PUBLISHER: Grand View Research | PRODUCT CODE: 1474848
PUBLISHER: Grand View Research | PRODUCT CODE: 1474848
The U.S. child care market size is anticipated to reach USD 91.68 billion by 2030, growing at a CAGR of 5.86% from 2024-2030, 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.