Long-term Care Market Size, Share & Trends Analysis Report By Service (Home Healthcare, Hospice & Palliative Care, Nursing Care, Assisted Living Facilities), By Payer (Public, Private, Out of Pocket), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global long-term care market size was valued at USD 1.11 Trillion in 2022 and is expected to register a compound annual growth rate (CAGR) of 6.62% during the forecast period. The long-term care (LTC) market is majorly driven by the rise in the global geriatric population. Moreover, an increase in life expectancy impels the need for LTC services. The unmet needs of the elderly are also contributing factors to market growth. With the provision of personal care at home, unnecessary hospitalization is avoided thus preventing the patients from its high cost and from the degrading quality of life.

The increase in the population of older individuals is a major concern in many countries across the globe. The last baby boomers generation reached an age span of 52 to 70 years in 2016, which is the largest aged cohort so far. More than 54% of the geriatric population is concentrated in only six countries-China, the U.S., India, Japan, Germany, and the Russian Federation. This has increased the pressure on the governments of these countries to provide them with care services. Governments of these countries are reforming their healthcare systems to provide the care needed by senior citizens at affordable prices. The U.S. government supports LTC for elders through Medicare and Medicaid systems. These factors are expected to fuel the growth of the LTC market during the forecast period.

The prevalence of chronic diseases is increasing at a significant pace. Along with general age-related disability, the elderly also suffer from chronic diseases such as cancer, heart problems, diabetes, dementia, Alzheimer’s, and mental stress. Hospitalization for chronic conditions can be expensive and entail unnecessary use of resources, which can be utilized by patients in critical conditions. LTC provides specialized care required by the elderly and increasing awareness about these centers as well as their advantages over hospitals is expected to impel market growth.

COVID-19 long-term care market impact: 5.2% growth from 2020 to 2021

Another key driving factor in the expansion of the long-term care industry is technological advancement in healthcare delivery. Initially, durable medical devices such as wheelchairs, walkers, and safety blankets were predominantly used for care management. During the forecast period, the market is estimated to be driven by the development of sophisticated user-friendly products and services such as internet-enabled home monitoring, telemedicine, and mobile health apps.

Services Insights

Nursing care dominated the service segment of the market and accounted for a revenue share of more than 32.33% in 2022, which can be attributed to the preference for care by the elderly and high demand from developing countries. With the increasing geriatric population and rising incidence & prevalence of chronic diseases, such as heart problems, Alzheimer’s disease, & cancer, the need for nursing care is growing.

Adoption of home healthcare is high among people older than 65 years of age, individuals recently discharged from hospitals, mothers of newborns, mentally challenged adults, and individuals who want medical assistance for their parents within their homes. 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.

Hospice is anticipated to witness the highest growth with a CAGR of 8.58% during the forecast period due to the increasing prevalence of chronic diseases and the growing need for 24 hour-medical attention. According to a report published by WHO in 2018, only about 14% of people who needed palliative care received it. Around 40 million people need palliative care each year, out of which 78% live in low- and middle-income countries.

Regional Insights

North America dominated the long-term care market with revenue share of 49.27% in 2022, due to the availability of long-term care centers, improving reimbursement framework, and favorable government policies. An estimated 14 million people in the U.S. required long-term support services by February 2020. According to the Department of Health and Human Services (HHS), seven out of every ten senior adults over the age of 65 will require LTC before they die. long-term care is estimated to be needed by 24 million Americans by 2030.

The long-term care industry is still in its infancy in several countries in the Asia-Pacific region, thus the region is expected to have lucrative market growth in the coming years. This is due to an increase in chronic conditions such as heart disease, diabetes, and respiratory problems. In addition, foreign long-term care facilities are investing in countries such as India and Japan. For instance, in October 2013, BAYADA Home Health Care, a US-based home healthcare conglomerate, purchased a 26% share in India Home Health Care (IHHC).

Latin America is expected to grow at the fastest CAGR of 8.18% during the forecast period due to its aging population. However, it currently lacks well-regulated long-term care services in most countries. The inadequate presence of facilities and their nonuniform geographical distribution can lead to a greater burden on unpaid caregivers, such as family. Brazil has a comparatively better market scenario due to its low cost of care, which is attracting baby boomers from the U.S. and Canada.

Key Companies & Market Share Insights

The LTC market is fragmented owing to the presence of several profit & nonprofit players Competitors in these markets are increasing their market share through a variety of marketing strategies, including new service launches, geographic expansions, partnerships, and mergers & acquisitions. For instance, to increase its footprint in the U.S., Atria Senior Living, Inc. assumed administration of 21 Independent Living locations across nine states owned by New Senior Investment Group, Inc. in February 2021.

HCA Healthcare completed a USD 400 million acquisition of Brookdale Senior Living's home care and hospice  & palliative care business segment in July 2021 as the hospital chain prepares to expand into the home care industry. Some of the prominent players in the 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

Global Long-term Care Market 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 2017 to 2030. For this study, Grand View Research has segmented the global long-term care market based on service and payer:

• Service Outlook (Revenue, USD Billion, 2017 - 2030)

  • Home Healthcare

  • Hospice & Palliative Care

  • Nursing Care

  • Assisted Living Facilities

  • Others

• Payer Outlook (Revenue, USD Billion, 2017 - 2030)

  • Public

  • Private

  • Out of Pocket

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE