U.S. Child Care Market Size To Reach $109.88 Billion By 2033

U.S. Child Care Market Growth & Trends

The U.S. child care market size is anticipated to reach USD 109.88 billion by 2033, growing at a CAGR of 6.02% from 2025 to 2033, according to a new report by Grand View Research, Inc. This growth can be attributed to the high demand for early education centers, growing awareness of early education, and the increasing number of working parents.

The Boston Opportunity Agenda and the Birth to Eight Collaborative 2023 report stated that although Boston officials have invested significantly in developing early childhood education, there is still a lack of affordable opportunities to meet the demand. As a result, approximately 15,000 children aged 5 years and below cannot access early childhood education & care due to insufficient seats. This is expected to boost the demand for early education and childcare services in Massachusetts and other states.

Lawmakers of the Biden government proposed a new child care bill in February 2023 to increase the affordability of child care for families across the U.S. In addition, the development of learning technologies for children is creating new opportunities in the market. For instance, Starfall, a popular learning tool for children, offers engaging activities and games that utilize advanced technology to teach art, languages, and mathematics. Its software and online portal are transforming the child care market in the U.S.

During the COVID-19 pandemic, facilities were temporarily closed due to government restrictions. Despite the risk of infection, services resumed shortly after, resulting in higher operating costs for service providers. The Center for American Progress reported a 47% increase in operating costs in 2020 for child care services. Home-based services saw an even greater increase of 70% since the pandemic. These high costs have had a negative impact on the market and worsened affordability issues.

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U.S. Child Care Market Report Highlights

• The school-aged children segment dominated the market with a revenue share of 41.21% in 2024.

• The organized care facilities segment held the dominant revenue share of 71.91% in 2024 and is expected to grow at the fastest CAGR during the forecast period.

• The early education & early daycare segment dominated the market with the largest revenue share of 45.73% in 2024 and is expected to grow the fastest from 2025 to 2033.

• Texas held the largest market share of 45.60% in 2024. The primary factor driving the market growth in Texas includes stringent regulation and licensing processes in services.

• Southeast region dominated the market with a revenue share of 28.49% in 2024 and is expected to grow at the fastest CAGR from 2025 to 2033.

U.S. Child Care Market Segmentation

Grand View Research has segmented the U.S. child care market on the basis of on type, age group, delivery type, states, and region:

U.S. Child Care Type Outlook (Revenue, USD Billion, 2021 - 2033)

• Early Care

• Early Education & Early Daycare

• Backup Care

• Others

U.S. Child Care Delivery Type Outlook (Revenue, USD Billion, 2021 - 2033)

• Organized Care Facilities

• Home-based Settings

U.S. Child Care Age Group Outlook (Revenue, USD Billion, 2021 - 2033)

• Infants

• Toddlers

• Preschoolers

• School-aged Children

U.S. Child Care State Outlook (Revenue, USD Billion, 2021 - 2033)

• Massachusetts

• New Jersey

• Connecticut

• Texas

• South Carolina

• Georgia

U.S. Child Care Region Outlook (Revenue, USD Billion, 2021 - 2033)

• West

• Southeast

• Southwest

• Midwest

• Northeast

List of Key Players of U.S. Child Care Market

• 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 Schools

• Goddard Systems

• BrightPath Kids

• Winnie, Inc.

• New Horizon Academy

• Care.com

• NeighborSchools, Inc.

• SitterTree., LLC