Preschool Education in Australia Industry Market Research Report Now Updated by IBISWorld

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The industry has been undergoing reforms aimed at overhauling national standards of early childhood education. For this reason, industry research firm IBISWorld has updated its report on the Preschool Education industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Higher staff-to-child ratios and qualification requirements will increase industry wages over the next five years.

Operators in the Preschool Education industry in Australia are currently the target of Federal Government reform. Federal Government funding for the industry has increased over the past five years as a result, boosting industry revenue significantly over the period. IBISWorld forecasts that industry revenue will increase at an annualised 14.4% over the five years through 2014-15, to $2.0 billion. The Coalition of Australian Governments (COAG) introduced a National Quality Framework in December 2009 to standardise and increase the quality of preschool and childcare services. According to IBISWorld industry analyst Jem Anning, “this framework sets out new 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 body.” Furthermore, COAG set an objective to achieve universal access to preschool education by the end of 2012-13. This requires that all four-year-olds attend preschool education 15 hours per week for 40 weeks. Whether or not this objective has been met is currently under review.

To help preschools and the state governments achieve these objectives, the Federal Government has increased funding for the industry. The Federal Government committed $955.0 million to the states and territories over the five years through 2012-13, and announced an additional $660.0 million in funding in its 2013-14 budget. “This funding is the main stimulant of the industry's strong revenue growth over the past five years,” says Anning. The cash injection has not only enabled more children to enrol in preschool programs, but also allowed preschools to provide additional spaces. Industry revenue is forecast to grow by 6.9% in 2014-15, as higher federal funding continues and enrolment numbers increase. The industry exhibits a low level of market share concentration, and has no major players.

The Federal Government's ongoing commitment to universal access to early childhood education is expected to sustain industry revenue growth over the next five years, while a rise in the number of four-year-old preschool students will boost total enrolment numbers. Although Preschool Education industry participants have had access to a larger pool of funds, the strict National Quality Framework requirements are expected to increase operating costs for preschools. The higher staff-to-child ratios and higher qualification requirements will lead to higher wage costs, putting downward pressure on industry profit over the next five years.

For more information, visit IBISWorld’s Preschool Education industry in Australia report page.

Industry participants are primarily engaged in providing 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 directed at children aged three to five years, and is provided by staff that have training in an educational field. Preschools may be operated by governments, community organisations or the private sector.

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IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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