U.S. Child Care Market Growth & Trends
The U.S. child care market size is expected to reach USD 73.8 billion in 2027, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 3.9% from 2020 to 2027. Increasing demand and government funding for childcare and early education services are some of the factors responsible for market growth. An increase in the number of working parents and awareness regarding the benefits of early childhood education are leading to an increased demand for childcare and early education services in the U.S.
Employers are offering onsite or near-site childcare facilities for their employees to retain them and avoid absenteeism. According to the Center for American Progress, around half of the U.S. population resides in areas that lack childcare providers. In addition, there is around a 20.0% decrease in the number of in-home childcare providers in the past few years. However, there is a rise in the number of startups that help the providers and parents to connect, helping to attain the supply-demand balance.
The 2020 federal budget allocated an increased USD 1.0 billion to increase the affordable options for childcare in the underserved communities of the U.S. According to the U.S. Department of Health and Human Services, childcare costing more than 7.0% of the total income was unaffordable. To promote childcare, the service providers are partnering with employers in order to make available onsite childcare services available to the working parents. In 2019, increased funding of USD 2.4 billion was allocated to the Child Care and Development Fund.
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U.S. Child Care Market Report
U.S. Child Care Market Report Highlights
- The early education and daycare segment held a majority of share in the type segment in 2019 due to rising demand for daycare facilities arising from the increasing number of working parents. According to the U.S. Bureau of Labor Statistics, out of 60,300 married couples, both husband and wife were employed in around 49.0% of the couples in 2019
- Based on the delivery type, the market is further segmented into organized care facilities and home-based settings. Of these, the organized care facilities segment dominated the market in 2019 in terms of revenue share
- Childcare service providers are taking initiatives to cater to the childcare requirements during the ongoing COVID-19 pandemic. For instance, Corporate CARE Solutions, a provider of backup child and adult care, in April 2020, announced a program to accommodate emergency and short-term care
- The childcare service providers are enabling employees to arrange for a backup caregiver in an event of an emergency. In addition, the CDC has issued guidelines for childcare programs that are operating in the pandemic, which include social distancing strategies, parent drop-off and pickup, and food preparation and meal service to ensure safety