Long Term Care Market Size, Share & Trends Report

Long Term Care Market Size, Share & Trends Analysis Report By Service (Home Healthcare, Hospice, Nursing Care, Assisted Living Facilities), By Region (North America, Europe, APAC, Latin America, MEA), And Segment Forecasts, 2021 - 2028

  • Published Date: Jul, 2021
  • Base Year for Estimate: 2020
  • Report ID: 978-1-68038-952-4
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 135

Report Overview

The global long term care market size was valued at USD 983.3 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.1% from 2021 to 2028. The market for long term care (LTC) is expected to boom owing to the aging baby boomers, increasing disabilities among the geriatric population, the dearth of skilled nursing staff, government funding, and increased collaborations of private insurers with various governments. The extended life expectancy has thereby increased the number of disability cases. This is expected to drive the demand for affordable long term care services for memory loss, chronic illnesses, and post-hospital healthcare.

U.S. long term care market size, by service, 2018 - 2028 (USD Billion)

COVID-19 affects older people disproportionally, especially those patients living in LTC facilities with a considerable impact on mortality and morbidity. Coordinated activity is expected to alleviate the effect of COVID-19 by improving disease counteraction and control gauges. The pandemic had a positive impact on home healthcare products, like pulse oximeters, blood pressure monitors, blood glucose monitors, and temperature monitors, which are essential for long term care in chronic cases. Due to the pandemic, clinical visits have become more difficult, and hence home nurses and devices are the way for long term care in the pandemic, thus positively impacting the home healthcare segment. However, there was a shortage of few home healthcare products, leading to higher costs and affecting the market growth.

COVID-19 long term care market impact: 2.1% decline from 2019 to 2020

Pandemic Impact

Post COVID Outlook

The pandemic had a varied impact on various long term services in the majority of the regions. Nursing homes have been the most affected sector by the pandemic due to the scarcity of nursing staff amid high demand and restrictions on the movement for the existing pool of care providers.

Home healthcare has emerged as a cost-effective alternative during the pandemic, thus the demand for these long term care services is expected to increase during the forecast period.

As the home healthcare industry consists of products and services, both have been differently impacted in terms of revenue. COVID-19 has had a positive impact on a few home healthcare monitoring products, such as pulse oximeters, blood pressure monitors, blood glucose monitors, and temperature monitors. However, there has also been a shortage of home healthcare devices.

As more families and patients will avoid hospitalization to avoid the risk of infection, the demand for long term care is expected to increase post-pandemic. Moreover, increasing vaccination drives and the rising awareness of LTC as a cost-saving alternative will aid the market growth in the coming years.

 

Burdett Trust for Nursing, U.K. launched a three-year-long Nursing Now campaign in February 2018, which is receiving support from the International Council of Nurses and the World Health Organization (WHO). It is a global health initiative that aims to raise the profile and status of the nurses and enable nurses to maximize their contribution to achieving Universal Health Coverage (UHC).

Service Insights

Nursing care held the largest revenue share of over 35.0% in 2020. The presence of a large number of facilities offering nursing care to the growing aging population worldwide is a major factor driving the segment. Home healthcare held the second-largest share in 2020. The growing demand for personalized long term care at home and cost-effectiveness impel the growth of the home healthcare segment. Rising healthcare expenditure has made home healthcare the de facto for many patients who need attention. With an increasing demand for home healthcare, healthcare providers are introducing newer technologies and software to improve the quality of long term care services being provided.

The aging boomers are shifting their preference from nursing homes to home or community-based healthcare. In nursing homes, residents are deprived of freedom. Moreover, the cost of hospitalization is a major contributor to the increasing demand for long term care services. Hospital stays cost USD 2,000 per day as against USD 44 a day.

The hospice segment is expected to exhibit the highest CAGR of 8.4% from 2021 to 2028. In June 2013, Cicely Saunders International and the Commission into the Future of Hospice Care published a report emphasizing the current and future demand for hospice. The increasing need for chronic healthcare, especially Alzheimer's and dementia, is expected to further accelerate the demand for hospice. Hospice service providers are collaborating with other service providers to deliver healthcare in other settings. In January 2017, Kindred Healthcare, Inc., entered into a strategic clinical collaboration with Genesis HealthCare, one of the largest providers of post-acute healthcare to improve quality, outcome, and transitions across the post-acute continuum. This collaboration was aimed at enabling Kindred to become one of the leading providers of rehabilitation and post-acute long term care in the U.S., with hospice and other services.

Residents in LTC facilities are a vulnerable population group. Coronavirus-related deaths in long term care accounts for 30-50% of all COVID-19 deaths in many European countries. This demands the countries to implement both local and national testing, preventing and controlling infection, and monitoring programs for COVID patients in long term care facilities to identify clusters early and decrease the spread and severity of outbreaks.

Regional Insights

North America dominated the market with a share of over 45.0% in 2020 owing to the high percentage of the geriatric population, greater government funding, and the implementation of a streamlined regulatory framework. Around 60% of the funding for long term care in the U.S. comes from Medicaid. Under the Affordable Care Act, a separate system called Medicare Prospective Payment System (MPPS) was started to support long term services.

Global long term care market share, by region, 2020 (%)

Asia Pacific is expected to register a CAGR of 8.3% from 2021 to 2028. This is attributed to the increasing prevalence of chronic illnesses, such as diabetes, cardiac disorders, and respiratory diseases. The market for long term care is in its nascent stage and has significant potential for growth. Moreover, international long term care homes are investing in countries, such as India and Japan. For instance, in October 2013, BAYADA Home Health Care, a home healthcare giant based in the U.S., acquired a 26% stake in India Home Health Care (IHHC).

Startups in the home healthcare industry like Portea and HealthCare atHOME succeeded in the country, following which, big hospital chains like Apollo and Max have entered the Indian home healthcare market. In India, 65% of hospital visits can be managed at home. Acute services such as injury management, episode of illness, or recovery from surgery can be easily given at home, thereby eliminating the need to visit a hospital. This offers a potentially untapped market for hospice and home healthcare in India.

Key Companies & Market Share Insights

Mergers and acquisitions, joint ventures, partnerships, and new facility launches are the key strategies undertaken by the players in the market. For instance, in June 2019, Ventas, Inc., a real estate investment trust, announced to acquire USD 1.8 billion portfolios of around 31 independent living communities, by investment through an equity partnership of 85% and 15% with Le Groupe Maurice.

In November 2019, the U.S. leading independent personal care, hospice, and home health company named Amedisys, Inc., signed an agreement to acquire a hospice care provider, Asana Hospice, which offers service to around 540 patients daily in eight locations in Ohio, Pennsylvania, Missouri, Texas, and Kansas.

Market contributors are expanding their capacity to cater to the increasing demand for geriatric long term care services. For instance, in May 2016, Brookdale invested USD 8 million in its senior living facility in Florida. The expansion plan was to address the growing incidence of Alzheimer's and dementia among people. Some prominent players in the global long term care market include:

  • Brookdale Senior Living, Inc.

  • Sunrise Carlisle, LP

  • Atria Senior Living Group

  • Extendicare, Inc.

  • Capital Senior Living

  • Diversicare Healthcare Services Inc.

  • Kindred Healthcare, Inc.

  • Genesis Healthcare Corp.

  • Senior Care Centers of America

  • Home Instead Senior Care, Inc.

  • Amedisys, Inc.

Long Term Care Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 1.04 trillion

Revenue forecast in 2028

USD 1.68 trillion

Growth Rate

CAGR of 7.1% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion/trillion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Service, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; France; Italy; Spain; Japan; China; India; Australia; Brazil; Mexico; Argentina; South Africa

Key companies profiled

Brookdale Senior Living, Inc.; Sunrise Carlisle, LP; Atria Senior Living Group; Extendicare, Inc.; Capital Senior Living; Diversicare Healthcare Services Inc.; Kindred Healthcare, Inc.; Genesis Healthcare Corp.; Senior Care Centers of America; Home Instead Senior Care, Inc.; Amedisys, Inc.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global long term care market report based on service and region:

  • Service Outlook (Revenue, USD Billion, 2016 - 2028)

    • Home Healthcare

    • Hospice

    • Nursing Care

    • Assisted Living Facilities

    • Others

  • Regional Outlook (Revenue, USD Billion, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

      • Spain

    • Asia Pacific

      • China

      • Japan

      • India

      • Australia

    • Latin America

      • Brazil

      • Mexico

      • Argentina

    • Middle East & Africa

      • South Africa

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