U.S. Child Care Market Size To Reach $147.2 Billion By 2033

September 2026 | Report Format: Electronic (PDF)

U.S. Child Care Market Growth & Trends

The U.S. child care market size is expected to reach USD 147.2 billion by 2033, registering a CAGR of 7.0% from 2026 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, accounting for a revenue share of 41.2% in 2025. Demand for school-age child care remains supported by the need for care during the hours when school is not in session.
The organized care facilities segment held the dominant revenue share of 85.0% in 2025 and is expected to grow at the fastest CAGR during the forecast period. Growth is supported by increasing demand for structured child care and expansion of center-based capacity.
The early education & early daycare segment dominated the market, accounting for a revenue share of 45.8% in 2025, and is expected to grow at the fastest CAGR from 2026 to 2033. Growth is supported by rising demand for early learning and greater focus on school readiness.
Texas held the largest market share of 7.3% in 2025. Strong demand is supported by the state’s large working-family population and persistent gaps in affordable child care.
Midwest region dominated the market with a revenue share of 25.5% in 2025 and is expected to grow at the fastest CAGR from 2026 to 2033. Growth is supported by rising government investments, expansion of child care capacity, and initiatives aimed at improving access for working families.