Pediatric Home Healthcare Market Size, Share & Trends Analysis Report By Service (Skilled Nursing Services, Rehabilitation Therapy Services), By Region (North America, Asia Pacific), And Segment Forecasts, 2023 - 2030

Report Overview

The global pediatric home healthcare market size was estimated at USD 35.6 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.86% from 2023 to 2030. The use of advanced technologies to provide medical assistance and continuous care at home for children with medical complexities (CMC) is expected to boost market growth. These technologies facilitate life-sustaining home healthcare services in a comfortable setting, reducing hospital stays for infants with respiratory disorders, neurological, and complex cardiac conditions. According to the National Survey of Children with Special Healthcare Needs, in 2019-2020, nearly 1 in 5 children (19.4%) in the United States had special healthcare needs, totaling 14.1 million children.

As the number of children with special healthcare needs (CSHCN) continues to increase, pediatric home healthcare services can enhance their quality of life and significantly decrease their medical expenses. In addition, improved medical interventions have resulted in an extended lifespan for premature babies, leading to a greater need for pediatric care services at home. Infants who are born prematurely and weigh less than 1 pound often experience multiple chronic conditions, requiring additional care from an early stage. The availability of assistive devices and equipment, such as gastric, CPAP machines, ventilators, apnea monitors, and nebulizers, have enabled infants with complex illnesses to be discharged from neonatal intensive care units and receive ongoing medical assistance through pediatric nursing care in their own homes.

The rising number of children with chronic diseases has created investment opportunities in pediatric home healthcare. A study by Lero and colleagues (2021) found that over 625,000 Canadian families with preschoolers had at least one parent working non-standard hours, but only 2% of childcare centers offered care during those hours. Increasing availability of childcare options is expected to benefit parents seeking specialized healthcare for their children with chronic diseases. With more flexible childcare centers, parents can access healthcare services while managing their work. This is expected to drive the growth of the market, as parents can confidently seek specialized care for their children.

Favorable insurance policies are expected to drive the growth of the market. The American Academy of Pediatrics states that Medicaid covers essential services like primary care, hospice care, personal care assistance, and nursing care for children. Medicaid primarily covers the majority of pediatric expenses, while private insurance also contributes to the remaining costs. For instance, private insurance companies, such as Texas Star Kids, CHIP, Community First Healthcare Plans, Texas Children’s Health Plan, and Children’s Medical Center Health Plan, accept Pediatric Home Healthcare, a Texas-based company that offers various programs.

This increased coverage is expected to boost the demand for pediatric healthcare services. The COVID-19 pandemic had both positive and negative effects on the global market. On the positive side, the pandemic increased the demand for pediatric home healthcare services. These services allow medical treatment to be provided in the comfort of patients’ homes, which is beneficial in times of restricted movement and social distancing measures. Furthermore, home healthcare services help minimize the spread of COVID-19 by reducing the need for patients to visit healthcare facilities.

Service Insights

Based on services, the market is divided into rehabilitation therapy services, skilled nursing services, and personal care assistance. The rehabilitation therapy services segment dominated the overall market and held a revenue share of 60.4% in 2022. The segment is expected to witness the fastest growth over the forecast period. The high probability of premature infants experiencing neurological and muscular challenges is anticipated to increase the demand for rehabilitation therapy services during the forecast period. Many service providers currently offer different types of rehabilitation therapies, including speech, physical, and occupational therapies, for children with conditions like cerebral palsy, autism, muscular atrophy, and ADD/ADHD.

Skilled nursing services held a significant market share due to the rising number of children with complex medical conditions like epilepsy, asthma, cerebral palsy, and cystic fibrosis. These services have effectively decreased the inpatient expenses for children with medical complexities. An article published in Health Affairs journal in June 2019 revealed that the cost of home nursing care in rural areas can be as low as USD 19 to USD 21 per hour, compared to USD 23 to USD 38 per hour for hospital nursing care.

Pediatric home care providers face significant difficulties retaining qualified nursing staff to deliver excellent care for children with special healthcare needs. Market players are implementing strategic initiatives to address these challenges to enhance their capabilities. For instance, in July 2022, Pediatric Home Services acquired Craig HomeCare, a provider of pediatric nursing services, and Cherub Medical Supply, a medical equipment provider. With this acquisition, both providers will collaborate with PHS to improve the efficiency of care for children with complex medical conditions, aiming to streamline their treatment and support.

Regional Insights

North America held the largest market share of over 35% in 2022 due to growing awareness about pediatric home-based medical services. Prolonged hospital stays can be expensive, but pediatric home-based services offer a cost-effective solution that improves patient care efficiency. As a result, many providers in the United States are offering a range of services to meet the growing demand for pediatric home healthcare. The market growth in North America is further supported by the increasing coverage for children and youth with special healthcare needs. A report published by the Medicaid and CHIP Payment and Access Commission in 2023 revealed that approximately 18.9% of U.S. children and youth aged 0 to 17 years with special healthcare needs are covered under various insurance plans.

Specifically, 37.8% are covered by Medicaid, 50.9% by private insurance, and 7.6% have private insurance and Medicaid coverage. This expanded coverage is expected to drive the growth of the regional market. Asia Pacific is anticipated to register the fastest CAGR during the forecast period. With improved survival rates for neonatal babies and premature infants, there is a growing demand for in-home pediatric care due to the higher risk of neurological and physical disorders in children. Recognizing this need, BAYADA Home Health Care has launched pediatric services in India and South Korea. Moreover, ongoing technological progress and supportive government initiatives fuel the market expansion throughout the region.

Key Companies & Market Share Insights

Major players are undertaking various strategic initiatives, such as collaborations, mergers & acquisitions, geographical expansions, and services expansions, to gain higher market share. For instance, in April 2022, Pediatric Home Healthcare, LLC acquired Vila Children Therapy, a provider of pediatric physical, speech, and occupational therapy. This acquisition aims to strengthen the company's position in both national and international markets. Some of the prominent players in the global pediatric home healthcare market include:

• Pediatric Home Healthcare, LLC

• Aveanna Healthcare, LLC.

• BAYADA Home Health Care

• Tendercare Home Health

• BrightStar Care

• Angels of Care Pediatric Home Health

• New England Home Health Services

• EnViva Paediatric Care

• Interim HealthCare Inc.

• eKidzCare

Pediatric Home Healthcare Market Report Scope

Global Pediatric Home Healthcare Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global pediatric home healthcare market report on the basis of service and region:

• Service Outlook (Revenue, USD Million, 2018 - 2030)

  • Skilled Nursing Services

  • Personal Care Assistance

  • Rehabilitation Therapy Services

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Sweden

    • Norway

    • Denmark

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait