The kids are alright: Significant government investment has boosted industry revenue growth

The Preschool Education industry has performed well over the past five years. A rise in Federal Government funding to states and territories for providing preschool services has significantly boosted revenue over the period. Industry revenue is expected to increase at an annualised 4.2% over the five years through 2018-19, to $1.6 billion. In January 2012, the Council of Australian Governments (COAG) implemented a National Quality Framework to standardise and increase the quality of preschool and child care services. The framework established compulsory national standards for early childhood education and care providers, minimum staff-to-child ratios, staff qualification requirements, a quality-rating system, and a new national regulatory more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The Federal Government has increased preschool funding through National Partnerships Agreements
  • Increased Federal Government funding has allowed many preschools to expand their facilities
  • Universal access to early education will likely boost enrolments over the next five years
  • Industry Report - Industry Investment Chapter

    The Preschool Education industry exhibits a low level of capital intensity. For every dollar spent on wages, an estimated $0.05 is invested in capital in 2018-19. The National Quality Framework is a Federal Government policy which is being progressively implemented. The framework has set compulsory standards for industry operators, such as higher staff-to-student ratios, greater individual care for children and increased skills and qualifications for educators. This framework has led to an increase in wage costs for industry operators, due to a rise in the number of employees required to fulfil the regulatory requirements. In addition, higher qualified employees typically demand higher salaries, which has placed upward pressure on average wages...purchase to read more.

    Additional Insights for the Preschool Education Industry

    IBISWorld has determined the most important Key Success Factors for the Preschool Education are:

  • Must comply with government regulations
  • Proximity to key markets
  • Optimum capacity utilisation
  • IBISWorld analysts also discuss how external factors such as Number of preschool students and Public funding for primary and secondary education in the Preschool Education industry impact industry performance..

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    What's in this report

    What is the Preschool Education Industry?

    Industry participants primarily provide accredited pre-primary education. Preschool programs are designed to introduce children to the ideas, attitudes and behaviour required in a school environment. Preschool education is generally aimed at children aged three to five, and is provided by staff that have training in an educational field. Preschools may be operated by governments, community organisations or the private sector.

    Industry Products
  • Community preschool education
  • Private for-profit education
  • Independent and catholic preschool education
  • Government preschool education
  • Industry Activities
  • Kindergarten operation (except child minding centres)
  • Preschool centre operation (except child minding centres)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of preschool students
  • Public funding for primary and secondary education
  • Females in the labour force
  • Real household disposable income
  • Number of births

  • Current Performance
  • Government reform
  • Government funding
  • Convergence of services
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability and population
  • External competition
  • Table: Preschool Education Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Preschool Education Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Private Schools
  • Government Schools

  • Key Selling Industries
  • Electricity, Gas, Water and Waste Services
  • Local Government Administration
  • Newsagents and Book Retailers
  • State Government Administration
  • Toy and Game Retailing

  • Products & Services
  • Community preschool education
  • Government preschool education
  • Independent and catholic preschool education
  • Private for-profit education
  • Chart: Preschool Education Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Fourth quintile
  • Highest quintile
  • Third quintile
  • Second quintile
  • Lowest quintile
  • Chart: Major Market Segmentation for the Preschool Education Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Preschool Education

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Preschool Education Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Preschool Education Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Preschool Education Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Child Care Benefit.
  • Coag
  • Council of Australian Governments.
  • Npa
  • National Partnerships Agreements.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Preschool Education market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Preschool Education:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Preschool Education market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Preschool Education, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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