LONG TERM CARE MARKET ANALYSIS

The global long term care market was valued at US$ 1,114.3 Bn in 2022 and is forecast to reach a value of US$ 1,607.83 Bn by 2030 at a CAGR of 4.7% between 2023 and 2030. The global long term care market is experiencing strong growth due to the growing burden of chronic diseases and growing geriatric (aging) population across the world. Moreover, increasing demand for long term care and increasing adoption of home healthcare is expected to boost the market growth. However, factors such as stringent rules and regulations and lack of skilled human resources are expected to hamper growth of the global long term care market.

Global Long Term Care Market: Regional Insights

Based on geography, the global long term care market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market during the forecast period due to the increasing prevalence of chronic disease, growing prevalence of target diseases, growing geriatric population, and rise in demand for long term care. For instance, according to the U.S. Department of Health and Human Services (HHS), more than 69% of the U.S. population is expected to use long-term care services in their lives for an average of about three years. Demand for long-term care (LTC) has increased due to the recognition of unmet needs of the elderly, which are not met by hospital systems.

Europe and Asia Pacific are also expected to witness significant growth in the global long term care market owing to the rise in burden of chronic disease, increasing prevalence of target diseases, rise in demand for long term care, and growing geriatric population in these regions. For instance, the demand for long-term care has increased due to the recognition of unmet needs of the elderly, which are not met by hospital systems. India’s elderly population (aged 60 and above) is projected to touch 194 million in 2031 from 138 million in 2021, a 41% increase over a decade, according to the National Statistical Office (NSO)’s Elderly in India 2021 report.

Figure 1. Global Long Term Care Market Share (%), by Region, 2023

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Global Long Term Care Market Drivers:

Growing burden of chronic diseases to propel market growth

One of the key factors expected to augment the growth of the global long term care market during the forecast period is the rise in burden of chronic diseases across the world. Long-term care (LTC) helps meet both the medical and non-medical needs of people with a chronic diseases or disability who cannot care for themselves for long periods. According to the U.S. Centers for Disease Control and Prevention (CDC), chronic diseases, such as heart disease, cancer, and diabetes, are the leading causes of death and disability in the U.S. Chronic illness and long-term care covers conditions like cardiovascular diseases, metabolic disorders, mental health, and terminal illness.

Growing geriatric population to drive market growth

Another factor which is driving growth of the global long term care market is the growing geriatric population or rise in focus on geriatric care. For instance, demand for long-term care has increased due to recognition of unmet needs of the elderly, which are not met by hospital systems. According to the World Health Organization (WHO), 1 in 6 people in the world will be aged 60 years or over by 2030, and the world’s population of people aged 60 years and older will double (2.1 billion) by 2050. Moreover, the number of persons aged 80 years or older is expected to triple between 2020 and 2050 to reach around 426 million.

Global Long Term Care Market Opportunities:

Growing demand for long term care is expected to offer lucrative growth opportunities for players in the global long term care market. For instance, aging population and the increasing prevalence of chronic conditions has increased demand for long-term care services, including assistance with the activities of daily life. Individuals often need long-term care when they have a serious, ongoing health condition or disability. According to the American Action Forum, the number of Americans needing long-term care is expected to nearly double by 2030, reaching 24 million individuals. This in turn is driving the growth of the long term care market.

Increasing adoption of home healthcare is expected to provide significant growth opportunities for players in the long term care market. For instance, with the rise in preference for personalized care, the demand for home health services is also increasing with rapid pace. For instance, in November 2020, Baptist Health announced a joint venture with BAYADA Home Health Care to expand upon the services provided by Baptist Home Health for more than 25 years. The combined organization, Baptist Home Health Care by BAYADA, will have the capabilities to serve more patients at home, where they can recover and thrive best.

Global Long Term Care Market Trends:

Preference for nursing home/care is a recent trend

Nursing home offers most extensive care a person can get outside a hospital. A nursing home/care is a place where elderly or disabled people can receive residential care. Several nursing homes are increasingly taking a more holistic approach to the long-term care. Thus, with the growing geriatric population and increasing number of nursing care facilities, the preference for nursing care is also increasing. This trend is expected to continue during the forecast period, driving the growth of the global long term care market.

Preference for home-based long-term care is another trend

Home-based long term care services are provided to older persons and persons with disabilities in their own homes and communities as an alternative to institutional (or nursing home) care. Home-based long-term care includes health, personal, and support services to help people stay at home and live as independently as possible. Long-term care is provided either in the home or at a family member's home. This trend is also expected to continue over the forecast period, driving the growth of the global long term care market.

Global Long Term Care Market Restraints:

Stringent rules and regulations to hinder market growth

One of the key factors expected to hinder growth of the global long term care market is the stringent rules and regulations. Stringent government regulations by the U.S. government to start and expand long-term care facilities are likely to put pressure on both the established & new entrants. Various federal and state laws regulate nursing homes and assisted living facilities. For instance, according to the Nursing Home Reform Act, a facility must provide services and activities to maintain highest level of practicable mental, physical, and psychosocial well-being of every resident.

Lack of skilled resources to hamper market growth

Another factor which is hampering the growth of the long term care market is the lack of skilled human resources. Lack of skilled human resources is the key barrier. Demand for nursing services is growing continuously due to growing incidence of chronic diseases and geriatric population. 24-hours nursing assistance is mandatory in long-term care facility. However, the U.S. is experiencing shortage of nurses. According to the data published by Health Affairs, the shortage of nursing staff is likely to continue in the U.S. and is expected to grow to 260,000 registered nurses by 2025.

Figure 2. Global Long Term Care Market Share (%), by Services, 2023

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Global Long Term Care Market Segmentation:

The global long term care market report is segmented into Services and Region.

Based on Services, the market is segmented into Home Healthcare, Hospice, Nursing Care, Assisted Living Facilities, and Others. Out of which, Home Healthcare Segment is expected to dominate the long term care market during the forecast period and this is attributed to the increase in adoption of home healthcare services.

Nursing Care Segment is also expected to witness significant growth in the near future and this is owing to the rise in preference for nursing home/care.

Global Long Term Care Market: Key Developments

In March 2023, The Florida Health Care Association (FHCA) launched Long Term Care Quality Dashboard, a helpful resource reflecting association’s commitment to accurately and transparently sharing data about the quality care being delivered in Florida’s nursing centres.

In February 2023, Sound Physicians launched Sound Long-Term Care Management (SLTCM), a group's first accountable care organization (ACO). SLTCM is a Medicare Shared Savings Program (MSSP) Enhanced Track ACO and will concentrate on caring for Medicare beneficiaries who are residents of long-term care facilities; one of the most underserved populations in the U.S.

In October 2022, PointClickCare Technologies announced the launch of its Virtual Health offering - an integrated telemedicine solution for long-term and post-acute care providers.

In September 2022, RedSail Technologies launched and implemented Axys by Integra, an all-new cloud-based pharmacy management system created for long-term care.

Global Long Term Care Market: Key Companies Insights

The global long term care market is highly competitive. This is attributed to the growing burden of chronic disease and growing geriatric population, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the global long term care market are Brookdale Senior Living Inc., Sunrise Senior Living, LLC, Kindred Healthcare, LLC, Genesis Healthcare, Home Instead, Inc., Senior Care Center, Capital Senior Living Corporation, and Diversicare Healthcare Services, Inc. among others.

*Definition: Long-term care involves a variety of services designed to meet a person's health or personal care needs during short/long period of time. Long-term care is focused on individualized and coordinated services that promote independence, maximize patients' quality of life, and meet patients' needs over a period of time.