The Global Long Term Care Market is estimated to reach USD 1,568.7 Bn by 2027, growing at a CAGR of 7.1% over the forecast period.
Long-term care includes adult day care, nursing homes, hospices, and home health care. Long term care play an important role in maintaining the individuals' health and functional state which is a boosting factor for growth of long-term care market. Additionally, the availability of services is the most important factor in determining their decisions for adoption of long-term care. Long-term care has been in high demand among the older population, and services are now widely available in developed countries.
The targeted demographic for long-term care services includes a high number of persons who are sick, disabled, or old. As a result, the growing ageing population is a major driver for increasing demand of long term care market. For instance, the proportion of the world's population aged 60 and up will nearly double from 12 percent to 22 percent between 2015 and 2050. By 2050, over 80% of the world's elderly would live in low- and middle-income countries. The demand for long-term care is also being driven by an increase in the population with chronic ailments or illnesses that boosts the growth of long term care market. For instance, according to the World Health Organization (WHO), the chronic disease prevalence is estimated to increase by 57% by 2021 due to increase in consumption of tobacco, alcohol, unhealthy diet, and physical inactivity among the population.
The need for adult day care has increased as the number of people with hypertension, osteoporosis, osteoarthritis, and type 2 diabetes has increased in developed countries. For instance, according to the International Diabetes Federation (IDF), 463 million people worldwide are diagnosed with diabetes in 2020, with 88 million in Southeast Asia. India accounts for 77 million of the 88 million Southeast Asian diabetic people.
Governments in several developing and developed countries are enacting policies aimed at extending the productive lives of the elderly. The worldwide long-term care market has benefited greatly by enacting the policies for geriatric population. Nursing homes have been increasingly popular among those seeking mental health and counselling services in recent years. For instance, according to the American Association of Long-Term Care Insurance, more than 8 million Americans have long-term care insurance. However, the high cost of long-term care insurance may be impeding the long term care market expansion.
Global Long Term Care Market, by Region Outlook (Revenue, USD Billion, 2021-2027)
In terms of geography, North America is expected to grow at significant CAGR and dominate in the long term care market. This is due to an increase in the prevalence of chronic illnesses like diabetes, heart disease, and respiratory ailments. The rising government initiatives focused at reducing healthcare expenditures by initiating home healthcare that drives the regional long term care market growth. For instance, the program of “Hospital at Home” was started in 1995 and later telemedicine introduced in the program. In this program the patient undergoes treatment at home due to this the cost for treatment and care reduced by nearly 30%.
However, the Asia-Pacific registered the fastest growth in the long-term care market during the forecast period. The market is still in its infancy stage in the region, however, it is growing at significant rate. Furthermore, foreign long-term care facilities are making investments in nations like India and Japan. Post-acute care such as injury management, illness episodes, and surgical recovery can all be provided at home, obviating the need to visit a hospital. In India, this could open up a previously unexplored market for hospice and home healthcare.
The Global Long Term Care Market Segmentation:
Global Long Term Care Market, by Facility Outlook (Revenue, USD Billion, 2021-2027)
Global Long Term Care Market, by Type Outlook (Revenue, USD Billion, 2021-2027)
Company Profiles and Competitive Intelligence
The key players operating in the long term care market are: