The global aged care market size was USD 283.2 Billion in 2022 and is likely to reach USD 604.5 Billion by 2031, expanding at a CAGR of 8.6% during 2023–2031. The market is driven by the growth of the geriatric population and advancements in healthcare.
Increasing prevalence of chronic diseases such as high blood pressure, stroke, and diabetes among elderly people is expected to boost the aged care market. The significant rise in the geriatric population is leading to a greater demand for nursing and home care services in assisted and residential homes. Furthermore, the advent of telehealth and telemedicine services has made it possible for elderly people to receive care services even in remote areas. These factors are anticipated to propel the aged care market during the projection period.
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According to the United Nations’ World Social Report 2023 published on 17 January 2023, the global geriatric population in 2021 was close to 761 million. By 2050, the population is expected to reach a staggering number of 1.6 billion. Such geriatric population rise is anticipated to expand the aged care market opportunities during the forecast period.
Aged care services have significantly improved the lives of elderly people by providing comfortable living solutions, immediate access to medical care, and the convenience of staying with the family or old-age homes. It helps them receive the one-to-one attention of designated caretakers, who are trained to provide personalized care according to a person’s needs. The availability of effective medical treatments for various ailments associated with old age through institutional care or homecare is likely to provide steady growth to the aged care market.
The research report finds that the COVID-19 pandemic boosted the market, owing to the high requirement for aged care services. The virus had an adverse impact on individuals with weaker immunity. Since this is a common problem associated with old age, elderly people require intensive healthcare for protection against infection. This surged the demand for institutional care as well as homecare setups, and pharmaceutical aid for elderly people with preexisting medical conditions. Although things have gotten better, the market is likely to have steady growth in the coming years.
Artificial Intelligence Impact on the Aged Care Market
Artificial Intelligence is likely to provide substantial propulsion to the aged care market. The implementation of machine learning and artificial intelligence in healthcare can reduce the time healthcare providers spend on repetitive paperwork and administrative tasks. This allows them to focus on providing better care and service to elderly patients.
AI is also useful in optimizing nursing home operations. For instance, scheduling tools powered by AI can assist nurses in finding the most convenient appointment times, while inventory management systems powered by AI can ensure that nursing homes always have adequate supplies. This results in improved patient care and streamlined nursing home operations, which can boost the market.
Aged Care Market Dynamics
Major Drivers
Rise in the geriatric population is expected to drive the market during the projection period. This growth is likely to create a high demand for institutional as well as homecare services among geriatrics. Elderly people are becoming increasingly aware of the facilities of aged care services. This has led to a growing inclination among them to have a better lifestyle post-retirement. Furthermore, various governments around the world have developed favorable reimbursement policies as well as health and medical insurance to ensure a good quality of life for the geriatric population. This is likely to provide the market with constant growth during the assessment period. For instance,
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In 2020, the National Insurance Company in India announced a policy for people in the age group of 60-80 called the Varistha Mediclaim Policy. It covers every expenditure related to medical services, including medication, nursing costs, and emergency transportation.
Existing Restraints
Insufficient awareness regarding aged care services in rural areas is likely to hamper the market during the forecast period. Due to the lack of technological amenities in rural areas, elderly people are often deprived of the care services they require. In addition, rural people are less likely to visit healthcare centers for medical issues on account of a lack of proper knowledge and unaffordability. This worsens for elderly men and women living alone in rural areas. These factors are likely to restrain the market in the coming years.
Emerging Opportunities
Technological advancements in the field of medical science are anticipated to provide substantial growth opportunities for the market. A wide variety of health monitoring devices, assisting gadgets, and emergency aid are now available for the care of elderly people that can easily be set up within homes and daycares. These devices can even be monitored remotely by a healthcare professional, owing to the facility of telehealth and telemedicine services. With the advent of such technologies and continuously rising health standards, the market is expected to witness significant growth.
Scope of the Aged Care Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Aged Care Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Product Type (Housing & Assistive Devices and Pharmaceuticals), Service (Homecare, Institutional Care, and Adult Day Care), Application (Kidney Diseases, Diabetes, Heart Diseases, Cancer, Arthritis, Osteoporosis, Respiratory, Neurological, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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ST LUKE’S ELDERCARE LTD.; Samvedna Care; RIEI Co., Ltd.; Orange Valley; NTUC Health Co-operative Ltd.; Nikkei Inc.; GoldenCare; Epoch Elder Care; ECON Healthcare Group; Webrock Ventures; Quro Medical; and Benesse Style Care Co., Ltd.
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Aged Care Market Segment Insights
Product Type Segment Analysis
Based on product type, the aged care market is divided into housing & assistive devices and pharmaceuticals. The housing & assistive devices segment is projected to hold a significant share of the market during the projection period, due to the advancement of medical technology and the availability of portable medical devices for use by common people. Furthermore, the facility of remote patient management has facilitated the convenient availability of round-the-clock support online consultations and easy access to patient health records for physicians. This considerably reduces the need for visiting hospitals for elderly people and is likely to boost the growth of this segment.
Service Segment Analysis
On the basis of service, the global market is segregated into homecare, institutional care, and adult day care. The homecare segment is projected to register a high CAGR during the forecast period, as it provides better personal care and proximity to family members. It enhances the quality of life and is associated with a lower risk of rehospitalization. The global upsurge in the geriatric population is increasing the popularity of homecare services owing to these benefits, thereby propelling the market during the assessment years.
Institutional care is expected to experience strong propulsion during the forecast period, driven by strong healthcare management and proximity to doctors. The Institutional care centers provide thorough care to elderly patients as they are staffed with medical professionals around the clock. The staff is well-trained and can perform both medical and non-medical duties. Furthermore, the availability of adaptive aids and equipment, therapies, social activities, psychological services, and rehabilitation programs make these places ideal for the stay of elderly people and are expected to grow at a rapid pace in the coming years.
Application Segment Analysis
On the basis of application, the aged care market is segmented into kidney diseases, diabetes, heart diseases, cancer, arthritis, osteoporosis, respiratory, neurological, and others. The heart disease segment is anticipated to register a robust growth rate during the forecast period, owing to the surge in the prevalence of cardiovascular diseases in recent years. The unhealthy eating and sleeping habits associated with the modern lifestyle are leading to an upsurge in cases of hypertension, high blood pressure, and obesity. As these problems have adverse effects on elderly people, it is projected to major propulsion to this segment.
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As per a survey report published in April 2023, stroke and ischemic heart disease were the most prominent causes of death all over the world in 2019. Stroke was responsible for approximately 6.2 million deaths, while ischemic heart disease caused around 8.9 million deaths.
Regional Outlook
In terms of region, the global aged care market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period as a result of highly advanced medical infrastructure and government-aided healthcare for elderly people. Furthermore, there has been a substantial increment in the geriatric population in this region, which is likely to create major growth opportunities for the market players in this region.
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As per the report published by the U.S. Census Bureau in August 2022, there has been a 34.4% increment in revenue of assisted living facilities for elderly people between the years 2013 and 2020. Home healthcare services witnessed even larger growth, a rise of 50.5% within the same period.
Europe is expected to experience a substantial rise in the aged care market, owing to the large number of elderly people and increasing awareness for aged care services in this region. European nations such as the UK are major supporters of such elderly care services, including institutional services, daycare, physical therapy, and vocational rehabilitation services. In addition, other factors such as a rise in disposable income and the presence of a large number of elderly care service providers are projected to create favorable conditions for the growth of the market in Europe.
Segments
The aged care market has been segmented on the basis of
Product Type
- Housing & Assistive Devices
- Pharmaceuticals
Service
- Homecare
- Institutional Care
- Adult Day Care
Application
- Kidney Diseases
- Diabetes
- Heart Diseases
- Cancer
- Arthritis
- Osteoporosis
- Respiratory
- Neurological
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- ST LUKE’S ELDERCARE LTD.
- Samvedna Care
- RIEI Co., Ltd.
- Orange Valley
- NTUC Health Co-operative Ltd.
- Nikkei Inc.
- GoldenCare
- Epoch Elder Care
- ECON Healthcare Group
- Webrock Ventures
- Quro Medical;
- Benesse Style Care Co., Ltd.
Competitive Landscape
Key players competing in the global aged care market are ST LUKE’S ELDERCARE LTD.; Samvedna Care; RIEI Co., Ltd.; Orange Valley; NTUC Health Co-operative Ltd.; Nikkei Inc.; GoldenCare; Epoch Elder Care; ECON Healthcare Group; Webrock Ventures; Quro Medical; and Benesse Style Care Co., Ltd.
These companies adopt development strategies including product launches, acquisitions, partnerships, mergers, collaboration, and production expansion to cater to customers worldwide. These key players provide a diverse range of services to elderly people and help enhance the quality of their lives. For instance,
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In June 2021, Webrock Ventures collaborated with Helathforce to introduce its telehealth products in the South African region. This is intended to provide the patients with scheduled and on-demand consultations along with the guidance of mental health professionals, nurses, and practitioners.
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In April 2021, Quro Medical, one of the health-tech-based startups in South Africa, in a seed funding round raised USD 1.1 million. The company combines software and hardware along with the proficiency of traditional doctors to help patients with severe illnesses from the comfort of their homes.
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