Long-Term Care Market (2026 - 2033) Size, Share, & Trends Analysis Report By Service (Nursing Care, Hospice, Assisted Living Facilities, Home Healthcare), By Payer (Public, Private, Out-of-Pocket), By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts

Long-term Care Market Summary

The global long-term care market size was estimated at USD 1.26 trillion in 2025 and is projected to reach USD 2.15 trillion by 2033, growing at a CAGR of 7.0% from 2026 to 2033. The rise in the global geriatric population is a primary factor driving the growth of the long-term care (LTC) services market. 

Increasing life expectancy, declining fertility rates, and advancements in healthcare are significantly expanding the proportion of individuals aged 65 years and above, leading to a higher dependency ratio and greater demand for continuous care services. The section below outlines the key factors driving the growth of the long-term care market, highlighting the unmet needs for the elderly population and technological advancements. The reforms in the health system and government support also further drive demand.

Market Drivers

Aging Population and Unmet Elderly Care Needs Driving LTC Demand

Rising global life expectancy is driving demand for long-term care (LTC) services, especially among older adults with chronic conditions and functional limitations. Many elderly individuals face unmet healthcare needs, fueling the growth of home-based and institutional care models. These unmet needs increase pressure on healthcare systems as aging populations require ongoing support with daily living and medical care. As a result, healthcare models are shifting toward home-based care to reduce hospital admissions, lower costs, and improve patient quality of life. An article published by OECD in November 2025 highlights that about 3.4% of the total population reports unmet medical care needs, mainly due to high cost, waiting time, or access barriers across OECD countries.

Government Support and Healthcare System Reforms for Elderly Care Services

The rising number of older adults globally is creating significant policy and demographic challenges, pressuring governments to expand affordable, accessible healthcare. Many countries are restructuring healthcare systems to improve coverage for the elderly, aiming to reduce out-of-pocket costs and enhance access to care. In the U.S., Medicare and Medicaid fund long-term care (LTC) for older adults, especially those with chronic illnesses and functional limitations. In accordance with the Centers for Medicare & Medicaid Services 2025 update, Medicare covers approximately 66 million beneficiaries, while Medicaid provides long-term services and support (LTSS) to over 7 million older adults and individuals with disabilities, highlighting its critical role in elderly care delivery. These programs support institutional, home, and community-based care, reducing financial burdens and ensuring continuity of care.

Rising Chronic Disease Burden Driving Demand for Long-Term Care Services

Chronic diseases are rising globally, driving higher healthcare demand among older adults. Age-related decline and conditions such as cancer, diabetes, dementia, and heart disease are increasing the need for ongoing, specialized care. Treating chronic illnesses in hospitals is costly and strains resources, especially for patients needing long-term care. LTC facilities offer structured, patient-focused services for elderly individuals with chronic conditions, providing a more cost-effective and sustainable option. For instance, in March 2025, the World Health Organization reported that around 57 million people were living with dementia globally, with over 60% residing in low-and middle-income countries. In addition, Dementia continues to grow rapidly, with approximately 10 million new cases annually. Alzheimer's disease remains the most common form, accounting for approximately 60-70% of all dementia cases. This trend is anticipated to increase demand for long-term care services to support efficient management and personalized care for Alzheimer's patients. Awareness of LTC advantages over hospital care is accelerating its adoption.

Technological Advancements in Long-Term Care Delivery

Advancements in healthcare technology are driving the growth of the LTC industry. While elderly care once depended on basic assistive devices, it is now moving toward digital, connected healthcare solutions. Furthermore, remote patient monitoring, telemedicine, wearable sensors, mobile health apps, and AI enabled software enable continuous health tracking outside clinics, leading to advanced technological advancements in this sector. For instance, in April 2025, Deacon Health launched a technology-driven care coordination platform aimed at enhancing specialty care for patients with multiple chronic conditions. The company focuses on improving patient outcomes and reducing healthcare costs through evidence-based, clinician-led care pathways. Their approach emphasizes non-surgical interventions when appropriate and aims to connect patients with the right care at the right time.

Market Characteristics & Concentration

The chart below illustrates the relationship between industry concentration, industry characteristics, and industry participants, including industry competition, level of partnerships & collaboration activities, degree of innovation, impact of regulations, and regional expansion. The degree of innovation is moderately high. The level of merger & acquisition activities is moderate. Moreover, the impact of regulations is high, and the regional expansion of industry is moderate.

Advancement in technology is expected to favor market growth. The use of telemedicine and remote patient monitoring is driving innovation in the market. The integration of remote patient monitoring devices such as smart sensors, telehealth platforms, medical monitoring devices, and many others is expected to boost the demand for these services globally. For instance, in August 2025, SoftWriters announced the launch of FrameworkInsight, a cloud-based business intelligence platform for long-term care pharmacies. The platform is designed to enable data-driven decision-making, improve operational efficiency, and address key challenges in LTC pharmacy workflows through advanced analytics and SaaS-based architecture.

Several key players are actively engaging in partnerships and collaborations to foster growth & innovation and improve their competitiveness by combining the expertise & efforts of different organizations. For instance, in May 2025, Sunrise Senior Living partnered with Griffin Living, which resulted in the addition of two boutique-style communities in California, Varenita of Simi Valley and Varenita of Westlake Village, to Sunrise's portfolio.

"We have entered a new robust era of growth at Sunrise, one that’s grounded in strong, industry-leading operational performance, lifestyle, wellness, and hospitality-driven experiences, and a deep understanding of what seniors and their families are expecting going forward.”

- Jack R. Callison, Jr., CEO of Sunrise Senior Living.

The regulatory framework for long-term care includes strict licensing procedures, staffing mandates, safety protocols, and quality control measures designed to protect vulnerable populations such as the elderly and disabled. For instance, in April 2024, The CMS introduced a final rule establishing minimum staffing standards for long-term care (LTC) facilities. Effective June 2024, this rule mandates that LTC facilities provide a daily average of 3.48 hours of direct nursing care per resident. This includes at least 0.55 hours from registered nurses (RNs) and 2.45 hours from nurse aides, with flexibility in how the remaining 0.48 hours are fulfilled by individuals falling under different nursing staff categories.

Geographical expansion helps companies to increase their presence and maintain or strengthen their market presence. For instance, in March 2025, an article by Skilled Nursing News highlighted that Indiana-based Journey Skilled Nursing has grown to 22 facilities across six states in just under a year, with plans for more M&A in the spring of 2025. 

Service Insights

The nursing care segment held the largest share of 30.6% in 2025. This can be attributed to the preference for elderly care and high demand from developing countries. Moreover, adoption of home healthcare is high among people older than 65 years of age, individuals recently discharged from hospitals, mentally challenged adults, mothers of newborns, and individuals who want medical assistance for their parents within their homes. For instance, according to an article published by Rosewood, in June 2025, in the U.S. approximately 15% of individuals aged 65 and above reside in long-term care settings. The country has around 15,300 nursing care homes with a capacity of nearly 1.6 million licensed beds, serving about 1.3 million residents. Notably, nearly 70.3% of these facilities are operated by for-profit organizations, highlighting the strong presence of private sector participation in nursing care service delivery.

The hospice segment is expected to grow at the fastest CAGR during the forecast period, due to the increasing prevalence of chronic diseases and the growing need for 24-hour medical attention. The growing preference for home-based hospice care, where patients can receive end-of-life services in a familiar and comfortable environment. Home hospice improves patient satisfaction and emotional well-being and reduces the burden on hospitals and intensive care units. It is often more cost-effective compared to prolonged hospital stays, making it a preferred option for both families and healthcare systems. For instance, a Hospice monitoring report published in April 2025 by CMS highlights that approximately 1.8-1.91 million Medicare beneficiaries received hospice care in 2024,

Payer Insights

The public segment accounted for the largest revenue share of 63.5% in 2025, driven by the aging population, particularly the Baby Boomer generation who require extended care for chronic conditions or disabilities. The reliance on public programs such as Medicaid and Medicare has expanded. Moreover, policy changes and federal incentives have also contributed, such as the shift toward home- and community-based services (HCBS) to reduce institutional care costs. In addition, socioeconomic factors, including stagnant wages and limited long-term care insurance coverage, have pushed more people to rely on government support.

The private segment is expected to grow at the fastest CAGR over the forecast period, driven by the growing affluent elderly demographic with sufficient savings, pensions, or long-term care insurance to afford private-pay options. The limitations and eligibility criteria of Medicaid, coupled with concerns over nursing home quality in publicly funded facilities, are also pushing families to seek private alternatives. For instance, LTC companies, including traditional and hybrid LTC provide benefits for patients seeking private long-term care.

Regional Insights

North America Long-Term Care Market Trends

The North America region dominated the long-term care market with the largest revenue share of 48.2% in 2025. The market growth is driven by the availability of LTC centers, improving reimbursement frameworks, and favorable government policies. An article published in December 2025, by the Kaiser Family Foundation (KFF), highlighted that as of 2025, there are approximately 14,742 CMS-certified nursing facilities in the U.S. serving approximately 1.24 million residents, with utilization supported heavily by Medicaid and Medicare financing structures.

U.S. Long-Term Care Market Trends

The U.S. market held the largest share in 2025, driven by technological advancements and evolving patient preferences. Remote patient monitoring tools and telehealth services enable healthcare providers to deliver effective care without requiring patients to leave their homes. These innovations improve care quality and reduce hospital stay costs, making home-based hospice care an attractive option for many families. For instance, a July 2024 study by the USC Schaeffer Center highlighted that 56% of respondents believed they would recover faster at home compared to a hospital setting. This growing inclination is supported by advancements in remote monitoring and telehealth technologies, which enable high-quality, patient-centric care while reducing hospital readmissions and improving overall patient satisfaction.

Europe Long-Term Care Market Trends

The market in Europe is anticipated to grow significantly due to the presence of well-established healthcare systems across major economies such as Germany, the UK, France, Spain, and Italy. The region’s rapidly aging population is increasing the demand for structured long-term care service delivery, including home care services, assisted living, and institutional care, along with coordinated chronic disease management.

Long-term care market in the UKis expected to grow significantly over the forecast period. driven by increasing demand for efficient and coordinated care services amid a rapidly aging population and rising burden of chronic diseases. This is creating a strong need for scalable LTC service models, including home-based care, residential care, and integrated community care, to improve care delivery and operational efficiency. The government’s strong push toward healthcare digitalization and integrated care systems. Investments in digital health infrastructure and initiatives supporting unified patient records are enhancing coordination across care providers.

Germany long-term care market held a significantshare in 2025. The growing geriatric population in Germany has led to an increase in the demand for LTC services. As the percentage of the elderly population rises, there is a growing need for efficient management systems in nursing homes, assisted living facilities, and home care settings. Furthermore, the German healthcare system's emphasis on quality care and operational efficiency has increased the adoption of advanced software solutions. These tools enhance patient care management, streamline administrative tasks, and ensure compliance with regulatory standards, fostering a more effective & sustainable long-term care ecosystem.

Asia Pacific Long-Term Care Market Trends

Asia Pacific is the fastest-growing region over the forecast period, driven by rapid demographic ageing, rising healthcare expenditure, and increasing structural demand for organized elderly care services. The region is witnessing strong expansion in service categories such as home healthcare, assisted living, nursing care, hospice services, and community-based elderly care, supported by both public and private sector participation.

Long-term care market in Japan held a significant revenue share in 2025. Several factors, such as the rapid adoption of new technologies and the growing popularity of at-home care & regular monitoring services, are driving the market growth in Japan. Japan’s long-term care insurance (LTCI) system plays a central role in supporting market expansion by ensuring universal access to care services for eligible elderly citizens. This system covers a wide range of LTC services, including institutional care, home care assistance, rehabilitation, and day-care services, thereby enabling consistent service utilization across income groups. The structure of LTCI also encourages service provider participation, supporting the development of a well-organized and scalable LTC service ecosystem.

India long-term care market is driven by a rapidly aging population, a rising burden of chronic diseases, and widening structural gaps in traditional family-based caregiving systems. This shift strengthens demand for formal LTC service models, including home healthcare, assisted living facilities, palliative care, and community-based elder care, to ensure continuous and coordinated care delivery. The increasing prevalence of chronic conditions such as diabetes, cardiovascular diseases, respiratory disorders, and neurodegenerative illnesses requires long-term monitoring, rehabilitation, and supportive care services. This is pushing healthcare providers to expand structured LTC service offerings that integrate medical care with daily living assistance and rehabilitation support.

Latin America Long-Term Care Market Trends

The market in Latin America is anticipated to grow significantly over the forecast period, driven by a rapidly expanding elderly population and a rising burden of chronic diseases across the region. Countries such as Brazil, Mexico, Argentina, and Chile are experiencing a steady demographic transition, where improvements in life expectancy and declining fertility rates are accelerating population ageing. This shift is significantly increasing the demand for structured LTC services, including home healthcare, assisted living facilities, nursing care services, and community-based elderly support systems.

Long-term care market in Brazil held a significant market share in 2025, driven by gradual improvements in infrastructure, particularly in urban regions, which is creating a more supportive environment for the expansion of LTC services. Investments in hospital networks, private healthcare providers, and home care service companies are strengthening service delivery capabilities and improving access to long-term care solutions for elderly populations.

Middle East and Africa Long-Term Care Market Trends

The market in Middle East and Africa is anticipated to grow significantly during the forecast period. A key driver of market growth in the region is the increasing burden of non-communicable and age-related diseases such as diabetes, cardiovascular conditions, obesity, and kidney disorders. These conditions require continuous medical supervision, rehabilitation, and supportive care, thereby increasing the need for structured long-term care services, including home healthcare, nursing care, and chronic disease management programs.

Long-term care market in South Africais expected to grow significantly over the forecast period, driven by rising awareness about professional elderly care services and the gradual shift away from informal caregiving structures are contributing to increased adoption of structured LTC solutions. Economic growth and expanding insurance coverage in certain population segments are also enabling better affordability and utilization of long-term care services.

Key Long-Term Care Company Insights

The market is fragmented, with the presence of many country-level service end uses. The market players undertake several strategic initiatives, such as partnerships & collaborations, product launches, mergers & acquisitions, and geographical expansion to maintain their position and grow in the market.

Recent Developments

• In April 2025, Deacon Health launched a technology-driven care coordination platform aimed at enhancing specialty care for patients with multiple chronic conditions. The company focuses on improving patient outcomes and reducing healthcare costs through evidence-based, clinician-led care pathways.

• In March 2025, Medalogix and Forcura announced a merger to form an approximately USD1 billion healthcare software company by supplying applications for in-home healthcare and hospice services providers.

• In May 2024, MatrixCare (ResMed Inc.) entered into a strategic partnership with NHS Management, LLC, a provider of administrative & consulting services for skilled nursing and rehabilitative facilities in the Southeast. This collaboration aims to enhance out-of-hospital healthcare solutions through MatrixCare (ResMed Inc.)’s innovative technology.

“Providers of long-term care were greatly impacted due to the recent transition of electronic medical record (EMR) providers, forcing operators to evaluate new technologies in the industry. The suite of holistic solutions at MatrixCare, including a purpose-built EMR, a fully integrated dietary and nutrition solution, best-in-class enterprise financial solutions, and AI-powered safety solutions are all designed to help communities deliver the best care possible for their residents.”

~Bharat Monteiro, General Manager, Facilities, MatrixCare

Long-Term Care Market Report Scope

Global Long-Term Care Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the long-term care market report based on service, payer, and region.

• Service Outlook (Revenue, USD Billion, 2021 - 2033)

  • Home Healthcare

  • Hospice

  • Nursing Care

  • Assisted Living Facilities

  • Others

• Payer Outlook (Revenue, USD Billion, 2021 - 2033)

  • Public

  • Private

  • Out-of-Pocket

• Regional Outlook (Revenue, USD Billion, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait