U.S. Child Care Market Key Players, Revenue And Growth Rate

The U.S. child care market is projected to reach USD 91.68 billion by 2030, with an anticipated compound annual growth rate (CAGR) of 5.86% from 2024 to 2030, according to a recent report by Grand View Research, Inc. This significant growth is driven by several key factors, including the increasing demand for early education centers, rising awareness about the importance of early education, and the growing number of working parents in need of child care services.

A report from the Boston Opportunity Agenda and the Birth to Eight Collaborative in 2023 revealed that, while Boston officials have made substantial investments in enhancing early childhood education, the city still faces a shortage of affordable child care options to meet the demand. As a result, roughly 15,000 children aged five years and younger are unable to access early childhood education and care due to a lack of available spaces. This shortage is expected to escalate the demand for early education and child care services not only in Massachusetts but also in other states across the U.S.

In response to the need for more accessible child care, lawmakers in the Biden administration proposed a new child care bill in February 2023. The bill seeks to increase the affordability of child care for families across the nation. Additionally, advancements in learning technologies for children are creating new opportunities within the market. For example, Starfall, a widely-used educational tool for children, offers engaging activities and games that incorporate advanced technology to teach subjects such as art, languages, and mathematics. Its software and online portal are significantly contributing to the transformation of the child care market in the U.S.

The COVID-19 pandemic had a considerable impact on child care services. Many child care facilities were temporarily closed due to government restrictions. However, services quickly resumed despite concerns about the risk of infection, leading to increased operating costs for service providers. The Center for American Progress reported a 47% rise in operating costs for child care services in 2020. Home-based services, in particular, saw a sharp increase, with costs rising by 70% since the start of the pandemic. These elevated costs have exacerbated affordability issues, making it more difficult for families to access affordable child care.

Curious about the U.S. Child Care Market? Download your FREE sample copy now and get a sneak peek into the latest insights and trends. 

U.S. Child Care Market Report Highlights

By Type: The early education & daycare segment dominated the market in 2023. This is largely attributed to the partnerships formed between child development and early education centers and employers, aimed at supporting employee child care. Additionally, there has been a shift towards integrating advanced technologies into these centers, transforming what was once merely daycare into more comprehensive early education services.

By Delivery Type: The organized care facilities segment led the market in 2023. This dominance is due to the rising need for more structured facilities, driven by the increasing number of families with both parents working and the growing prevalence of single-parent households.

By Age Group: The school-aged children segment held the largest share of the market in 2023. However, the segment for infants is expected to experience the fastest growth during the forecast period. This is largely due to the increasing participation of mothers in the workforce, which has spurred demand for infant child care services.

Regional Insights: The Southeast U.S. held the largest share of the child care market in 2023 and is projected to see the fastest CAGR throughout the forecast period. This is due to the region’s well-developed infrastructure and expanding economic opportunities, which are driving greater demand for child care services.

The COVID-19 pandemic also led to a significant rise in the demand for home-based services. Many corporate organizations have supported their employees by offering remote work arrangements, which has contributed to the growing trend of home-based child care services.

In a notable development, Bright Horizons Family Solutions launched a program called Bright Space for children at the Newton Police Department Headquarters in Newton, Massachusetts, in September 2023. The initiative aims to provide a safe, cheerful, and inviting environment for children, enhancing the experience of those in their care while providing a welcoming space for families.

Browse through Grand View Research's Medical Devices Industry Research Reports.

• High Level Disinfection Services Market: The global high level disinfection services market size was estimated at USD 27.51 billion in 2024 and is expected to grow at a CAGR of 7.39% from 2025 to 2030.

• Medical Device Testing Services Market: The global medical device testing services market size was valued at USD 9.76 billion in 2024 and is expected to grow at a CAGR of 9.49% from 2025 to 2030.

U.S. Child Care Market Segmentation

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

U.S. Child Care Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Early Care

• Early Education & Early Daycare

• Backup Care

• Others

U.S. Child Care Delivery Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Organized Care Facilities

• Home-based Settings

U.S. Child Care Age Group Outlook (Revenue, USD Billion, 2018 - 2030)

• Infants

• Toddlers

• Preschoolers

• School-aged Children

U.S. Child Care State Outlook (Revenue, USD Billion, 2018 - 2030)

• Massachusetts

• New Jersey

• Connecticut

• Texas

• South Carolina

• Georgia

U.S. Child Care Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• Northeast

• Southeast

• Southwest

• Midwest

• West

List of Key Players in the 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

Order a free sample PDF of the U.S. Child Care Market Intelligence Study, published by Grand View Research.


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