Business Incubator Market Report 2026

The business incubator market size has grown strongly in recent years. It will grow from $26.84 billion in 2025 to $28.9 billion in 2026 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to increasing startup formation rates, growth of entrepreneurship ecosystems, availability of public and private incubation funding, expansion of university innovation centers, rising demand for early-stage business support.

The business incubator market size is expected to see strong growth in the next few years. It will grow to $38.55 billion in 2030 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to increasing adoption of virtual incubation models, rising focus on deep-tech and climate startups, expansion of global startup collaboration networks, growing corporate participation in incubation programs, increasing emphasis on sustainable entrepreneurship. Major trends in the forecast period include increasing expansion of sector-specific incubation programs, rising demand for mentorship-driven startup support, growth of university-linked incubators, expansion of access-to-funding platforms, enhanced focus on scalable business models.

The growing number of startups and entrepreneurs is expected to drive the expansion of the business incubator market. Startups refer to newly established businesses, and entrepreneurs are individuals who create, develop, and manage these businesses. The rise in startups and entrepreneurs is largely due to lower barriers to entry, increased access to technology, venture capital, and a broader focus on innovation. Business incubators play a crucial role by helping startups and entrepreneurs turn their ideas into successful businesses. They provide resources, mentorship, funding, and networking opportunities that reduce risks and accelerate business growth. For example, in January 2025, the United States Census Bureau reported that in December 2024, business applications reached a total of 457,544, a 1.5% increase from November 2024. Additionally, new business startups in the previous four quarters totaled 28,834, reflecting a 2.6% rise compared to the prior month. This increase in new startups highlights the growing role of business incubators in supporting entrepreneurship.

Companies in the business incubator market are increasingly focused on launching startup incubator programs to support early-stage businesses by offering mentorship, funding, and strategic networking opportunities. These programs help startups refine their business models, scale operations, and access industry expertise, ultimately driving innovation and long-term growth. For instance, in December 2024, Holtzman Vogel, a US-based law firm, launched an artificial intelligence (AI) startup incubator program to help emerging AI innovators navigate legal and regulatory challenges. The program offers free legal guidance, allowing founders to focus on expanding their businesses.

In July 2024, NVIDIA Corporation, a US-based technology company, acquired Brickyard, a startup incubator and venture capital firm, for an undisclosed amount. This acquisition aims to strengthen NVIDIA's software portfolio and expand its expertise in the semiconductor sector. By acquiring a company that was nurtured within the Brickyard incubator in Chattanooga, NVIDIA seeks to leverage the innovative environment of startup ecosystems to drive further growth and development.

Major companies operating in the business incubator market are Amazon Web Services Inc., International Business Machines Corporation (IBM), 500 Global, Amity University, MaRS Discovery District, BGF Investment Management Limited, iCreate, Capital Factory, The Innovation Hub, Launch Academy, Y Combinator LLC, BHIVE Workspace, Villgro, AI2 Incubator, Highline Beta, Ignite Global, Komplytek Consulting Private Limited, North Forge, ProVeg Incubator, Pycap, The Hatchery Chicago, Venture Catalyst, Youngstown Business Incubator, Impact Hub, StartupGuru

North America was the largest region in the business incubator market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the business incubator market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the business incubator market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The business incubator market includes revenues earned by entities by providing services such as business consulting, training programs, funding access, office space, and business development support. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.