HOSPICE SERVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Hospice Services Market Size and Trends

Global hospice services market is estimated to be valued at USD 4.40 Bn in 2024 and is expected to reach USD 8.11 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 9.1% from 2024 to 2031.

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Global hospice services industry can witness significant growth, owing to rising geriatric population globally that is more prone to chronic and life-threatening diseases. Various government initiatives like Palliative Care Improvement Act in U.S. aimed at increasing the availability of palliative care and reducing pressure on healthcare systems also contributes to the growth of hospice services market during the forecast period.

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Insights, By Service Type - Caregiver Demand Drives Nursing Services Segment

In terms of service type, nursing services segment is estimated to contribute the highest market share of 42.1% in 2024, owing to growing demand for caregivers to serve terminally ill patients. Nursing services provide core medical care functions like medication administration, wound dressing, monitoring vitals, and other day-to-day needs for patients. As families prefer keeping loved ones at home during end-of-life care, the requirements for round-the-clock nursing supervision have increased tremendously.

Insights, By Application - Cancer Emphasis Drives Oncology Care

In terms of application, cancer care segment is estimated to contribute the highest market share of 32.2% in 2024, owing to priority given to oncology within the hospice framework. Most hospice programs dedicate special resources and expertise towards the care of cancer patients. This is because cancer is one of the top causes of death worldwide, and palliative requirements are better understood for terminal oncology cases than other conditions.

Insights, By End User - Convenience of Home Settings Dominate

In terms of end user, home settings segment is estimated to contribute the highest market share of 27.12% in 2024, owing to the convenience and affordability of receiving hospice care at home for patients and families. Staying in a familiar environment reduces distress for the terminally ill. It also allows stronger social support systems to form around the patient. From a financial perspective, home hospice is significantly cheaper than facility-based options for both patients and payers.

Regional Insights

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Dominating Region- North America

North America is expected to dominate the hospice services market with an estimated market share of 36.2% in 2024, as large hospice providers making sizable investments are expanding access to palliative care as well as growing preference among patients for such care. In particular, the U.S. leads the region with the most sophisticated services and wide coverage through both private insurers and public programs like Medicare and Medicaid.

Fastest-Growing Region- Asia Pacific

Asia Pacific region exhibits the fastest growth, supported by rising health expenditures, growing focus on chronic disease management and palliative care among governments, increasing patient awareness, and expansion of services by global players into emerging countries.

Hospice Services Market Outlook for Key Countries

U.S.- Dominant Market with High Demand for Palliative Care

The U.S. hospice services industry growth is driven by aging population and increasing acceptance of hospice care. In December 2022, according to the National Hospice and Palliative Care Organization, over 1.5 million patients received hospice care in 2022, reflecting a growing trend towards end-of-life care options. The market is projected to continue expanding due to increasing prevalence of chronic illnesses and the shift towards patient-centered care.

Canada- Growing Acceptance of Hospice Services

Canada's hospice services industry is expanding, with a reported 20% increase in hospice admissions from 2021 to 2022. According to the Canadian Institute for Health Information (CIHI) in April 2023, there is a growing recognition of the benefits of hospice care among Canadians. The Canadian government is actively promoting palliative care services, which is increasing both accessibility and awareness across the population. This trend is expected to continue as more Canadians become informed about and take advantage of hospice care options.

Japan- Technologically Advanced Market with Aging Population

Japan's hospice services are gaining traction, particularly among the elderly. As per the Ministry of Health, Labour and Welfare in December 2023, hospice care utilization has increased by 15% due to rising awareness and advancements in care technologies. The country’s focus on integrating technology into healthcare help to improve the quality and accessibility of hospice services.

China- Rapid Growth Driven by Urbanization and Healthcare Investments

China's hospice services market is rapidly developing, with a 30% increase in hospice care facilities reported in December 2023 by the National Health Commission. This significant growth reflects the Chinese government's substantial investments in healthcare infrastructure, which are aimed at improving access to palliative care and supporting the expansion of hospice services, particularly in urban areas. The focus on enhancing healthcare services is part of a broader strategy to address the needs of an aging population and to provide better end-of-life care options for citizens.

India- Emerging Market with High Medical Tourism Potential

India is becoming a hub for hospice services, particularly for international patients seeking affordable care. As per the report from the Indian Journal of Medical Research in August 2023, there has been 25% increase in hospice admissions due to rising healthcare awareness and improved service quality. The country’s growing reputation for medical tourism is also contributing to the expansion of hospice services.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Global Hospice Services Market Players

• Established Players- Global hospice services industry leaders focus extensively on research and development to deliver innovative products and services. Companies like Amedisys and Kindred Healthcare spend over 5% of their annual revenues on R&D. This helps them develop advanced healthcare technologies to improve patient care and clinical outcomes.
• Mid-Level Players- Mid-sized hospice services companies cater to price-sensitive customers through affordable solutions. These spend around 2-3% on R&D to introduce low-cost products without compromising on quality. For instance, VITAS Healthcare partners with community hospitals to provide multidisciplinary care to underprivileged patients.
• Small-Scale Players- Emerging hospice services providers focus on niche areas often overlooked by major players. Some target specific diseases or patient demographics through specialized programs. Companies like CareMore Health focuses on providing hospice and palliative care & Agape Care Group leverage latest technologies like telehealth and remote patient monitoring to penetrate niche markets.

Emerging Startups in the Global Hospice Services Market

Innovative Technologies- Various startups are creating advanced solutions to transform end-of-life care delivery. Companies like K4Connect and Anthropic build AI-powered tools to provide virtual support to hospice nurses and caregivers. Such technologies can help address staff shortages while improving health outcomes. These have the potential to significantly influence market trends.

Sustainable Solutions- Some startups offer eco-friendly alternatives. Cadence Cares manufactures compostable personal care products from plant-based materials. Beyond Carbon focuses on developing renewable energy sources and recycled equipment for hospices. Their efforts can help reduce the industry's carbon footprint in the near future. These emerging companies also collaborate with NGOs on sustainability initiatives.

Market Contribution- The Comfort Project, a startup, focuses on hospice care for veterans. In June 2023, they introduced a veteran-specific program in collaboration with local veterans' organizations. The initiative offers specialized end-of-life care that addresses both the medical and psychological needs of veterans, a segment often overlooked by larger hospice providers.

Hospice Services Industry News

• In September 2024, Agape Care Group, a hospice, palliative, and pediatric care provider, acquired Crossroads Hospice locations in Oklahoma, Missouri, Kansas, and Georgia, marking its expansion into new markets. The acquired locations will operate under the ACG Hospice and Georgia Hospice Care brands.
• In September 2024, Agape Care Group,leading hospice care provider has acquired Crossroads Hospice locations in Oklahoma, Missouri in U.S State while Crossroads will remain in Tennessee, Ohio, and Pennsylvania, U.S S The acquisition supports Agape Care's expansion into these new markets.
• In September 2024, BrightSpring Health Services, a health care services company, acquired Haven Hospice, extending its hospice care into 18 north central Florida counties. The US$ 60 million deal includes cash, equity, and a seller note. CEO Jon Rousseau emphasized the company's commitment to delivering high-quality, compassionate care to Floridians, aligning with BrightSpring's top industry ratings. The acquisition enables expanded advance care planning, palliative, and hospice services in key Florida regions.
• In October 2022, Bai Jerbai Wadia Hospital for Children, in partnership with the Cipla Foundation, introduced "Titli," a pediatric palliative home care service. This initiative offers comprehensive support to children with severe health conditions, focusing on pain and symptom management, emotional care, and practical guidance.
• In February 2023, Pallium India, an NGO in Kerala, India has joined forces with Athulya Senior Care to launch palliative care services in South India.

Key Takeaways from Analyst

• Global hospice services industry can witness significant growth over the forecast period due to growing geriatric population worldwide who are more prone to terminal illnesses. This can boost demand for palliative and end-of-life care services. Another factor driving the market growth includes increasing preference for hospice care over hospital stays due to better comfort and peace of mind offered to patients.
• Lack of awareness about hospice care and palliative care services in some developing nations may pose challenge to the market growth. Significant shortage of palliative care workforce and inadequate reimbursement policies for hospice services also act as barriers.
• The market is likely to benefit from rising government initiatives and funding to promote hospice care infrastructure. Increasing charitable activities by NGOs and religious groups to provide hospice services freely or at affordable costs can also create new opportunities. North America currently dominates the market but the Asia Pacific region will emerge as the fastest growing regional market due to increasing acceptability of hospice care in China and India.

Market Report Scope

Market Dynamics

Market Driver- Increasing aging population and prevalence of chronic diseases

The global rise in life expectancy is leading to an increasing population aged 65 and above, projected to reach 16% by 2050. Aging is associated with a higher prevalence of chronic diseases such as cancer, cardiovascular conditions, and diabetes, requiring long-term management and palliative care. According to the WHO, by 2050, 22% of the population will be aged 60 or older, with 80% residing in low- and middle-income countries. Aging brings biological changes and increased risks of conditions like diabetes, dementia, and geriatric syndromes.

Market Challenge- Funding challenges and reimbursement issues

Global hospice services industry faces significant funding challenges and reimbursement issues. The costs associated with providing quality end-of-life care are substantial as it requires the maintenance of a multidisciplinary team to address the various medical, psychological and spiritual needs of patients. However, governments and insurers often reimburse hospice care at rates much lower than the actual costs incurred by providers. This reimbursement gap poses severe financial constraints on hospice organizations and limits their ability to expand services and add new facilities.

Market Opportunity- Technological advancements in telehealth and patient management

Global hospice services market has a massive opportunity arising from technological advancements in telehealth and remote patient monitoring solutions. Increasing adoption of telemedicine technologies enables round-the-clock care coordination and support without necessity of in-person visits. For Instance, according to American College of Physicians, In February 2020, Telehealth improves access to palliative care for rural patients, where only 17% of hospitals with 50 or more beds offer such programs, compared to 90% in urban areas. By enabling remote consultations and monitoring, telehealth helps bridge the care gap, ensuring essential services reach underserved populations.

Key Stakeholders of Market

What growth in global hospice services market mean for different stakeholders?

Hospice services market has multiple players with varied designations and offers multiple opportunities based on their scope of operations.

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Market Segmentation

• By Service Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Nursing Services
  • Medical Services
  • Counselling Services
  • Short-Term Inpatient Services
  • Physician Services
• By Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Cancer Care
  • Heart Disease Care
  • Neurological Disorders Care
  • Other Chronic Illnesses
• By End User Insights (Revenue, USD Bn, 2019 - 2031)
• • Home Settings
  • Hospitals
  • Specialty Nursing Homes
  • Hospice Care Centers
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • VITAS Healthcare
  • Amedisys
  • Kindred Healthcare
  • LHC Group
  • Brookdale Senior Living Solutions
  • AccentCare
  • Curo Health Services
  • Seasons Hospice & Palliative Care
  • Compassus
  • Providence Health & Services
  • AseraCare Hospice
  • Hospice of the Valley
  • CHEMED Corporation
  • TIDEWELL HOSPICE
  • Senior Care Health Rehabilitation