Technavio Announces Top Three Emerging Trends Driving the Preschool or Child Care Market in China Until 2020

LONDON–(BUSINESS WIRE)–#Childcare–Technavio’s latest report on the preschool
or child care market in China
provides an analysis on the
most important trends expected to impact the market outlook from
2016-2020. Technavio
defines an emerging trend as a factor that has the potential to
significantly impact the market and contribute to its growth or decline.

Jhansi Mary, a lead analyst from Technavio, specializing in research on K12
and higher education
sector, says, “The increased number of
working women has been a major driving factor contributing to the growth
of the market. According to the World Bank, in 2014, women constituted
49% of the total population in China and 46% of the country’s labor
force. Young women from rural areas are moving to Tier 1 and Tier 2
cities in China for better opportunities. Jobs in the public sector are
popular among working mothers because of shorter and more feasible hours
than in the private sector.”

Outlook of the preschool or child care market in China

Enrollments in preschool or child care centers in China were valued at
435.3 million in 2015 and is expected to reach 587.1 million by 2020,
growing at a CAGR of over 6%. The rise in the preschool and child care
market has led to the rise in competition among vendors 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 kindergartens in the Tier 1 cities, such as
Shanghai and Beijing, are focused on helping parents to create a
specific environment at home for children aged 3-6 to help them in
learning and education.

The child care market in China has seen an intense rivalry among vendors
who are competing on expanding the business to all the geographical
locations in the country. Many international schools entering the market
are focusing on increasing their customer base by ensuring high quality
customer service. The Montessori School of Shanghai is dedicated in
providing authentic Montessori education benefits that establish healthy
attitudes for both children and adults.

The top three emerging trends driving the preschool or child care market
in China according to Technavio education
research analysts are:

  • Implementation of child care services at workplace
  • Adoption of international curriculum
  • Rising need to learn English

Implementation of child care services at workplace

“Many organizations are providing daycare centers with personal
baby-sitters at the workplace. Such an implementation by organizations
not only satisfies personal commitments of employees but also helps them
improve productivity. 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 the commutation time between child care centers and
workplaces. Hence, adopting child care services at workplaces helps to
grow the market,” adds Jhansi.

Adoption of international curriculum

The footprint of various international schools and kindergartens in
China has led to a major change in the educational curriculum. These
international schools follow the western educational system, which has
led to the increase in enrollments of children from the elite class and
upper middle-class families.

This system is adopted by all of the new vendors entering into the child
care market due to the rise in interest among parents towards the
learning of both western and Chinese educational systems. This
implementation of international educational system has led to the
increase in enrollments in all domestic child care centers eventually
driving the growth of the market.

Rising need to learn English

English is a widely spoken language in China. As a result, it has become
the most required foreign language in the school curriculum. This has
influenced many parents in providing their children with English
language training prior to primary education. The rise in demand from
parents has prompted private preschool education centers to provide
English language as a part of the curriculum. New Oriental Education &
Technology Group, RISE Education, and Disney Consumer Products are the
key players in the preschool market as they offer modern learning
methods to promote education at the preschool level. Moreover, the
deployment of modern techniques has increased the demand for English
proficiency as instructions are mostly available in this language.
Hence, these advances will boost the market growth considerably in the
future.

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About Technavio

Technavio
is a leading global technology research and advisory company. The
company develops over 2000 pieces of research every year, covering more
than 500 technologies across 80 countries. Technavio has about 300
analysts globally who specialize in customized consulting and business
research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
markets. Analysts obtain information using a combination of bottom-up
and top-down approaches, besides using in-house market modeling tools
and proprietary databases. They corroborate this data with the data
obtained from various market participants and stakeholders across the
value chain, including vendors, service providers, distributors,
re-sellers, and end-users.

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Jesse Maida
Media & Marketing Executive
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