LONG-TERM CARE SOFTWARE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)
The global long-term care software market is estimated to be valued at USD 5.40 Bn in 2024 and is expected to reach USD 9.01 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.6% from 2024 to 2031.
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Long-term care software helps streamline operations, improve patient and staff experiences, ensure compliance, and reduce costs for long-term care facilities like nursing homes, assisted living, and home healthcare. The growing aging population globally is increasing the demand for long-term care services which drives the need for such software among long-term care providers to better manage their operations and deliver quality care.
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Insights By Product - Ease of management of clinical and non-clinical data drives EHR adoption
In terms of product, Electronic Health Records (EHR) segment is expected to contribute the highest market share of 25.5% in 2024 owing to the need for easy and effective management of patient clinical and administrative data. EHR solutions allow healthcare providers to maintain digital medical records instead of relying on paper files. This offers various benefits such as easy storage and retrieval of records, integration of patient data from different sources, reduced risks of record loss, and facilitation of data sharing among caregivers while maintaining privacy and security.
Insights By Mode of Delivery - Flexible deployment and scalability aid cloud-based segment dominance
In terms of mode of delivery, cloud-based segment is expected to contribute the highest market share of 41.2% in 2024 owing to the flexibility and scalability it provides. Cloud software vendors take care of infrastructure maintenance, patching, upgrades, and storage expansion requirements. This removes the need for long-term care facilities to make large up-front investments in servers and IT support staff.
Insights By End User - Emphasis on home-based care boosts adoption among home healthcare agencies
In terms of end user, home healthcare agencies segment is expected to contribute the highest share of the market with 34.12% in 2024 due to the increasing focus on home-based long-term care. Ageing population and rising preference for aging-in-place are compelling governments worldwide to prioritize community-based services. Software solutions enable effective remote patient monitoring and management of home health workers. They offer seamless communication among caregivers, physicians, and insurance providers.
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Dominating Region: North America
North America dominates the global long-term care software market with an estimated share of 39.2% in 2024. This can be attributed to factors such as a well-established healthcare ecosystem, supportive government policies for digital transformation in healthcare, and presence of major players. The region houses some of the largest long-term care software vendors who have transitioned the market through continuous innovation.
Fastest-Growing Region: Asia Pacific
The Asia Pacific region exhibits the fastest growth on the back of rapidly evolving healthcare infrastructure, growing medical tourism, and focus toward improving access and quality of long-term care. Countries like India and China are witnessing increased adoption of digital technologies to enhance patient experiences and operations of long-term care facilities.
Long-term Care Software Market Outlook for Key Countries
Advanced Software Solutions Addressing Alzheimer's Care Needs in the U.S.
The U.S. led the North America long-term care software industry, driven by the growing elderly population and rising prevalence of chronic conditions. The Alzheimer's Association's 2023 report indicates that over 33% of individuals aged 85 and above, approximately 13% of those aged 75 to 84, and more than 5% of people aged 65 to 74 in the U.S. have Alzheimer's dementia. Additionally, from 2000 to 2019, Alzheimer's disease death rates in these age groups increased by 145%. This surge underscores the need for advanced long-term care software to manage and personalize care for Alzheimer's patients effectively.
Government Initiatives Drive the Adoption of Long-Term Care Software in the U.K.
The U.K.'s long-term care software market is poised for substantial growth, propelled by an aging population and a surge in chronic health conditions, which heighten the demand for efficient healthcare services. This trend highlights the necessity for robust, scalable solutions to streamline operations and enhance care delivery in long-term care facilities. Government initiatives, such as the June 2022 publication of "A Plan for Digital Health and Social Care," are instrumental in promoting the digitization of health records and the integration of care models, thereby advancing the adoption of sophisticated software solutions.
Technological Integration Enhances Long-Term Care Services in Japan
Japan long-term care software market grew significantly due to rapid technological adoption and the rising popularity of at-home care and monitoring services. In June 2024, the Ministry of Health, Labour and Welfare (MHLW) and the Ministry of Economy, Trade and Industry (METI) updated their guidelines, now titled "Priority Fields in the Use of Technologies for Long-term Care," aiming to enhance care quality, reduce caregiver burden, and support elderly self-reliance through innovations like robotics and ICT. Additionally, increased partnerships among major cross-industry players have accelerated the adoption of advanced technologies in Japan's healthcare sector, particularly in long-term care.
eHealth Strategies in South Africa
The South Africa long-term care software market is projected to experience significant growth, driven by increased adoption of information technology in healthcare. The nation's eHealth strategy aims to enhance the efficiency and effectiveness of the national health information system through a patient-centric approach, thereby accelerating the deployment of long-term care solutions. In October 2024, according to data published by Medium Term Budget Policy Statement (MTBPS), the South African government announced a budget of USD Bn 127.60 billion for the 2024-2025 financial year, allocating USD Bn 15.29 billion to health. This strategic focus is expected to significantly propel the market growth.
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Top Strategies Followed by Global Long-term Care Software Market Players
Emerging Startups in the Global Long-term Care Software Market
Several startups are developing innovative AI and smart sensor based technologies promising to significantly impact the long-term care software market. Anthropic focuses on applying generative models to generate synthetic healthcare data and train AI models. This improves data diversity and helps resolve privacy issues.
Sustainability is a priority for some startups. Caregile's modular IoT sensors can be easily attached and removed from assets to facilitate repair and reuse. When sensors reach end-of-life, they are professionally recycled. Emocha Health aims to sustainably address mental healthcare needs using a mobile app and virtual therapeutic interactions.
Several startups contribute by addressing specific market niches. For instance, Roamment focuses exclusively on developing apps and sensors to manage wandering behaviors in dementia patients. Medicine-on-Time designs pillboxes and medication dispensers tailored for seniors with cognitive impairments.
o In May 2024, MatrixCare (ResMed Inc.), a global leader in post-acute healthcare technology, partnered with NHS Management, LLC, a provider of administrative and consulting services for skilled nursing and rehabilitative facilities in the Southeast U.S. This partnership aims to enhance out-of-hospital healthcare solutions through MatrixCare’s innovative technology.
o In March 2024, MatrixCare (ResMed Inc.) announced the integration of HEALTHCARE first’s revenue cycle management, coding, and clinical documentation review services into its software suite, further strengthening its post-acute care offerings
o On January 2024, Aline, a senior living software provider, acquired VITALS SOFTWARE, a leading provider of senior living software, expanding enterprise-scale solutions for VITALS’ customers while continuing support for their existing platform
o In March 2023, Sapiens International Corporation, a global software company specializing in digital solutions for insurance and financial services, collaborated with EquiTrust, a North American life and health insurance provider, to launch a digital customer acquisition solution for the Bridge Annuity/Long-Term Care hybrid product
o In February 2022, Creative Solutions in Healthcare (CSNHC), a U.S based operator of skilled nursing facilities, introduced the Connected Care Center platform, increasing transparency across its 92 facilities.
Key Takeaways from Analyst
Long-term Care Software Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 5.40 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 7.6% | 2031 Value Projection: | US$ 9.01 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Abbott, Medtronic, Getinge AB, Abiomed, Terumo Corporation, Boston Scientific, F. Hoffmann-La Roche Ltd, Bayer AG, Viatris Inc., Par Pharmaceutical, AstraZeneca, Zoll Medical Corporation, Xenios AG (part of Fresenius Medical Care), Windtree Therapeutics, and Chiesi Farmaceutici S.p.A. |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Driver - Increasing aging population
The global aging population is rising at an unprecedented rate. Longer life expectancy along with declining fertility rates has resulted in more adults living longer and comprising a greater share of total population around the world. According to WHO estimates, in October 2024, the number of people aged 65 years and above is projected to increase from 524 million in 2010 to nearly 1.5 billion in 2050. This demographic shift poses profound social and economic challenges for families and governments. As the elderly population grows, so does the need for long-term care.
Market Challenge - High implementation costs
One of the key challenges faced by the global long-term care software market is the high implementation costs associated with these solutions. Transitioning from traditional paper-based systems to advanced digital solutions requires significant capital investments. Organizations need to purchase new software/platforms, hardware infrastructure to support the solution, network setup costs, additional IT support costs, etc. This puts a strain on the budgets of nursing homes and assisted living facilities, especially small and medium sized operations.
Market Opportunity - Advancements in Artificial Intelligence and Machine Learning
There is a significant opportunity for the long-term care software market through leveraging advancements in artificial intelligence and machine learning technologies. AI/ML algorithms can help enhance various functionalities of these solutions. For instance, health record management can be streamlined using predictive analytics that recognize patterns to alert staff about red flags. Likewise, AI virtual assistants using natural language processing can support remote patient monitoring and addressing user queries.
What does Growth in the Long-term Care Software Industry mean for Different Stakeholders?
The long-term care software industry has multiple players with varied designations and offers multiple opportunities based on their scope of operations.
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Key Medical Devices Stakeholder
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Opportunities Due to Long-term Care Software Industry Growth |
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Retail Pharmacies |
Offering medical devices for home use, such as blood glucose monitors and digital thermometers, expanding product offerings and customer care services. |
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Medical Device Manufacturers |
Expansion of product lines to include innovative devices such as wearables, smart implants, and AI-driven diagnostic tools. |
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Healthcare Providers |
Opportunities to adopt and integrate cutting-edge medical devices into patient care, improving outcomes and expanding service offerings. |
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Biotech Firms |
Collaborating on the development of combination products, such as drug-device combinations, offering new treatment options and expanding markets. |
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Regulatory Affairs Specialists |
Growing demand for expertise in navigating the complex regulatory landscape for medical device approvals, ensuring compliance with global standards. |
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Supply Chain and Logistics Providers |
Managing the distribution of sensitive and high-value medical devices, including ensuring compliance with medical regulations and standards. |
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Medical Device Consultants |
Providing strategic guidance on product development, regulatory compliance, and market entry for medical device companies. |
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Healthcare Training Institutions |
Expanding training programs to include the use of advanced medical devices, preparing healthcare professionals for the latest technological advancements. |
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About Author
Manisha Vibhute is a consultant with over 5 years of experience in market research and consulting. With a strong understanding of market dynamics, Manisha assists clients in developing effective market access strategies. She helps medical device companies navigate pricing, reimbursement, and regulatory pathways to ensure successful product launches.
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