U.S. Child Care Market Size to Hit Around USD 93.31 Bn By 2032
The U.S. child care market size was exhibited at USD 61.9 billion in 2022 and is projected to hit around USD 93.31 billion by 2032, growing at a CAGR of 4.19% during the forecast period 2023 to 2032.
Key Takeaways:
U.S. Child Care Market Report Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 64.49 Billion |
| Market Size by 2032 | USD 93.31 Billion |
| Growth Rate From 2023 to 2032 | CAGR of 4.19% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Type, Delivery type |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| 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 |
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 7.9% 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.
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.
Type Insights
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 48.0% 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.
Delivery Type Insights
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 72.9% 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.
Key Companies & Market Share Insights
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:
Segments Covered in the Report
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the U.S. Child Care market.
By Type
By Delivery Type
Chapter 1 Methodology and Scope
1.1 Market Segmentation & Scope
1.1.1 Segment Definition
1.1.1.1 Type
1.1.1.2 Delivery Type
1.1.2 Estimates and Forecast Timeline
1.2 Research Methodology
1.2.1 Information procurement
1.2.1.1 Purchased database
1.2.1.2 Nova one advisor’ internal database
1.2.1.3 Secondary sources
1.2.1.4 Primary research
1.3 Information or Data Analysis
1.3.1 Data Analysis Models
1.4 Market Formulation & Validation
1.5 Model Details
1.5.1 Volume price analysis
1.6 List of Secondary Sources
1.7 List of Abbreviations
1.8 Objectives
1.8.1 Objective - 1
1.8.2 Objective - 2
1.8.3 Objective - 3
Chapter 2 Executive Summary
2.1 Market Snapshot
2.2 Segment Outlook
2.3 Competitive Landscape
Chapter 3 Market Variables, Trends & Scope
3.1 Market Dynamics
3.1.1 Market Driver Analysis
3.1.1.1 High demand for childcare & early education
3.1.1.2 Trend of providing onsite care facilities
3.1.1.3 Initiatives by government organizations
3.1.2 Market Restraint Analysis
3.1.2.1 High Service Costs
3.1.2.2 Supply of child care services across the U.S.
3.2 Business Environment Analysis Tools
3.2.1 Porter’s Five Forces Analysis
3.2.2 PESTLE Analysis
3.3 Impact of COVID-19 on Child Care
3.4 Number of Licensed Child Care Centers in the U.S. by States
Chapter 4 U.S. Child Care Market: Type Estimates & Trend Analysis
4.1 U.S. Child Care Market: Type Segment Dashboard
4.2 U.S. Child Care Market: Type Movement Share Analysis, 2023 & 2032
4.3 U.S. Child Care Market Size & Forecast and Forecasts, By Type
4.3.1 Early Education & Early Daycare
4.3.1.1 Early education & early daycare market, 2020 - 2032
4.3.2 Early Care
4.3.2.1 Early care market, 2020 - 2032
4.3.3 Backup Care
4.3.3.1 Backup care market, 2020 - 2032
4.3.4 Others
4.3.4.1 Other type of child care market, 2020 - 2032
Chapter 5 U.S. Child Care Market: Delivery Type Estimates & Trend Analysis
5.1 U.S. Child Care Delivery Type Market: Segment Dashboard
5.2 U.S. Child Care Delivery Type Market Share Analysis, 2023 & 2032
5.3 U.S. Child Care Market Size & Forecast and Forecasts, By Delivery Type
5.3.1 Organized Care Facilities
5.3.1.1 Organized child care facilities market, 2020-2032
5.3.2 Home-based Settings
5.3.2.1 Home-based child care settings market, 2020-2032
Chapter 6 Competitive Analysis
6.1 Participant’s Overview
6.2 Financial Performance
6.3 Service Mapping
6.4 Participant Categorization
6.5 Company Market Position Analysis
6.6 Strategy Mapping
6.6.1 Mergers & acquisition
6.6.2 Partnerships & collaborations
6.6.3 Expansion
6.7 Company Profiles
6.7.1 Bright Horizons Family Solutions
6.7.1.1 Company overview
6.7.1.2 Financial performance
6.7.1.3 Service benchmarking
6.7.1.4 Strategic initiatives
6.7.2 KinderCare Learning Centers LLC.
6.7.2.1 Company overview
6.7.2.2 Financial performance
6.7.2.3 Service benchmarking
6.7.2.4 Strategic initiatives
6.7.3 Learning Care Group, Inc.
6.7.3.1 Company overview
6.7.3.2 Financial performance
6.7.3.3 Service benchmarking
6.7.3.4 Strategic initiatives
6.7.4 Spring Education Group.
6.7.7.1 Company overview
6.7.4.2 Financial performance
6.7.4.3 Service benchmarking
6.7.4.4 Strategic initiatives
6.7.5 Cadence Education
6.7.5.1 Company overview
6.7.5.2 Financial performance
6.7.5.3 Service benchmarking
6.7.5.4 Strategic initiatives
6.7.6 The Learning Experience
6.7.6.1 Company overview
6.7.6.2 Financial performance
6.7.6.3 Service benchmarking
6..6.4 Strategic initiatives
6.7.7 Childcare Network
6.7.7.1 Company overview
6.7.7.2 Financial performance
6.7.7.3 Service benchmarking
6.7.7.4 Strategic initiatives
6.7.8 Kids ‘R’ Kids
6.7.8.1 Company overview
6.7.8.2 Financial performance
6.7.8.3 Service benchmarking
6.7.8.4 Strategic initiatives
6.7.9 Primrose Schools Franchising SPE, LLC.
6.7.9.1 Company overview
6.7.9.2 Financial performance
6.7.9.3 Service benchmarking
6.7.9.4 Strategic initiatives
6.7.10 Goddard Franchisor LLC
6.7.10.1 Company overview
6.7.10.2 Financial performance
6.7.10.3 Service benchmarking
6.7.10.4 Strategic initiatives
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers