factors influencing its performance in the industry
- Description and key data for AcadeMedia GmbH, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Employment in Germany serves as an indicator of the demand for childcare services. If employment increases, the demand for childcare services tends to rise and parents are mo...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The profit margin in the sector is low. There are many privately-run facilities that only cover their operating costs and calculate their parental contributions accordingly.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Germany include:
- German Federal Statistics Office (Destatis)
- European Statistics Office (Eurostat)
- United Nations Comtrade
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Child Day-Care Centres industry in Germany in 2024?
The market size of the Child Day-Care Centres industry in Germany is €50.9bn in 2024.
How many businesses are there in the Child Day-Care Centres in Germany industry in 2024?
There are 4,735 businesses in the Child Day-Care Centres industry in Germany, which has grown at a CAGR of 0.2 % between 2019 and 2024.
Has the Child Day-Care Centres industry in Germany grown or declined over the past 5 years?
The market size of the Child Day-Care Centres industry in Germany has been growing at a CAGR of 2.3 % between 2019 and 2024.
What is the forecast growth of the Child Day-Care Centres industry in Germany over the next 5 years?
Over the next five years, the Child Day-Care Centres industry in Germany is expected to grow.
What are the biggest companies in the Child Day-Care Centres market in Germany?
The biggest companies operating in the Child Day-Care Centres market in Germany are Elbkinder Vereinigung Hamburger Kitas gGmbH, Fröbel e. V. and AcadeMedia GmbH
What does the Child Day-Care Centres in Germany include?
Day-care centres run by private non-profit organisations and Child day care centres run by public providers are part of the Child Day-Care Centres industry.
Which companies have the highest market share in the Child Day-Care Centres in Germany?
The company holding the most market share in Germany is Elbkinder Vereinigung Hamburger Kitas gGmbH.
How competitive is the Child Day-Care Centres industry in Germany?
The level of competition is low and steady in the Child Day-Care Centres industry in Germany.
