This article first explains the definition of preschool education categories, combing its historical evolution. Next, the author starts to conduct research on the status quo of preschool education in China from the theoretical analysis framework of supply and demand. On the demand side, this paper starts from the policy, economic and social aspects. On the supply side, the author draws the upper, middle and downstream industrial chain of preschool education, and puts forward the problems such as the lack of teachers and concepts, and the incomplete evaluation criteria. Finally, this paper discusses the future development trend of the industry, and explores the development direction with the typical case of VTRON, in order to provide advices and suggestions for preschool education practitioners.