Preschool or child care in India: Key market research findings
- Growing working women population drives market growth
- Tier 1 cities account for a majority of the preschool enrollments
- Key vendors – EuroKids, Kidzee, Modern Montessori International, and Tree House
Technavio’s market research analysts predict the preschool or child care market in India to grow at a CAGR of around 22% between 2016 and 2020. The market’s growth can be accredited to the ongoing rise in the number of working women in the region. It is estimated that more than 60% of women in urban areas are employed in the public and private sectors. This growth in the number of female employees has subsequently led to the rise in preschool enrollment rates. This is because working women with children choose to send their children to day care centers or preschools while they are at work. The women labor force has also increased the disposable income of families.
The new market research report from Technavio presents a breakdown and analysis of the preschool and child care segments based on the cities.
“Many organizations are providing day care centers at their workplace for employees’ children. Such initiatives by organizations satisfy personal commitments of employees, which in turn promotes productivity in the workplace. Companies collaborate with major leading vendors of child care centers by implementing their curricula and their training methods. This enables working parents to meet their children at regular intervals and reduces their commutation time between child care centers and workplaces,” says Jhansi Mary, Lead Analyst, Education, Technavio Research.
During 2015, the Tier 1 cities segment dominated the preschool or child care market in India by accounting for 65% of the overall market revenue. The growth of this segment is due to the fact that most of the preschool enrollments of children are from urban areas. The Tier 1 cities in India are Delhi, Mumbai, Chennai, Bangalore, Kolkata, and Hyderabad. An increase in the number of working women and the subsequent rise in disposable income are major factors contributing towards the growth of the preschool or child care market in Tier 1 cities during the forecast period.
The key vendors in the preschool or child care market in India include EuroKids, Kidzee, Modern Montessori International, and Tree House. The market is characterized by the presence of diversified international and regional child care service providers. Since international players constantly increase their footprint in the market, regional vendors find it difficult to compete with them especially, in terms of on quality, ambiance, and pricing. The expected increase in service extensions, technological innovations, and M&As are likely to intensify the competitive environment in this market. In the next four years, the international players will also grow inorganically by acquiring regional or local players. Since all vendors compete to gain a greater share of the market, this industry appears to be highly competitive. To survive the competition and gain a significant share of the market, the vendors have to distinguish their product and service offerings through a clear and unique value proposition.
A more detailed analysis is available in the Technavio report, Preschool or Child Care Market in India 2016-2020.
We can customize reports by other regions and specific segments upon request.
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