U.S. Child Care Market Size, Share & Trends Analysis Report By Type (Early Care, Early Education & Daycare, Backup Care), By Delivery Type (Organized Care Facilities, Home Based Settings), And Segment Forecasts, 2022 - 2030

U.S. Child Care Market Size, Share & Trends Analysis Report By Type (Early Care, Early Education & Daycare, Backup Care), By Delivery Type (Organized Care Facilities, Home Based Settings), And Segment Forecasts, 2022 - 2030

U.S. Child Care Market Growth & Trends

The U.S. child care market size is expected to reach USD 83.6 billion by 2030, based on a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 4.15% from 2022 to 2030. The key factors driving the growth include an increase in awareness regarding early education, high demand for early education centers, and an increase in the number of working parents. In addition, the advancement in learning technologies for children is resulting in further growth opportunities.

Public awareness campaigns and government programs have increased awareness about child education & development in the U.S. The National Center for Healthy Safe Children is spreading awareness regarding the development of the child & need for developing skills at an early age. Factors such as the growing disposable income in the U.S. and the interest of parents to give top-quality care & early education to their children are also resulting in higher demand for early education centers.

However, the affordability of early education services in the U.S. is a huge concern. 63% of full-time working parents are finding it difficult to afford the services. 1 in 3 American families is struggling to pay for early attention and education services. Hence the high cost of services is negatively impacting the market. The quality of services is another challenge According to the National Institute of child health and human development, only 10% of the child care services available are of high quality.

The COVID-19 pandemic resulted in the closure of facilities temporarily due to restrictions by the government. The services resumed shortly, despite the risk of infection involved. This resulted in higher operating costs for the service providers. A 47% increase in operations cost was observed as per the report by the Center for American Progress. The cost of home-based services witnessed a 70% rise since the pandemic. The high cost of service has negatively impacted the market, worsening the affordability issues.

U.S. Child Care Market Report Highlights

• Based on type, the early education & daycare segment dominated the market in 2021. This can be attributed to the partnership by child development & early education centers with employers to support employee child care and the adoption of advised technology aiming at the transformation of just daycare into proper early education
• Based on delivery type, organized care facilities dominated in 2021. This is due to the growing requirement for more facilities as a result of the increasing no of families with both parents working and single-parent families
• The COVID-19 pandemic has promoted home-based services, as corporate organizations supported their employees working from home, by facilitating home-based service
• The key players are taking initiatives to expand their quality of service in the U.S. through collaborations & mergers and acquisitions with players from other nations to get their expertise in the U.S. For Instance, in May 2022, Bright Horizons announced an agreement for the acquisition of Only About Children, a high-quality child care services provider based in Australia, aiming to apply their quality techniques in the U.S., enhancing the quality of services