The global home healthcare market size was valued at USD 244.4 billion in 2015 and is expected to grow at a CAGR of 7.8% over the forecast period. Rising treatment cost is one of the biggest area of concern amongst government and health organizations, and these organizations are striving to curb increasing health cost.
Home healthcare is a cost efficient alternative to expensive hospital stays. For instance, treatment cost for acute care hospital is around USD 3,250.0 per day. On the contrary, home care cost is approximately USD 50.0 per day. These settings help to save cost significantly hence, anticipated to serve as high impact rendering driver for the home healthcare market.
U.S. home healthcare market, by services, 2014 - 2025 (USD Billion)
Growing workforce pertaining to these services translates the increasing demand for home healthcare services. As per the statistics published by the U.S. Bureau of Labor Statistics, the ranks of personal care and home care aids are anticipated to increase to around 13.0 million by 2020, which translates to approximately 70.0% hike from 2010.
Growing geriatric population is one of the key driver for the lucrative growth of market. As per the World Health Organization’s estimates, the geriatric population is anticipated to be more than double from 7.0% to 16.0% in 2050. These, demographic group is prone to chronic diseases which require long term care and approximately 70.0% patients in these settings are geriatric. Hence, home healthcare offers best possible alternative providing affordable quality care.
The establishment and maintenance of hospitals and other such settings are capital intensive in nature and entail large investments in terms of capital and operational expenses. Therefore, providers with the help of mergers and acquisitions are now entering the rapidly growing home healthcare market in an attempt to capitalize on the available opportunities and contain costs. Moreover, these companies engage extensively in strategic initiatives to enhance regional presence. For example, in 2014, National Nursing & Rehab acquired Home Health Services to expand its reach into the Texas metropolitan areas.
Diagnostics equipment accounted for more than 35.0% of the overall home healthcare equipment market in 2015, and is expected to gain share over the forecast period, owing to increasing prevalence of diabetes, cardiovascular and cardiopulmonary diseases, patient awareness levels, growing prevalence levels of long term illnesses requiring constant diagnosis and high usage rates of BP monitors and pregnancy and fertility tests.
Rehabilitation services accounted for more than 50.0% of the overall home healthcare service market in 2015 majorly owing to increasing geriatric population base and growing incidence rates of surgeries pertaining to trauma. Infusion therapy on the other hand is expected to gain market share during the forecast period owing to increasing demand for enteral and parenteral nutrition.
Global home healthcare market, by equipment, 2015
North America held the largest revenue share of regional market in 2015 at over 40.0% owing to the presence of sophisticated medical infrastructure, high patient awareness levels coupled with relatively higher health expenditure levels in the region.
Asia Pacific is anticipated to witness lucrative growth over the forecasts period. Progressive economy, reforms to improve infrastructure, high unmet needs of huge population chunk and availability skilled labor expected to govern the growth of this region. For instance, introduction of Goods and Services Tax (GST) in India is anticipated to multiple tax burden and its cascading effect. This further is anticipated to improve the ease of doing business in India.
Major players in this vertical include Almost Family Inc., B. Braun Melsungen AG, Abbott Laboratories, Sunrise Medical Inc., 3M Health Care, Baxter, Medtronic, Cardinal Health Inc., Roche diagnostics corp., Air Liquide, Arcadia Health Care, Bayer AG, Amedisys, Inc., Nxstage Medical, Inc., Arkray Inc., Apria healthcare group, Odyssey Healthcare Inc. Becton, Dickinson and Company, Critical Homecare, National Healthcare crop., and Omron Healthcare Inc.
These players are involved in various strategic initiatives such as regional expansion, collaborations, service portfolio expansion, mergers and acquisitions. For instance, in March 2014, Almost Family, Inc. announced that it had entered into an agreement to acquire the assets of the Medicare-certified home health agency owned by Caldwell Medical Center located in Princeton, Kentucky
Base year for estimation
Actual estimates/Historical data
2014 - 2015
2016 - 2025
Revenue in USD Billion & CAGR from 2016 to 2025
North America, Europe, Asia Pacific, Latin America & MEA
U.S., Canada, UK, Germany, Japan, China, Brazil, Mexico, South Africa
Revenue forecast, company share, competitive landscape, growth factors and trends
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Segments Covered in the Report
This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the home healthcare market on the basis of component and region:
Component Outlook (Revenue, USD Billion, 2014 - 2025)
Home Respiratory Equipment
Insulin Delivery Device
Home IV Pumps
Home Dialysis Equipment
Other Therapeutic Equipment
Diabetic Care Unit
Multi Parameter Diagnostic Monitors
Home Pregnancy and Fertility Kits
Other Self-Monitoring Equipment
Apnea and Sleep Monitors
Heart Rate Maters
Home Medical Furniture
Walking Assist Devices
Unskilled Home Care
Respiratory Therapy Services
Infusion Therapy Services
Regional Outlook (Revenue, USD Billion, 2014 - 2025)
Middle East and Africa (MEA)
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