U.S. Assisted Living Facility & Neurorehabilitation Market Size, Share & Trends Analysis Report By Gender (Women, Men), By Age (More Than 85 Years, 75-84 Years, 65-74 Years, Less Than 65 Years), And Segment Forecasts, 2020 - 2027

Report Overview

The U.S. assisted living facility and neurorehabilitation market size was valued at USD 101.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of around 5.0% from 2020 to 2027. Individuals residing in Assisted Living Facilities (ALFs), largely senior citizens, seek companionship, security, and assistance with daily activities. An increasing number of Traumatic Brain Injury (TBI) survivors seeking neurorehabilitation and residential care and growing geriatric population are the key factors driving the market for assisted living facility and neurorehabilitation. According to the UN estimates, in the U.S., 1 out 5 will be aged 65 years and above by 2050. The U.S. has a significantly high geriatric population, as advancements in medicine and technology have increased life expectancy.

About 7 out of every 10 people in assisted living facilities depend on their personal wealth or their families to pay for their services. To make such a facility more affordable for low-income individuals, several states are making changes to the regulations of Medicaid applicable to any assisted living facility. An assisted living facility does not abide by federal regulations, therefore, cannot claim Medicare reimbursement. This is the major restraining factor as the cost is one of the primary factors potential tenants take into consideration while forming their decisions. However, this scenario is anticipated to improve as almost 40 states either provide or are planning to partially reimburse these services through Medicaid.

Increased life expectancy, growing income from the senior population, and the desire to live in senior housing communities for better healthcare and quality of life are expected to fuel the market for the assisted living facility and neurorehabilitation over the forecast period. Adults suffering from various mental illnesses require prolonged assistance to sustain in mainstream society. In the U.S., mental illness was considered to be the most expensive disorder. This is expected to render exponential growth in the assisted living facility and neurorehabilitation industry. Many assisted living facilities offer special treatment for the survivors of Traumatic Brain Injury (TBI).

U.S. Assisted Living Facility & Neurorehabilitation Market Trends

Estimates published by the WHO suggest that population of age group 65 years and above is expected to grow from 7% in 2000 to 16% in 2050. The data published by United Nations in 2012 states that aging population will reach nearly 1.13 billion by 2022. Due to reducing immunity levels, geriatric population is more prone to the age-related neurological conditions, such as Parkinson’s disease. Therefore, over the forecast period, the increasing global base of aging population will drive the growth of neurorehabilitation devices market. In Asian countries such as Japan, China, and India, increasing aging population coupled with large untapped opportunities is anticipated to increase need for neurorehabilitation devices.

Neurorehabilitation has undergone tremendous change in the recent yearsdue to adoption of computer-aided and electronic robotic devices. These devices help in improving patient response to the rehabilitation treatments. The market has immense growth potential due to rising incidence and prevalence of neurological disorders.

Immobility is the most common effect of neurological conditions. According to American Stroke Association, stroke is 5th cause of death in the US and the leading cause of disability. Around 2.5 million people are suffering from multiple sclerosis, whereas 10 million are suffering from Parkinson’s disease worldwide. Spinal cord injuries can also affect the nervous system, leading to disability, which depends on the injury. According to WHO, between 250,000 and 500,000 people suffer a spinal cord injury every year.

The current treatment cost pertaining to neurorehabilitation is high. Developed countries such as the US, Canada, and the UK are adopting newer treatments at a fast rate, due to technological advancements and higher disposable income. On the other hand, developing countries such as China, India, and Brazil are lacking technologically. There is deficit in capital required to employ high-end rehabilitation treatments due to lower disposable income.

Gender Insights

Women held a revenue share of around 70.0% in 2019 in the market for assisted living facility and neurorehabilitation. Women will also emerge as the fastest-growing segment over the course of the forecast period. On the basis of gender, the market for assisted living facility and neurorehabilitation is segmented into women and men. An assisted living facility is a long-term senior care facility that provides personal care support services, such as social and recreational activities, housekeeping, meals, exercise, and wellness services. The greater life expectancy of women, higher rates of disability and chronic health problems, and lower-income compared to men are some of the major factors behind the dominance of this gender group in any assisted living facility.

Age Insights

The more than 85 years age segment accounted for the largest share of around 52.0% in 2019 in the market for assisted living facility and neurorehabilitation. The segment is also predicted to register the fastest growth rate over the forecast period. On the basis of age, the U.S. Assisted Living Facility and neurorehabilitation market is segmented into more than 85 years, 75 to 84 years, 65 to 74 years, and less than 65 years. According to the data published by the U.S. Department of Health and Human Services in April 2018, the age group of 65 and above increased by 33.0% from 2006 to 49.2 million in 2016 and is projected to reach 98.0 million by 2060.

The population aged 85 years and above is projected to increase from 6.4 million in 2016 to 14.6 million by 2040. The growing geriatric population base demands for more assisted living facility and neurorehabilitation in the region. This is likely to increase the demand for professional caregivers and new assisted living facility offering neurorehabilitation. According to Aging.com, seniors in the U.S. will need about two million housing facilities by 2040 to provide adequate living space for those in need of care.

The concept of continuing care retirement communities has been gaining traction among seniors with stable financial means. Such a facility is known to cater to tenants as young as 50 years of age. The idea behind these communities is that “seniors” do not have to relocate when additional care is needed as time passes. As a result, the less than 65 years segment in the market for assisted living facility and neurorehabilitation is likely to receive a moderate boost over the forecast period.

Country Insights

North America is the largest regional segment for neurorehabilitation devices. The North American market will reach 1.3 billion in 2024. The drivers for the growth of this market are the increasing incidence rate of neurological diseases, the increasing geriatric population, and sophisticated and equipped healthcare infrastructure in comparison with the other regions. The US and Canada are the major contributors to the North American neurorehab devices market. More than 130,000 people die each year in the US due to stroke and it is the leading cause of disability. Also, more than 400,000 Canadians are suffering from long-term stroke disability.

Europe is the second largest market for neurorehabilitation devices after North America. In Europe, stroke is one of the leading causes of deaths. Around 8.2 million people are affected every year according to The European Brain Council. The Europeans have the highest risk of developing multiple sclerosis with almost 0.5 million people suffering from it. According to The European Council Study conducted in 2011, brain disorders, including neurological diseases, resulted in financial burden on the European economy. The major contributors in this region are UK and Germany.

The majority of the key players such as Bioness, Inc., Ekso Bionics Holdings, Inc., Medtronic PLC (US), Bionik Laboratories, Kinova Robotics, and NINET (Canada) are established in North America. The adoption rate for these treatments is expected to witness growth in North America, as the treatments are covered under the medical insurance plans as well as the average out-of-pocket expenses are high in this region.

Asia Pacific market is likely to witness more growth opportunities. This market is estimated to grow at the highest CAGR of around 16% during the forecast period. Although there are no monopolized key players at present, however, increasing the patient base with neurological disorders and improving healthcare infrastructure will create a wide scope for the companies to enter this lucrative market.

Japan has emerged to be an important market for neurorehabilitation devices due to quick acceptance of new technologies mainly because of increasing aging population. Japanese population is ageing faster than any other country in the world. According to 2014 estimates, 26% of Japanese population was of age 65 years or older. Furthermore, stroke is the leading cause of disability in Japan. Therefore, Japanese neurorehabilitation devices market is likely to witness fastest growth in Asia Pacific.

 Furthermore, one of the major growth factors for the Asian market is the rising awareness coupled with constantly improving healthcare infrastructure. Owing to the promising market potential, companies are taking up strategic initiatives to expand their operations in this region. For instance, Switzerland-based Hocoma AG has entered the Indian market by associating with Apollo Hospitals to provide neurorehabilitation services to the patient base in India.

Key Companies & Market Share Insights

The competitive landscape of the U.S. assisted living facility and Neurorehabilitation industry is distributed among national comprehensive rehabilitation companies and specialized post-acute traumatic brain injury companies. Kindred Healthcare, LLC and Encompass Health Corporation are the key players in terms of strategic initiatives and service portfolios. Neurorestorative, The Mentor network, and Pate Rehabilitation are among the leading post-acute care providers for traumatic brain (TBI) injury survivors. Acquisition and partnerships are some of the key strategies followed by the major players in the market for assisted living facility and neurorehabilitation. For instance, in January 2020, NeuroRestorative partnered with Main Line Rehabilitation Associates, Inc. located in Pennsylvania, to expand its post-acute TBI service portfolio. Main Line Rehabilitation Associates provides community-based and support services to patients who suffered a brain injury. Some of the prominent players in the U.S. assisted living facility and neurorehabilitation market include:

• Centre For Neuro Skills

• Mary Lee Foundation

• NeuroRestorative

• The MENTOR Network

• Pate Rehabilitation

• ResCare, Inc.

• Texas NeuroRehab Center

• Texas Rehabilitation and Habilitation Specialists, LLC

• Moody Neurorehabilitation Institute

The U.S. Assisted Living Facility & Neurorehabilitation Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the U.S. assisted living facility and neurorehabilitation market report based on gender, age, and country:

• Gender Outlook (Revenue, USD Billion, 2016 - 2027)

  • Women

  • Men

• Age Outlook (Revenue, USD Billion, 2016 - 2027)

  • More than 85 years

  • 75-84 years

  • 65-74 years

  • Less than 65 years

• Country Outlook (Revenue, USD Billion, 2016 - 2027)

  • West

  • South

  • Midwest

  • Northeast