Day care market in Singapore has witnessed significant growth over the period 2013-2016. The market is highly regulated by ECDA. Number of enrollments has surged during the period and centers providing such services have also augmented at a considerable pace. The growth has been supported by several factors including government initiatives, growing child population and enhancing working population in the country. The market has grown at a CAGR of ~% during 2013 to 2016 with revenue estimated at SGD ~ million. Furthermore, the enrolments in child care center has increased from ~ in 2013 to ~ in 2016 while the enrolments in infant care centers has increased at a CAGR of ~% during 2013 to 2016.
Increasing number of parents now value early childhood programs for their toddlers to socialize and learn as soon as possible, even though they may not need childcare. Since parents are now more educated, their expectations have also increased.
Depending on the requirements of customers, day care services in Singapore is provided on daily or monthly basis and can be customized by full day and half day curriculums. Government has been planning to increase investment in this sector due to which the market is projected to grow at a CAGR ~% over the period 2016-2021. My First Skool, Sparkling Tots and Maple Bear are some of the major daycare centers in Singapore.
With the implementation of government initiatives to increase women participation in the Singapore workforce, the demand for day care centers escalated. More players in the sector led to a quick proliferation of childcare centers from VWOs, NTUC Childcare and the private for-profit centers. VWOs targeting at low-income families were offered capital grants.
Furthermore, review of current training aims to raise the image and professionalism of those who work with infants and toddlers.
Singapore Day Care Market Trends and Developments
By Type of Day Care Centers: Child care centers have accounted for ~% of the revenue share in Singapore day care market in 2016. This market caters to children of age 2-7years. Infant care centers have contributed to ~% in the Singapore day care market revenue in 2016. This market caters to children of age 2 months to 18 months.
By Type of Program: Full say programs have accounted for ~% of revenue in Singapore Child care Market and ~% of the revenue in Infant Care Centers in 2016. Other programs include half day programs and emergency care services. Such programs have accounted for a very small share in the day care market revenue in 2016.
By Major Cities: The top cities which have accounted for the largest share of enrolments in child care centers include Sengkang (~%), Jurong West (~%), Woodlands (~%), Yishun (~%) and Tampines (~%). The major cities contributing to the highest number of enrolments in infant care centers include Sengkang (~%), Bukit Merah (~%), Jurong West (~%), Central Area (~%) and Bedok (~%). The main driving factors include high baby population, developed infrastructure and changing lifestyle of urban population
By Type of Membership plan: Monthly membership plans have accounted for the largest share in the Singapore daycare market revenue in 2016 while a very small proportion of parents opt for day care centers on a daily basis.
Competition Scenario In Singapore Day Care Market
The Singapore daycare market is highly regulated by the government in terms of setting up a day care center, facilities to be provided and quality standards to be maintained by of day care centers. Moreover, the provision for government subsidy has enabled increasing number of parents to enroll their child in day care facilities. The day care centers majorly compete in terms of offering a tailored international curriculum suitable to the development of Singapore children, hygienic facilities ensuring emotional and intellectual growth of the child and increasing geographic presence in order to capture the growing demand for day care center due to rising awareness about the need for early childhood education. Positive word of mouth plays an important in role in creating a reputation for the day care center as most parents seek recommendations from other parents. A three-year national campaign will also be launched to recruit more pre-school teachers, and work on improving their salaries and career prospects. The market is expected to be dominated by government run day care centers as government has rolled out plans to set up more daycare centers in major cities in Singapore in phases.
Ankur Gupta, Head Marketing & Communications
ankur [@] kenresearch.com