Overview

Take care: Rising per capita disposable income with drive industry growth

The Day Care market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$48bn
Annual Growth
12-17
1.3%
Annual Growth
17-22
Profit
Employment
1,634,280
Business
771,044

Industry Threats & Opportunities

  • High costs generated high profit margins, but reduced demand for industry services
  • With demand tempered over much of the past five years, industry participation has stagnated
  • High day care prices are likely to temper growth in demand for industry services

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    Industry Analysis & Industry Trends

    Operators in the Day Care industry are private and rely primarily on tuition paid by parents, but companies may also receive funding from the government, which attempts to alleviate the cost on households. Although the industry grew rapidly in the 1990s due to rising awareness of the benefits of early learning to cognitive development in children, growth slowed due to the economic downturn as costs exceeded what many families could bear. Over the first half of the five years to 2017, though high costs generated high profit margins for operators, tight state budgets combined with slow disposable income growth limited demand for industry services. Over the five years to 2022, revenue growth will improve but still be limited due to high day care costs...

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    Industry Report - Industry Key Buyers Chapter

    The Day Care industry exhibits high fragmentation and low market share concentration. In 2017, the top four day care service providers are expected to account for only 7.3% of industry revenue. According to the US Census Bureau, about nine in every 10 establishments in this industry is a nonemployer, signifying a sole proprietorship or single babysitting or educational professionals. Nonemployers also include family companies that officially employ only one person, with the rest of the hire unpaid or unregistered. Even though the few large players that employ hundreds of people, such as Bright Horizons, have expanded over the past five years, day care is expected to remain a fragmented service with market share concentration remaining low.

    ..

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    Additional Insights for the Day Care Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Day Care Industry are

  • Ability to take advantage of government subsidies and other grants
  • Ability to vary services to suit different needs
  • Ability to alter mix of inputs in line with cost
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Government consumption and investment in the Day Care industry impact industry performance..

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    Look under the hood?

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    Industry Products

    What is the Day Care Industry?

    Industry operators provide day care services for children, primarily those under the age of five. Industry operators may also run preschool programs that prepare three- and four-year-old children for kindergarten. However, kindergarten education and in-home nanny services are excluded from industry services.

    Industry Products
    Child day-care services
    Preschool programs
    Government contributions
    Other services and receipts
    Industry Activities
    Providing child and infant day care
    Providing preschool programs

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Government consumption and investment
  • Labor force participation rate of women
  • Number of children aged nine and younger

  • Current Performance
  • Day care landscape
  • Prices and participation
  • Recovery takes hold
  • Chart: Revenue Growth

  • Industry Outlook
  • Private spending
  • Public spending
  • Table: Day Care Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Day Care Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services
  • Orphanages & Group Homes
  • Family Counseling & Crisis Intervention Services
  • Community Housing & Homeless Shelters
  • Consumers

  • Key Selling Industries
  • Book Publishing
  • Computer Stores
  • Food Service Contractors
  • Household Furniture Manufacturing
  • Janitorial Services
  • Toy, Doll & Game Manufacturing

  • Products & Services
  • Child day-care services
  • Preschool programs
  • Other services and receipts
  • Government contributions
  • Chart: Day Care Industry Products and Services Segmentation

  • Demand Determinants
  • Family trends
  • Government assistance

  • Major Markets
  • Households with income between $40,000 and $100,000
  • Households with income greater than $100,000
  • Households with income under $40,000
  • Chart: Major Market Segmentation for the Day Care Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Day Care

  • Basis of Competition
  • Price of service
  • Brands and marketing
  • Location of service
  • Reputation of the company

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Day Care Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Day Care Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Day Care Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Child-To-Staff Ratio
  • Legal ratio mandated under state law for child care centers for the maximum number of children per staff member.
  • Employer-Sponsored
  • A day-care service that a company provides its workers through a contract with a local day-care center or facility.
  • Occupancy Rate
  • The rate of available spots at a day-care center that are filled. A rate of at least 70.0% is necessary for a center to be profitable.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Day Care:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Day Care market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Day Care, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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