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CA NAICS 62441CA | Industry Report

Day Care in Canada Industry Data and Analysis

LT
Lucy Tang
Analyst New York, United States February 2026

Day care centres in Canada continue to serve a central role in supporting families and the broader economy, shaped by rising workforce participation among parents and growing demand for early learning opportunities. In recent years, the need for accessible, quality services has propelled enrollment to record highs, with nearly 1.1 million children enrolled as of 2024, surpassing pre-pandemic figures. Government initiatives, such as the Canada-Wide Early Learning and Child Care (CWELCC) program, have sought to make day care more affordable—reducing average daily fees and driving up utilization rates. However, the rollout of these policies has also created new financial and operational pressures for providers, particularly amid surging demand, mounting waitlists and sector-wide staffing challenges. Day care's essential role in supporting Canada's working parents has led industry-wide revenue to rise at a CAGR of 1.5% to an anticipated $14.4 billion through 2026, when revenue is expected to rise 0.9%.

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What's included in this industry analysis

IBISWorld's research coverage on the Day Care industry in Canada includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released February 2026.

About this industry

What's this industry report about?

The Day Care industry in Canada operates under the NAICS industry code 62441CA. Day care centres are licensed facilities that provide care, supervision and early childhood education to children, typically from infancy to age five. These centres support working families by offering structured, safe environments where children can be cared for during their parents’ work day while learning, socializing and developing key skills under the supervision of caregivers. Related terms covered in the Day Care industry in Canada include occupancy rate, child-to-staff ratio and canada child benefit.

What's included in this industry?

Products and services covered in Day Care industry in Canada include Full-time day care, Part-time day care and Other.

What companies are included in this industry?

The Day Care industry in Canada is highly fragmented with no companies holding a market share greater than 5%.

Performance

What's included in the Performance chapter?

The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Day Care industry in Canada.

Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.

Products & Markets

What's included in the Products and Markets chapter?

The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Day Care industry in Canada.

Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.

Geographic Breakdown

What's included in the Geographic Breakdown chapter?

The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Day Care industry in Canada.

Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.

Competitive Forces

What's included in the Competitive Forces chapter?

The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Day Care industry in Canada. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.

Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.

Companies

What's included in the Companies chapter?

The Companies chapter covers Key Takeaways, Market Share and Companies in the Day Care industry in Canada. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.

Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.

External Environment

What's included in the External Environment chapter?

The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Day Care industry in Canada. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.

Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.

Financial Benchmarks

What's included in the Financial Benchmarks chapter?

The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Day Care industry in Canada. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.

Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.

Industry Data

What's included in the Industry Data chapter?

The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Day Care industry in Canada.

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Frequently Asked Questions

What is the market size of the Day Care industry in Canada in 2026?

The market size of the Day Care industry in Canada is $14.4bn in 2026.

How many businesses are there in the Day Care industry in Canada in 2026?

There are 39,300 businesses in the Day Care industry in Canada, which has grown at a CAGR of 3.4 % between 2021 and 2026.

How may import tariffs affect the Day Care industry in Canada?

The Day Care industry in Canada is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Day Care industry in Canada?

The Day Care industry in Canada is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Day Care industry in Canada grown or declined over the past 5 years?

The market size of the Day Care industry in Canada has been growing at a CAGR of 1.5 % between 2021 and 2026.

What is the forecast growth of the Day Care industry in Canada over the next 5 years?

Over the next five years, the Day Care industry in Canada is expected to grow.

What does the Day Care industry in Canada include?

Providing preschool-aged day care centres and Providing school-aged day care centres are part of the Day Care industry in Canada.

How competitive is the Day Care industry in Canada?

The level of competition is high and steady in the Day Care industry in Canada.

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