Nursery Schools in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS OD6035Revenue
$17.0bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
388k
Businesses
161k
Wages
$X.Xbn
Nursery Schools in the US industry analysis
The COVID-19 pandemic eliminated the need for many to seek nursery school care, leading to a significant drop in industry revenue. Government assistance through the CARES Act and the American Rescue Plan Act (ARPA) provided a lifeline to nursery schools, leading to a near-full recovery by 2021. As inflation surged in 2022, parents turned to cheaper nursery schools and alternate caregiving methods, straining prices and muting growth. Still, a rise in dual-income families and sustained government backing kept on a solid trend upward. Revenue has been climbing at a CAGR of 1.0% to an estimated $17.0 billion over the five years through 2024, including an expected 1.7% dip in 2024 alone.
Trends and Insights
- Federal support drove revenue in the wake of lockdowns. ARPA funding ended in September 2023, though, leading to immense pressure on nursery schools to raise tuition or lay off staff. Some states are raising funding to compensate for disappearing federal backing.
- Private programs make up over half the industry's revenue. Government programs like Head Start and the Child Care Development Fund (CCDF) support the rest of nursery schools' programs.
- Nursery school distribution reflects population distribution. Despite the differences in state funding and income differentials, the most populous states have the most nursery schools.
- State regulations and funding impact local concentration. State-funded universal pre-K programs undermine enrollment in privately funded nursery schools.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.0 % over the past five years, to reach an estimated $17.0bn in 2024.
Trends and Insights
Tuition rates are swelling as nursery schools hit the childcare cliff
- While the bill that became the Inflation Reduction Act originally included a $400.0 billion provision for childcare centers, this expansion of Child Care Block Development Grants (CCDBGs) was cut out of the bill's final iteration. American Rescue Plan Act (ARPA) backing ended in September 2023, and nursery schools that previously relied on government aid were left to fend for themselves. Many have called this rapid dropoff in essential support the "childcare cliff."
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Closures will perpetuate accessibility issues, sparking renewed government support
- As nursery schools contend with the end of federal funding, many can't raise wages high enough to attract caretakers and overcome the ongoing labor shortage. Nursery schools will continue to close as they struggle to offer competitive salaries in an environment where even the most entry-level jobs in other fields pay significantly more.
Biggest companies in the Nursery Schools in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
KinderCare Education LLC | 206.5 | 15.3 | 7.4 | |
Bright Horizons Family Solutions Inc. | 197.6 | 18.0 | 9.1 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Publicly funded programs, Privately funded programs and Federally funded programs . Publicly funded programs is the largest segment of the Nursery Schools in the US.
Trends and Insights
Privately funded programs make up over half the industry's revenue
- Privately funded nursery school programs are those operated by private individuals, organizations, or companies. Tuition fees paid by parents fund these programs.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Day Care in the US
- Public Schools in the US
- Private Schools in the US
- Early Childhood Learning Centers in the US
Complementors
- Toy, Doll & Game Manufacturing in the US
- Children's & Infants' Clothing Stores in the US
- Hobby & Toy Stores in the US
- Education Consultants in the US
- Educational Software in the US
International industries
- Day Care in Canada
- Child Care Services in Australia
- Child Care Services in New Zealand
- Child Day-Care Centres in the UK
- Kindertagesstätten
Table of Contents
About this industry
Industry definition
This industry provides preschool education services and daycare for children aged three and four. Establishments in this industry are private, but they may receive funding from state and federal grants or charitable donations. This industry excludes babysitting or infant care services.
What's included in this industry?
Privately funded preschool educationState-funded preschool educationFederally funded preschool educationCompanies
KinderCare Education LLCBright Horizons Family Solutions Inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
EARLY LEARNINGNONPROFITCOGNITIVE DEVELOPMENTIndustry Code
NAICS 62441 - Nursery Schools in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Federal support drove revenue in the wake of lockdowns. ARPA funding ended in September 2023, though, leading to immense pressure on nursery schools to raise tuition or lay o...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Private programs make up over half the industry's revenue. Government programs like Head Start and the Child Care Development Fund (CCDF) support the rest of nursery schools'...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Nursery school distribution reflects population distribution. Despite the differences in state funding and income differentials, the most populous states have the most nurser...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
State regulations and funding impact local concentration. State-funded universal pre-K programs undermine enrollment in privately funded nursery schools.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Nursery schooling remains heavily fragmented. Kindercare Education is a nursery school with a significant market share, but no companies have at least a 5.0% market share nat...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of KinderCare Education LLC's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Bright Horizons Family Solutions Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for KinderCare Education LLC, and factors influencing its performance in the industry
- Description and key data for Bright Horizons Family Solutions Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
High unemployment cuts demand for nursery care. Parents without work obligations have time to watch their own kids as well as the kids of their friends, family and neighbors....
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Nursery schools in wealthier communities can pass down higher costs and preserve profit. In more affluent neighborhoods or regions with a higher average income, strong demand...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Nursery Schools in the US industry in United States in 2024?
The market size of the Nursery Schools in the US industry in United States is $17.0bn in 2024.
How many businesses are there in the Nursery Schools in the US industry in 2024?
There are 161k businesses in the Nursery Schools in the US industry in United States, which has declined at a CAGR of 1.9 % between 2019 and 2024.
Has the Nursery Schools in the US industry in United States grown or declined over the past 5 years?
The market size of the Nursery Schools in the US industry in United States has been growing at a CAGR of 1.0 % between 2019 and 2024.
What is the forecast growth of the Nursery Schools in the US industry in United States over the next 5 years?
Over the next five years, the Nursery Schools in the US industry in United States is expected to grow.
What are the biggest companies in the Nursery Schools in the US market in United States?
The biggest companies operating in the Nursery Schools market in United States are KinderCare Education LLC and Bright Horizons Family Solutions Inc.
What does the Nursery Schools in the US in United States include?
Privately funded preschool education and State-funded preschool education are part of the Nursery Schools in the US industry.
Which companies have the highest market share in the Nursery Schools in the US in United States?
The company holding the most market share in United States is KinderCare Education LLC.
How competitive is the Nursery Schools in the US industry in United States?
The level of competition is high and steady in the Nursery Schools in the US industry in United States.
