U.S. Child Care Market Size, Share & Trends Report

U.S. Child Care Market Size, Share & Trends Analysis Report By Type (Early Care, Early Education & Daycare, Backup Care), By Delivery Type (Organized Care Facilities, Home-based Settings), And Segment Forecasts, 2020 - 2027

  • Published Date: Oct, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-205-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 100

Report Overview

The U.S. child care market size was valued at USD 54.3 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 3.9% from 2020 to 2027. The increase in the number of working parents and the subsequent demand for child care are factors that are expected to drive the market in the coming years. A survey conducted by the Center for American Progress reported that around 2.0 million parents had to make career sacrifices due to the childcare-related problems in 2016. There is a rise in awareness regarding the link between economic growth, parental employment, and access to child care, which is expected to increase the availability of child care centers at affordable prices.

U.S. child care market size

According to the Child Care Aware of America’s report ‘Parents and the High Cost of Child Care’ in 2019, the child care expenditure comprises a major part of a family’s budget. To address this problem, the Child Care Development Block Grant (CCDBG) was granted additional funding worth USD 5.3 billion in 2019. The rising trend of employers offering onsite or near-site childcare facilities for their employees is expected to contribute to market growth over the forecast period.

The early education providers are undertaking necessary measures to ensure efficient education for all the children. In May 2020, Parma City Schools introduced Kindergarten Launch Academy, which will focus on problem-solving, foundational literacy, math skills, and social and emotional learning to make the younger kids ready for kindergarten.

Type Insights

The early education and daycare segment dominated the U.S. child care market and accounted for the largest revenue share in 2019. This is owing to an increasing number of daycare and early education centers in the country. The demand for early education is growing rapidly as around 1.4 million and 3.7 million students were enrolled in prekindergarten and kindergarten respectively in 2019.

Moreover, the availability of at-home daycare services is helping to meet the shortage of daycare centers. In March 2020, the ‘Rain the Growth Agency’ sponsored the virtual child care show launched by the Fab Lab. The show features a live daily virtual child care show in the form of a supplementary educational program which includes storytime, exercise activities, and snack ideas.

Delivery Type Insights

The organized care facilities segment dominated the market and accounted for the largest revenue share in 2019. The segment is also expected to witness the fastest growth rate from 2020 to 2027. The rising number of working parents and a growing demand for child care services is expected to drive the segment.

U.S. child care market share

The home-based settings segment is anticipated to witness significant growth over the forecast period.

Key Companies & Market Share Insights

The market is characterized by the increase in demand for child care centers, the measures taken by the government, and strategies adopted by the service providers to expand their facilities. The care quality and unavailability of slots are some of the challenges faced by the parents while choosing child care services. Hence, service providers are adopting technology solutions to assist the parents in choosing child care services. In June 2018, Bright Horizons launched a mobile solution for parents to make reservations for backup care when regular care is unavailable.

The ongoing COVID-19 pandemic has largely affected child care services in the U.S. However, some of the service providers are resuming operations after a temporary shutdown. According to the Procare Solutions, a child-care management software provider, out of the 61.0% child care centers shut down in March, around 46.0% reopened in June 2020, following the permissions from the majority of the states. In addition, Amazon announced to provide family care benefits to 650,000 part-time and full-time Whole Foods Market and Amazon employees through Care.com in June 2020. The program will provide subsidized emergency backup child care for up to 10 days to every employee until January 2021. Some of the prominent players in the U.S. child care market include:

  • Bright Horizons Family Solutions, Inc.

  • KinderCare Education Primrose Schools

  • Learning Care Group, Inc.

  • Spring Education Group

  • Cadence Education

  • The Learning Experience

  • Childcare Network

  • Kids ‘R’ Learning Academies

  • Goddard Systems

U.S. Child Care Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 18.0 billion

Revenue forecast in 2027

USD 73.8 billion

Growth rate

CAGR of 3.9% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company share, competitive landscape, growth factors & trends

Segments covered

Type, delivery type

Country scope

The U.S.

Key companies profiled

Bright Horizons Family Solutions, Inc.; KinderCare Education Primrose Schools; Learning Care Group, Inc.; Spring Education Group; Cadence Education; The Learning Experience; Childcare Network; Kids ‘R’ Learning Academies; Goddard Systems

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Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the U.S. child care market report based on type and delivery type:

  • Type Outlook (Revenue, USD Million, 2016 - 2027)

    • Early Care

    • Early Education & Daycare

    • Backup Care

    • Others

  • Delivery Type Outlook (Revenue, USD Million, 2016 - 2027)

    • Organized Care Facilities

    • Home-based Settings

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