The U.S. child care market size was valued at USD 60.4 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.18% from 2023 to 2030. The key factor driving the growth is the rising demand for early daycare & education services with more parents returning to working in offices, the rising number of single & working mothers, advancements in learning technologies for children, and the accessibility of government funding. The expenditure on daycare in the U.S. is very high. As per the cost of care survey facilitated by the U.S. Department of Health and Human Services, the expenditure on these services reached up to 7% of the household income in 2021. Families in the U.S. are willing to spend more on childcare services, indicating the high service demand in the U.S.
Furthermore, single-parent families are growing in the U.S. As per the 2022 single-parent statistics, in 2022 there were around 11 million single-parent families in the U.S. Single-parent families cannot give the required attention to the child, thus relying on childcare centers or their kid's early education and well-being.
In addition, the Southern states in the U.S. have the highest single-parent population. South Carolina, Florida, Georgia, Mississippi, and Louisiana have the highest number of single-parent households. Louisiana reported over 40% single-parent households, the highest in the U.S. Hence, the southern region is expected to have the highest demand.
Pandemic Impact |
Post COVID Outlook |
The COVID-19 pandemic resulted in the majority of the daycare facilities remaining closed 87% of the facilities in Pennsylvania closed during the pandemic. Washington witnessed the closure of more than 1000 facilities. This resulted in a severe lack of accessibility to services during the pandemic & loss of revenue for the players. |
Child care services are expected to witness higher demand with the full-time resumption of offices. Parents will hence prefer organized daycare settings, as better learning tools will attract parents. However, the service providers are expected to witness a shortage of workforce post-COVID as well. California witnessed a shortage of 10% of the workforce compared to the pre-pandemic situation. Caregivers did not come back due to low wages & lack of benefits. |
During the second wave of the pandemic, the daycare centers remained open despite the risk of infections. The majority of players had difficulty sustaining due to a lack of finances. The organizations funding the services also were unable to help these facilities. For Instance, Nature Nurtures Farm, funding services in the regions having low access to childcare services, found themselves having no revenue to fund the centers. However, home-based services witnessed increased demand. Employers provided home-based childcare services, enabling employees to work peacefully. |
Post-COVID-19, the adoption of new technologies & initiatives by state governments to improve the accessibility to services. The state governments have taken initiatives to make the service affordable for lower-income families & boosted the launch of new childcare centers. For Instance, In July 2022, the Washington state government announced higher subsidy rates for families with children at day-care centers |
The COVID-19 pandemic significantly impacted the U.S. childcare market, affecting providers and families who rely on childcare services. The pandemic compelled service providers to discontinue their services in 2020. For instance , according to the Department of Human Services, 260 childcare facilities in Pennsylvania permanently closed during the pandemic. This resulted in a severe lack of accessibility and a loss of revenue for the market players.
Based on type, the market is segmented into early care, early education & daycare, backup service & others. Early education & daycare accounted for the largest revenue share of 47.0% in 2022. This can be attributed to monetary support from the government that can enable children from lower-income families to access childcare services. For Instance, the Department of Early Education and Care provides grants for center-based early education services. All EEC-licensed childcare service providers are eligible for this grant.
The backup care segment is expected to witness lucrative growth owing to the increasing number of working single parents driving growth. In some of the states in the U.S., the state government has laws requiring employers to provide backup service benefits. For instance, in March 2021, the California state government proposed a new bill making it mandatory for employers to facilitate subsidized backup care service benefits to their employees, thus boosting the growth opportunities for the segment in the region.
The early care segment is expected to grow significantly during the forecast period. This growth can be attributed to increased funding for high-quality early care programs. Several states and localities have implemented policies to expand access to early care, such as universal prekindergarten programs and increased funding for Head Start programs.
Based on delivery type, the market is segmented into organized care facilities and home-based settings. The organized care facilities segment accounted for the highest revenue share of 71.7% in 2022 and is expected to witness the highest CAGR during the forecast period. The rising number of working parents, technological advancement, and growing funding for supporting quality early education drive segment growth.
Furthermore, the organizations facilitating daycare collaborate to enable large-scale organized daycare. For instance, the first Steps 4K, an organization facilitating early education for 4-year-old children, collaborated with 200 non-profit daycare centers to facilitate high-quality early education as per the child's requirements.
The home-based settings are expected to witness lucrative growth during the forecast period. Home-based child care is popular for many families, particularly those with younger children or irregular schedules. According to a report by HomeGrown Childcare, approximately 7 million children under the age of five receive care in a home-based setting. It offers a range of benefits to families, such as lower costs, personalized care, and a more home-like environment. These benefits are expected to fuel the growth of the segment.
The market is very competitive, with the presence of several large & small players. Market players & government agencies adopt this strategy to increase the outreach of their services in the market and increase the availability of their services in diverse geographical areas. For instance, in January 2023 , the Children's Bureau of the U.S. Department of Health and Human Services (HHS) introduced a grant to enhance coordination between child welfare services and early childhood education programs. Some prominent players in the U.S. child care market include:
Bright Horizons Family Solutions
KinderCare Learning Centers LLC.
Learning Care Group, Inc.
Spring Education Group
Cadence Education
The Learning Experience
Childcare Network
Kids 'R' Kids
Primrose School Franchising SPE, LLC.
Goddard Franchisor LLC
Report Attribute |
Details |
Revenue forecast in 2030 |
USD 83.6 billion |
Growth Rate |
CAGR of 4.18% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Report updated |
May 2023 |
Quantitative units |
Revenue in USD billion and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Type, delivery type |
Country scope |
U.S. |
Key companies profiled |
Bright Horizons Family Solutions; KinderCare Learning Centers LLC.; Learning Care Group, Inc.; Spring Education Group; Cadence Education; The Learning Experience; Childcare Network; Kids 'R' Kids; Primrose School Franchising SPE, LLC.; Goddard Franchisor LLC |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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 2018 to 2030. For this study, Grand View Research has segmented the U.S. child care market report based on type and delivery type:
Type Outlook (Revenue, USD Billion, 2018 - 2030)
Early Care
Early Education & Early Daycare
Backup Care
Others
Delivery Type Outlook (Revenue, USD Billion, 2018 - 2030)
Organized Care Facilities
Home-based Settings
b. The U.S. child care market was estimated at USD 60.4 billion in 2022 and is expected to decline to around USD 62.8 billion in 2023.
b. The U.S. child care market is expected to grow at a compound annual growth rate of 4.18% from 2023 to 2030 and is expected to reach USD 83.6 billion by 2030.
b. Some of the key players operating in the U.S. child care market include Bright Horizons Family Solutions; KinderCare Learning Centers LLC.; Learning Care Group, Inc.; Spring Education Group; Cadence Education; The Learning Experience; Childcare Network; Kids 'R' Kids; Primrose School Franchising SPE, LLC.; Goddard Franchisor LLC
b. The key factors driving the U.S. child care market growth include increasing government funding for childcare, rising demand for daycare centers; and an increase in the number of women employment.
b. The early education and daycare segment dominated the U.S. child care market with a share of around 47% in 2022. This is attributable to the increase in the rising demand along with the government funding to child care centers.
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