Preschool or child care in China: Key market research findings
- Amendments in government policies drive market growth
- Growing emphasis on collaborative learning
- Key vendors – Golden Apple Education, Noah Education, Oriental Baby, and Montessori School of Shanghai
Technavio’s market research analysts predict the global preschool or child care market in China to grow at a CAGR of over 6% between 2016 and 2020. Much of this market’s growth prospects is augmented by recent amendments to government policies. According to the World Bank, in 2014, over 9% of the total population of China was above 65 years. In 2015, the government amended the policy by allowing couples in the country to have up to two children in an attempt to balance out the population development. The population growth along with the increase in disposable income in middle-class families in China is resulting in an increase in preschool enrolments.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“China is currently witnessing a rise in the implementation of child care services at workplaces. Many organizations in the country are providing daycare centers with personal babysitters at the workplace. Companies collaborate with major leading vendors of child care centers by implementing their curricula and training methods. Such services by companies are most likely to be adopted by employees as parents can get to meet their children at regular intervals and also reduce their commute time between child care centers and workplaces,” says Jhansi Mary, Lead Analyst, Education, Technavio Research.
There is increasing emphasis on collaborative learning among child care service providers due to increasing competition among the players in the market. Many kindergartens and schools are trying to enhance children’s skills by relying on interactive and individualized learning experiences driven by new technologies. Many institutions such as Oriental Baby, the Montessori School of Shanghai, and Etonkids Educational Group are also focusing on counseling parents by providing essential and useful information. Furthermore, they also provide necessary equipment such as educational games and teaching materials to be incorporated into a home’s infrastructure so that the parents do not have to send their children to kindergartens or preschools.
The key vendors in the preschool or child care market in China include Golden Apple Education, Noah Education, Oriental Baby, and Montessori School of Shanghai. The market is characterized by the presence of diversified international and regional players, and as all players are competing to gain a greater share of the industry, the market appears highly competitive. International preschool and child care service providers are gradually increasing their footprint in the market and regional vendors find it increasingly difficult to compete with them especially in terms of quality, ambiance, and product pricing. The expected increase in service extensions, technological innovations, and M&As will intensify the level of vendor competition in the coming years. The market will also witness the international players growing inorganically by acquiring regional or local players.
A more detailed analysis is available in the Technavio report, Preschool or Child Care Market in China 2016-2020.
We can customize reports by other regions and specific segments upon request.
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