General Child Daycare Industry

The child daycare industry provides care for infants and young children of working families, as well as preschool instruction in preparation for kindergarten. This industry is divided into two sectors, center-based daycares and home daycares, with center based daycares generating most of the revenue. This is because home daycares typically only have one primary caregiver and therefore have a much smaller enrollment. Kindergartens and in-home nanny services are excluded from this industry. This industry has very high market fragmentation. Nevertheless, one key player to consider in this industry is Bright Horizons, which is one of the largest US based childcare providers.

Education Industry Trends

Companies in the education industry will continue to invest in digitizing their curriculum and teaching methods, as the business world comes to increasingly rely on virtual platforms to conduct their operations. The COVID-19 pandemic has only amplified the need for education to be made accessible online, and many institutions that were traditionally brick and mortar have been forced to transition to a virtual platform. Even before the pandemic, the advent of technology has been viewed as an opportunity to better facilitate student learning, and many businesses in the education industry have relied on digital tools to enrich their curriculum. A separate driving force for this trend of digitization in the education industry as a whole is the shift of the US from a manufacturing based economy to a service based economy, with more and more jobs requiring higher education. As a result, many working adults are looking to advance their education, but in a way that is flexible with their busy schedules. Institutions of the education industry that can provide this flexibility through a virtual platform have become increasingly valuable.