The Daycare Software Industry Will Grow Tremendously by 2028

The Daycare Software Industry Will Grow Tremendously by 2028

Running a childcare center isn’t a walk in the park; after all, numerous moving parts must work together to ensure a daycare center runs smoothly.

Even after administrators have found an ideal location, hired the right staff, determined the best way to set up the business, and met state requirements for licensing, they still need to take care of various day-to-day tasks to keep children happy and their parents satisfied. 

Daycare facilities’ benefits are incredible for parents and their little ones. They play a pivotal role in raising successful, confident, and knowledgeable children.

In the grand scheme of things, daycares can also help free up parents’ time, ease worker shortages, and improve productivity.

Often the day-to-day tasks make it difficult for caregivers to focus on what’s really important, the children. 

It is in managing these day-to-day tasks that daycare software comes in handy.

It helps administrators and other relevant users stay on top of the daily aspects of operating a preschool, head start program, or daycare center.

Among many different functions, these software applications can help users schedule appointments and classes, maintain attendance records, and monitor kids’ health data.

More importantly, daycare software can help in automating repetitive administrative tasks.

The Increasing Demand for Daycare Administrative Software Is Justified

Based on the information above, it’s clear that the best daycare centers and preschools can significantly benefit from embracing childcare management software. The benefits are numerous and varied, including:

  • Enhanced Communication with Parents 

The last thing working parents need is to inquire and constantly worry about their kids.

With the right software, daycares can send parents automatic texts or notifications about their children throughout the day via mobile apps and SMS messaging.

  • Reduces Administrative Burden 

In general, most staff members in a daycare take care of both physical childcare and administrative duties.

With daycare software, administrative tasks like appointment scheduling can be automated, so that staff can focus their attention on what matters the most, the children in their care.

  • Improved Staff Coordination 

Digital software applications and systems make daycare records, schedules, appointments, and whatnot accessible to many users.

Employees can access them remotely, making it easier for the daycare business to scale and for the staff to update any documentation.

The outcome is a more cohesive staff.

  • Advanced Nutrition and Meal Planning

Some daycare software provides handy tools for planning meals based on the specific nutritional requirements of each kid.

Therefore, these systems can ensure daycares are giving budding children the necessary nourishment.

Daycare Software Market to Experience Explosive Growth

With such incredible benefits, it’s no surprise the demand for daycare management software has been skyrocketing in the past few years.

In 2019, the American childcare software market was estimated to be worth $144.2 million and is forecast to grow at a faster compound annual growth rate (CAGR) of 7.8% to reach around $294 million by 2028.

The overall global growth momentum for the childcare management software market is expected to accelerate at around 6.85% in the same period, partly thanks to the ongoing return to normalcy after more than two years of pandemic disruption.

The childcare services market size in the US is predicted to expand at a 3.9% CAGR from $1.8 billion in 2020 to hit $73.8 billion by 2027.

The spike in the number of working parents and the demand for daycare services are among the factors forecasted to fuel the market’s growth in the next five years.

A recent Center for American Progress study showed that roughly two million American parents had to leave their jobs because of childcare-related issues. 

There’s an increase in awareness regarding the connection between parental employment, economic growth, and access to childcare, which may help boost the availability of daycare centers at competitive pricing.

Key Players in the Daycare Management Software Market

The new analytic study focused on rendering engines and high-impact factors within the childcare software market to showcase the expected development and growth.

The research also looked at the challenges, pain points, and restrictions affecting the market and the daycare industry.

A market segmentation study revealed that Himama, Brightwheel, Lifecubby, and Procare are the most prominent players in the daycare software niche.

Mid-tier daycare software providers making their mark in the industry include Smartcare, Childcare Manager, Kinderlime, Ezcare, Kaymbu, and Daily Connect.

When segmented by software type, most now fall under the cloud-based application umbrella. However, on-premise daycare systems are still popular.

North America (Canada and United States) continues to be the world’s biggest market for daycare software systems, followed by Europe, which entails Germany, France, Italy, the United Kingdom, Spain, Russia, and other European countries.

The Asian-Pacific market is the fastest-growing region for childcare software, with Australia, India, South Korea, Japan, and China leading the pack in terms of growth momentum.

Bottom Line

The daycare management software market is expected to grow remarkably in the United States and globally between 2022 and 2028.

The American market alone is expected to grow at around 7.8%, reaching roughly $294 million by 2028.

The rapid market growth is fueled partially by the increasing demand for daycare and preschool services across the country as more and more parents return to working from the office.