GLOBAL SKILLED NURSING FACILITY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Global Skilled Nursing Facility Market Size and Trends

The global skilled nursing facility market is estimated to be valued at USD 380.11 Bn in 2024 and is expected to reach USD 688.86 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.9% from 2024 to 2031.

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The demand in the skilled nursing facility market is expected to grow due to the rising geriatric population worldwide. With the increasing lifespan and declining birth rates, the number of aging people is steadily growing. As elderly citizens generally struggle with disabilities, chronic conditions, and difficulties in daily living, they tend to seek specialized long-term care that can be offered by skilled nursing facilities. These facilities cater to such needs through trained medical professionals and therapy services. Thus, as the elderly population expands in size, there will be a growing need for nursing homes and skilled care centers to accommodate this demographics’ needs, driving the overall market growth in the coming years.

Rising geriatric population

The growing senior population is a key driver for the skilled nursing facility market. As life expectancy continues to rise across the world, the number of elderly citizens requiring long-term care is increasing substantially. According to the World Population Prospects 2022, The population above the age of 65 is expanding faster than the population under that age. This means that the proportion of the global population aged 65 and more is predicted to climb from 10% in 2022 to 16% by 2050. It is anticipated that by 2050, the global population of people aged 65 and more will be double that of children under the age of five, and nearly equal to that of children under the age of 12. This rise in the elderly cohort will translate to greater demand for nursing home and assisted living services. As people grow older, they often suffer from chronic illnesses or mobility issues that make it difficult for them to live independently. Many may require full-time assistance or supervision with daily activities like bathing, dressing, taking medication, and preparing meals. Skilled nursing facilities can provide the important healthcare and personal care services needed by seniors who can no longer manage on their own at home. This need will only intensify as the population ages rapidly over the coming decades.

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Another key factor influencing the skilled nursing facility market is the continuous rise in healthcare costs. Medical inflation has been outpacing general consumer price inflation in most countries for many years now. This trend is putting immense financial pressure not only on governments and private payers but also on individuals and families. The costs of home healthcare services can be quite substantial with round-the-clock private caregivers or periodic visits from nurses and physical therapists. For those lacking adequate family support or financial means, nursing homes have become a more affordable long-term care option. These facilities allow for professional medical supervision and administration of treatment at a fixed monthly rate that is significantly less than paying for home health services. This has made them an attractive solution especially for people needing post-hospital convalescence or palliative care towards the end of their lives. With healthcare expenditures projected to grow substantially in the coming years, nursing facilities will play an important role in providing cost-effective long-term care solutions for the growing senior population. Their ability to offer comprehensive services at an inclusive monthly fee makes them a financially viable option for both patients and their families dealing with rising medical costs.