With the economy on the verge of recovery and the nation returning to work, IBISWorld forecasts an uptick in parents outsourcing their child-related duties (e.g. child care, coaching and tutoring).
For this reason, the industry research firm expects the parental outsourcing industry to reach $55.8 billion in revenue in 2010, presenting ample opportunity for small businesses and entrepreneurs.
There are an estimated 92.9 million children aged 21 or younger, accounting for 29.9 percent of the entire US population,” said George Van Horn, senior analyst with IBISWorld. “The potential market for businesses in the parental outsourcing industry is huge.”
The largest parental outsourcing category is child care centers, which represents 41 percent of the market and generates $22.8 billion in revenue. Child care centers primarily cater to children between the ages of zero to six; however, about 20.0 percent of industry revenue is generated from children older than six years old.
Nanny and babysitting services account for roughly 29.1 percent of the market, with revenue expected to total $16.2 billion. Demand for nannies has increased recently as an alternative to using child care centers.
Family day care businesses generate an estimated 9.4 percent of industry revenue, coming in slightly under $5.3 billion. This type of care can be broadly defined as licensed businesses that care for one or more children for 12 or more hours per week in residences other than the child’s home. The caregiver often operates in his or her own home.
Sports coaching represents 7.6 percent of revenue, totaling $4.25 billion. The majority of this demand comes from the 13-to-18-year-old age group; yet, those who are 13 years old and under generate significant revenue as well.
Exam preparation and tutoring make up a sizable segment of the market at 6.2 percent of revenue. Educational consultants account for an additional 2.1 percent industry revenue.
The tutoring segment is slightly more saturated, meaning that growth opportunities are slowing compared with previous years. However, educational consulting services are still in high demand and will likely perform well in the coming few years.
“With few national firms operating in these parental outsourcing service categories, industry concentration is low,” explained Van Horn. “Although thousands of operators do exist and competition is high for this industry, the players are small, so there is a golden opportunity for entrepreneurs to build operations and gain market share in this multibillion dollar sector.”
Source:http://www.earthtimes.org/articles/press/billion-industry-according-ibisworld,1405731.html
