Early Childhood Education Market Size, Share Report, Trend Analysis, Growth 2032

Early Childhood Education Industry Prospective:

The global early childhood education market size was worth around USD 249.38 billion in 2022 and is predicted to grow to around USD 467.83 billion by 2030 with a compound annual growth rate (CAGR) of roughly 8.21% between 2023 and 2030.

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Early Childhood Education Market: Overview

Early childhood education (ECE) is also known as nursery education and it deals with the introduction of formal education to children in the age group starting from birth until 8 years. In traditional terms, this equates to a study conducted until 3rd grade. ECE is a crucial part of child development including psychological, biological, and emotional changes that a child goes through during this period. Since they are in an impressionable age where they learn from their surroundings, early childhood education ensures that children are exposed to knowledgeable ideas and the right teachings. Early childhood education deals with a wide array of activities that focus on the social and cognitive development of children and while educational institutes may focus on preparing children for school, others may choose to work on the emotional and physical preparedness of a child. Most often, early childhood education is dismissed as playtime or not of higher importance however, ECE allows children to leave the comfort of their homes and learn to explore the outer world on their own under the care of teachers and caretakers.

Key Insights:

• As per the analysis shared by our research analyst, the global early childhood education market is estimated to grow annually at a CAGR of around 8.21% over the forecast period (2023-2030)
• In terms of revenue, the global early childhood education market size was valued at around USD 249.38 billion in 2022 and is projected to reach USD 467.83 billion, by 2030.
• The early childhood education market is projected to grow at a significant rate due to the rising disposable income in emerging economies
• Based on application segmentation, 5 to 8 years was predicted to show maximum market share in the year 2022
• Based on product type segmentation, physical school buildings was the leading segment in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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Early Childhood Education Market: Growth Drivers

Rising disposable income in emerging economies to drive market growth

The global early childhood education market is expected to benefit from the growing rate of per capita income or disposable income in emerging countries such as Africa, India, China, and others. These nations are primarily witnessing higher job opportunities and an increase in the number of earning members which ultimately allows them to spend more on children’s education. In addition to this, the number of education facilities providing early childhood education has increased tremendously across the globe. This includes private institutes and state-run centers. Another crucial contributor to higher revenue in the ECE system is the growing number of measures undertaken by regional governments to promote early childhood learning. In May 2023, the Indian central government announced the launch of the Early Childhood Care and Education (ECCE) program to match the vision under its National Education Policy 2020. The training program will run across 13.3 lakh Anganwadi throughout the country and will aim at the training of Anganwadi workers.

Growing awareness among parents about the benefits of ECE to promote higher growth

Parents are becoming increasingly aware of the benefits that ECE holds in terms of comprehensive child development. The centers running ECE programs are more than a playground as they impart important opportunities for children to learn and develop. Early childhood education centers become even more crucial in situations where both parents are working or if a child is under the care of a single working parent. Parents can leave their children in the care of trained professionals for a few hours who help them not only make new friends but also develop new essential habits. For children born during the pandemic who did not come in contact with the outer and other children for a large part of their infancy period, ECE centers have become the first experience where they can enjoy group activities.

Early Childhood Education Market: Restraints

Lack of standardization in ECE programs to restrict market growth

The curriculum of early childhood education is not standardized, especially in centers run by private institutes. Every ECE school deals with children's learning in their respective ways with the inclusion of different learning activities. This is a major problem in the early childhood education industry since it becomes difficult for parents to make qualitative analyses of a program’s efficiency in delivering results. Furthermore, in certain areas such as metropolitan cities, the cost of ECE is increasing rapidly making it difficult for parents on limited budgets or with more than 1 child. For instance, in India, the cost of early childhood education in tier I cities can range between INR 60,000 to INR 150,000 as per reports.

Early Childhood Education Market: Opportunities

Increasing digitalization in ECE to create growth opportunities

Early childhood education centers are getting increasingly digitized as they have started using modern digital systems such as laptops, tablets, smartphones, interactive whiteboards, digital storytelling, and interactive learning platforms. Some institutes go as far as using virtual reality (VR) and augmented reality (AR) to introduce children to a new world of possibilities and learning. Children from across the globe can participate in such activities and thus there are geographical boundaries restricting the operation of digitized ECE centers.

Early Childhood Education Market: Challenges

Lack of ECE infrastructure in low-income countries is a major obstacle

There is a significant lack of infrastructure supporting the expansion of early childhood education in low-income countries or nations affected by socio-political turmoil. The ongoing war between Russia and Ukraine has displaced many people from their homelands. Countries such as Somalia and Sudan are under constant pressure from external factors such as conflicts between military and government along with the severe impact of climate change. These issues create a hostile environment for the general population. The recent reported incidences of banning education among girls in Afghanistan is a humanitarian crisis that needs more attention and action from global leaders.

Early Childhood Education Market: Segmentation

The global early childhood education market is segmented based on application, product type, and region.

Based on application, the global market segments are less than 3 years, 3 to 5 years, and 5 to 8 years. In 2022, the highest growth was observed in the 5 to 8 years segment which controlled around 43.1% of the total share. Children in this age group are the most ready to explore the outer world, meet new people, and absorb their surroundings. They are more emotionally and physically developed to move out of the comfort of their homes and into the care of trained professionals. Moreover, since this is an impressionable age range, it is ideal that students are made accustomed to academic learning while also focusing on comprehensive growth.

Based on product type, the early childhood education industry divisions are physical school buildings and distance education institutions. In 2022, the highest revenue was generated from the physical school buildings segment. It contributed to more than 63.5% of the total revenue. The main intention of early childhood education is to bring children out of their homes and create bonds with people who are new to them which can only be achieved in physical school buildings where children from diverse backgrounds, ethnicities, and with different personalities come together and participate in learning activities. Additionally, the growing adoption of digital and interactive media in ECE has helped such schools create greater interest among children. 

Early Childhood Education Market: Report Scope

Early Childhood Education Market: Regional Analysis

North America is projected to deliver the best results during the coming period

The global early childhood education market is expected to witness the highest growth in North America since the region holds high importance for ECE programs. There are several types of entities in North America that provide early childhood education including private or public schools along with community-based centers and other programs. For instance, the United States runs the Head Start and Early Head Start programs. These facilities are funded by the federal government and completely free. The curriculum is designed to promote school readiness in infants, preschoolers, and toddlers and has specific eligibility criteria depending on family income and needs. The Early Head Start program provides extensive support to families with children below the age of 3 and pregnant women. On the other hand, the awareness about the benefits of ECE in the US is high, encouraging more parents to send their children to early education centers. Asia-Pacific is projected to emerge as a fast-growing region with a growing middle-income population and a rising number of private players offering sophisticated ECE programs for young children.

Early Childhood Education Market: Competitive Analysis

The global early childhood education market is led by players like:

• Montessori schools and associations
• Bright Horizons Family Solutions
• Primrose Schools
• KinderCare Education
• Scholastic Corporation
• The Goddard School
• Pearson Education
• Childtime Learning Centers
• Houghton Mifflin Harcourt (HMH)
• Learning Care Group
• Teachstone
• Head Start
• Council for Professional Recognition
• National Association for the Education of Young Children (NAEYC)
• Lakeshore Learning Materials
• Waldorf schools and associations
• Zero to Three
• Sesame Workshop
• Bright Horizons Foundation for Children
• PBS Kids

The global early childhood education market is segmented as follows:

By Application

• Less Than 3 Years
• 3 to 5 Years
• 5 to 8 Years

By Product Type

• Physical School Buildings
• Distance Education Institution

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa